The Key Benefits of Using Vessel Tracking Services for Global Shipping

Imagine you own a medium or large-sized company. A cargo ship carrying your company’s important inventory or materials is somewhere in the Pacific Ocean. Now imagine that you have no clear idea of its exact location or expected time of arrival. Does that sound okay or stressful? Stressful, right?

Companies were facing and living in this scenario just a few decades ago. However, today the international shipping industry has transformed for the better. Vessel tracking services are one such innovation in the shipping industry that help businesses monitor shipments in real time, estimate delays, and accurately measure arrival times.

What are Vessel Tracking Services?

Vessel tracking services are digital platforms that use satellite technology and Automatic Identification Systems (AIS) to track the exact location and movement of ships across the globe. Vessel tracking is similar to a GPS tracker installed in your car or phone. These services are used to get live updates on a ship's position, route, speed, and estimated time of arrival.

1. Enhanced Supply Chain Visibility

One of the most celebrated advantages of vessel tracking services is transparency, as business owners know exactly where their vessel is in the ocean and can estimate the delivery time. For example, if you are a business owner exporting goods from China to the United States or importing raw materials from Europe to Africa, knowing your cargo's exact position in real time will give you clarity on arrivals.

Let’s say a furniture store is waiting for a shipment of couches from Vietnam. The owner can easily monitor the ship’s exact location, including its speed and direction. By monitoring the ship’s location, the owner can predict delays, if any, and judge busy routes. The owner can even request a re-route for faster delivery. Accurate arrival time predictions can help the owner plan inventory and customer communication. All of this, which now sounds simple due to digital advancements, was not possible in earlier times.

2. Improved Planning and Operations

Vessel tracking services have been proved to be indispensable for business planning and operations. They help port managers to plan better and prepare for incoming ships by monitoring their locations. Port managers can do the arrangements in advance, such as ensuring enough dock space, necessary equipment, and that port staff is ready before any ship or vessel arrives. This planning reduces waiting times and increases port efficiency.

Similarly, this strategy can help logistics companies work in a more systematic manner by planning in advance for truck deliveries and distribution schedules. This in result leads to better cost-efficiency and easier operations.

3. Cost Reduction and Efficiency

Time is money in the shipping industry, and vessel tracking services help businesses save both. By providing accurate estimated times of arrival (ETAs), these platforms reduce demurrage and detention charges, fees that accumulate when containers are not picked up on time.

For instance, businesses that rely on raw materials shipped from overseas need to plan and schedule things in advance. With precise tracking data, they can pre-align their deliveries, reducing the need for warehousing and inventory holding costs. Vessel tracking services also help save vessels from unwanted delays by re-planning routes to avoid longer paths.

4. Better Customer Communication

Modern-day customers value transparency over money. Vessel tracking services benefit business by offering reliable shipment status and even delivery timeframe, that results in clear communication with the client. This fosters trust and transparency between the two parties.

A global e-commerce company that usually ships products across the globe can provide real-time tracking similar to a courier tracking in their area. This offers clarity and saves the customer support team from constant inquiries from customers about their order. If the ship is delayed for some reason the customers are notified with the information with a revised delivery date.

5. Risk Management and Security

Water is the only medium for ship movement, and the scenarios in the water are unpredictable. There is a vast scope for any mishaps, whether related to environmental factors or piracy-related issues. Vessel tracking services ensure businesses that their ships are safe and on the defined route. These services highlight if there is any unusual situation and alarm the owner so the situation can be handled with precision.

For example, if a vessel deviates from its predetermined route or stops abruptly in the middle of a journey, it will display a problem on the screen, allowing the business operator to examine and rectify the issue. In areas with severe laws or piracy, real-time tracking ensures vessel safety and allows for quick response if an event occurs.

6. Environmental Compliance and Sustainability

The world is moving towards sustainability to protect the environment from further harm. Vessel tracking systems contribute to this aim by monitoring the ship’s movement, speed, average performance, and route. Businesses can reduce the carbon footprint produced by ships by conducting regular checks to ensure they are in optimal condition and achieve better fuel efficiency. Businesses can also plan shorter routes to save fuel and reduce emissions.

Vessel tracking platforms ensure that ships follow pre-set rules to reduce pollution and protect the environment. Some of these rules include pollution control zones and speed limitations in areas with dense marine life. These simple actions help businesses do their part in protecting the environment while preventing heavy penalties for non-compliance.

Conclusion

After the introduction of technological advancement in the maritime industry, vessel tracking services have contributed in changing the game. The ship owners can track their ships in real-time without relying on solely predictions.