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HomeProcurement/Supply Chain ManagementRevolutionizing Container Operations: The Role of RFID in Containerization

Revolutionizing Container Operations: The Role of RFID in Containerization

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Containerization has been a game-changer in logistics and supply chain management, allowing for the efficient and secure transportation of goods across the globe. In recent years, technological advancements have further enhanced container operations, with Radio-Frequency Identification Devices (RFID) playing a pivotal role. In this blog post, we’ll explore the significance of containerization and delve into the specific ways RFID is transforming and optimizing container operations.

Malcolm McLean in 1956 invented and patented the container and set about building his new product for the masses. Malcolm McLean was able to save over 90% on the cost of loading and unloading cargo by using his shipping container.

On 26th April 1956 the ‘Ideal X’ was the first freighter to transport goods using McLean’s new shipping containers.

A major noteworthy development in the history of container ships was realized when major maritime organizations acknowledged the singularity that shipping containers offered to the marine domain. This acknowledgment was also marked by the establishment of set rules and regulations concerning the sizing of the containers. To bring a common platform to all containers, the International Standardizing Authority (ISO) established the following:

  • Containers that measured 20-feet lengthwise. Such containers were soon referred to as TEUs (Twenty-foot Equivalent Units)
  • Containers that measured 40-feet lengthwise. Such containers soon came to be referred to as FEUs (Forty-foot Equivalent Units) or more commonly, as Two-TEUs

Containerization involves the packing of goods into standardized containers that can be easily loaded onto ships, trucks, or trains, providing a seamless and standardized method of transportation. This method has significantly improved the efficiency and reliability of global trade, reduced costs and minimized the risk of damage during transit.

Chennai port is India’s first major port to have a paperless container movement using a Radio Frequency Identification Device to enable container trailers to enter the port without any manual intervention. The RFID tag will have all the relevant details that were hitherto carried in paper form.

Three types of RFID tags are generally used in container operations these are:

Passive RFID Tags: These tags do not have an internal power source and rely on the energy emitted by the RFID reader to transmit data. They are commonly used for tracking and identifying containers and pallets in warehouses and supply chain management. Passive tags are cheaper, smaller, and easier to manufacture than active tags. They are commonly used in retail inventory tracking, pharmaceutical anti-counterfeiting, and other applications where large volumes of tags are required.

Active RFID Tags: These tags have an internal power source and can transmit data over longer distances than passive tags. They are commonly used for tracking containers and cargo in transit, as they can provide real-time location and status updates. Active tags are typically used on large objects, such as rail cars, big reusable containers, and other assets that need to be tracked over long distances.

Semi-passive RFID Tags: These tags have an internal battery that powers the tag’s circuitry but rely on the energy emitted by the RFID reader to transmit data. They are commonly used for tracking temperature-sensitive cargo and monitoring environmental conditions during transportation. Semi-passive tags can monitor things in a container, such as climate or security breaches.

RFID technology utilizes radio waves to identify and track objects, making it an ideal solution for container operations. The integration of RFID in container management offers several key advantages:

Real-Time Visibility

RFID tags on containers provide real-time visibility into the location and status of each container. This allows for better monitoring and control of the supply chain, helping companies streamline their operations and respond promptly to any issues.

Enhanced Security

RFID technology enhances container security by providing a unique identifier for each container. This reduces the risk of theft, tampering, or unauthorized access during transit, ensuring the integrity of the goods being transported.

Automated Tracking and Monitoring

RFID enables automated tracking and monitoring of containers throughout the entire supply chain. This automation minimizes the need for manual intervention, reducing errors and improving overall efficiency.

Inventory Management

With RFID, businesses can manage inventory more accurately. Containers can be quickly scanned, and the data is automatically updated in the system. This results in better inventory control and helps prevent stockouts or overstock situations.

Let’s consider a hypothetical scenario involving a global shipping company, XYZ Shipping Co.:

XYZ Shipping Co. has implemented RFID technology in its container operations. Each container is equipped with an RFID tag containing essential information such as the container number, contents, origin, and destination. Throughout the journey, RFID readers placed at key points – ports, warehouses, and transit points – automatically scan and update the container’s status in real time.

If a container deviates from its planned route or experiences delays, the RFID system alerts the logistics team immediately. In case of any security concerns, such as unauthorized access attempts or tampering, the system triggers instant notifications for swift action.

Containerization, coupled with RFID technology, has revolutionized the logistics and supply chain industry. The seamless integration of RFID in container operations enhances visibility, security, and efficiency, ultimately benefiting businesses and consumers alike. Furthermore, combining RFID with other emerging technologies like data analytics, cloud computing, and artificial intelligence (AI) maximizes its potential and creates new opportunities for application development and innovation. As technology evolves, the synergy between containerization and RFID promises even more innovations and improvements in global trade and transportation. 

Also read: Streamlining Business Operations with Contract Lifecycle Management (CLM) Software

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Shantanu Trivedi
Shantanu Trivedi
Shantanu Trivedi is working as a faculty at the University of Petroleum and Energy Studies, Dehradun. He holds an MBA and a Ph.D. degree in Supply chain management. He has more than a decade of experience in teaching and research. He has published 2 books, 5 book chapters and more than 12 research papers and articles in international journals of repute. His research interest includes Supply chain management, agribusiness, online and distance education, Business sustainability and infrastructure management. He is the reviewer of many international publishing houses. He has presented his work and won awards at many research conferences and symposiums. He has worked on many research with state governments and the government of India. In his spare time, Shantanu loves to travel and explore nature.
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