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Pioneering Cargo Tracking Service for International Transport Is Already Operational in Two Operations in Brazil
The international transport of goods goes through 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 usually don’t think about that. Instead, we are more concerned about how long the order will take to arrive.
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To get an idea, from China to Brazil, there are more than 16,000 kilometers, and the route passes through other countries before arriving at the final point. Along the way, regulations and customs procedures, which vary from country to country, make transport even more bureaucratic. There are also communication failures and cultural barriers, as well as language differences. The variety of systems and technology standards, the fragmentation of modalities, the proper handling of products, climate issues, security, and the lack of real-time visibility also impact cargo transport worldwide. This means that if any problems arise along the way, our order may take longer to arrive or even get lost.
We complete the purchase of a product from the other side of the continent in just a few steps; however, from the origin to the destination, a lot of planning is required. To deal with these challenges, blockchain technology, artificial intelligence (AI), and advanced data analytics to improve visibility and transparency in international supply chains have been essential for the success of cargo transport. Moreover, collaboration among stakeholders, the 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 about 67% of transport, and road conditions, high fuel prices, and security are challenges to logistics.
Last year alone, there were more than 17,000 cases of cargo theft and robbery, according to the Overhaul Intelligence Center’s Cargo Theft Report. Miscellaneous cargo represented 43% of the cases, followed by food, beverages, and tobacco. There was a 4 percentage point increase in electronic thefts in 2023, highlighting the attractiveness of this type of cargo to criminals.
Now, when it comes to visibility in exports, Brazil’s focus has still been on shipments transported within the national territory, which reduces attention to the process as a whole. “Most monitoring is done by companies in the country of origin, and as soon as the cargo crosses from one country to another, the responsibility shifts to another company. This fragmentation may seem less bureaucratic; however, it creates a blind spot in monitoring during the transfer from one border to another, thus increasing the risk of losing information during transit, which can make it difficult to take action in case of incidents and may also pose contamination risks with container openings during the journey,” explains Reginaldo Catarino, Overhaul’s Intelligence Manager.
Experienced in tracking cargo globally, Overhaul, the leader in risk management in transit supply chains, has launched the Risk Monitoring service in Brazil. “This is essential technology for clients who want to invest in the international market with safety and quality while also seeking to reduce costs in international transport,” emphasizes João Pedro Gonçalves, Overhaul’s Risk Analyst in Brazil.
He explains that the information from Risk Monitoring encompasses the complexity of the entire journey. “From the moment the cargo crosses the border, in cross-border scenarios, tracking and information are lost; however, with the Risk Monitoring platform, we can monitor anywhere in the world, and we can see if there has been a change in route, if the container was 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 time or late and at which stage of transport. There is also an estimate of CO2 emissions for the journey.
“In international transport, cargo security goes far beyond protection against theft. There is also the constant threat of drug trafficking, which often uses maritime routes. This makes rigorous monitoring a vital necessity. For companies that already have OEA certification, ensuring greater efficiency in shipping, 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 quality loss, ensuring that sensitive products such as medicines and food arrive intact at their final destination. The quality of goods is preserved, especially in situations of temperature excursions or contamination risks during transport, from ports to warehouses,” states Fabio Marton, Director of Overhaul Brazil.
Long Journeys
The platform proves to be a leader in long routes, especially in the maritime modality. Cargo worth millions, especially electronics, pharmaceuticals, and agricultural pesticides, are monitored. Gonçalves explains that, due to the low risk, the goal is not theft prevention but cargo security – including quality, such as temperature control in the case of medications, for example, handling, and preservation.
To monitor the goods, trackers are installed in the containers or inside the cargo. “Without the device, it would be necessary to open the container for analysis and control, which is not allowed here in Brazil – only the Federal Revenue has permission within customs. Since we insert it from the origin, we have the advantage of this control,” says Gonçalves.
Currently, Risk Monitoring is already operational in two operations in Brazil. “We have a pharmaceutical cargo that leaves São Paulo and goes to the Port of Santos, where it is loaded onto a ship and heads to Europe. We also monitor electronics from Santa Catarina to São Paulo to prevent thefts, as it is a region with many occurrences,” reveals the specialist.
The pharmaceutical company decided to monitor the cargo end-to-end because the product was shipped from Brazil properly approved but was found with drugs upon arrival.
“With Risk Monitoring, we can see all the cargo movements, and with that, the container was no longer opened during transit, resulting in no further drug occurrences in the merchandise,” exemplifies Fabio.
Risk Monitoring Features
The platform offers automatic dashboards generated in real-time, enabling data extraction and the ability to export reports with the entire history and information. It also provides risk assessment and logistics performance KPIs, such as the number of shipments on time or late, transportation stage, filter by carrier, how many are at risk and the type of risk, in addition to CO2 emission estimates.
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