This Cargo Tracking Firm Is Expanding Business Into New Geographies Despite Global Downturn
t42 IoT Tracking Solutions Plc provides real-time tracking, security, and monitoring solutions for the global supply chain, logistics, container, and freight markets
Ocean transportation faces several challenges, such as rate increases and cargo losses. This year, shipping costs are anticipated to remain high because of limited container capacity and port congestion. The COVID-19 outbreak threw the global supply chain into disarray, with major ports unable to process imports quickly enough, trucking companies lacking drivers, and warehouses running out of space. The supply-demand imbalance and worldwide lockdowns caused an increase in shipping costs and delayed deliveries.
The supply chain chaos also increased the risk of cargo theft. The marine industry loses billions of dollars annually due to cargo theft and loss. The National Cargo Security Council estimates that the industry suffers a significant loss of $50 billion annually because of cargo theft or loss. According to a survey conducted by the World Shipping Council (WSC), whose member companies control 80 per cent of the world's containership capacity, 1,582 containers were lost at sea annually between 2008 and 2016, including during catastrophic events. There is no control over cargo loss in natural events, 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 ready-to-deliver imports. Still, pandemic-related measures, labor shortages, and rapidly declining warehouse space have resulted in a backlog of ships at major ports. In the third quarter of 2021, CargoNet reported 359 supply chain theft and fraud incidents across the United States and Canada. Cargo theft costs nearly $13 million nationwide every year. There was a total of 294 theft incidents involving the theft of trucking vehicles such as semi-trucks.
t42 is providing an innovative solution to minimize cargo theft
As supply chain chaos is expected to continue this year, shippers must be proactive in developing an effective security strategy to prevent cargo theft and damage to valuable goods. The shipping industry has resisted leveraging technology advancement for a very long time. t42, a provider of global container tracking and data fabric management for shipments, reports that 99.9% of shipping containers are not tracked or inspected for security, resulting in significant losses. Luckily, Machine Learning and smart IoT technology have the potential to solve the maritime industry's most crucial problem – 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 freight markets. To enhance bottom-line performance, the company helps its clients reduce excessive insurance costs, rising premiums, and expenses. The company offers multi-sensor tracking devices with detecting abilities, command, and control center setup (C4I), complete integration with third-party businesses and authorities, cloud storage provisioning, staff training, global technical support, and customer care. AI-based monitoring and Machine Learning algorithms continuously improve the routing of shipments to lower costs and enhance the positive effects on the environment. The IoT device analyzes real-time data to provide intelligent detection of course deviation, temperature deviation, humidity deviation, tampering attempts, accident container damage, and break-ins to help manage the container fleet. The company's technology transmits data in real-time to its cloud and data recovery centers.
t42 provides end-to-end global container tracking and digital transformation of shipments to cargo owners, shipping companies, freight forwarders, insurance companies, customs authorities, homeland security, and police in approximately 55 countries. The company has already worked with over 100 distributors and 50 logistics and support partners.
Recent announcements and expansions into new markets
The company is expanding into new markets and establishing itself as a key player in this emerging industry. t42 recently announced that it had received its first commercial order in Latin America for sensor fusion-based tracking solutions and cloud platform services. This initial order includes 500 units, with additional devices expected to be ordered for use at additional ports throughout Latin America. The customer is a Latin American consortium of five leading local companies providing trade data to local port authorities for a major regional port in Latin America. The tracking solutions and services provided by t42 will aid in the management of the port's expanding trade.
Previously, the company stated in November 2021 that Olimp Bulgaria Ltd. ("Olimp"), a global leader and exporter of security seals, has placed a commercial order for its tracking technologies and services. The first order for approximately 250 Lokies Smart Tracking Lock units to be used by Bulgaria's customs authorities has been delivered by t42 after completing a pilot program that lasted for more than a year and a half and involved working with Bulgaria's customs authority.
Following the completion of the pilot program in Argentina, t42 has reached an agreement with a LATAM distributor to provide t42 solutions to local port authorities over the next four years for a total estimated value of more than $16 million. The pilot program yielded positive results from the initial deployment of 200 smart locks ("Lokies"). During the pilot, the Lokies were entirely approved for use by the Argentinian customs authorities, and the Online portal was successfully connected and approved for use with their systems. The solution offered by t42 will help port authorities limit smuggling activities, ensure compliance with international laws, and secure large tax income for a jurisdiction. The agreement covers hardware and recurring SaaS service revenues, which are expected to continue as long as the equipment is operational. Hardware sales are anticipated to generate income for four years, commencing in 2023 and ending in 2026.
ConclusionThe loss resulting from missing cargo or theft ranks among the biggest challenges in this time of supply-chain instability. The shipping industry requires a technological solution that helps them track and manage container shipments. With the help of AI and Machine Learning, companies can access real-time data transmission and analytical capabilities that can deliver actionable insights to governments, ports, tax authorities, and other interested parties on-demand. With its end-to-end live-tracked solutions, t42 is reshaping the global shipping industry and addressing the industry's most pressing problems. The recent collaborations could pave the way for future collaborations with other regional port authorities and the organizations they serve to provide a full suite of shipment tracking solutions.