DCN October Edition 2019
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INDUSTRY OPINION<br />
Traxens’ role in the<br />
new digital strategy<br />
Peter Creeden runs the magnifying glass over developments<br />
in the world of digitalised shipping<br />
RECENT, SEPARATE ANNOUNCE-<br />
reefer units would need IoT devices. Given<br />
ments about investments in Traxens<br />
the basic math, the number of upgraded<br />
by major shipping lines and all joining<br />
reefers seems short. All reefer fleets should<br />
Tradelens not only mark a huge step<br />
have these smart devices. With critical and<br />
forward for the industry but also send<br />
high value commodities such as fish or<br />
a clear signal to the wider supply chain<br />
pharmaceuticals, the benefits of “remote”<br />
market that the shipping lines have a<br />
or proactive monitoring are not only<br />
strategy going forward. The steps taken<br />
prudent for cargo loss prevention but also a<br />
have shown a willingness by these<br />
cost savings initiative.<br />
companies to move towards a digital future<br />
but is it enough?<br />
COST SAVINGS<br />
In regard to cost savings, smart reefers<br />
MAERSK AND TRAXENS<br />
eliminate the need for long, manual pre-<br />
The decision by Maersk to invest in<br />
trip inspections. Some shipping lines are<br />
Traxens, a smart container company,<br />
pushing the limits and avoiding pre-trips<br />
brings together the top three carriers<br />
all together. These short-term strategies<br />
(MSK, MSC, CMA CGM) as equal<br />
have only increased the risk of failures and<br />
shareholders in the Marseille-based<br />
cargo claims. Other lines are starting to use<br />
company. Hapag Lloyd will upgrade its<br />
AI and machine learning to predict when<br />
Peter Creeden, director, MPC International<br />
entire reefer fleet with Globe Tracker<br />
they can avoid pre-trip inspections.<br />
devices. Therefore, the shipping industry<br />
Using data analytics to suggest when<br />
The improvements in data quality alone<br />
has chosen a leader for their Internet of<br />
reefers should go through the pre-trip<br />
make the move to smart containers a good<br />
Things devices but how quickly will they<br />
inspections is a great way to truly start<br />
investment. Going beyond the gate (of an<br />
upgrade their container fleets?<br />
moving into the digitalisation of shipping.<br />
empty depot, intermodal terminal or ocean<br />
The application of AI and machine<br />
terminal) and tracking where the container<br />
MAJOR PLAYERS<br />
learning have their limitations now but,<br />
is actually packed or unpacked will provide<br />
There are three major players in the IoT<br />
over the next few years, will only improve.<br />
opportunities for shipping lines to use AI<br />
space that have made good inroads into the<br />
It is important to note that reefer<br />
and machine learning to improve their<br />
container shipping market; GlobeTracker,<br />
containers are like any physical machine,<br />
container fleet management and their<br />
Orbcomm, and Traxens. Of the three,<br />
proper maintenance is the only way<br />
understanding of the inland movements.<br />
only Traxens seems focused on getting<br />
to ensure proper performance. In a<br />
the shipping lines into the IoT world. This<br />
single export cycle, a typical container<br />
FINAL THOUGHTS<br />
focus has paid off with investments and<br />
is handled about 15-20 times until the<br />
Overall, shipping lines should rollout IoT<br />
purchases by the top lines. CMA CGM,<br />
cargo is unpacked at destination. Until the<br />
devices on their dry container fleets for the<br />
Hapag Lloyd, Maersk, and MSC have made<br />
predictive software can constantly plan the<br />
cost saving benefits and market penetration<br />
commitments to rollout 50-100,000 devices<br />
best maintenance routines, the cautious<br />
opportunities. Having Traxens is the corner-<br />
over the next year. It is unclear how many<br />
choice would be to ensure the boxes are<br />
stone of owning and controlling the data.<br />
containers are actually using IoT devices.<br />
pre-tripped for the customer’s benefit.<br />
Interestingly, having Tradelens is how<br />
Overall, these commitments are too<br />
the shipping lines will sell the data. I will<br />
small to make a significant change in how<br />
SMART DEVICES<br />
explore the Tradelens platform and its role in<br />
the shipping lines manage their container<br />
The real benefits will be when smart devices<br />
the strategy of shipping lines in the future.<br />
fleets in the next few years. Each of the top<br />
are rolled out on the dry container fleets.<br />
The establishment of a strong digital<br />
lines has fleets of more than 2m containers.<br />
When this happens, shipping lines will<br />
strategy by the shipping lines is a great<br />
Image supplied<br />
Reefers make up generally only 20% or 25%<br />
of the overall fleets.<br />
If 100% of the reefer fleets for the top<br />
three carriers were upgraded, then 1.2m<br />
be able to own and create their own data.<br />
This will eliminate the dependence on the<br />
terminals, depots or other suppliers in the<br />
supply chain.<br />
step forward for the industry. Hopefully,<br />
it will keep up with the quickening pace<br />
and pressures that are coming from<br />
outside the industry.<br />
thedcn.com.au <strong>October</strong> <strong>2019</strong> 65