Today's new wireless security devices can't guarantee thieves won't get their hands on your cargo. But they definitely raise the odds that you'll get your stuff back promptly.
John Johnson joined the DC Velocity team in March 2004. A veteran business journalist, John has over a dozen years of experience covering the supply chain field, including time as chief editor of Warehousing Management. In addition, he has covered the venture capital community and previously was a sports reporter covering professional and collegiate sports in the Boston area. John served as senior editor and chief editor of DC Velocity until April 2008.
You could say it was close ... but no cigars. To the thieves planning a big heist
last summer, it looked like a simple enough job. They'd move in over the weekend, break into the parked
truck carrying $50,000 worth of cigars and discreetly remove the stogies, leaving the rest of the LTL shipment intact. But their carefully laid plans went up in smoke when the cigars' owner, who was monitoring his goods from a remote location, detected tampering to the trailer and notified the FBI.
Things didn't go much better for two rings of thieves on the Eastern Seaboard last year. This past fall, a fencing ring was caught with $250,000 worth of stolen designer clothing when New Jersey State Police raided the
warehouse where they were handing off their plunder. Just months earlier, thieves loading their haul ($300,000
worth of high-end apparel) after breaking into a Windsor, Conn., warehouse were apprehended when state and
local police burst onto the scene.
In all three cases, what gave the thieves away were wireless cargo security devices—covert asset trackers
compact enough to be tucked into a pallet of laptops or carton of prescription drugs (or even an informant's pocket). In an emergency, they can be activated to
beam real-time location data from wherever they may be—on the open road, at a truck stop or even inside a building—via cellular tower triangulation and GPS (global positioning system) satellite technology. Law enforcement officials can track their whereabouts with pinpoint accuracy, significantly boosting prospects for the goods' prompt recovery.
Wireless cargo tracking systems are not new. Trucking companies have used satellite tracking to keep tabs on their fleet vehicles for years. But satellite signals cannot reach all locations, making the systems less than foolproof. The new tracking devices get around that problem by employing both cellular towers and GPS technology to transmit location data. And because the devices don't need to "see the sky" to determine location, they can operate in places that traditional GPS cannot.
The new asset trackers also have an advantage in that they're much less readily detectable than the tracking devices installed in trucks. Thieves have no way of knowing which pallets or cartons harbor the devices, and they're unlikely to spend time sifting through the packages to find them.
The technology is still in its infancy, however. It remains to be seen if wireless security solutions (also
known as location-based systems) will provide the long-
awaited breakthrough in deterring cargo theft—a problem estimated at anywhere from $10 billion to $50 billion in the United States alone. In the meantime, law enforcement officials say they're happy to have the high-tech help. "Some of the newer GPS type of tracking systems are definitely a boon to law enforcement," says special agent Steve Siegel, a spokesman for the FBI. "If you can put some kind of tracking device into a pallet of goods or in cargo containers that can be tracked from a distance, it's a definite benefit to law enforcement and a deterrent for criminals."
As Siegel sees it, the main benefit isn't so much theft prevention as asset recovery. Oftentimes, law enforcement officials don't hear about a theft until hours, days or weeks after it's occurred, forcing them to play a frustrating game of catchup. But with access to real-time location information, they can move right in. "Anytime you can recover something in a short ... time," says Siegel, "it's a benefit to law enforcement."
Spyware in a good sense
The market appears to be embracing the technology. The two major players, Bulldog Technologies of Richmond, British Columbia, and SC-integrity/KRI of Bothell, Wash., both report booming sales. In the past several months alone, Bulldog Technologies has signed contracts with pharmaceutical giant Pfizer, retailer Barnes & Noble, carrier Shadow Lines Transportation, and a Fortune 500 food manufacturer that won't discuss its plans because it believes using the covert tracking devices will give it a competitive advantage.
Bulldog Technologies' entry into the market is a system called MiniBOSS, which at 4 by 3 by 2 inches and weighing just 6 ounces, falls on the small end of the tracking device spectrum. The unit is designed to work in conjunction with the Bulldog Security Gateway, a proprietary automatic vehicle location software program that lets a user track his quarry's movement using a standard PC.
Bulldog's tracking service offers users more than disembodied geographic coordinates, however. Its application provides a link to Google Earth that lets customers see an actual satellite photograph of the tracker's exact location. The satellite photograph is overlaid onto a road map, allowing users to identify places and roads by name. Michael Olsen, Bulldog's vice president of sales, tells of a customer who pulled off the highway and called in to challenge the Bulldog staff to tell him where he was. "We located him with the MiniBOSS, and using Google Earth, we were able to tell him that he was at a truck stop, parked in the parking lot," Olsen reports. "We could actually see a picture of the trailers. Although [it was] a stored photograph and not real time, it gave us fantastic insight into the actual layout of the area."
Bulldog's competitor, SC-integrity/KRI, is also bullish on its growth prospects. The company expects business to increase exponentially in the next 24 months. It reports that its SC-tracker devices are currently in use throughout the United States with more than 30 member companies, including shippers and manufacturers, carriers, third-party logistics service providers, retailers, and law enforcement agencies. (SC-integrity/KRI refers to its customers as members because of their shared network agreements.) The company expects to triple its member base and increase the number of units deployed twelve-fold in 2006. It has even greater expectations for 2007; SC-integrity's projections call for a whopping 30-fold increase in the number of units in the field.
Both tracker makers like to point out that their devices have applications beyond just security. Bulldog, for example, notes that its tracker can perform other monitoring tasks, such as measuring temperatures for temperature-controlled deliveries.
In fact, those non-security related applications might someday eclipse security when it comes to driving sales. King Rogers, executive vice president at SC-integrity/KRI, reports that one of his company's clients, a national carrier, plans to use the trackers to help it hone its delivery time estimates. "Obviously, if the proof of concept plays out for predicting ETA times, and we think it will, the security aspect of the system becomes just an add-on feature because it pays for itself by virtue of being able to predict ETAs," says Rogers. "We are talking about an evolving technology that ... is probably going to be the hottest technology in the supply chain over the next couple of years, not only for security reasons but for supply chain management opportunities."
Of course, all this capability comes at a price. According to previously published reports, the SC-integrity systems cost about $1,500 per unit, not including a monthly fee for network airtime associated with tracking. Bulldog Technologies' tracker costs about $700. Monthly fees for the service, according to Olsen, can run up to $80 a month, depending on usage. Both companies say prices will drop as technology improves and more companies sign on. In the meantime, they note, lower insurance premiums can help offset the costs.
Not so fast
Not everyone is convinced that the covert asset tracking devices will revolutionize cargo security. Naysayers point out that criminals, too, keep up with technological advances, and are probably already at work figuring out ways to disable the trackers' signals. A motivated thief might also be able to subvert the device by breaking up a shipment into small lots.
The systems' cost may also hamper their adoption. "In the conversations I've had with clients about wireless cargo security, the products do not seem to be gaining a great deal of popularity at this point," says Barry Brandman, president of Danbee Investigations, a Midland Park, N.J., company that provides investigative, loss prevention and security consulting services to many of the top names in the logistics industry. "There still seem to be some serious reservations about cost, reliability, [and] electronic compatibility."
There may be technical difficulties as well. "Some people believe that there are still a lot of technical kinks that need to be worked out," Brandman adds, "and they haven't been able to convince their executive committees that the expense justified the gains." All that could change quickly if the manufacturers succeed in debugging the bugs, however. If they do, cargo thieves will be the first to feel the sting.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.