Back in 1998 I was hired as a Customer Integration Manager for a NVOCC freight Forwarder. My first project was to develop a web based shipping container track and trace system. Although I had never before done such a project, I quickly learned that web based shipping container tracking was relatively unheard of, so having experience was not needed.

The project was to customize a web site that would deliver track and trace information and design it to the customers’ needs. Essentially, the technology did not yet exist to write this kind of track and trace code at a cost that was in our budget. So we simply uploaded the daily customer Excel Spreadsheets to an FTP site and linked all of the documents to each container number. That was the 20th century’s answer to a customized web based track and trace system. My how things have since changed!

Presently, most of the freight forwarders or 3rd Party Logistics companies I work with have far superior web based tracking systems than was available back in the day, and as such, I hear over and over again the same thing; that it’s a great system, but only about half of the functions are being used. So how can a container tracking system become the web based workstation that enables the free flow of freight information?

When I ask which functions are not being used, returning shipping containers to container yard or port is always at the top of the list. Most simply say they don’t have the time and have never had any problems, but the majority is unaware that as a freight forwarder/NVOCC, it is a legal responsibility. Since the profit margin in shipping container freight is typically slim to begin with, a web based track and trace system provides an accurate means to follow up on the return of empty containers, by container number.

One 3rd Party Logistics company recently called me to help consult with their IT staff on this very issue. Apparently, their accounting department had received an invoice from one of the major ocean carriers for demurrage. Unbeknownst to the operations agent handling this customer ocean carriers allow a limited number of free days from the time containers are delivered to the customer door.

After the last day, a per diem charge is assessed upwards of $250 per day, plus weekend days In this case. However, the invoice amount for demurrage, spread over 1000 shipping containers was almost $30,000.00. The fee was later negotiated down to something much more reasonable, but the point was made. It was clear what was needed as soon as possible: an executable SOP, which was part of their real time web based tracking system.

After some time with their IT department, we were able to restructure their web based container tracking system so as to alert multiple parties when a shipping container needed to be returned. As such, the system now executes an SOP alert for this event and insures that the responsibility is being implemented so that the shipping container is returned timely.

Much of the shipping container industry is built on outsourcing various parts of the process to different specialty companies. Therefore, it is wise to select a web based container tracking system that includes the return of the shipping container, as well as comprehensive understanding of this part of the transportation process. The ocean carrier owns the shipping container and the chassis used to transport them.

They contract pick up services from the port or container yard to the manufacturers’ door with trucking or drayage companies who perform the actual pickup and delivery, and although they are responsible for the shipping container, the consignee is responsible for unloading in a timely manner. Most ocean carriers provide for a limited number of free days from the time containers are delivered to the customer door until they are due back. This is typically 3 to 5 days.

After the last day, a per diem fine is assessed upwards of $250 per day. It is important to remember that free days include weekends, as well. This is a fee that is charged for additional days, is known as a demurrage charge, and can quickly become expensive without anyone knowing differently. To capture this data the customer would need information that was as close to real time as possible, that is delivered in an e-mail or some other type of electronic form of notification, which identifies the remaining number of free days, as well as contact information for the trucker when container pick up is ready.

Ideally, a notification or delivery order to the carrier for pick up would be generated upon receipt of the trigger, thus creating a permanent record of that date stamps the transaction. Having this information for future reference is a good idea, even though the manufacturer has returned the shipping container timely delays after pick up by trucker are possible, and this will protect you in the event proof is needed to verify the time and day the return was made. A good web based tracking system can trigger this event to insure that the task is carried out and that the shipping container is returned timely.

A good web based container tracking system will provide the necessary tools in order to capture critical benchmarks such as the return of empty shipping containers. Taking a proactive position with returning shipping containers timely will result in a positive transportation experience, that is free of additional costs.

If you experience stock outs, non-compliant packaging fines, missing or stray containers, or have difficult customer count reconciliations, you can avoid all of that by being a little more proactive. Unfortunately, its very difficult to be proactive without a comprehensive Container Tracking System.

Vestigo Corporation provides patented Tracking Systems for all types of returnable shipping assets. Other container tracking systems require you to adapt your operations to the rigid design of their software. With Vestigo, your tracking system is tailored and modeled to meet your needs and goals.

