Cadet Aman Somra Reg. No. 2301608031 (Roll No. 9852)
Cadet Atharva Tripathi Reg. No. 2301608055 (Roll No. 9876)
Cadet Isham Ahmed Reg. No. 2301608092 (Roll No. 9913)
Cadet Pranav Amit Prasad Reg. No. 2301608152 (Roll No. 9973)
1. Introduction
Amid the advent of globalization, the transit of goods from one location to another is a quintessential part of any business with manufacturing or a supply chain arm. However, due to the sheer amount of logistics involved in global transportation the handling of the actual package to be transported takes a back seat. In many cases, these packages are poorly handled or there is a hefty premium involved for ensuring proper handling of the package which makes the whole transportation process too costly for the parent business. In fact, The National Cargo Security Council (NCSC) estimates that the global financial impact of cargo loss exceeds 50 billion USD annually, moreover 50 percent of domestic and international insurance claims are denied. World trades are most precisely done by the sea way rather than compare to other transportation.
Approximately 90 percent of the international trade volumes are usually done by ocean way logistics. As an economically developing country like India, its 95 percent of merchant trade volumes are based on the maritime logistics.
The World Shipping Council in May 2023, published a survey of its members that stated that estimated the number of containers lost at sea, each year. In the year 2022, 661 containers were lost at sea. The average cargo losses of the last three years (2301) are greater than the average loss in the last 15 years (1566). It is estimated that 10 percent containers on-board ships are declared as dangerous cargo goods by the IMDG Code and are either missing or non-declared.
This paper studies the effective tracking of lost cargo so as to optimize shipping logistics and cargo retrieval. This paper also opens horizons to the remedial measures that can be taken to properly enforce MARPOL Annex III guidelines.
2. Factors Influencing Container Loss at Sea
Container loss at sea is primarily caused due to the container lashing failure due to parametric rolling in rough weather which are descried below:
2.1 Container Lashing Method
Containers experience stresses in the following manner:
1. Due to the Ship’s motion.
2. Due to wind thrusts.
3. Due to slippage and toppling.
To secure the containers they are either stacked in vertical guide rails, stowed in stacks or stowed in blocks. The most common way of securing containers in stacks is by using twist locks in between containers to resist horizontal movement and containers are held together
using cross lashings over the entire stack. Stacking cones are also used to interconnect containers to increase the stability of each container block/stack.
The methodology used above has its drawbacks:
1. Should one container’s lashing be broken, the stability of the entire container block/ stack is compromised.
2. Stacking cones do not have sufficient dimensional tolerances to withstand the movement of an entire container block and the intermediate ones may collapse during rough weather resulting in the collapse of the entire block.
2.2 Parametric Rolling
Parametric rolling is different from conventional rolling and pitching and is experienced by Container Ships particularly. When the wave crest travels along the hull, the flare of the vessel is immersed in the wave and this results in the bow of the ship to come down. This causes the metacentric height (GM) of the ship to reduce thus making it unstable and causing it to roll to the opposite side of the wave crest.
This cycle is repeated as the next wave crest arrives resulting in a synchronous motion that can cause up to 30-40 degrees of rolling.
Parametric rolling causes extreme tensile and compressive stresses on the securing mechanisms (twist locks, cross lashings, turnbuckles, stacking cones, etc) of containers. The securing mechanisms already have limited dimensional tolerances and thus are prone to failure under heavy stress conditions.
3. Impact of Cargo Loss
3.1 Regulatory Impact
SOLAS and MARPOL regulations classifies cargo that can cause sea pollution or pose a threat to sea life as dangerous cargo. The international regulations set forth by organizations such as the International Maritime Organization (IMO) and the International Maritime Dangerous Goods (IMDG) Code regulations divide the dangerous goods as:
Class 1: Substances and articles which have the potential to cause an explosion. Class 2: This includes flammable gases, non-flammable gases, toxic gases, and oxygen. Class 3: Liquids which give off a flammable vapour.
Class 4: Substances Liable to Spontaneous Combustion
Class 5: Oxidizing Substances and Organic Peroxides
Class 6: Toxic and Infectious Substances
Class 7: Materials containing radioactive substances.
Class 8: Substances which will cause severe damage when in contact with living tissue, or, even destroy, other goods or the means of transport.
Class 9: Substances and articles which pose a danger that is not covered by other classes.
Out of all these 9 classes, 5-6 class cargo is carried in general cargo containers which when exposed to open waters can cause huge damage. The tracking and retrieval of dangerous cargo is of huge importance not only for organisations but for the environment.
