transforming container and intermodal … container and intermodal operations with m2m/iot...
TRANSCRIPT
TRANSFORMING CONTAINER AND INTERMODAL OPERATIONS WITH M2M/IOT CONNECTIVITY
Container Owners Association (COA) | Rotterdam, NetherlandsNovember 14, 2016
FORGET TRUMP….
108 YEARS..
The system will need to monitor 30,000
reefer containers
AND IRELAND BEATS ALL BLACKS
TODAY’S DISCUSSION
State of the industry
Current technology
Adoption to date
Trends for the next 5 years
5 things to consider now
IOT AND THE CONTAINER SUPPLY CHAIN TODAY
“Dumb, dark and disconnected” cargo and assets
Little real time visibility and control over cargo and assets are the rule
No meaningful “hard” data for more real time operations
Increasing business complexity
Regulatory, security and other issues increase the complexity of cargo and asset management
Operational issues such as trans-shipment resulting in longer transit times/more hand-offs
Alliances/VSAs are resulting in higher cargo and asset operational complexity and risk – 25 carriers and their shipper clients exposed to Hanjin collapse
Slow rate of industry technology adoption
BCO adoption has been consistent but data is mostly defacto...data-loggers
Shipping lines slow to adopt telemetry technology or at minimum share data when available – Maersk is a leader
Tough ROI is the rule…and fleet sizes inhibit adoption
THE ROLE OF M2M/IOT
Smart cargo and assets equipped with wireless M2M/IoT technology report on asset location, condition and other data to cloud or private networks for real-time visibility by contaioner supply-chain stakeholders
IOT SOLUTION STACK
Network managementConnectivity management for wide and local area networks
DeviceCloudDevice management for supported devices
Vendor host applicationsApplication platforms for business operations
Purpose-built M2M/IoT SaaS appFor solving a specific business requirement
API
Unparsed data
Parsed device data
BI tools, ERP systems, 3rd party SaaS applications
DevicesSatellite, cellular, RFID, Bluetooth enabled hardware
End users
VISIBLE, SMART, CONNECTED
“Maersk Line has over the past years equipped more than 270,000 refrigerated containers or ‘reefers’ with Remote Container Management (RCM). This technology allows us to track in real time the exact position of the container, its temperature and humidity and potential off service. We went live operationally in Q3 2015 but are already seeing potential for the wealth of data available. RCM enables greater visibility over cargo, and more importantly, a significant reduction in damaged cargo.”
Vincent Clerc, Chief Commercial Officer, Maersk Line
M2M/IOT IS GOOD FOR ALL STAKEHOLDERS
Shipping lines want M2M/IoT data for greater operational control/maintenance and repair data
BCOs want box location and cargo temperature data
Lessors want box location and potentially impact data
OEMs want equipment performance/M&R data
Freight forwarders/logistics/ gov’t entities want box location, security status
Security
Visibility
Automation
Regulation
M2M/IOT IN THE CONTAINER SUPPLY CHAIN
SECURITY
Cargo theft
Illegal human transport
Terrorism
Drugs and weapons smuggling
Tax evasion
VISIBILITY
Asset availability and positioning
Congestion mitigation and traffic management
Advanced decision making
PROCESS AUTOMATION
Labor costs
Efficiency
Predictive M&R
Power consumption
Equipment handling
Safety
REGULATORY
CARB compliance for gensets
Chain of custody for pharmaceuticals
FSMA and EU require compliance for temperature controlled goods
C-TPAT compliance
Reefers – Approximately 300,000 of 1.5 M reefers
Dry – Approximately 30,000 of 12 M dry containers
Chassis – Limited adoption
Tanks – Approximately 5,000 of 400,000
REALITY OF M2M IN CONTAINER SUPPLY CHAIN
M2M/IOT TECHNOLOGY OPTIONS TODAY
BCOs now have GSM/satellite trip-based sensors and telemetry devices
Bluetooth Low Energy (BLE) is emerging quickly
Shipping lines will accelerate adoption of M2M permanentlyinstalled in assets
Devices in reefer and on genset
Vessel-based GSM with satellite backhaul of data
Container OEMs will offer fully-integrated solutions
A POSSIBLE FUTURE WORLD…
Dual-mode device attaches to door exterior
BLE temp sensors mounted throughout container or in cargo
BLE door and security strap
BLE sensor data captured by phone app, or transmitted via GSM/satellite
Device installed by shipping line
BLE antenna wired through container door and mounted on interior
CASE STUDY – REEFER MONITORING
The ChallengeThe world’s largest container shipping line, Maersk, wanted to significantly reduce costs and improve performance of reefer operations
The SolutionDeployment of 285,000 telemetry devices to all reefers in Maersk Line fleet
Establishment of global monitoring center
Business analytics tools to optimize operation
The ResultsReported cost savings in PTIs, realignment of manual monitoring contracts at terminals, reduced claims
Commercial launch announced for mid-2017, data to be shared with shippers
CASE STUDY – INTERMODAL
The ChallengeBeyond container tracking leading US intermodal carrier, Hub Group, wanted to accelerate asset turnover
The SolutionDeployment of 35,000 53ft intermodal containers with integrated cargo sensing
When empty, an automated call is made to retrieve the container
Truck dispatched to pick up
The ResultsHub Group significantly reduced container pick up time and moving asset turnover
“We can actually be a lot more proactive. It should help reduce container dwell times by at least a half a day.”
Dave Yeager, Chairman, CEO, Hub Group, Inc.
CASE STUDY – CARGO SECURITY
The ChallengeProvide continuous cargo security and accelerate border crossing time for automotive clients of Mexican-based freight forwarder
The SolutionElectronic seal applied to each load at factory to provide truck position and security status; data fed to EXL monitoring station
C-TPAT bolt and Green Lane program allows fast track entry to USA
The ResultsReduced transit time from 2.5 to 1 day
Eliminated transit fees resulting in 150K per year savings
Reduced claims to $0
5 TRENDS TO BE AWARE OF
1 iPhone versus Android
Shipping lines purchase containers and presumably technology from multiple vendors…we must assume a heterogeneous technology world
2 New technologies driven by the commercial and wider business market will constantly change the game and bring scale and reduced costs
• GSM and satellite costs are down
• BLE sensor technology is very low cost and a prevalent technology in smart phones already
3 The “Iron Throne” problem
M2M vendors want their technology to become the “industry standard” …this is both unrealistic and naïve and commercially not viable…reject it
4 New pricing models based on SaaS will make technology more affordable
5 A growing focus on middleware to resolve heterogeneous devices, networks and apps
MIDDLEWARE NIRVANA?
Device cloudmanagementmiddleware
Mobile phones
Temperatureand other sensors
GSM devices Passive and active RFID
Satellite devices
Device management
Network management
Business analytics Cloud-basedvendorapplications
Cloud-based BCO andshipping line applications
1. Business complexity is increasing pressure for technology. To gain “next mover” advantage firms should develop an M2M/IoT strategy.
2. Understand what is available, examine your technology options…new possibilities with BLE, satellite….and avoid proprietary technologies.
3. Build your ROI case but expect a change in business processes to drive it.
4. Understand how you will integrate and manage “big data”…do you have a middleware platform?
5. Create new operational processes to reflect benefits of technology and protect against market interruptions.
5 RECOMMENDATIONS FOR BUYERS
