Electronic Seals for Efficient Container Logistics

Abstract

New security requirements for international container trade are forcing changes in global supply chain processes. Simultaneously, shippers look to advanced technology to enhance security and efficiency of their container logistics. Customs inspections at international borders, especially in maritime ports, are one of the biggest inefficiency factors, leading to delays and additional logistics costs. An electronic seal as an important part of a multi-layered security system has the ability to enhance the security as well as to improve the efficiency of container logistics. The paper is focused on the problem of reducing customs inspections variation at the ports, and evaluating investments in electronic seals. As a number of world security initiatives require implementing electronic seals on containers, the paper tries to measure the influence of different types of eSeals on the performance of container logistics and with special consideration of customs inspections in the ports.