Posted by Rapid globalization has resulted in a shift to a multimodal transportation system. This has enabled a more efficient setup, one which allows better management of time and also streamlines the supply chain. However, this development has opened a new set of challenges for industry. The biggest challenge to an efficient and secure multimodal transport system is – how do security managers, transport planners, security professionals, carriers, and shippers develop and think about security across the system?
To answer this question, let us first understand the gaps in logistics and areas where goods are the most vulnerable and accessible to culprits. As per statistics published by Semi-Annual Global Cargo Theft Intelligence and Advisory Report in 2018, 80% of cargo theft takes place in trucks and 66% of them are done while the truck is on the move. Theft from storage facilities is at 9%, which is the second highest. These numbers when calculated in terms of revenue loss are worth over US$50bn annually as per National Cargo Security Council, USA. Hence, containers and trucks especially in transit are the most vulnerable links of the multimodal transport system.
Also Read: Container Security and Theft Trends Through the World
An article by Scott Cornell, an Insurance investigator talks about the most common ways in which the theft is planned. Lock tampering and opening a container by the hinges is one of the most reported ways of theft while goods are in transit. The culprits have mastered the art of replacing or putting back together a mechanical bolt seal together with glue while leaving no traces of theft or tampering. Due to the easy availability of mechanical bolt seals in the market and no ability to uniquely identify or link the seal to the container, the culprits also get away with simply replacing the original seal with a duplicate with identical numbering. This problem also occurs for ISO certified bolt seals, which can just as easily be tampered with as non-ISO certified container seals. The events of container hijacking also occur quite frequently. These involve the drivers most of the times being in collusion with the culprits. In many of these cases, the shippers do not get to know that a theft or material shortfall has taken place until it’s too late.
In order to overcome this serious problem, a series of initiatives have been taken by governments and private companies. These initiatives include the use of upgraded security systems such as RFID E-seals instead of bolt seals and electronic cargo tracking systems along with the already implemented GPS, which most trucks already have in place.
An RFID E seal, which can be used on containers are devices similar to bolt seals in appearance and are just as simple to use. However, RFID E-seals are upgraded with cutting edge electronics with the addition of radio frequency identification (RFID) technology. The RFID Eseal is embedded with a RFID chip that stores a Terminal ID (TID) number, which is unique and linked to a particular shipment. After sealing a container, the RFID E-seal can only be broken with a metal or bolt cutter similar to a bolt seal but most importantly, it cannot be reassembled like the traditional bolt seal can. If you tamper with an RFID E-seal, the unique electronic chip and circuit’s status gets changed permanently. Imagine the digital ID is 0 for non-tamper and 1 for tamper. Once the RFID E-seal is tampered the digital ID stored on the secure cloud changes the status of that seal to ‘1’ to indicate that it has been tampered and this cannot be reversed now. A customer can also scan the RFID Eseal to confirm that the cargo or shipment details matches against the TID number of the seal that was installed. Hence, the RFID E-seal cannot be broken and replaced with another identical RFID E-seal since the TID number is a unique digitally encrypted serial number that is not known to anyone. Only if the RFID E-seal TID number is matched upon scanning, it can transmit data such as location, date and time of scanning. These updates are also stored in the secure cloud in the form of a management MIS dashboard.
Cutting edge digital security solutions such as these are proving effective in solving the issues of container theft and tampering. As a result of these advantages, the Central Board of Excise and Customs (CBEC) made E-sealing of containers mandatory in India from October 2017. Since the implementation, a drop of 13% in theft has been reported by BSI Global supply chain intelligence review in 2019.
Sepio Products Private Limited, one of the leading vendors for RFID E-seals is empanelled with the Government of India to manufacture and distribute RFID E-seals for use on containers. The potential of the product is also witnessing demand from private companies in Africa and UAE where companies are using the RFID E-seals to seal their containers and track their cargo from the factory to the origin port itself. A successful implementation in international markets along with upgraded software to allow users to upload documents with the container image and weight of cargo has given Sepio appreciation from several international clients.
Sepio has also introduced a platform for electronic cargo tracking system (ECTS) by the name of “LogiSmart”. In contrast to the one-time use RFID Eseal which is a passive seal, Logismart is a platform which is integrated with an active smart lock that is reusable in nature. The active smart or electronic lock is used to secure a closed-door truck or vehicle during road transportation. The advantage of the electronic or smart locks are as follows: –
- Real-Time Tamper Alerts, Suspicious Movement, and Idle Time Alerts.
- Ability to Seal the Doors of the Vehicle Through the Hinges to Eliminate the Problem of Container or Truck Door Removal.
- Remote Access of the Lock Through a Mobile Application or Website Login.
- Live Location Update Along With Option to Geo-fence Your Facilities
- Rich Analytics to Inform Stakeholders on How to Optimize the Logistics Operations.
- Easy Record Keeping and Tracking of Every Cargo on the Move.
The RFID E-seal and Smart Lock are two of the many exciting solutions that the trend of digitization has brought to solve the theft and tamper needs of the transport industry. RFID seals are cost efficient solutions, which can be implemented immediately with no training. Similarly, the smart lock for electronic cargo tracking has proven to be a successful ready to use product that is simple and highly effective in reducing cargo and truck theft. To find the best use case for your needs, you can connect with Sepio Products at sales@sepioproducts.com .