IoT technology will differentiate dry container services

31.10.2023

The Internet of Things (IoT) has been a largely untapped resource for dry container shipping. ORBCOMM’s new-to-the-market dry container monitoring solution offers unprecedented transparency, cost-effective proof of compliance and untapped commercial opportunities, says Christian Allred, Executive Vice President, International Sales, ORBCOMM.

Carrying around 90% of non-bulk cargo transported by sea, dry containers are fundamentally important to global trade. Despite this, a number of operating challenges continue to beset the market, including visibility of cargo location, condition and integrity, and optimising supply chain efficiency. After weathering unprecedented volatility in 2020 and then bouncing back to post record profits in 2021, recent market conditions have brought these perennial challenges into sharp relief.

The container shipping market’s outlook changed dramatically in September 2022 when pessimistic economic forecasts and reduced consumer demand combined to send spot freight rates tumbling. Although the IMF forecasted 3.0% economic growth in both 2023 and 2024, businesses and consumers continue to face financial challenges in Q3 of 2023. In part due to these unfavourable macro-economic conditions, continued low freight rates also reflect the rapid expansion in global container ship capacity. This surge shows no signs of abating in 2024 as shipowners have continued to order new ships.

In such a market, maintaining competitive advantage is vital and shipping lines must find innovative ways to differentiate their services from peer rivals. Improving traceability and real time asset management is one such way.