How Cargo Tracking is Important for Business Success?

Cargo Theft has become the issue of the time about which everybody is talking in the industry.

Everybody is scared and somehow concerned about the same, thinking about how it can be stopped or controlled.

BSI and TT Club have given the report to demonstrate their shared goal of educating the transportation and manufacturing sectors about the dynamic cargo theft risks present across the globe.

With the enhanced awareness of cargo crime trends, the industry will be able to engage in a proactive approach in preventing cargo crime and minimizing the financial loss and brand reputation damage that results from cargo crime.

Here are the points of discussion from the full year 2018 report, which needs your attention to look on. Not wasting more of your time, let's have a look.

Highlights of the findings include -

• Theft from road vehicles accounts for the highest proportion at 84%.
• The largest type of cargo theft is Slash and Grab i.e. at 26% globally with significant regional variation.
• The combination of food, beverage, alcohol, and tobacco makes up the most common commodity group at 34%.
• South America tops the regional analytics of the median value of each theft at $77,000.

According to the research, consistency across the region in terms of the most common model of transport is via road and its commodities are at target, moreover, there was some variation in the median value of the cargo that was affected:

• In Asia $19,000
• In Europe and North America $60,000
• In South America $77,000

The methods used in the majority of cases are mentioned below, but however, they vary significantly across the regions. Therefore, the global aggregation resulted in:

• Slash and Grab at 26%, topping the list.
• Theft from Vehicle 19%, second at the list.
• Hijacking 17%, third at the list.

Hijacking is the most common method in North and South America with 37% and 52% rate respectively.

While in Asia, it is a little different from theft from the facility is most common at 43% in comparison with hijacking at 19%.

Also Read: 15 Useful Asset Tracking Tips to Help You Track Your Assets

Regional Variation

1. In Europe, 75% of cargo theft occurs with a  “slash and grab” tactic which accounts for 50% of all reporting losses.

2. The United Kingdom accounts for 86% of reported incidents with thefts performed predominantly on Tuesdays, Wednesdays, and Thursdays.

3. In Asia, China and India are the most frequently recorded countries with cargo theft. The most commonly targeted commodities in the region are food and beverage, metal and electronics; these are mostly influenced by the local market condition.

4. The region of the Middle East and Africa are theft via violent hijackings. Corruption in this region also plays a significant role in cargo theft incidents. Food and Beverage cargoes are the most common target in the region.

5. In North America, there are two distinct intra-regional trends.

• Concerning US and Canada, evidencing similar experience to Europe, with the focus on unattended and unsecured vehicles.
• Violent and aggressive tactics by criminals in Mexico and the countries in Central America.

Food and Beverage top the list of consumer products and commodities that are targeted in North America.

The highest rate of hijacking is experienced or reported in South America on comparing with other regions.

Note:

1. Hijacking incident is reported in almost every country in 2018, while Brazil accounts for 68% of all recorded incidents.
2. Theft in transit accounts for over 75% of all incidents with Tuesdays, Wednesdays, and Thursdays being most frequently targeted.

Also Read: Simplified Explanation of Asset Tracking & Asset Management

Why is Cargo Tracking Important for your Business?

It is an estimate that 90% of the world trade is carried by the international shipping industry, and cargo shipping is more vital now than ever before.

Everyone across the globe is benefitted from shipping since all things nowadays get transported like food, medicines, technology and other vital supplies. Without shipping the import and export of goods, our modern world might not even be surviving.

Moreover, the technology gives the ability to provide customers with a sense of confidence about the products they need to ship.

It is a simple deal that businesses today need an efficient logistics solution that uses technology to improve the client experience with cargo tracking service in trend and market demand.

It is almost impossible to neglect the importance of cargo tracking because any kind of delay in the shipment will not only lead to customer dissatisfaction but financial losses too.

In today's age of globalization, businesses rely on cargo shipping organizations to get their shipments delivered quickly, efficiently and on time. For this, they need an efficient logistics partner that can offer integrative services, including cargo tracking.

The point is tracking systems are a way to boost a company's growth by increasing efficiency in shipment or transportation.

In this digital age, the list of customer expectations keeps getting bigger, for example, people use GPS tracking systems on their smartphone to find everything from the nearest gas station to their favourite restaurant, this kind of logistics is something they expect every time.

Here is another big example, the percentage of customers who now shop online at Amazon, it also provides the ability to track their packages once an order has shipped. Amazon's website provides tracking information in a customer's order details.

For customers, this feature has become mandatory now. The future belongs to the businesses which use this as an opportunity and turn their shipping and tracking services into a great marketing tool for new as well as their existing customers.

From the time a customer places its order to the time their shipment arrives, they expect to be regularly updated on its delivery status and be able to track it themselves and easily manage all their shipping information.

For businesses that work in and around a lot of shipments, a cargo shipping partner which includes cargo tracking is important.

Also Read: Which Industries are using RFID for Asset Tracking?

What are the benefits of Cargo Tracking?

Cargo tracking technology allows shippers to be in control of their transportation and locate the shipment at any point in its journey. Track and trace features are available on an Asset Tracking and Management System.

With Cargo tracking technology, you are aware of your carrier performance, transportation costs and market trends by managing your logistics. Cargo tracking is a necessary element of supply chain management.

1. Reduce Costs and Improved Processes

Tracking of your freight's journey accompanies service levels and fees.

Using the data that cargo tracking technology generates through which shipping company can analyze and communicate with carriers, checking in on pickup time, in-transit time and delays. Through this, a shipping company can make cost-effective changes to improve the supply chain.

2. Increased Visibility and Improved Performance

With cargo tracking features, metrics concerned with ship movement can be easily monitored. Visibility is useful for outgoing shipment as you will be able to see the shipment's progress and know if your customer needs to know the information regarding the delay if any.

3. Improved Customer Experience and Reduced Hold-On

Tracking shipments is important for the customer experience approximately half of the population of America pays attention to their shipping as part of their overall shopping experience. The ability to track your shipment provides might provide peace-of-mind to the end-user. The shipping company will know where their shipment is and can notify the customer of changes, status, and delivery if any.

Conclusion:

In today's technology-loving world, cloud technology has changed the style of businesses.

With SaaS technology, the shipping company no longer needs to front the money for technology as it is all web-based now, where you pay for what you use.

Today, companies offer their customers with logistics solutions for shipping and believe to develop advantages and build customer loyalty through them.

Cargo tracking technology represents the information that shipping companies can use to improve service by providing real-time shipping information to their customers which performs as a superior form of customer service today.

It is one of the main reasons why cargo tracking has become an integral part of the logistics industry.

The businesses can monitor the condition of the cargo through cargo tracking during their transport, like when their packages leave and when they arrive at their prime location.

Also Read: How to Avoid Accumulation of Ghost Assets in Your Business?

Frequently Asked Question (FAQs):

1. What is Cargo Tracking?‍

Cargo Tracking refers to the technology that helps shipping companies to control their transportation and locate their shipment goods at any point in its journey providing real-time information.

2. What are the types of cargo?‍

Cargo or freight refers to the goods or products themselves, which are transported for the commercial gain they are moved by rail, van, truck, or intermodal container or sea or air. There are four types of cargoes (goods): Container cargo, Liquid bulk, Dry bulk, Breakbulk, Ro-ro.

3. Why is cargo called cargo?‍

Cargo or freight refers to the goods or products themselves, which are conveyed for the commercial gain they are moved by ground, sea, or air. Cargo now covers all types of freight, including the goods carried by rail, van, truck, or intermodal container.