IBM jumps into ôsmart boxö fray
IBM said Tuesday it has paired with Maersk Logistics, a subsidiary of giant ocean carrier conglomerate A.P. Moller-Maersk Group, to develop a container security device that can detect unauthorized intrusions and track the container at any point on its journey.
The main components of the system are a tamper-resistant device attached to the door of the container, sensors that can be linked to the device to monitor environmental conditions, such as humidity and temperature, and a Global Positioning System terminal for tracking the location of the box. The device will use satellite and global cellular networks to transmit data to IBM, Maersk Logistics and its customers.
IBM officials at the Maritime Security Expo and Conference in New York emphasized the wireless product's ability to provide shippers real-time understanding of cargo status, which will help businesses reduce inventory levels and save money.
The IBM team said shippers are demanding such services from their logistics providers, but so far importers have been reluctant to pay for constant wireless tracking, and ocean carriers have opposed enlisting electronic security devices attached to the container for double duty as supply chain management technology.
IBM will also have to overcome industry skepticism about the reliability of such technology.
'The fact that Maersk, which operates the largest container shipping company in the world, has decided to work with us indicates that they think we can overcome any technical issues,' said Mogens Roedbro, a vice president with IBM Business Consulting Services.
IBM and Maersk will ship some empty containers in November and December to test the reliability of its on-board computer, called TREC (Tamper-Resistant Embedded Controller). The partners will conduct a major commercial test with 1,000 loaded containers in March, Roedbro said. IBM has also reached agreement with 'a major' customs authority to test the product, but company officials said late Tuesday that an official announcement has been delayed until November.
IBM will now go head-to-head with the GE Security unit of General Electric, Sunnyvale, Calif.-based Savi Technology and other providers in a market that will be largely defined by U.S. Customs and Border Protection and other customs authorities who want to develop a so-called 'smart box' that can detect if a terrorist has breached the container in order to smuggle a weapon of mass destruction or other device into a country for an attack. Last summer Savi said that it has partnered with Hutchison Port Holdings, the world's largest operator of ocean freight terminals, to operate an information network that tracks and manages containerized cargo.
The GE and Savi systems are based on short-range radio frequency identification type-technology, which requires readers at transport chokepoints, such as port or warehouse entrances, to pick up the signal from a tag attached to the container. The IBM system is different because its satellite and wireless communication capability means it will not be tethered to localized infrastructure. The IBM system is also distinguished by the fact that it will be based on open standards that allows interoperability with other technology systems compared to the proprietary networks of GE and Savi.
The IBM executives stressed that IBM will not control the data generated by the system but rather the parties within the supply chain will be responsible for their own data and will be able to share it through Web-based services provided by IBM.
The TREC device initially will be attached to the container door before each shipment and recycled, but eventually will be built into new containers.
Company officials said they have an arrangement with low-earth orbit satellite provider Iridium that will make satellite transmissions more cost effective than in the past.
