Digital transformation is changing the way we live and work. For the supply chain ecosystem, this change brings increased connectivity and technology that enable innovative operations and, ultimately, saves time and money. While many exciting innovations and digital solutions are now available for BCOs, there are still pain points that have yet to be solved.
Container space utilization is a focal industry pain point that, as the pandemic painfully taught us, must be addressed. Ironically, the high demand and supply chain disruption caused by the pandemic played a role in this field not evolving enough. A standard 40-foot shipping container holds 67 cubic meters of space. While it is only sometimes possible to load a container to capacity, the average 65 percent utilization is simply not good enough.
Shippers will be able to utilize capacity more efficiently with the help of a properly developed AI utilization solution. As the AI develops, it could guide shippers on how to pack their goods, including maximization of the packing itself based on the items shipped, and assist them in assembling their containers most efficiently. By increasing container utilization from 65 percent to 90 percent, companies that move 10,000 containers annually from China to North America's West Coast can save $12 million annually.
While shipping rates are dropping and we seem to be heading back to normal, there are still so many digital solutions we can further develop to save time-consuming manual labor, logistics costs, and shippers' frustration. Capacity utilization is just one of many issues we have to address. And the cherry on top? Improving capacity increase will mean fewer containers shipped, bringing our industry one step closer to becoming more environmentally friendly.