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Leveraging Automation & Machine Learning to Alleviate Port Congestion

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Leveraging Automation & Machine Learning to Alleviate Port Congestion

Across an increasingly fragmented global supply chain, ongoing port congestion has reached a tipping point, with many major ports struggling to process incoming and outgoing shipments. Supply chain visibility platform Beacon recently highlighted the scale of congestion across a range of ports, with an average wait time of 8 days over the first half of 2024 at Durban; wait times averaging 6.1 days at Ningbo-Zhoushan; 4.28 days at Vancouver; 3.6 days in Los Angeles; and an average wait time of 3.4 days at Chittagong. Additionally, it is estimated that $131 billion in trade is at risk of being disrupted at the ports of Singapore, Tanjung Pelepas and Port Klang, which have all been badly backlogged in recent months, mainly due to vessels bypassing the Red Sea. 

Read also: Navigating the Waves: Examining the Looming Threat of Port Congestion

With periods of congestion becoming increasingly frequent, costly and protracted, targeted deployments of automation can streamline cargo handling, reduce manual errors and mitigate the risk of delays. However, even when ports come to a standstill, the risk-averse tendencies of logistics operators can hinder the logical adoption of automation. Often the fear of disrupting established processes and uncertainty about the return on investment keep the status quo modus operandi in place.

Automation & Machine Learning in Action

Automated systems – such as AI-driven predictive analytics, real-time tracking, and Robotic Process Automation (RPA) can mitigate the risk of port congestion by improving operational throughput and decision-making. As ports struggle to handle the growing influx of cargo, automated cranes, loaders, and container handling systems can be leveraged to expedite the loading and unloading processes, reducing the turnaround time for ships. Against a backdrop of labour shortages, Automated Guided Vehicles (AGVs) can be used to transport containers within the port efficiently, reducing the reliance on human-operated vehicles. These automated systems can work around the clock, ensuring continuous movement of cargo, while RFID tags, sensors and cameras can verify and process trucks entering and leaving ports.

In order to boost efforts to reduce port delays, AI deployments can be complemented by Machine Learning innovations to enhance real-time data analysis, while enabling predictive maintenance and more efficient resource allocation. Machine learning algorithms can also analyze data from various sources, including shipping schedules, historical trends, and market conditions, making it easier to predict future cargo flows. Crucially, ML models can predict equipment failures before they occur by analyzing historical data and identifying patterns, enabling more proactive maintenance, reducing downtime and ensuring that equipment is always operational. ML-driven demand forecasting can also help ports prepare for incoming cargo volumes, optimizing resource allocation and minimizing congestion. 

A Look at China’s Smart Ports

There are some compelling examples across the global supply chain that demonstrate the significant efficiency gains associated with ‘smart ports’, which typically combine AI, ML and cloud computing technologies. As of January 2024, it was reported that China had 18 automated container terminals in operation with an additional 27 under construction or being upgraded. By integrating AI, IoT, and automation, Chinese smart ports like Shanghai and Ningbo-Zhoushan have achieved remarkable improvements in cargo handling efficiency, reduced turnaround times, and enhanced overall port operations. Specifically, Tianjin Port has managed to increase the operating efficiency of a single gantry crane by over 40%, while reducing labor costs by 60%. Even though smart ports can still incur delays during intense periods of trade, the degree of congestion can be much more manageable. 

Given China’s dominance in spearheading smart ports, other regions must recognize that failing to adopt automated container cranes, smart logistics, and driverless transport vehicles could leave them at a marked disadvantage. As global trade continues to accelerate and the demand for faster, more efficient logistics grows, embracing AI and ML powered smart port technology can help mitigate the omnipresent threat of port congestion and alleviate bottlenecks in international trade. 

Authored by Gil Shiff, Co-founder and COO of 40Seas

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3 Ways how Smart IoT Technology is helping tackle Climate Risk Challenges in Supply Chain

The supply chain has undergone rapid changes, with climate change emerging as one of the most critical disruptors. As extreme weather events rise in both frequency and intensity, they pose an unparalleled threat to global supply chains.

Read also: IoT in Warehouse Management Market: Revolutionizing Logistics with Connected Devices

According to the World Meteorological Organization, weather-related disasters have increased fivefold over the past 50 years, leading to global economic losses exceeding US$3.64 trillion. These disruptions are forcing companies to return to the drawing board and rethink their risk management strategies, adopting more advanced, resilient approaches that go beyond traditional methods.

