For every company, doesn’t matter what industry we’re talking about, time is of huge essence. That’s particularly the case with the freight forward businesses. If they want to properly handle numerous hurdles that may potentially arise, they need to have a first-class supply chain visibility.

One of the best things that they can utilize for these purposes is a container tracking system which provides you with crucial information when necessary. It doesn’t only keep track of every shipment that goes internationally, but it also tracks inventory and precise shipping times.

In a nutshell, having this type of software can hugely benefit any firm of this kind. If you work in the shipping industry, yet you’re not familiar with it, then stay tuned, because today, you’ll learn how useful it really is.

What Can Be Said About This System?

Before we dive further into its advantages, let’s get familiar with the basics of it. So what needs to be said about container tracking technology and its purpose? Namely, it provides real-time information on containers by utilizing a mixture of an IoT (Internet of Things) system employing satellites, back-end software, and sensors.

Furthermore, this tool offers visibility to various parties, enabling them to take the right steps whenever that’s required. Using sensors that are embedded in containers that send their locations via satellites, enables users to easily gain access to this information by relying on a back-end system.

With real-time data that is received, a freight forwarding company can let their customers know everything that’s related to the delivery times. With the assistance of the container tracking system, companies can address any problems promptly, like damage, different shipment delays, loss of cargo, etc.

Now, that you know the main purpose of this software, it’s time to dive deeper into the numerous benefits it offers.

Improved Security & Risk Management

When shipping companies receive numerous alerts concerning the shipment, they can rest assured that their cargo hasn’t been stolen or damaged in any way. On the other hand, if something like this occurs, they can do what’s necessary to alleviate these problems.

The information that’s collected by the container tracking can be evaluated in order to enhance the protocols of the company through the implementation of various preventative measures:

• Avoiding certain stop regions during transport by truck from or to the port terminal
• Make sure that the terminal comes with the ISO 28000 Supply Chain Security Management System certification 
• Ensuring that the containers are loaded door-to-door onboard the vessel to prevent access

The element that’s going to say that there’s been a break-in is usually the seal. As soon as the stuffing has been done, a security bolt that comes with the ISO 17712 must be fitted. These sorts of situations can happen if the container is on the terminal for a very long period of time. 

Those who utilize container tracking can make different arrangements and execute specific tasks if they notice that it is diverted from its course and is in a situation that may jeopardize its safety and shipment too.

It Prevents Theft As Well

One of the biggest reasons why so many businesses worldwide rely on this software is because it is capable of preventing cargo theft. Unfortunately, cargo theft during transit isn’t that uncommon and presents one of the biggest issues for companies that are working in logistics.

However, with the help of container tracking, they are able to receive real-time visibility into the location of their shipping containers during every stage of the supply chain process. By continuously supervising the container’s movements, companies can easily spot any unauthorized containers leaving the facility.

Something like this allows them to respond quickly and effectively if, by any chance, a theft, or any other suspicious activity occurred. In these instances, they’ll almost immediately contact law enforcement, to try to boost the chances of bringing back the stolen cargo.

Additionally, the container tracking system comes with a feature that’s called geofencing, which enables firms to set virtual boundaries for the containers. If their container goes outside these defined regions without permission, then the alarm is turned on instantly.

The tracking of the containers usually prevents thieves from stealing the goods, and, concurrently, alleviates the recovery process of the goods that are already being stolen to prevent further delays.

It’s Time-Efficient 

One of the greatest virtues of container tracking software is the fact that it’s user-friendly and can easily be employed and accessed by workers. This tool should be capable of consolidating data from different ports (the more the better), enabling operations to save time in comparison to accessing the website of every single port individually which can oftentimes be very time-consuming. 

Moreover, a top-quality container tracking system is supposed to come with a function that notifies customers of shipment progress, like potential delays, arrivals, and many other useful information which can be very beneficial when it comes to monitoring containers all across the globe.

Decreased Expenses

By tracking containers in real-time, detention, demurrage, and port storage charges are drastically lowered. In some instances, (when a set time period is exceeded) these penalties are issued.

As far as demurrage fees are concerned, they need to be paid by consignees or shippers when a container stays too long at a port terminal. That’s how port congestion happens. A ship can come too late or too early which can negatively impact the entire organization.

The impact is similar when a container stays for too long. The amount of demurrage can vary, depending on the country, and is fixed on a regular basis. On the flip side, detention occurs when a container is not on the terminal and doesn’t come back on time. 

Both detention and demurrage fees must be paid to the shipping line due to the fact that it’s the owner of the container. 

Anyone who has ever worked in the supply chain industry is going to agree with the fact that a container tracking system is pivotal when it’s time to manage various shipping processes. That’s why, if you haven’t used it before, now, may be a good time to consider this option.

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