3.2 Economic Impact
Damaged or lost cargo can have a negative impact on every business with a supply chain arm. This impact can be both short term like product loss, replacement inventory, time lost in filing claims, etc. and long term like loss of clients or market share, loss of trust in the brand, etc.
3.2.1 Product loss and loss in profits
The cost of lost cargo can be enormous. A single loss of shipment can cause a significant drag on profits in the retail industry due to lower profit margins. Maersk, a major player in global container shipping. As of their most recent earnings report in Q3 2023, their net profit margin was 12.6%. If Maersk loses a shipment worth 500,000 USD, they would need to generate 3,968,253.97 USD in additional sales to cover the loss.
3.2.2 Time lost in filling claims
The potential for large losses has caused shippers to ensure their cargo, but the regular pace of claims drives up insurance costs. Moreover, cargo insurance policies are narrowly construed and up to 50 percent of cargo claims are denied.
3.2.3 Loss of clients or market share
Even more painful than the loss of the cargo itself can be the damage to relationships with wholesale and retail customers. Often the choice for the shipper comes down to the eternal trade-off between cost and service. Is this loss so financially significant that it’s worth it to engage in a lengthy and complicated claims process that may involve multiple parties, including third-party logistics providers (3PLs), transportation providers, receivers and insurance companies? Or should the company take the hit in order to preserve an important relationship?
"MSC Zoe" incident (2019): In January 2019, the container ship "MSC Zoe" lost over 200 containers containing luxury goods, cars and other valuable items, overboard during a storm in the North Sea. This incident sparked criticism and concerns about their safety procedures. Some customers may have shifted to competitors with a seemingly stronger safety focus, potentially impacting their market share in the short term.
4. Tracking Module Implementation on Containers
At present the container tracking methodologies rely on GPS modules and RFID tag systems. These systems are used in combination with satellite communication to establish a cohesive environment to optimise logistics behind container tracking.
According to the SOLAS Regulation V/19, Automatic Identification System (AIS) is used by large container vessels. AIS uses a very high frequency (VHF) signal to transmit its location, heading and speed to nearby vessels. This is used in combination with container tracking devices (CTDs) which rely on GPS, satellite or cellular networks to relay the containers’ location along with additional data to the central servers.
The main drawbacks of these tracking modules are that they are not reliant enough to sustain relaying information for long periods of time once a container is lost at sea, they face interference, and have low scalability.
To tackle these problems, this paper proposes the implementation of Low Range Wide Area Networks (LoRaWAN) to tackle effective container tracking at sea.
4.1 Why LoRaWAN Technology
LoRaWAN falls under the umbrella category of Low Power Wide Area Networks (LPWAN). LoRaWAN is an unlicensed network and is a derivative of the Chirp Spread Spectrum (CSS) modulation.
The chirp spread spectrum has strong resistance to radio interference and low power consumption. The locational accuracy provided by this spectrum averages an error of only 1- 2 meters which is significantly less when compared to its counterparts. It also has low latency making real time position accurately accessible. The cost for setting up this technology is also very low as less infrastructure is needed to support LoRaWAN channels.
4.2 Construction and Working of LoRaWAN Module
A typical LoRaWAN Module to be fitted on shipping containers will primarily consist of a LoRa Integrated Circuit, a transmitter, a 3V battery port and a chip that will be synchronous with the ship’s GPS.
The LoRaWAN module has the capability to work for long periods of time on a single power source. In ideal conditions it can last up to 10 years on a 3.7V, 2500 MAh source. Under saline conditions and high-pressure environments, it can last for 7 months. A typical container retrieval does not last more than 7 months as after this time limit the cargo is lost at sea.
The LoRaWAN module is also capable to resist interference. Normally, this module works at a 125kHz bandwidth but it can be tuned up to 500kHz bandwidth. This significant increase in bandwidth is sufficient to resist most of radio interference.
This module has a low packet size for data transmission but this feature does not pose as a disadvantage to our application as the standard 256-byte data packet is enough to support the information needed to get locational data. Furthermore, low latency of these networks also means that data transfer will occur in real time and thus provide with accurate tracking.
It can also be synchronised with the Ship’s GPS which will make sure that the module is seamlessly integrated into the Bridge system present on modern ships. By doing so each module can be displayed on the bridge’s Electronic Chart Display and Information System (ECDIS).
This network does not require any additional infrastructure. It utilises preexisting gateways and a simple network topology interlinking all the modules present on different containers. These network nodes are connected to the central server on the bridge and relay real time information simultaneously.