Climate Risk Challenges in the Supply Chain Sector

Climate change affects supply chains in numerous ways, including through extreme weather, rising temperatures, and shifting precipitation patterns. These changes disrupt manufacturing processes, delay transport, and complicate logistics.

A stark example is the 2021 Texas winter storm, which caused widespread supply chain disruptions. Manufacturing and energy generation were halted, leading to a ripple effect across industries such as automotive and electronics, costing billions of dollars.

Similarly, long-term droughts and shifts in weather patterns can reduce agricultural output, negatively impact food value chains, and heighten price volatility. These disruptions create severe risks for companies relying on global supply chains.

Physical vulnerabilities from climate change are further exacerbated by transition risks, such as evolving regulations, consumer demands for sustainability, and increased awareness of environmental issues. Addressing these challenges requires proactive intervention, not only to recover financially but also to consider the environmental and social impacts across the supply chain.

Leveraging Sensor Technology and IoT to Address Climate Challenges

Advanced technologies, like sensor networks and Internet of Things (IoT) devices, are transforming the way companies respond to climate-related disruptions. When deployed along the supply chain, these devices continuously collect data, allowing firms to anticipate disruptions, adjust operations, and minimize risks more effectively.

1. Real-Time Environmental Monitoring and Predictive Capabilities:
Sensors placed on key infrastructure such as bridges, cargo ships, and weather stations provide real-time environmental monitoring and predictive capabilities. For example, the upcoming MethaneSAT satellite will track methane emissions globally, offering key insights into how this potent greenhouse gas is affecting climate change.

On the ground, sensors aboard cargo ships monitor weather conditions in real time. During the record-breaking 2020 Atlantic hurricane season, IoT-driven alerts enabled shipping companies to adjust routes and schedules, diverting vessels out of harm’s way. This minimized delays and reduced the potential for millions in cargo losses.

2. Sustainability and Compliance Tracking:
With increasing regulatory pressure and consumer demand for sustainability, IoT devices are becoming crucial tools for tracking critical environmental metrics such as carbon emissions, energy consumption, and water usage. In agricultural supply chains, for instance, IoT sensors monitor soil moisture, helping optimize irrigation and reduce water consumption.

These devices not only help improve crop yields but also contribute to achieving sustainability goals by reducing the overall ecological footprint. In the workplace, wearable sensors monitor exposure to harmful chemicals, ensuring compliance with safety regulations and minimizing health risks.

3. Proactive Risk Profiling and Contingency Planning:
Supplier Risk Management (SRM) technologies integrate data from sensors and IoT devices to provide a comprehensive risk profile of suppliers. These systems assess a range of risks, including geopolitical tensions, environmental compliance, and financial stability.

For instance, when floods destroyed semiconductor manufacturing facilities in Thailand in 2011, companies with advanced SRM systems were able to quickly find alternative suppliers, avoiding major delays in global electronics production. This ability to forecast disruptions and automatically deploy contingency plans helps businesses ensure supply chain continuity, even in the face of climate-driven uncertainties.

Building Resilient and Sustainable Supply Chains

The integration of sensor technologies and IoT devices into supply chain operations represents a significant shift in how companies manage risk. These tools provide real-time data, enabling businesses to proactively address climate challenges and mitigate risks.

According to a study by IBM, organizations using advanced analytics and IoT in their supply chains saw a 20% increase in operational efficiency, while also reducing carbon emissions by 15%. These statistics demonstrate how technology-driven risk management can make supply chains more resilient and sustainable.

However, as climate change continues to intensify, the demand for real-time data and adaptive technologies will only grow. Investing in sensor networks, predictive analytics, and IoT-driven solutions enables businesses to navigate climate risks with greater certainty, ensuring that supply chains remain operational and secure despite growing challenges.

Turning Challenges into Opportunities

While the climate crisis presents many tough challenges, it also offers a unique opportunity for innovation. Companies that strategically leverage sensor technology and IoT to build resilient supply chains will not only protect their operations from climate risks but also contribute to broader sustainability goals.

By integrating these advanced technologies, businesses can reduce their environmental impact, enhance efficiency, and ensure long-term viability in an increasingly unpredictable world. This shift toward climate-resilient supply chains is not just a necessity—it’s an opportunity to create lasting value for businesses, society, and the planet.

