Cutting through the noise (page 2)

-- Logistics Management, 11/1/2005

Page 2 of 4

The number of companies that already offer or are developing cargo-security technologies seems to be growing every week. (For a list of some of those companies, see the sidebar on Page 58.) Furthest ahead in terms of infrastructure deployment, says Michael Wolfe of North River Consulting Group are companies like Savi Technology Inc. and port operator Hutchison Port Holdings, among the first to become involved in container-security technology. These companies are working together to bring track-and-trace capabilities to ocean shipping using "smart" containers that electronically send and receive data. Also showing promise is Motorola, which Wolfe anticipates will debut its own container-security devices in 2006.

Among the many other active participants in the cargo-security world are IBM, Allset, and GE Security, whose CommerceGuard system for deterring theft, smuggling, and terrorism has been undergoing testing by CBP since early 2004. International companies such as Hi-G Tek and Telematics Wireless, both of Israel, are also making strides with ocean and cross-border shipment security.

Products on the market now or under development include electronic seals, sensors, surveillance devices, mobile satellite and cellular systems, geographic positioning system (GPS) tracking devices, biometric devices, and radio frequency identification (RFID)—none of which is a cure-all for any company's cargo-security woes. "No technology is a silver bullet for security," says Wolfe.

While some of the biometric identification devices on the market show promise, Wolfe says, "they're just not there yet" in terms of readiness for widespread use. Testing of mobile communications devices has also been positive, he says, but these devices pose significant challenges in terms of cost, battery life, and field service in the international container environment.

Among the other products currently available is WhereNet's vehicle-tracking solution, which automates the processing of drayage vehicles at container terminal gates and also monitors their location on the premises via the firm's real-time locating systems technology. A different approach is that of Belmont, N.C.-based Powers International, which offers the Sea-Cure Satellite System (SCSS), a device that contains customs data and lets users know if a container has been opened.

Vidient Inc., in Sunnyvale, Calif., manufactures behavior-recognition software that automates the detection of events in closed-circuit TV surveillance systems. According to Brooks McChesney, president and CEO, the technology monitors the perimeter of storage facilities and yards, thwarts unauthorized access, and prevents "tailgating" into specified areas by unauthorized individuals.

In September, IBM and Maersk Logistics announced the development of a real-time cargo-monitoring product. The Intelligent Trade Lane solution is designed for manufacturers, retailers, logistics providers, carriers, and governments that want to share real-time cargo information. The solution uses tracking devices, called TREC (Tamper-Resistant Embedded Controllers), which are fitted to cargo containers and can withstand the rigors of ocean transportation and container handling. The product is expected to be ready for commercial application in 2006.

Another prominent player in the cargo-security industry is E.J. Brooks Co. of Livingston, N.J. Brooks makes the Keeper SeaLock, a cable seal that requires two cuts for removal. The seal is compliant with the requirements of the Customs-Trade Partnership Against Terrorism (C-TPAT) and the ISO/PAS 17712 international security standards. The company is also working with high-tech firms like Savi Technologies, Motorola, and Telematics Wireless to develop a battery-powered device that would automatically verify electronic seals used in the maritime environment. Continued...