What is Container Tracking and How it Works?

Maritime trade is the backbone of the modern economy, and this would not be possible without proper container tracking mechanisms in place. Estimations show that about 80% of all goods worldwide are ferried through the sea.

This reliance is growing, with global cargo shipments weighing just 0.1 billion metric tons in 1980 and gradually increasing to 1.95 billion metric tons in present time. With so much at stake, leveraging proper container tracking and ensuring seamless operations is very important.

In this blog, we will understand what container tracking is, how it works, and what makes it so important in today’s world. So, let’s dive in and get a better understanding!

What is Container Tracking?

Access to real-time information is no longer an option for supply chain management in today’s interconnected world. Stakeholders need to have effective container visibility to make quick and proper decisions to avoid any disruptions. This is where container tracking tools come into the picture, giving stakeholders access to the live location of a container in a given period.

You can set up these systems with the right configuration to receive automated updates each time the container completes a milestone. This will help you focus on more value-driven tasks while getting real-time updates on the container’s status. That said, here are some of the most important status changes when you will receive a notification:

• The container is loaded onto the vessel.
• The vessel carrying the container leaves the port.
• The vessel with the container arrives at the transhipment port.
• The container is loaded into another vessel at a transhipment port.
• The vessel reaches the destination port.
• The consignor receives the container.

How Does Container Tracking Work?

These days, container tracking is heavily reliant on technology, and more than one technology works together to make this possible. So, let’s break down these technologies and help you get a better understanding:

• Container Identification: While most of us don’t know this, every container on a vessel has a unique identification number. The International Maritime Organization assigns this number as the container’s digital identity.
  
  

• Global Positioning Systems (GPS): If you are reading, it is fair to say that you must have heard of and even used GPS many times. This container tracking technology determines the precise location of the container and transmits this data to a centralized system.
  
  

• Electronic Data Interchange (EDI): This popular container-tracking technology allows one to exchange electronic data. The system will transmit the information on vessels and containers to the concerned stakeholders.
  
  

• Vessel Traffic Management Systems (VTMS): These container tracking systems monitor a ship’s movement in a designated traffic zone. You can use these systems to track the container’s location in real-time and relay the updates to concerned people.

What Makes Container Tracking Important?

The world has never been more reliant on global shipping than it is today. However, none of that would be possible without proper container tracking, making this comprehensive and long-distance management a reality.

However, this is not the only reason why container tracking is important in today’s day and age. There are many other factors, including:

• Efficient Shipping: There is no denying that time is of the essence in the supply chain business, and container tracking makes this efficiency possible. You can use these data to minimize delays, optimize routes, and even reduce transit times. This makes it much easier to run efficient operations.
  
  

• Better Container Visibility: Another important reason to use container tracking technologies is to get real-time visibility. This will give you a clear idea of the container’s location and status. As a result, making the right decisions at the right time becomes much easier.
  
  

• Quality Customer Service: Better visibility and efficiency automatically make it much easier to deliver better services to customers. Seamless access to proper container tracking information makes it easier to communicate and address any concern before it spirals into something more complicated.
  
  

• Limited Risk: When you get access to the right information at the right time, determining and mitigating risk becomes much easier. You can identify potential issues beforehand and take proactive mitigation measures to avoid any sort of loss.
  
  

• Seamless Compliance: With proper container tracking mechanisms in place, ensuring effective compliance becomes much easier. This makes it much easier to manage the nuances of international trading law and customs clearances.

Wrapping up

The global trade scenario is changing, and this change has been unprecedented. Thanks to the efficiency of maritime trade with proper container tracking, these large trades keep the world running. This makes it very important that you invest in the right container tracking technologies and get real-time updates on the shipment’s status and location. This will help make your business more manageable and ensure seamless, less operational flow for the best results.