Smart containers’ role in tackling the costly rise in container security risks

Developments in smart container technology are revolutionising how shipping lines and key stakeholders better detect, deter and respond to threats from drug smuggling and cargo theft, writes Christian Allred, Chief Commercial Officer of ORBCOMM

Drug smuggling, cargo contamination, and cargo theft have surged in recent years, creating significant challenges for the shipping industry. These illicit activities not only result in reputational damage but also impose considerable financial costs and legal risks on shipping lines, container leasing companies, and other stakeholders.

According to data from Overhaul’s United States and Canada: Annual Cargo Theft Report 2023, global drug activity is on the rise, and cargo thefts are nearing approximately US$700 million annually; the cost of complacency is too high for shipping lines to ignore. Traditional security measures and limited inspections are struggling to keep up with increasingly sophisticated criminal tactics. However, advancements in smart container technology are revolutionising how the industry detects, deters, and responds to these threats.

From real-time tampering alerts to geofencing (a virtual boundary that triggers alerts when a container enters or leaves a designated area) and sensor fusion, these technologies offer powerful tools to protect assets, safeguard crews, and reduce financial risks. Potential benefits also include reducing operational costs, such as cargo loss, insurance claims, and delays, and minimising legal liability by providing clear evidence of where and when a safety or security incident occurred. All of this makes smart container technology essential in securing the future of global trade.

The cost of complacency

The risks facing shipping lines are immense and growing. Criminal activities targeting containers have evolved into organised, multi-billion-dollar enterprises, posing growing risks to shipping lines. These factions are determined and are continually evolving their tactics. Ignoring these risks is not an option for the shipping industry.

Global drug activity has increased by an estimated 23% between 2011 and 2021, with approximately 296 million users worldwide, according to the United Nations Office on Drugs and Crime (UNODC). The latest findings from the UNODC reveal the growing sophistication and expansion of drug trafficking networks, which now use shipping containers as a primary conduit for smuggling illicit goods across borders. In 2022 alone, UNODC statistics show that more than 300 metric tonnes of cocaine were seized from ships, a staggering figure that underscores the scale of the problem.

Criminal networks have also become increasingly violent, placing shipowners and crews in greater danger. This issue gained international attention at a January 2024 conference in Houston, where BIMCO, INTERPORTPOLICE, INTERMANAGER, the World Shipping Council, and the Northeast Maritime Institute convened to address rising incidents of drug smuggling aboard ships and the abuse of seafarers.

Cargo theft poses a similarly troubling challenge, with cargo losses nearing US$700 million as supply chain shortages have driven up the demand for high-value goods. Electronics, car parts, and even food and beverages—driven by inflation—are becoming prime targets for theft due to their portability and resale value. These crimes often occur in ports or during transit, where goods are particularly vulnerable to interference.

The financial repercussions for shipowners are significant. If held responsible for cargo losses, they may face the costs of replacing stolen goods and higher insurance premiums. Failing to implement adequate safety measures can also lead to accusations of negligence, resulting in legal consequences, reputational damage, and lost business opportunities.

Beyond financial costs, the fallout extends to crews, who are often thrust into perilous legal situations when drugs are discovered onboard. Unwarranted criminal charges, detention, or prosecution create significant personal and professional risks for seafarers, further complicating operations and tarnishing the company’s reputation. The cost of complacency is more than financial; it impacts every aspect of shipping operations.

Current solutions

Tackling the root causes of container security risks is an ongoing and complex challenge that requires collaboration among governments, industry stakeholders, and law enforcement agencies. Despite increased attention to these issues, several practical difficulties persist—particularly given the sheer scale of global container shipping operations and the limitations of current inspection methods.

One of the most pressing challenges lies in the low rates of physical container inspections. According to Europol’s March 2023 report, only 2-10% of containers transiting EU ports are inspected, leaving significant gaps that traffickers and criminals exploit to move illicit goods undetected. Such limitations hinder the ability to detect security threats effectively until the goods reach their final destinations. Cargo theft, for example, often occurs during port transit and can remain undetected until delivery, making recovery and accountability challenging for shipping lines. This underscores the urgent need for practical solutions that provide greater visibility and real-time oversight.

