Maersk Line: Using the Internet of Things to Improve Supply-Chain Visibility Maersk Line is one of the largest shipping organisations in the world. Its international logistics network supports complex supply chains that transport fresh produce through 343 ports in 121 countries. The company’s supply chain includes refrigerated containers, ships, ports, storage facilities, communication networks, and customers in different regions. These activities must be carefully coordinated because fresh produce is perishable and can lose value if exposed to unsuitable conditions during transportation. Refrigerated containers, often called reefers, keep cargo within a controlled temperature range while it is moved between suppliers, ports, ships, warehouses, and customers. Their performance depends on a reliable power supply and effective refrigeration equipment. A temperature change, equipment fault, power interruption, or delay may damage the cargo. If a problem is identified only when the container reaches its destination, the produce may already be spoiled. Maersk may then face financial losses, customer complaints, replacement costs, and reputational damage. To improve control over this complex process, Maersk partnered with Ericsson in Ericsson provided mobile and satellite communications technology that enabled Maersk to monitor refrigerated containers in transit. The partnership later developed further to include safety, operational efficiency, and cargo care. This demonstrates how digital technology can be used not only to transport goods, but also to collect information and support decisions throughout the supply chain. Real-time monitoring of refrigerated containers The system enables approximately 300 000 refrigerated containers to transmit important information. This includes the temperature inside the container, its location, and the status of its power supply. Sensors collect the data from the physical container and its refrigeration equipment. Mobile and satellite communications transmit the information while the container is being transported. Satellite communication is particularly useful when containers are on vessels or in locations where ordinary mobile network coverage may be limited. The information is sent to cloud-based systems and analysed in the central office. Cloud computing enables data from many containers to be collected and made available for analysis. Employees can monitor cargo condition and location, identify unusual readings, and respond to potential issues. Maersk’s current Remote Container Management system also provides information such as humidity, atmosphere, GPS location, off-power periods, and outside temperature. Customers can access this information through Maersk’s Captain Peter visibility platform. This technology is an example of the Internet of Things (IoT). IoT refers to physical objects that contain sensors and communication capabilities, allowing them to collect and exchange data. In this case, the refrigerated container becomes a connected object. It provides information about its condition and location as it moves through a global supply chain. Benefits for cargo care and operations Real-time information can help Maersk identify a temperature problem before cargo is delivered. If the temperature moves outside the required range, employees can investigate the refrigeration unit, check the power connection, or arrange an inspection at the next port. Early intervention may reduce spoiled produce and protect the quality of the remaining cargo. The system can also help Maersk determine whether a problem was caused by equipment, power supply, handling, or delay. Location data improves visibility across the supply chain. Maersk and its customers can receive better information about a container's location and whether it is progressing as planned. This can support transport planning, port coordination, customer communication, and delivery expectations. When many containers are travelling through different ports and countries, centralised information can help managers identify delays and prioritise urgent situations. Maersk reports that its monitoring data can support proactive decisions about cargo quality. For example, if one container of fruit shows a higher temperature than similar containers, the importer may decide to sell that shipment first to protect the remaining shelf life of the remaining containers. Monitoring data can also help investigate cargo claims by showing whether unsuitable conditions occurred during the ocean journey or later in the supply chain. Power-supply information is also important. A refrigerated container cannot maintain the required conditions if its equipment is not receiving power. An alert about a power interruption can allow staff to investigate before the temperature rises significantly. Information from the fleet may also help Maersk identify recurring equipment failures, support preventative maintenance, and improve fleet efficiency. Challenges and limitations Implementing an IoT system across a large international fleet requires significant investment. Maersk must acquire and maintain sensors, communication equipment, cloud services, and monitoring systems. Employees may require training, and the technology must be integrated with existing logistics systems. If systems do not work together effectively, information may not reach the correct decision-maker in time. Communication networks can also create limitations. A container may pass through areas with weak coverage, causing information to be delayed or temporarily unavailable. Sensors may produce inaccurate readings or fail, while a power interruption may affect both refrigeration and monitoring equipment. False alerts can waste staff time, whereas missed alerts may allow cargo damage to continue. Cybersecurity is another concern. Connected containers and cloud systems create additional points that could be targeted by unauthorised users. Maersk therefore needs secure communication, access controls, monitoring, and clear response procedures. The company must also manage the large volume of information generated by approximately 300 000 containers. If employees receive too many alerts, they may struggle to distinguish urgent problems from minor variations. The way forward Maersk’s partnership with Ericsson demonstrates how IoT can strengthen a global supply chain by connecting cargo, communication networks, cloud systems, and operational staff. Real-time monitoring can help protect perishable goods, respond to equipment and power problems, improve delivery visibility, and support safety and efficiency across the fleet. Technology alone cannot guarantee successful supply-chain performance. Maersk must maintain sensors and communication systems, train employees, protect data, and establish procedures for prioritising alerts. Maersk also prioritises safety across operations worldwide, safeguarding the people who keep the business moving, including employees, third-party contractors, and partners under our operational control. Through clear standards, continuous improvement and constant care, Maersk works to ensure that every task is carried out safely. The company also strives to reduce spoilage, improve planning, and provide better customer service, which justifies the costs. Continued investment is likely to be valuable because the fleet is large and the consequences of damaged fresh produce can be significant. The most effective approach is to combine IoT monitoring with skilled employees, reliable maintenance, strong cybersecurity, and cooperation among Maersk, Ericsson, ports, vessels, suppliers, and customers. Having read the above case study, describe Radio Frequency Identification (RFID) and provide examples or scenarios of how RFID can be used to aid in supply chain management at
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ScanSolve AI Answer
Radio Frequency Identification (RFID) is a technology that uses radio waves to automatically identify and track tags attached to objects. An RFID system consists of a tag (a microchip with an antenna), a reader, and an antenna. The reader converts the radio waves from the RFID tag into digital data, which can then be processed by a computer system. Unlike barcodes, RFID tags do not require a direct line of sight to be read and can store more data.
Examples of how RFID can be used to aid in supply chain management at Maersk:
- Automated Container Tracking: RFID tags could be attached to each refrigerated container. As containers move through ports, warehouses, or onto ships, fixed or handheld RFID readers could automatically scan them, providing real-time updates on their location without manual scanning. This would enhance the existing GPS tracking by offering more granular, automated tracking at specific checkpoints.
- Inventory Management within Warehouses/Ports: Within Maersk's storage facilities or port terminals, RFID could be used to quickly and accurately identify and count containers. This would streamline inventory checks, reduce human error, and ensure that the correct containers are loaded onto vessels or dispatched for onward transport, especially critical for perishable goods.
- Monitoring Equipment and Maintenance: RFID tags could be embedded in critical refrigeration equipment components. Readers could automatically log when specific parts are moved, installed, or require maintenance, helping Maersk track equipment usage and schedule preventative maintenance more efficiently, reducing the risk of equipment failure that could damage cargo.
- Enhanced Security and Tamper Detection: RFID tags can be designed with security features that indicate if a container has been opened or tampered with. This provides an additional layer of security for high-value or sensitive cargo, alerting Maersk to potential breaches during transit.
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