In the ever-evolving world of global commerce, the shipping and logistics industry plays a pivotal role in ensuring that the gears of the global economy continue to turn smoothly. The industry is fundamentally supported by port technologies designed to manage and streamline the complex flow of goods along the West Coast and across continents.
As operating challenges become more intricate, the need for advanced technologies –specifically those that provide real-time freight visibility – becomes more pronounced. Port stakeholders, including beneficial cargo owners (BCOs) and logistics service providers (LSPs), are increasingly turning to visibility solutions that include data originating from underlying terminal technologies to ensure they can keep pace with the dynamic demands of global trade.
The Necessity of Freight Visibility
Freight visibility refers to the ability to track and monitor the status of cargo and shipments at various stages throughout the supply chain in real time. This capability provides stakeholders with a comprehensive overview of shipment locations and conditions, enabling more informed decision-making. With better data, terminals, port authorities, motor carriers and BCOs can streamline operations, reduce congestion, optimize resource allocation and enhance efficiency.
Modern technologies such as cloud-based platforms, Internet of Things (IoT) sensors, GPS tracking and Radio Frequency Identification (RFID) have significantly increased the ability to monitor various elements like shipment status, inventory levels, asset locations, movement histories, vehicle statuses, delays, yard conditions, maintenance needs and peak performance times.
This level of insight is crucial for maintaining a smooth supply chain, helping to proactively monitor potential bottlenecks and offering support during unpredicted challenges.
Challenges in Modern Port Operations
Today’s terminal operations are becoming more complex and influenced by many factors, including the intricacies of global trade, rapid technological advancements, stringent environmental regulations and changing regulatory and economic conditions. Terminals must manage congestion, maximize capacity, address security threats and anticipate fluctuating cargo volumes – all while aiming to maintain productivity and profitability.
Adopting freight visibility technologies helps address these challenges by providing real-time data that can be used to make timely adjustments. For example, when a terminal anticipates a surge in cargo volume, it can prepare by reallocating resources or adjusting schedules to handle increases in appointment requests or container returns more efficiently.
Whereas, BCO and LSP stakeholders can adjust expected receiving schedules proactively if visibility data shows delays in container availability.
Overall, multiple port stakeholders play a role in responding to challenges, and they can use visibility tools to monitor overall appointment availability and container velocity to broadly manage and improve gateway performance.
Utilizing Freight Visibility Across Stakeholders
Different port stakeholders, including port authorities, terminal operators, BCOs, LSPs and ocean carriers, utilize port technologies that provide visibility to improve operational efficiency and enhance customer service. Each player holds data that can optimize various aspects of operations:
Port authorities consume and monitor visibility data and make it accessible to other stakeholders, helping to reduce truck congestion at gates and increase fluidity.
BCOs leverage data for inventory management and employ predictive analytics for supply-chain planning, enhancing customer service and ensuring timely delivery.
LSPs utilize terminal visibility for route optimization, collaborative logistics and performance analytics, allowing them to be more responsive.
Ocean carriers rely on cloud-based data insights to monitor performance and velocity.
Overall, freight visibility gives all parties involved in marine and intermodal logistics better access to information to improve execution.
Visibility Solutions for Varying BCO Sizes
BCOs are a critical stakeholder group that relies heavily on visibility solutions to ensure timeliness and accuracy throughout their supply chains. The way shippers source visibility data varies based on their size, reflecting their differing needs, resources and operating locations.
Small, medium and large BCOs each adopt differing strategies for obtaining and utilizing visibility data to manage their operations effectively.
Large BCOs – Larger BCOs often prefer direct sourcing of visibility data, even if it requires integrating information from multiple providers. This approach allows them to maintain a high level of control over their data, ensuring they can tailor the data integration and analysis processes to meet their specific needs.
These large shippers typically have the resources to invest in sophisticated data management systems and in-house teams dedicated to handling complex data sets from various sources.
By directly sourcing visibility data, they can achieve a comprehensive view of their supply chain operations, enhancing their ability to make informed decisions and optimize efficiency without coupling logistics and vendor selection to data visibility.
Medium BCOs – Medium-sized shippers may adopt a hybrid approach for sourcing visibility data, combining direct data sourcing with third-party logistics providers (3PLs) and/or standalone visibility platforms. They often have some internal capabilities to manage data but also rely on the expertise and infrastructure of 3PLs and/or visibility platforms to fill in the gaps.