How does a typical tracking system for returnable shipping platforms work? The reality is that it is much more than a GPS device. Good-quality software uses different kinds of technologies including electronic file transfer, bar code and radiofrequency identification as well as manual input.

As a result, a complete record for each asset is created. It includes information on all of the movements of the asset from the day it is first acquired to its location in real time. The software should be able to produce reports for any exceptions to the established shipping cycle. That way any issues can be fixed timely. You can expect a good-quality tracking system to be compatible with international standard for internal and external audit.

A tracking system for returnable shipping assess allows you to have perfect control at each individual asset at all times. This makes it possible to create pools and fleets of assets for easy and simple tracking. More importantly, you will be able to secure all creates, totes and other items in the most effective manner. Identifying problems and fixing them are two essential tasks that are made easy with the tracking software as you have the complete information about asset location at any given time.

The main benefit of using a tracking system for returnable assets is more productive management. With less effort, you will be able to track and recover returnable assets more effectively. This automatically leads to reduction in costs. You will be able to save on labor costs due to the greater productivity of the management and accounting department of your company. Your administrative costs will also be lower.

Reduction of losses is another benefit that you will enjoy when using tracking software for returnable assets. It is common for companies to lose valuable assets when they cannot keep effective track and record of them. This automatically leads to monetary losses for the company. These will be lowered to a minimum with more effective asset management.

Investing in a tracking system for returnable shipping assets is highly recommended to businesses. The size of investment can be reduced to a minimum if subscription to the system is an option.

Discover the opportunities offered by one of the best Tote Tracking Software programs. Take advantage of a System to Track Crates that makes returnable asset management easier, cheaper and much more productively efficient.

Can a returnable asset tracking system help in the requirements of Sarbanes-Oxley? Yes it can and it will save you money too!

Sarbanes-Oxley Section 404 requires companies with large dollar volumes of returnable assets to effectively track those assets to ensure accurate balance sheets and income statements. Without a returnable asset tracking and recovery system in place, companies open themselves to Sarbanes-Oxley liability if error-prone processes lead to significant misstatements of asset positions. This can be a particular issue with a fleet of returnable shipping assets, such as totes, tanks, containers or cages.

Using the Internet and enabled by media such as electronic file transfer, RFID or Bar Code, a returnable asset tracking system can be a major step towards controlling, recovering and securing returnable shipping assets during their entire lifecycle while aiding in compliance with Sarbanes-Oxley. Unlike a GPS location application, the returnable asset tracking software solutions includes not only each returnable asset’s most recent location but also a permanently archived history or “passport” from the date the returnable shipping asset was acquired.

In addition to assuring compliance with Sarbanes-Oxley, the returnable asset tracking system support internal and external audit requirements, regulatory compliance and Trade (NAFTA) requirements but also improves Return on Assets (ROA) by identifying unneeded inventory and increasing utilization of tracked returnable assets.

Some of the management benefits you should also expect from automated returnable asset tracking software can be derived from a focus on event-triggered exception or smart reports. This should address potential trouble areas of the returnable asset fleet performance such as stranded assets, excessive dwell or transit times or inordinately high damage.

While a returnable container tracking and recovery solution can help with internal and external audit requirements, regulatory compliance and international trade requirements, it will drive up the overall cost effectiveness of the returnable container fleet.

Some of the management benefits you should also expect from automated returnable container tracking software can be derived from a focus on event-triggered exception or smart reports. This should address potential trouble areas of the returnable container fleet performance such as stranded containers, excessive dwell or transit times or inordinately high damage. Another benefit of a container tracking system would be the ability to sort or rank customer or supplier locations from “first to worst” in terms of the container fleet performance while under customer or supplier control. The routine flagging of returnable containers that are due for maintenance or testing and certification will avoid loading outbound product into an inappropriate returnable container that can’t be shipped.

The returnable container tracking system will improve Return on Assets (ROA) by increasing the velocity and utilization of the returnable containers, which can be tracked and measured. As a consequence, it will provide better performance intelligence when the container fleet size needs to be increased, or in the alternate, identify an opportunity to downsize the container fleet.