Author Bio

Ashish Agarwal is an accomplished Chief Technology Officer with extensive experience in the industrial automation industry. He has a robust skill set encompassing software development, start-ups, mobile payments, embedded systems, and mobile devices. Ashish co-founded Weather Risk Management Services Pvt. Ltd. (WRMS) and has been serving as the Chief Technology Officer since January 2016. In this role, he has been pivotal in developing innovative solutions to mitigate weather-related risks, significantly enhancing the company’s service offerings.

Prior to WRMS, Ashish was the Chief Technology Officer at Ingen Technologies Pvt. Ltd. starting from September 2007, where he focused on the development and manufacturing of smart IoTs, utilizing his deep expertise in sensor and networking technology. Ashish’s academic credentials include a PhD in Electrical and Electronics Engineering from the Indian Institute of Technology, Kanpur, where he also earned his Bachelor’s and Master’s degrees in the same field. His wide-ranging skills in technology product management, entrepreneurship, marketing, public speaking, customer service, and strategic planning have solidified his reputation as a leading technology professional. Based in Uttar Pradesh, India, Ashish Agarwal continues to drive technological innovation and excellence in his field.

 

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McLeod Software Expands TMS Capabilities with 24.2 Update and New AI Integrations

McLeod Software, a leader in transportation management systems (TMS) for freight brokers and carriers, has unveiled significant updates with the release of its 24.2 upgrade for LoadMaster and PowerBroker. These updates include new partnerships and enhancements to existing integrations, further solidifying McLeod’s position at the cutting edge of TMS technology.

As part of the 24.2 upgrade, McLeod has introduced two new artificial intelligence partnerships with Greenscreens.ai and Parade.ai. The integration with Greenscreens.ai provides PowerBroker users with real-time market rate data through the ‘Rate Index’, ‘Pricing and Bid’, and ‘Market Rate Export’ modules, ensuring brokers have instant access to current pricing information. Meanwhile, Parade’s Capacity CoDriver leverages generative AI to streamline carrier load inquiries, enhancing response efficiency and optimizing load booking processes.

“The new AI integrations mark a significant step forward in McLeod’s journey into the ‘new era’ of TMS,” stated Tom McLeod, CEO & Founder of McLeod Software. “These advancements allow us to offer our users more precise data, improved efficiency, and increased overall value, extending the benefits they gain from using McLeod.”

In addition to these new AI-powered partnerships, McLeod has bolstered existing integrations to enhance platform functionality:

Samsara Reefer Tracking

The updated integration simplifies the management of temperature-sensitive shipments, improving reliability and compliance while streamlining trailer ID and shipping document handling for FMCSA compliance.

SMC³ Communication Enhancements

The enhanced SMC³ partnership facilitates bidirectional communication for rates, order tendering, tracking, and document capture, strengthening connections between brokers and LTL carriers.

EROAD Maintenance Improvements

Updates to EROAD integration improve maintenance scheduling via tractor odometer readings.

Trimble Mapping and Routing

Enhancements to ‘PC*Miler’ and ‘MileMaker Web Services’ deliver more accurate distance calculations and routing solutions.

“Ongoing collaborations with industry leaders like Samsara, EROAD, Trimble, and SMC³, along with future updates, are essential to our mission of delivering a comprehensive, user-friendly, and highly effective TMS solution,” concluded McLeod. “These partnerships enable us to continuously innovate and meet the evolving needs of our broker and carrier customers.”

global trade

Trade Tech Introduces Real-Time Chat to Revolutionize Global Logistics Communication

Trade Tech, Inc., a leading global logistics platform, has unveiled a groundbreaking real-time chat feature integrated directly into its platform. This innovative update is poised to transform how Non-Vessel Operating Common Carriers (NVOs) and freight forwarders communicate, collaborate, and connect with all parties involved in each shipment.

Read also: Trade Tech Introduces Syrinx: A Cutting-Edge Interface Redefining Global Logistics Efficiency

In the fast-paced world of global shipping, swift and effective communication is essential. However, the volume of communication required for each shipment often overwhelms traditional email systems, which can be slow, disorganized, and cumbersome. Recognizing this challenge, Trade Tech developed its real-time chat feature to streamline communications, save time, and boost productivity.

The real-time chat feature allows users to quickly access all shipment-related communications, track changes dynamically, bring multiple parties together, and eliminate the need to sift through scattered emails and messages. Bryn Heimbeck, President and Co-Founder of Trade Tech, emphasized the importance of this development: “The ability to connect directly with multiple trade partners is the key benefit of working on a community platform like Trade Tech. A centralized environment enables one-to-many, real-time chats that bring everyone to the shipment rather than disseminating shipment information in an unorganized, piecemeal fashion.”