This blended strategy allows them to benefit from the scalability and specialized services of 3PLs while retaining a degree of control over their data. Medium BCOs often seek solutions that offer a balance between customization and cost effectiveness, enabling them to improve visibility without the extensive investments required by larger enterprises.
Small BCOs – Smaller shippers typically rely on third-party logistics providers for both services and data platforms. These 3PLs offer integrated visibility solutions as part of their broader service offerings, making it easier for small BCOs to manage their operations without the need for significant internal resources.
Smaller shippers often look for built-in data solutions that come integrated with other platforms they already use. This integrated sourcing approach simplifies data management and ensures that they can access critical visibility data without the complexity and cost of direct sourcing.
Regardless of the BCO’s size, comprehending the data provided by their visibility solutions is crucial. By effectively contextualizing this data, operators can implement forward-thinking strategies and preventive measures through proactive monitoring.
Proactive Monitoring Through Data Analysis
As touched on above, proactive monitoring through data analysis is a critical tactic that complements and enhances the capabilities provided by visibility solutions. This approach involves tracking and analyzing cargo status and terminal data in real-time throughout the supply chain.
The objective is to preemptively identify and address potential issues before they lead to disruptions.
Proactive monitoring through data analysis offers many benefits, including:
Increased efficiency – Minimizes delays and disruptions by enabling companies to respond swiftly to any issue that might impact the supply chain.
Enhanced security – Improves the security of the cargo by monitoring its location and condition, thereby reducing the risk of theft, loss or damage.
Better compliance – Helps ensure compliance with regulatory requirements, particularly for goods that require specific handling and transportation conditions, and with information disclosure regulations such as OSRA.
Customer satisfaction – Increases customer satisfaction through improved reliability and the ability to provide customers with detailed information about their container status.
Cost savings – Reduces costs associated with delays, lost or damaged goods and inefficient routes by allowing for more effective management and operation of the supply chain.
This approach safeguards key aspects of operations, building a resilient process for responding to unexpected challenges. By integrating comprehensive data analysis and real-time tracking, BCOs and LSPs can maintain robust oversight of their logistics networks.
Best Practices for Implementing Freight Visibility Solutions
To effectively enhance operational transparency and efficiency, adopting certain best practices when implementing freight visibility solutions is essential. These include:
Defining clear objectives – Set goals specific to your operations, including practices you expect to change or improve in response to visibility information, and what degree of data-independence you require.
Choosing solutions that offer real-time insights – Opt for solutions that provide real-time tracking, analytics and reporting capabilities.
Selecting software with seamless integration – Choose vendors that can seamlessly integrate with your existing technology to ensure cohesive data flow, utilization and limited downtime.
Evaluating data prior to going live – Review the visibility data across targeted facilities and operation flows to reduce unexpected discrepancies during a live operations launch.
Ensuring comprehensive training – Effective training minimizes resistance and maximizes the utility of new solutions.
Utilizing data to generate insights – Advanced analytics can help analyze trends and patterns, assisting with forecasting, risk management and strategic planning.
Establishing key performance indicators (KPIs) – Regular evaluation of KPIs helps measure the impact of freight tech solutions on your supply chain.
Implementing these best practices streamlines processes and creates a more transparent and adaptable network. The strategic integration of these tools already in place across West Coast ports and terminals paves the way for broader utilization of freight visibility across logistics stakeholders.
Outlook of Freight Visibility Technology
The future of freight visibility technology is highly promising, driven by several trends and technological advancements that lead to continued growth. IoT and sensor technology innovations are set to further revolutionize how supply chains are monitored and managed, enhancing productivity, transparency and durability across operations.
These technologies allow for more detailed tracking of shipments, enabling precise monitoring and improved security at every stage.
Port stakeholders are increasingly adopting artificial intelligence and machine learning to predict transit times, anticipate potential delays and suggest optimal routing based on historical data and real-time conditions.
As regulatory demands grow, port technologies that drive freight visibility will become crucial in helping businesses comply with these regulations. This integration of emerging technologies is already transforming the landscape by increasing the sophistication, transparency and safety of cargo movements.
Brian Widell is the Senior Vice President of Technology and Innovation at Advent eModal. He joined AeM in 2020 and specializes in intermodal and multimode logistics information systems and AI optimization. In his current role, he leads the Envio 360 product line, which provides integration and automation solutions for landside logistics.