TT Talk - Why are smart containers are the future

The world’s container cargoes are increasingly at risk of being delayed, damaged, lost or interfered with. Continuing growth in international trade together with ongoing climate change, geopolitical disputes, rogue operators and organised crime gangs means transport and logistics operators need to keep an ever-closer watch on their containers. 

Operators and their clients need to ensure containers are where they should be at all times and, if not, initiate mitigation measures to minimise any commercial impact. They need to know containers and their cargoes are being kept at the right temperature and humidity to avoid the risk of damage or fire, and be alerted to any unplanned openings which might indicate theft or smuggling. It is therefore not surprising that so-called ‘smart containers’ have become increasingly commonplace, providing operators with the benefits of greater visibility, security, safety and sustainability.  

According to Drewry research in 2024, smart containers grew by 9.2% during 2023 to an estimated 2.93 million, up from the previous year's growth of 5%. The total is expected to expand four-times over the next five years to more than 8.2 million, nearly 22% of the total (Drewry Maritime Research).

Sensors and antennae 

A smart container is one equipped with ‘internet of things’ (IoT) sensors and antennae, enabling data to be collected and transmitted in real time. The sensors continually monitor information such as location, temperature, humidity, identifying impact or shock events and door openings. The antennae then send this data to a secure cloud-based platform, which automatically detects important events. Operators can access the data using web-based applications.  

Some of the early adopters of smart containers are using IoT devices from Nexxiot and Orbcomm to provide location data on container or shipment level through its corporate digital visibility tool Live Position. For example, the Nexxiot Edge device fitted outside intermodal containers can provide updates every 15–60 minutes, is suitable for use in ATEX zone 2 environments and has a lifetime of 6–10 years. 

Another system making inroads in the market is Aeler’s Unit One smart container. This 20 ft unit is made of advanced composite materials for extra strength and durability. It is fitted with Control Tower, an IoT device which provides real-time updates on cargo condition and position through a single, unified dashboard. 

Benefits of smart containers 

One of the major benefits of smart containers is greater visibility. They effectively provide independent track and trace information on both land and increasingly reliably at sea. This facility is also invaluable as an added value service to end customers in helping them to manage their supply chains. Knowing exactly where any given shipment is helps them plan their resources and meet demand.  

Smart containers are also a deterrent to criminals wishing to break in to steal the cargo or place illicit goods within an already loaded container. By monitoring and reporting suspicious or unexpected door openings that might be a red flag, operators can immediately alert local agents or authorities to potential criminal behaviour. 

Smart containers can provide greater transparency as to what is packed in the container and who has packed it, helping to mitigate the risk of mis-declaration of dangerous goods and associated risk of ship fires. IoT sensors can detect the slightest change in the atmosphere inside the cargo space, potentially helping with early fire detection. 

Finally, IoT sensors in smart tank and reefer containers can ensure the set temperature is maintained to avoid cargo wastage and improve sustainability. They can also monitor the efficient operation of reefer equipment, identifying opportunities for preventative maintenance and a reduction in emissions if the equipment is working harder than needed to maintain the set temperature. 

There are other related smart technologies available, such as electronic smart security seals, that could enhance the benefits of smart containers further. Currently however innovators in this space typically work in silos to solve specific challenges. TT implores those focused on delivering such smart solutions to collaborate and take a more holistic approach to address the current risk landscape.   

Summary 

The global fleet of smart containers continues to expand, providing transport and logistics operators and their customers the exact location of containers at all times and ensure that quality standards are being met during transport. This in turn enables any necessary mitigation to be undertaken proactively to minimise the risk of damage or delay. Shipping cargo in standard containers will no doubt continue for many years, but it will eventually start to look like the less smart option. 

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