The Evolution of Container Tracking: How APIs Are Transforming Shipment Visibility

Introduction

In the world of global shipping, satisfied customers translate into loyal customers. Businesses that excel in building strong relationships with their clients through consistent, high-quality service secure a competitive edge in the highly competitive transportation industry. A well-optimized Customer Relationship Management (CRM) system is essential for focusing on high-quality prospects, avoiding resource waste on unqualified leads, and maximizing your return on investment (ROI).

One crucial aspect of this process is shipment tracking. Historically, shippers, freight forwarders, and Beneficial Cargo Owners (BCOs) relied on manual tracking methods for updates. However, advancements in technology, particularly through the use of APIs, have revolutionized container shipment tracking, offering enhanced visibility and efficiency.

The History of Tracking Shipping Containers

Before the modern shipping container's invention in 1956, loading cargo onto ships was a labor-intensive and costly process. The standardization introduced by the shipping container, coupled with the advent of container cranes a few years later, marked a significant improvement in ocean freight transportation. Over the next three decades, shipping containers became the backbone of the global shipping industry.

The first container ship had a capacity of 226 containers. By the early 1980s, ships could carry 3,000-4,000 TEUs (Twenty-foot Equivalent Units). By the late 1990s, this capacity increased to 8,000 TEUs, and by the mid-2000s, it jumped to 15,000 TEUs. As of 2022, the largest ships exceed 24,000 TEUs. Despite this growth, tracking container shipments has always posed challenges, from the early days of container shipping to today's highly advanced systems.

Manual Tracking of Container Shipments

For decades, manual tracking was the norm. Shippers relied on paper documentation and manual data entry, which was labor-intensive and prone to errors. The process involved frequent visits to carrier websites, searching for shipment updates, and entering this information into internal systems. This method was not only time-consuming but also lacked real-time accuracy.

With container ship capacities increasing, the need for efficient tracking solutions became more pressing. Fortunately, technology has introduced digital tracking systems that streamline container shipment tracking.

Components of Container Shipment Tracking

To effectively track a container shipment, two key elements are needed: a unique identifier and access to a tracking system.

Types of Unique Identifiers

1. Container Number: A four-letter and seven-digit code assigned by the International Organization for Standardization (ISO) to each shipping container.
2. Booking Number: Found on receipts or invoices, this number identifies the reservation or booking of the service.
3. Master Bill of Lading Number: This number identifies the legal agreement between the carrier and the shipper and helps track each container.

Types of Container Shipment Tracking Systems

1. Carrier Websites: The most basic form of tracking, requiring manual updates and searches.
2. Technology-Enabled Solutions: Advanced systems integrate with existing systems, offering automatic updates and enhanced features. For example, VIZION API provides data pushing, milestone standardization, and exception alerts.

Enrichment Data Add-Ons to Container Shipment Tracking

Enhancing your tracking system with additional data can significantly improve visibility and accuracy. Options include:

• Enhanced location visibility
• Enhanced terminal visibility
• Vessel verification
• U.S. customs data
• Live vessel tracking and ETAs

These enrichment features provide a more comprehensive view of your shipments, tailored to your specific needs.

Benefits of Tracking Container Shipments

Effective container tracking offers numerous advantages:

1. Save Time and Increase Operational Efficiency: Automated processes replace manual data entry, allowing operations teams to focus on managing exceptions.
2. Mitigate Risk: Real-time updates enable prompt responses to delays and disruptions, reducing supply chain risk.
3. Gain Actionable Insight: Track shipping trends and identify inefficiencies to improve operations.
4. Improve Customer Service: Enhanced visibility supports better service reliability and customer satisfaction.
5. Return on Investment (ROI): Increased efficiency and reduced labor costs lead to higher ROI, better container utilization, and fewer lost inventories.

The Role of Shipment Tracking APIs

APIs play a pivotal role in modernizing shipment tracking. They extend the benefits of traditional tracking by integrating data and functionality into an easy-to-use solution. APIs create a collaborative ecosystem that improves end-to-end visibility and standardization. Here are nine key use cases for shipment tracking APIs:

1. Automate Data Collection: Reduce data touchpoints for a more reliable process.
2. Manage Exceptions: Utilize standardized and enriched data for effective exception handling.
3. Share Information: Inject visibility directly into external systems for improved stakeholder communication.
4. Develop New Applications: Increase operational and customer visibility through new web applications.
5. Monitor Status Updates: Receive daily or hourly reports on container status.
6. Optimize Shipping Routes: Improve routes, container utilization, and carrier selection based on tracking analytics.
7. Respond to ETAs: Get real-time alerts for changes in estimated times of arrival.
8. Reduce Detention and Demurrage: Identify opportunities to minimize these costs.
9. Boost Productivity: Power robotic process automation (RPA) for enhanced operational efficiency.

Conclusion

The evolution of container shipment tracking from manual methods to advanced digital solutions has transformed the logistics industry. Embracing modern tracking technologies and APIs enhances visibility, efficiency, and customer satisfaction.

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