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Strategies to minimize empty container movements
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Strategies to minimize empty container movements

In global trade, efficiency and sustainability are more important than ever. One of the significant challenges facing the industry is empty containers, i.e. shipping containers that return to their point of origin or other locations without any cargo. These empty journeys lead to wasted resources and increased environmental impact. Let’s look at some effective strategies to solve this problem and the important role of triangulation solutions in optimizing container logistics.

Shipping containers at an Indian port. (Bloomberg file photo)
Shipping containers at an Indian port. (Bloomberg file photo)

Empty container movements are a widespread problem in global shipping. According to the World Shipping Council, around 20% of all container movements worldwide are empty. This inefficiency not only increases operational costs but also contributes significantly to carbon emissions. For example, shipping consultancy Drewry estimates that around 60 million empty containers are moved around the world each year, leading to unnecessary and considerable fuel consumption and pollution.

Accurate forecasting and demand planning are fundamental to minimizing empty container movements. By leveraging advanced data analytics and machine learning, shipping companies can predict demand more accurately and ensure containers are positioned where they are needed most. This proactive approach helps reduce the frequency of empty returns.

Collaboration between shipping companies can also alleviate the problem of empty container voyages. Digital platforms that allow companies to share container space and synchronize their logistics can lead to more efficient use of containers. For example, there are platforms that facilitate the exchange of containers between different shipping lines, reducing the need for empty repositioning.

Triangulation is an innovative approach to combat the movement of empty containers. This strategy involves having containers pick up a new load close to their drop-off point, rather than returning empty to their original point. For example, if a container is delivering goods from China to the United States, instead of returning empty, it may be assigned to pick up another shipment in the United States destined for another international location. This method significantly reduces empty miles and improves overall efficiency.

According to a report from the Boston Consulting Group, implementing triangulation could reduce empty container movements by up to 15%, resulting in significant cost savings and environmental benefits. Companies like Maersk and Hapag-Lloyd are already investing in triangulation solutions to optimize their container logistics.

With geopolitical tensions rising and lessons learned from the pandemic, there is a growing trend toward regionalization of supply chains. By producing and sourcing closer to the point of consumption, the reliance on long distance shipping is reduced, thereby minimizing instances of empty containers. This approach not only improves supply chain resilience, but also contributes to sustainability goals.

The advent of smart containers equipped with IoT (Internet of Things) devices is also a game-changer. These containers can provide real-time data on their location, status, and availability. Such transparency allows for more efficient tracking and repositioning of containers, ensuring that empty containers are quickly identified and redirected to high-demand areas.

Governments and international bodies also play a crucial role in solving the problem of empty container transport. Policies that encourage sustainable practices, such as tax breaks or subsidies for companies that adopt green logistics strategies, can drive industry-wide change. Additionally, stricter regulations on carbon emissions from shipping may push companies to seek more efficient operational methods, including reducing movements of empty containers.

Minimizing the movement of empty containers is not only an operational necessity but a crucial step towards sustainable global trade. Adopting these strategies not only helps reduce operational costs but also achieves substantial environmental benefits, paving the way for a greener and more efficient future in global trade. As we continue to innovate and collaborate, the dream of a more sustainable maritime industry becomes more and more achievable. By tackling the problem of empty containers head-on, we can steer the global trade sector towards a future where efficiency and sustainability go hand in hand.

This article is written by Harsh Vardhan Gupta, Co-Founder of MatchLog Solutions.