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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

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