1. The use of container security devices in container transportation … and beyond StratMoS Final Conference, Brussels Version: E1 Date: 7-09-2011 Logit Systems Frank Knoors, Managing Director E-mail: f.knoors@logit-systems.com Tel: +32 (14) 570 604 Fax: +32 (14) 570 605 Mobile: +32 (475) 722 056

2. Using container security devices in container transport chains 12-6-20162Logit Systems

3. Secured shipments & advance cargo notification (StratMoS - Smart-CM, Integrity) Visibility based on container tracking, terminal events & ship movements - security release CSD deactivationCSD activation Logit Systems312-6-2016 Use of container security devices In end-to-end logistics chains: Realised Port of LoadingPort of Discharge Point of DestinationPoint of Origin Shipper Railwayterminal TrainPortSeaPortSeaPortTruckRetailer

4. Logit Systems412-6-2016 Use of container security devices In end-to-end logistics chains: Challenges Secured shipments & advance cargo notification (StratMoS - Smart-CM, Integrity) Visibility based on container tracking, terminal events & ship movements - security release CSD deactivationCSD activation Port of LoadingPort of Discharge Point of DestinationPoint of Origin Shipper Railwayterminal TrainPortSeaPortSeaPortTruckRetailer Lack of visibility at sea Costs Regulations

5. Target groups and quantified benefits 12-6-20165Logit Systems

6. 12-6-2016Logit Systems6 Target groups and benefits Average container values, example Europe-Asia

7. 12-6-2016Logit Systems7 Savings are in the magnitude of +/- 5 Euros per container as a result of efficiency gains for individual transport & logistics service providers: Less waiting times Less container moves Shorter stay in port Best applicable to containers of less average value (10.000 Euro) Target groups and benefits Short term benefits

8. 12-6-2016Logit Systems8 Long term benefits have focussed on improvement of the reliability of the logistics process. Examples: Ship missing, i.e. container misses loading on planned vessel Unscheduled transhipment (to other vessel, late arrival in same PoD, changed PoD) Delayed departure at PoL or arrival at PoD Release status of the container Timely gate-out at PoD Savings potential is in the magnitude of +/- 300 Euros per imported container of value 100.000 Euro. Most of these (70-80%) are financial gains as a result of reduced pipeline & safety stocks, directly depending on the average container value. This affects working capital requirements. This applies mostly to the shipper or beneficial cargo owner (BCO). If realized by the logistics integrator, he may be able to sell his services with a premium to shipper or BCO. Target groups and benefits Long term benefits

9. Assumption: -100.000 EUR Per container -EDC76, 6/yr Neutral layer business model Quantitative analysis made earlier Due to insecurity of long-term benefits: Provide smart visibility information services that deploy alternative data sources With benefits for sea-hinterland interface & co-modal chain Due to insecurity of long-term benefits: Provide smart visibility information services that deploy alternative data sources With benefits for sea-hinterland interface & co-modal chain Long-term, shippers / cargo owners, container value above average, new data sources Short-term, operators around ports, container value below average, existing data sources Allowable costs to enable sustainable deployment

10. 12-6-2016Logit Systems10 How should container security device be handled and what are its limitations: Prohibitive costs (still) for broad application. Requirement for uniform regulatory and operational framework. Technical challenges to increase visibility at sea. Visibility can be further improved by integrating additional data sources: Besides the container security devices themselves: Information from terminal (sea and inland) can provide reliable and real-time information on containers loaded and discharged, delivered to the terminal (gate-in) or departed from it (gate-out). Information from vessel (AIS). Specialization to reduce development costs Specialization to reduce development costs: Each of the product components mentioned has substantial costs for development. Specialization is a method to reduce such costs by creating economies of scale. Ensuring critical amount of data access Ensuring critical amount of data access: Access to data providers is important in order to make value added services functional. If there is no data to populate the VAS, then the functionality of the VAS itself cannot be used. Towards feasible deployment Driving forces for ‘go to market’ strategy

11. Standards within co- modal transport operations 12-6-201611Logit Systems

12. 1212-6-2016 Common framework: Roles

13. Common framework: Services From a standard container t o a standard transport service & data exchange Separate between service and operational aspects TSD TEP TES

14. Logit Systems1412-6-2016 Common framework: Processes & data

15. Transport demand Cooperative systems Supply chain security and compliance Supply chain security and compliance Transport supply TES TOS Sea carrier Terminal (PoL,PoD, hinterland) Customs CSD (Neutra l layer) Customs agent Inland transport operator CRS TSD TES Intelligent cargo Vessel TOS Point of loadingPort of originDSSPoint of dischargePort of dischargeGateInland transportPoint of delivery CRS SDM TES TEP VTMIS or ship reporting service TOS Entry summary declaration Vessel departure & arrival Import manifest Security message Import/transit declaration Estimated time of vessel arrival Vessel position Fiscal release Commercial release Transport order Pre- announce at terminal Security message Customs response Security release TES (Shipper/int egrator or virtual integration platform that enables info flow on process level, based on tracking request + PL) Logit Systems1512-6-2016 Integrated scenario – Using the Common framework Loaded goods report Discharged goods report Hinterland Service description Inland transport status Gate-out Gate-in Logistics services user Logistics services providers Transportation network manager Transport regulator Intelligent cargo

16. Deployment approach: Collaborative information services 12-6-201616Logit Systems

17. 1712-6-2016 Process scenarios Scope extensions Sea/hinterland interface Benefits for Planning Benefits for Execution Later closing time, pre-stacking support, … Green light Arrival notification and Import manifest Container gate-out 2 Secured shipments & advance cargo notification (StratMoS - Smart-CM, Integrity) Visibility based on container tracking, terminal events & ship movements - security release CSD activationCSD deactivation 1 Door-to-door co-modal transport chains More complete and pro-active visibility Cargo consolidation, rescheduling/rerouting to hinterland Shipment orderProof of delivery 3 Port of LoadingPort of Discharge Point of DestinationPoint of Origin Shipper Railwayterminal TrainPortSeaPortSeaPortTruckRetailer

18. Collaborative information services Example implementation in the COMCIS project Individual user/provider systems CSD provider (Euridice Intelligent cargo) Carrier System Terminal System Deep sea carrier system ERP Hinterland carrier System Hinterland carrier System Terminal System ERP Terminal System CRSTESTSD, TEP, TESTEP, TES e-Freight Semantic interoperability layer Data standardization (optional, sensitive data) Data aggregation Freightwise Logit 4SEE© Provider Application Port community system ANRRTM Integrator data warehouse DHL Logistics network Descartes GLN Integrity SICIS HPH data network Smart-CM Neutral Layer usersproviders Smart-CM ICS-SEAP DiSCwise Import Service SDM Consolidated information Freightwise / DiSCwise / Rising Logit 4SEE© Single Access Point to End-to-End Transport Options & Status TEP, TES customs Shippers / BCOs / LSPs

19. Thank you for your attention! One snapshot for logistics Consolidating data in the transport chain One single service to plan and follow up multi modal logistics chains Aggregation & correlation of data to cover blind spots & support decisions True visibility to proactively reduce impact of deviations