Benefits of Using IoT Technology for shipping cargo

The shipping industry is constantly evolving, and with the rise of technology, it has become more efficient and streamlined. One of the most significant advancements in the shipping industry is the use of IoT (Internet of Things) technology. IoT technology has revolutionized the way cargo is tracked and managed, providing numerous benefits for shipping companies. In this article, we will explore the benefits of using IoT technology for shipping cargo and how it can improve the overall shipping process.

What is IoT Asset Tracking?

Before we dive into the benefits of using IoT technology for shipping cargo, let’s first understand what IoT asset tracking is. IoT asset tracking is the process of using sensors and GPS tracking devices to monitor and track the location and condition of assets in real-time. In the shipping industry, this means tracking cargo containers, trucks, and ships as they move from one location to another.

Improved Cargo Tracking and Visibility

Cargo tracking

 

One of the most significant benefits of using IoT technology for shipping cargo is improved tracking and visibility. With IoT asset tracking, shipping companies can monitor the location and condition of their cargo in real-time. This means they can track the exact location of their cargo at any given time, ensuring that it is on the right route and schedule.

IoT technology also allows for better visibility of the condition of the cargo. Sensors can monitor factors such as temperature, humidity, and shock, providing real-time updates to shipping companies. This information is crucial for perishable goods or sensitive cargo, as it ensures that they are being transported under the right conditions.

Increased Efficiency and Cost Savings

IoT technology can also improve the efficiency of the shipping process, resulting in cost savings for shipping companies. With real-time tracking and visibility, companies can optimize their routes and schedules, reducing the time and resources needed for transportation. This can also lead to a reduction in fuel costs and maintenance expenses for trucks and ships.

Additionally, IoT technology can help prevent theft and damage to cargo. With sensors and GPS tracking, companies can monitor if their cargo has been tampered with or if there has been any damage during transportation. This can save companies from costly losses and insurance claims.

Enhanced Customer Experience

Customer experience

 

With IoT technology, shipping companies can provide their customers with a better experience. Real-time tracking and visibility allow customers to know the exact location of their cargo, providing them with peace of mind and reducing the need for constant communication with the shipping company. This can also lead to improved customer satisfaction and loyalty.

How Does IoT Technology Work for Shipping Cargo?

Now that we understand the benefits of using IoT technology for shipping cargo let’s take a closer look at how it works. IoT technology for shipping cargo involves the use of sensors and GPS tracking devices that are attached to the cargo containers, trucks, and ships. These devices collect data such as location, temperature, humidity, and shock and transmit it to a central system.

The central system then processes this data and provides real-time updates to the shipping company. This allows for better tracking and visibility of the cargo, as well as the ability to monitor and adjust conditions during transportation.

Real-World Examples of IoT Technology in Shipping

Maersk Line

Maersk Line, one of the world’s largest shipping companies, has implemented IoT technology in their shipping process. They use sensors and GPS tracking devices to monitor the location and condition of their cargo containers. This has allowed them to optimize their routes and schedules, resulting in cost savings and improved efficiency.

CMA CGM

CMA CGM, a French shipping company, has also adopted IoT technology for their shipping process. They use sensors and GPS tracking devices to monitor the location and condition of their cargo containers, as well as the temperature and humidity of their refrigerated containers. This has allowed them to provide better service to their customers, as well as reduce costs and improve efficiency.

How Can Shipping Companies Implement IoT Technology?

Maersk cargo truck

 

Implementing IoT technology for shipping cargo may seem like a daunting task, but it can be done in a few simple steps.

Step 1: Identify the Needs and Goals

The first step in implementing IoT technology is to identify the needs and goals of the shipping company. This could include improving tracking and visibility, reducing costs, or enhancing the customer experience.

Step 2: Choose the Right Devices and Sensors

The next step is to choose the right devices and sensors for the specific needs and goals of the shipping company. This could include GPS tracking devices, temperature sensors, humidity sensors, and shock sensors.

Step 3: Integrate with Existing Systems

IoT technology should be integrated with existing systems such as the shipping company’s central system or CRM (Customer Relationship Management) system. This allows for seamless communication and data processing.

Step 4: Train Employees

It is essential to train employees on how to use and interpret the data collected by IoT technology. This will ensure that they can make informed decisions and use the technology effectively.

Who is Responsible for Implementing IoT Technology?

Implementing IoT technology for shipping cargo is a collaborative effort between different departments within a shipping company. This could include the IT department, logistics department, and operations department. It is crucial to have a dedicated team or individual responsible for overseeing the implementation and maintenance of IoT technology.

Takeaways

IoT technology has numerous benefits for shipping companies, including improved tracking and visibility, increased efficiency and cost savings, and enhanced customer experience. By implementing IoT technology, shipping companies can optimize their processes and provide better service to their customers. With the constant evolution of technology, it is essential for shipping companies to embrace IoT technology to stay competitive in the industry.