This Cargo Tracking Company Expands Business Into New Geography Despite Global Downturn

Narasi.net — Ocean transport faces several challenges, such as increased tariffs and cargo losses. This year, shipping costs are estimated to be high due to limited container capacity and port congestion. The COVID-19 outbreak has thrown global supply chains into chaos, with major ports unable to process imports fast enough, trucking companies short of drivers, and warehouses running out of space. Supply-demand imbalances and worldwide lockdowns are causing increased shipping costs and delayed deliveries.

Supply chain chaos also increases the risk of cargo theft. The marine industry loses billions of dollars every year to theft and lost cargo. The National Cargo Security Council estimates that the industry suffers a significant loss of $50 billion per year due to the theft or loss of cargo.

According to a survey conducted by the World Shipping Council (WSC), whose member companies control 80 percent of the world’s container ship capacity, 1,582 containers are lost at sea every year between 2008 and 2016, including during catastrophic events. There is no control over loss of cargo in a natural event, but cargo theft is a more severe problem that can be controlled.

In the last two years, e-commerce orders have increased, resulting in a massive influx of imports of ready-to-ship goods. However, pandemic-related measures, labor shortages and rapidly declining warehouse space have resulted in the buildup of ships at key ports.

In the third quarter of 2021, CargoNet reported 359 supply chain thefts and fraud incidents across the United States and Canada. Cargo theft costs nearly $13 million nationally each year. There were a total of 294 theft cases involving the theft of semi-truck trucks.

t42 provides innovative solutions to minimize cargo theft

As supply chain chaos is expected to continue this year, shippers must be proactive in developing effective security strategies to prevent cargo theft and damage to valuables. The shipping industry has resisted taking advantage of technological advances for a very long time.

t42, a global provider of container tracking and fabric data management for shipments, reports that 99.9% of shipping containers are not tracked or checked for security, resulting in significant losses. Fortunately, Machine Learning and intelligent IoT technologies have the potential to solve the most crucial problem in the maritime industry – cargo theft.

t42 IoT Tracking Solutions Plc, formerly Starcom Plc, provides real-time tracking, security and monitoring solutions for the global supply chain, logistics, container and shipping markets. To improve bottom-line performance, the company helps its clients reduce excessive insurance costs, premium increases, and expenses.

The company offers multi-sensor tracking devices with control center (C4I) detect, command and setup capabilities, complete integration with third-party businesses and authorities, provision of cloud storage, staff training, global technical support, and customer service.

AI-based monitoring and Machine Learning algorithms continue to improve delivery routing to lower costs and increase the positive effect on the environment. IoT devices analyze real-time data to provide intelligent detection of lane deviations, temperature deviations, humidity drifts, vandalism attempts, accidental container damage and break-ins to help manage container fleets. The company’s technology transmits data in real-time to the cloud and its data recovery center.

t42 provides end-to-end global container tracking and digital transformation of shipments to cargo owners, shipping companies, shippers, insurance companies, customs authorities, homeland security and police in approximately 55 countries. The company has worked with more than 100 distributors and 50 logistics and support partners.

Latest announcements and expansion into new markets

The company is expanding into new markets and establishing itself as a key player in this growing industry. t42 recently announced that it has received its first commercial order in Latin America for a sensor fusion based tracking solution and cloud platform service.

This initial order includes 500 units, with additional devices expected to be ordered for use at additional ports across Latin America. The customer is a Latin American consortium of five leading local companies that provide trade data to local port authorities for major regional ports in Latin America. The tracking solutions and services provided by t42 will help in managing the growing trade at the port.

Previously, the company stated in November 2021 that Olimp Bulgaria Ltd. (“Olimp”), a global leader and exporter of security seals, has placed commercial orders for its tracking technology and services. The first order for approximately 250 units of Lokies Smart Tracking Locks to be used by the Bulgarian customs authorities has been delivered by t42 after completing a pilot program which lasted for more than one and a half years and involved cooperation with the Bulgarian customs authorities.

Following the completion of the pilot program in Argentina, t42 has reached an agreement with distributor LATAM to provide t42 solutions to local port authorities over the next four years for a total estimated value of over $16 million. The pilot program yielded positive results from the initial deployment of 200 smart locks (“Lokies”). During the trial, Lokies was fully approved for use by the Argentine customs authorities, and the Online portal was successfully connected and approved for use with their system.

The solutions offered by t42 will help port authorities limit smuggling activities, ensure compliance with international law, and secure substantial tax revenues for a jurisdiction. The agreement covers hardware and recurring SaaS service revenues, which are expected to continue for as long as the equipment is operational. Hardware sales are expected to generate revenue over four years, starting in 2023 and ending in 2026.

Conclusion

Loss due to loss of cargo or theft is one of the biggest challenges today from supply chain instability. The shipping industry needs technology solutions that help them track and manage container shipments. With the help of AI and Machine Learning, enterprises can access real-time data transmission and analytical capabilities that can provide actionable insights to governments, ports, tax authorities and other interested parties on demand.

With end-to-end live-tracked solutions, the t42 is reshaping the global shipping industry and addressing the industry’s most pressing problems. The recent collaboration could pave the way for future collaborations with other regional port authorities and the organizations they serve to provide a full suite of shipping tracking solutions.

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