Key benefits of the new feature include:

Platform Integration

The chat function operates natively within the Trade Tech platform, ensuring all materials are accessible through a centralized location.

Organized Communications

Centralizes all discussions and key documents related to a shipment, ensuring easy access to critical information.

Centralized Repository

Creates a single, organized repository for all shipment-related information, simplifying tracking and access.

Enhanced Communication

One-to-many communications keep all parties informed, allowing for seamless, direct communication between users.

Improved Visibility

Rapid shipment updates from direct communication between all parties involved.

Security and Efficiency

Promotes secure, real-time communication, eliminating the disorganization, sluggishness, and risk of hacking often associated with traditional email.

Crisis Management

Enables quick access to multiple parties simultaneously during crises or emergencies.

Junk-Free

Eliminates the clutter associated with outdated email systems, offering a clean, organized communication platform.

Unlimited Threads

Allows the creation of unlimited threads for a single shipment, enhancing transparency and ensuring the right people can access needed information.

User-Friendliness

Features an intuitive and easy-to-understand interface for easy onboarding and adaptation.

Real-time communication is a vital component of digitization within the logistics industry, and Trade Tech is ensuring its users and operators stay ahead of the curve. To discover the future of logistics communication and learn more about Trade Tech, please visit: www.tradetech.net.

supply chain

Leveraging Digital Technology to Create a More Resilient Supply Chain

The ongoing COVID-19 pandemic has disrupted the flow of goods across the globe, from raw materials to finished products. The pandemic has raised awareness of the importance of truck drivers, delivery drivers and warehouse workers who have kept products moving in this challenging environment. The economic ramifications have forced companies and industries to reevaluate their supply chains.

Additionally, the pandemic has vividly illustrated that today’s highly interlinked, international supply chains have more potential points of failure and less flexibility for absorbing delays and disruptions than business leaders may have realized.

To build more resilient and flexible supply chains, companies may consider several options, including bringing some critical activities closer to home, setting up backup suppliers to reduce exposure to any single supplier/country, or refining their inventory strategies. Of course, any such alteration will affect logistics and transportation.

Having the right combination of technology, expertise, people, and solutions in place is critical as companies revisit their supply chain strategies. Fortunately, leveraging supply chain technology can improve end-to-end visibility, resiliency, and efficiency within your supplier networks.

Advances in digital technology and automation are driving the continued evolution of supply chains. Some of the most impactful technologies can be grouped into three buckets:

Automation

-Robotic Process Automation (RPA)
-Configurable workflows

 

Digitization

-Artificial intelligence
-Machine learning
-Cloud computing

 

Big data

-Internet of Things

 

Companies in many industries currently employ these technologies. GlobalTranz uses these technology advances to enable and support our people.  We have used RPA to streamline many rote, operational tasks and allow our workforce to tackle more strategic, higher-value activities, particularly those which build relationships with our customers, suppliers, and partners. RPA creates a software robot leveraging a specific set of rules to automate tasks, such as document retrieval, inter-system data entry, approval processes, and gathering track and trace data. Unlike traditional custom-developed solutions, RPA can be continuously modified in a more real-time approach – especially important as the number of data sources and the sheer amount of data continues to increase.

By contextualizing data and reviewing daily processes, businesses can make complex and time-consuming processes more efficient. For example, when using RPA to gather track and trace data, you can be assured that the information is the most recent and accurate.

Before building bots to automate the collection of track-and-trace information, GlobalTranz devoted nearly 139 days’ worth of time annually, per person, to this task. Automation has enabled people to spend more time with customers and partners helping them devise strategies to address challenges brought on by COVID-19 and create a more resilient supply chain.

As companies look ahead to the economic recovery, it is imperative that they obtain greater visibility into their own facilities, their direct suppliers, and logistics partners. The crisis demonstrates the need for resiliency and accurate, real-time information that can help businesses make better-informed decisions and mitigate the costs of supply chain disruptions.

Obtaining accurate, real-time information to mitigate complexity and create resiliency requires a more digitized approach. Disruptive risks require investment in additional supply chain resilience even though the gains and the return on investment may not be immediate.

Successful organizational change, much like social change, can be influenced by the people and capabilities around us – including both stakeholders within your business and your supply chain partners – as well as how internal data and external intelligence are leveraged to make better business decisions.