Industry leaders highlighted the importance of fostering intelligence sharing between governments to understand smugglers’ tactics and high-risk areas better. The unfair treatment of seafarers, often caught in the legal crossfire when drugs are discovered on board, was also identified as a significant issue. In response, the conference’s panellists proposed updating IMO guidance to protect seafarers better and reduce risks for shipping lines. A formal proposal was submitted to the IMO in April 2024, calling for changes to ensure stronger protections for shipowners, their crews, and shipping societies.

While international collaboration forms the foundation for addressing systemic issues, cutting-edge technologies are bridging operational gaps to enhance container security. Smart container solutions offer advanced capabilities to monitor, detect, and deter threats in ways that traditional methods cannot. For instance, technology can help close the gaps caused by low inspection rates, providing tools such as geofencing, tampering sensors, and real-time alerts to flag unusual activity. These innovations are critical to improving oversight and reducing vulnerabilities during the transport process.

This dual approach combines greater intelligence-sharing with cutting-edge monitoring technology and offers the best path forward in tackling the growing challenges of container security.

Better detection

With 90% of the world’s goods moving through container terminals, ports are prime targets for criminal activities such as cargo theft, smuggling, and human trafficking. Containers, while vital to global trade, present vulnerabilities that criminals exploit, particularly for high-value goods.

Traditional theft and tampering detection methods are reactive, relying on manual processes like seal verification, which are time-intensive and offer limited actionable insights. This outdated approach delays responses and makes it difficult to pinpoint when and where incidents occur.

Smart container technology is transforming this process with real-time monitoring and proactive detection. They offer innovations like door open/close sensing, which uses time-of-flight lasers and light sensors to detect access quickly and efficiently. Sensor fusion combines multiple data streams to reduce false alerts, while light intrusion detection and optional humidity sensors identify breaches that could impact cargo quality.

Tampering detection provides instant alerts for unauthorised interference, supported by geofencing, GPS tracking for real-time location updates, breadcrumb tracking (a system that records and transmits a container’s movement history at regular intervals), and asset recovery. Notifications of key events ensure swift responses on land with cellular coverage and at sea from crew using onboard vessel networks.

A major advantage of this technology is its ability to document a timeline of events, establishing a clear chain of custody essential for insurance claims and legal proceedings. Future innovations, such as infrared motion sensors, promise even greater security by detecting unauthorised activity within containers during transit.

These systems don’t just enhance security; they also minimise financial losses and operational disruptions. Real-time alerts allow crews to address breaches early – the crew can then contact team stakeholders and authorities ashore at the next port call, keeping crews safe from the potentially dangerous investigation if a security breach is detected during routine checks aboard. By enabling earlier detection and faster responses, smart container technology gives shipping lines greater control over their assets while safeguarding crew, cargo and company reputation.

Return on investment

Today’s latest container technology delivers strong returns by combining innovation with cost-efficiency. Solar-powered sensors, designed with larger, angled panels, harvest energy efficiently, ensuring long-lasting performance even in remote or challenging environments. This reduces maintenance needs and enhances reliability.

Some sensors on the market feature adaptive power management, automatically balancing reporting intervals based on energy availability and battery levels. This intelligent system maintains fleet health without sacrificing data transmission frequency, ensuring continuous monitoring without resource strain.

Enhanced battery capabilities further boost reliability, offering increased capacity, longer cycle life, and performance across extreme temperatures. These advancements extend the technology’s lifespan, reducing replacement costs and improving long-term value.

Deployment is equally streamlined, with fast, simple installation completed in minutes. This minimises operational disruptions and allows shipping lines to integrate the technology easily.

With features that optimise energy use, minimise downtime, and enhance durability, the latest smart container solutions on the market provide a measurable return on investment while improving security and operational efficiency.

When there is such big money to be made by criminals, security threats for containers, and the high-value goods in them continue to rise, the cost of doing nothing is potentially massive, both financially and reputationally. By embracing innovations like telematics and sensor technology, the shipping industry can not only address immediate risks but also set a standard for securing global trade in an increasingly complex operating environment.

The post Smart containers’ role in tackling the costly rise in container security risks appeared first on Container News.