4.3 Implementation of LoRaWAN on Ship Containers
The implementation of LoRaWAN modules is not needed on every container but only on the ones that are most prone to falling into the ocean. Effectively organizing module placement locations will help in cutting costs as well as improving the scope of scalability. Containers that are most prone to falling are those, above the deck and in the red zone. The containers located centrally are considerably much more secure.
The module will be encased in a protective watertight covering capable of withstanding high pressure and saline conditions to safeguard the circuitry inside. The encasing will also be capable of handling high shear stress in case of cargo toppling and slippage.
This protective setup will be installed inside the strategically chosen containers with the help of magnets so as to ensure all cargo legalities are followed while making sure that the module is relatively secured.
5. Merits and Potential Scope of LoRaWAN in Shipping Logistics
5.1 Cost Efficiency
When we look at the bigger picture, this project can give rise to a new sun of the maritime industry, the whole system is estimated to cost less than 50 USD per module, but as the structure of this project shows that only the red zone containers will need module installations.
The whole project will be costing around 10-25 thousand USD on one of the largest ships, which if we compare to the potential loss, a lost classified cargo can cause is significantly less.
5.2 Potential Scope
Apart of the cargo deliverance and safety, this project also plays a huge role in long time improvement of the maritime industry.
Upon modification and future developments this project can even be implemented to cheap cargo and will be able to change the working of maritime industry. The recorded data of the vibrations and movement of cargo can be used for research and training purpose for better cargo arrangement and can eventually reduce future mis-happenings. Also, this will be reducing the human labour required, by having the feature of human over-rule this will reduce the chance of machine misinterpretations and the recorded data will also turn out useful for insurance claims.
With a very little power this system has the capability to work even in harsh situations (even underwater) which increases its efficiency without causing any additional harm to the environment. Since the project uses ASI and GPS which is already present in the ships there is no need of adding any additional machinery to the ship for its working, also this whole system is designed with such a model that it’ll be needing little to no maintenance. This will
not increase any sort of mental stress on the crew so it is a win-win deal for both the organisation/company and the workers
This project aims to help all of maritime industry instead of just one part of it, and in the bigger picture this can be a major breakthrough to the industry.
6. Conclusion
In conclusion of this research, the problem of marine containers lost at sea and the consequences of it for maritime logistics and environmental protection are highlighted. These container loading methodologies of parametric rolling and container lashing are examined in this paper to emphasize more the importance of effective tracking systems.
The technology LoRaWAN implementation will form an encouraging way giving a viable variation to the shell complexity associated with container shipping specifically the hazardous cargo. This new design carries the aspirations of the better control and monitoring as stipulated by its compliance with SOLAS and MARPOL regulations.
The installation of the LoRaWAN modules can be done on the containers of elevated risk, and the low-cost effect pinpoints the potential of this solution that can enable the transformation of the maritime processes. The assessment of the anticipated profitability in a clear fashion led to the conclusion that this project is rather innovative since it proves to be feasible and presents logical reasoning behind this project, emphasizing its possibility to create the age of environmentally-friendly cargo transportation.
Besides acknowledging that these challenges and limitations exist, technological constraints and rules, the conclusion emphasizes the need for joint actions and cross-disciplinary collaborations in future. Thanks to the use of modern geo-technics and fresh improvements in technology, the marine industry will navigate in the future with greater attention to the environment and safety.
Finally, the study recommends that we have to rethink the current system to incorporate conservation and stability of marine systems into maritime activities. Together, we shall discover the common coordinates where creativity meets accountability on the vast oceans of our imagination.
7. References
1) T. Hayes, “The full cost of cargo losses,” https://www.inboundlogistics.com/cms/article/the-full cost-of-cargo-losses/, 2004, [Online; accessed 21-Oct-2021
2) J. Paul Dittman, “Will you be ready when a loss happens to you?”, https://upscapital.com/wp content/themes/upscapital-bren/assets/media/Loss-whitepaper.pdf, 2015, [Online; accessed 21-Oct 2021]
3) What is the IMDG code? - Goodrich Maritime https://goodrich.co/blog/what-is-the-imdg-code/ 4) https://www.imo.org/en/ourwork/environment/pages/chemicalpollution
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default.aspx#:~:text=The%20IMDG%20Code%20was%20developed,prevent%20pollution%20to%20the%20environ ment
6)https://static1.squarespace.com/static/5ff6c5336c885a268148bdcc/t/646cf5b50ba5a260052b1b66/1684862389529/C ontainers_Lost_at_Sea_2023_FINAL.pdf