Electronic Seals and their Influence on the Dynamics of Container Logistics

Abstract

After events 9/11 the unpredictable changes have affected the global container flows in international affairs. In order to define and explore the trade-off between international security requirements and reasonably practicable measures for business, the analysis of one of the application of e-seal technology, promising to improve container transportation processes, have been evaluated in this doctoral research. The intent of this research is to investigate the impact of container detection intrusion technology on dynamics of container logistics processes at container terminals and on the complete network. In this study a model for container transhipment between two continents through several see ports consisting of several maritime terminals and customs gates is developed. In this scenario we compare transhipment processes for three different types of container seals. One type is when containers are equipped with conventional mechanical seals, the next one is an e-seal without decision making, and the last one is an e-seal with a possibility to make routing decisions. These three cases are compared and the difference in dynamics of the transport processes is investigated. First we apply the methods of queuing theory as a most suitable mathematical tool for the analysis of the dynamics. We show that this theory works effectively in case of small number of nodes. However it turns out that we arrive at its limitations when the number of nodes becomes large. For this reason we continue our investigations with help of simulation technique by means of MATLAB that has been applied to a generic container logistic network. Further we also have estimated the economical effectiveness of investments in new container secure devices. It is evaluated whether the electronic seals bring more security for container flows. As well we have investigated their influence on the business efficiency for private sector. The evaluation and analysis of modifications in dynamics of physical container flows have been accomplished through the global container supply network in the first part of the thesis. In the second main part of the doctoral research the cost-benefit analysis shows the possible costs and benefits through the implementation and use of secure container electronic seals in global container network. In this work we have determined the most feasible advantages of application of e-seals technology and the framework of its application. The influence of different types of e-seals on the dynamics of container logistics flows has been investigated, simulated and modelled analytically in the global network; various scenarios have been developed and considered to include the most happened situations in the practical cases. An evaluation model based on the cost-benefit analysis has been proposed and approved by different business cases for adoption of different types of e-seals in container system. The returns on investment index have been calculated to compare the investments in security electronic devices under different initial conditions.