Digitalisation is the buzzword making the rounds currently, especially in the shipping and freight industry..
There are many use cases relating to technology in the shipping and freight industry, but nothing screams “we are serious about digitalisation” more than a company running a competition for container operators, in which the winner gets to convert their entire container fleet into Smart Containers..
Yes, you heard right.. An entire container fleet..
We caught up with Shachar Tal, the Co-Founder of Loginno, the company that ran this competition..
SFR: Can you explain a bit about Loginno and Contopia and the logic behind it?
ST : From the time the shipping container came into existence more than 60 years ago, it has been just a steel box moving from place to place carrying valuable cargo.
The only visibility was when the container came to rest at the port of discharge or a transhipment port or when it was delivered to the receiver. These were the only times the status of the container or cargo could be checked and verified.
There could have been security issues along the way such as a seal breakage or container being cut, cargo theft etc, there could have been route deviations for the container either intentionally or inadvertently which could also cause damage to the goods, but the owner of the cargo had no idea what was happening.
Loginno was formed to convert entire container fleets into smart containers through digitalisation, to help create the visibility that was lacking.
Contopia is a concept we created whereby every shipping container will be connected using real-time IoT. When we say every shipping container, we mean EVERY SHIPPING CONTAINER in the fleet.
Considering that there are more than 23 million+ TEUs around the world currently, this is no easy task and hence we are starting small.
SFR: How does this work and what does it cost.??
ST: The way it would work is that all the containers in a line’s fleet will be equipped with a small device which fits into the vent of the container. All the technology is built within this device which blends in quite nicely with the container.
From that point onwards the container will become a smart container and start transmitting data providing complete visibility of its movements using our platform which comes with an online dashboard for container tracking and uses what we call On-Schedule AI.
The device is free and will be installed by us on all the containers. There would be a minimal cost for the visibility application and the cost is much much lower than the actual value that the container operator and shipper can gain from using our solution.
The customers can save a lot of money by carrying out their logistics functions more efficiently, gather insights into their cargo movement patterns etc.
SFR: How will Contopia add value to a container operator and why should the container operators consider using your systems.??
ST: Contopia provides maximum visibility to the container operator and to the cargo owner. The container operator can instantly identify how many of their containers are being utilised and how many are idle, in which location, how long it is staying there and where containers are required.
All this can be done by digitalisation, without any 3rd party data inputs, EDI transfers etc as all the information will be available via the application.
The container operator will be able to share relevant and required information to ports, ships, customs, insurance, homeland security and other partners in facilitating smoother, safer operations and trade.
Contopia will have a significant effect on the bottom line of the container operator, decreasing operational costs, and gaining competitive advantages because of the upgraded services they could offer their customers.
The savings and operational efficiency that will be created is the return on investment that we are seeking.
The goal is to prove that Contopia works as a financial product with way more savings for the customer than the cost.
SFR: Who has access to the information generated and how do you prevent it from getting into the wrong hands.??
ST: Well, all of the access is available to two parties. The container operator and the cargo owner. They will decide which information is to be shared and with whom. We provide the platform for the same, but the access to information will be controlled by the parties themselves.
The system will not force visibility but rather assist in creating the visibility and transparency required.
SFR: What is the growth strategy for Loginno going forward.??
ST: We have taken the first step through our Contopia™ Factor competition which was launched in December 2018 and which was open to any shipping company operating a fleet of not more than 150,000 owned or leased containers.
The winner of this competition would become the first digital shipping company to have their entire fleet converted to a smart fleet.
On the 6th of June 2019, we chose the winner Log-In Logistica, Brazil from among the many entries we received for this competition. Log-In has a fleet of around 20,000 containers which we aim to convert to smart containers..
This project of fleet conversion is expected to come online towards the end of 2019 or latest by early 2020.
Loginno’s patent-protected hardware is the smartest and the most affordable shipping container brain in existence today and also the only wide-area communications device in the world with a battery life of 10+ years without recharging.
This effectively makes it a permanent solution for every shipping container as there is no need for it to be taken off during the entire lifetime of a container.
We have data analysts and scientists all waiting for the data to be accumulated so that a workable model can be built for the next customers that follow, which will make it easier for everyone involved.
We have many interested companies in the pipeline such as NAVIS who are interested in using this technology in the ports and terminals they operate in, Marlink is interested in the connectivity with the vessels and many more.
SFR: What were the motivating factors for you to choose Log-In as the winner of your competition.??
ST: The companies participating in this competition were judged on 5 criteria including management attention and readiness.
All participants were required to submit a plan detailing how they will use Loginno‘s patented AGAM devices in their business if their entire fleet was converted to smart containers the next day.
The winner was decided by a panel of industry experts and Log-in Logistica had the best plan and was the most ready to start.
They had analysed the market, the systems and the requirements etc and were super ready in terms of thought processes and the management’s involvement.
They didn’t want to control the data, but wanted to use it to get an understanding of the market, the customer’s requirements and for further innovation within the industry and benefit their customers, which was one of their standout points.