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International cargo transport gains more quality and safety

Written by Flavia Soares
Published 03/09/2024 às 10:35

Pioneering cargo tracking service for international transport is now operational in two operations in Brazil

International freight transport involves many stages and challenges until the product reaches its destination and the consumer. However, when it comes to buying a product from another country with just one click, we don't usually think about this. Instead, we worry more about how long it will take for the order to arrive.

To give you an idea, the distance from China to Brazil is more than 16 thousand kilometers and the route passes through other countries before arriving at the final destination. During the journey, customs regulations and procedures, which vary from country to country, make transportation even more bureaucratic. There are also communication failures, cultural barriers and language differences. The variety of technology systems and standards, the fragmentation of modes, good product handling, climate issues, security and the lack of real-time visibility also impact cargo transportation around the world. This means that if a problem arises along the way, our shipment may take a long time to arrive or may even get lost. 

It takes just a few steps to complete the purchase of a product from the other side of the continent, but from origin to destination, it takes a lot of planning. To address these challenges, blockchain technology, artificial intelligence (AI) and advanced data analytics to improve visibility and transparency in international supply chains have been essential to the success of freight transportation. In addition, collaboration between stakeholders, adoption of common technology standards and compliance with international regulations are key to overcoming these challenges and ensuring effective visibility of goods in transit.

Risk Monitoring  

Several countries, such as the United States and China, are already working with visibility platforms to track cargo across borders. Road transport is the main driver of cargo movements in the country, accounting for around 67% of transport, and road conditions, high fuel prices and security are challenges to logistics. 

Slast year there were more than 17 thousand casess of cargo thefts and robberies, according to the Cargo Theft report from the Overhaul Intelligence Center. Miscellaneous cargo accounted for 43% of cases, followed by food, beverages and tobacco. There was a 4 percentage point increase in electronics thefts in 2023, highlighting the attractiveness of this type of cargo for criminals.

Now, when it comes to visibility in exports, Brazil's focus has still been on shipments transported within the country, which reduces attention to the process as a whole. "Most monitoring is carried out by companies in the country of origin, and as soon as the cargo leaves one country for another, the responsibility passes to another company. This splitting may seem less bureaucratic, but it creates a blind spot in monitoring when transferring from one border to another, which means there is a risk of information being lost during transportation, which can make it difficult to take action in the event of an accident or risk contamination if the container is opened during the journey," explains Reginaldo Catarino, Overhaul's Intelligence Manager.

Experienced in tracking cargo across the globe, Overhaul, a leader in supply chain risk management in transit, has launched the Risk Monitoring in Brazil. “This is an essential technology for customers who want to invest in the international market with safety and quality and also seek to reduce costs in international transport”, highlights João Pedro Gonçalves, Risk Analyst at Overhaul in Brazil. 

He explains that Risk Monitoring information covers the complexity of the entire route. “From the moment the cargo crosses the border, on the cross boarder, the tracking and information are lost, however, with the Risk Monitoring platform we can monitor it anywhere in the world, and we can see if there has been a change in the route, if the container has been opened, if the temperature needs to be adjusted, etc.”

The program generates real-time data, risk assessment and Logistics Performance KPIs such as how many shipments are on or off schedule and at what stage of transportation. There is also an estimate of CO2 emissions for the route. 

“In international transport, the Cargo security goes far beyond protection against theft. There is also the constant threat of drug trafficking, that frequently use sea routes. This makes rigorous monitoring a vital necessity. For companies that already have AEO certification, ensuring greater shipping efficiency, end-to-end tracking is necessary. We offer complete visibility that covers every step of the export journey, mitigating risks not only of theft but also of loss of quality, ensuring that sensitive products, such as medicines and food, arrive intact at their final destination. The quality of the goods is preserved, especially in situations where there is a risk of temperature excursions or contamination during transport, from ports to warehouses.”, says Fabio Marton, director of Overhaul Brasil.

Long trips

The platform is a key player on long journeys, especially in maritime transport. Cargoes worth millions are monitored, especially electronics, pharmaceuticals and agricultural pesticides. Gonçalves explains that, due to the low risk, the objective is not security against theft, but rather the security of the cargo – including quality, such as temperature control in the case of medicines, for example, handling and conservation.

To monitor the goods, baits are installed in the containers or inside the loads. “Without the device, it would be necessary to open the container for analysis and control, which is not permitted here in Brazil – the only authority that does this is the Federal Revenue Service, within customs. Since we insert the baits from the source, this control is unique,” ​​says Gonçalves.

Risk Monitoring is currently in operation in two operations in Brazil. “We have pharmaceutical cargo that leaves São Paulo and goes to the Port of Santos, where it is loaded onto a ship and then on to Europe. We also monitor electronics from Santa Catarina to São Paulo to prevent theft, as this is a region with many incidents,” the specialist reveals. 

The pharmaceutical company decided to monitor the cargo from end to end, as the product was shipped from Brazil with due approval, but narcotics were found upon unloading. 

“With Risk Monitoring, we were able to see all cargo movements and, as a result, the container was no longer opened along the route, meaning there were no more occurrences of drugs in the merchandise,” explains Fabio.

Risk Monitoring Features

The platform offers automatic dashboards generated in real time, allowing data extraction and the possibility of exporting reports with all the history and information. It also offers risk assessment and logistics performance KPIs, such as the number of shipments on or off schedule, transportation stage, filter by carrier, how many are at risk and what type of risk, in addition to estimating CO2 emissions.

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Flavia Soares

Flávia Soares, journalist, 36 years old

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