Mastering Container Tracking: A Guide for Import Managers

As an import manager, ensuring that goods arrive on time and in good condition is paramount. Whether your shipments are traveling from Asia, Europe, or elsewhere, container tracking has become an essential tool in modern logistics. With the vast options and technologies available today, import managers can achieve real-time visibility over shipments, allowing better coordination of inventory, schedule management, and risk reduction. This guide explores the key components of container tracking, the essential documents required, and best practices for a streamlined and efficient process.

Why Container Tracking is Essential

The journey from factory to final destination involves multiple stages, touchpoints, and potential delays. Container tracking provides critical insights into the current status and expected arrival of goods. By using container tracking effectively, import managers can:

• Proactively Manage Delays: Real-time tracking allows you to anticipate and respond to delays, adjusting inventory or schedules as needed.
• Improve Coordination: Accurate tracking enables better coordination with warehouses, transport companies, and internal teams, ensuring a smooth logistics process.
• Increase Transparency: Container tracking offers insights for stakeholders throughout the supply chain, from suppliers to customers, enhancing trust and communication.

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To leverage these benefits fully, import managers need to understand not just how to track shipments but also which documents are crucial for effective tracking.

Relevant Documents for Container Tracking

To effectively track containers, certain documents are key. Here’s a rundown of each, along with why it’s important for tracking.

1. Bill of Lading (BOL)
   • Why It’s Important: The Bill of Lading is a fundamental document that serves as proof of the shipping contract and details ownership. It acts as the “passport” for your shipment, providing container numbers, booking numbers, and carrier details.
   • Tracking Relevance: The BOL includes both the container number and booking number, which are essential for real-time tracking through carrier websites or third-party tracking platforms.
2. Container Number
   • Why It’s Important: The container number is unique to each container, making it the primary identifier across tracking platforms.
   • Tracking Relevance: This number can be entered on various tracking portals to view real-time updates on the container’s location and estimated arrival times.
3. Booking Number
   • Why It’s Important: Assigned by the carrier, the booking number confirms the reservation and provides another layer of tracking data, particularly in the early stages before a container is assigned.
   • Tracking Relevance: The booking number is commonly used as an alternative identifier in tracking systems, especially when the container number isn’t yet available.
4. Purchase Order (PO) Number
   • Why It’s Important: The PO is your initial contract with the supplier and a reference point for internal inventory systems.
   • Tracking Relevance: Some tracking platforms allow you to search by PO number, which can be useful for companies that manage large volumes of shipments or need to integrate tracking with ERP systems.
5. Commercial Invoice
   • Why It’s Important: The Commercial Invoice provides transaction details and the value of goods, essential for customs clearance and record-keeping.
   • Tracking Relevance: While not directly used for tracking, it’s often required by customs officials, making it an important document in the overall shipment process.
6. Packing List
   • Why It’s Important: This document itemizes the cargo within each container, listing weights, dimensions, and descriptions.
   • Tracking Relevance: Especially useful for LCL (Less than Container Load) shipments, where multiple cargoes share a container. The packing list can clarify shipment status and content details.
7. Certificate of Origin
   • Why It’s Important: Certifying the origin of goods, this document is essential for customs processes, potentially impacting duties and trade restrictions.
   • Tracking Relevance: It’s generally not used for tracking but may be checked by customs or other authorities en route.
8. Customs Documentation
   • Why It’s Important: Customs forms are required to clear goods through customs at the destination, avoiding delays.
   • Tracking Relevance: Some tracking platforms display customs clearance status, making customs documents essential for maintaining up-to-date tracking information.
9. Delivery Order (DO)
   • Why It’s Important: The DO is issued by the carrier to authorize the collection of goods at the destination port.
   • Tracking Relevance: It confirms that the container has cleared customs and is ready for pickup, signaling the final leg of the journey.
10. Shipping Instructions (SI)

• Why It’s Important: The SI provides the carrier with consignee details and handling instructions.
• Tracking Relevance: It may not be used for real-time tracking but is critical for ensuring proper handling and documentation throughout the shipment.

The Impact of Incoterms on Container Tracking

Incoterms (International Commercial Terms) play a significant role in determining tracking responsibilities, as they define who is responsible for the shipment at each stage, along with risks and costs. While Incoterms don’t directly alter the tracking process, they influence who should track and when. Here’s how Incoterms impact container tracking:

1. Responsibility for Tracking
2. Incoterms define at which points responsibility and ownership transfer from the seller to the buyer, which impacts who should monitor tracking. For example:
3. • Under EXW (Ex Works), the buyer is responsible for picking up and tracking the shipment from the seller's premises onward.
   • With DAP (Delivered at Place) or DDP (Delivered Duty Paid), the seller handles tracking until the shipment reaches the buyer’s location.
4. Access to Tracking Information
5. Depending on the Incoterm, one party might have more control or visibility over the tracking data:
6. • With FOB (Free on Board), the seller’s responsibility ends once the goods are on the vessel, so the buyer needs to take over tracking from that point.
   • For CIF (Cost, Insurance, and Freight), the seller arranges and pays for shipping to the destination port, often tracking the shipment until arrival.
7. Key Tracking Milestones
8. Different Incoterms emphasize specific milestones for tracking:
9. • For FCA (Free Carrier), tracking begins once the seller hands over goods to the carrier.
   • With DAP or DDP, the seller remains responsible for the shipment’s tracking until it reaches the destination.
10. Coordination with Freight Forwarders
11. Incoterms influence who needs to coordinate tracking with forwarders, especially when responsibility shifts:
12. • Under CPT (Carriage Paid To), the seller arranges and pays for the main carriage, coordinating tracking with the carrier.
    • For EXW, the buyer coordinates tracking from the seller’s location.
13. Customs Clearance and Documentation
14. Incoterms also affect who manages customs clearance:
15. • With DDP, the seller is responsible for tracking through customs until delivery to the buyer.
    • Under FOB or CIF, the buyer oversees customs upon arrival at the destination port, making tracking at this stage critical for import compliance.

Tracking FCL vs. LCL Shipments

Tracking options and visibility can differ between Full Container Load (FCL) and Less than Container Load (LCL) shipments due to the way they are handled. Here’s what to expect for each type:

1. Full Container Load (FCL) Tracking
   • Direct Tracking with Container Number: FCL shipments dedicate the entire container to your cargo, allowing easy tracking using the unique container number.
   • Carrier and Platform Coverage: Most tracking platforms support FCL tracking as the container stays with your goods throughout the journey.
   • Greater Visibility: Real-time updates are typically available at each stage, from departure to arrival at the destination port.
2. Less than Container Load (LCL) Tracking
   • Shared Container: In LCL shipments, your cargo shares a container with other shipments, making tracking more complex.
   • Use of Consolidator’s Tracking System: Freight forwarders or consolidators track the combined shipment and often provide updates for key stages like consolidation, customs clearance, and deconsolidation.
   • Less Granular Visibility: LCL tracking may be less detailed, with updates typically limited until the container reaches the deconsolidation point.

Best Practices for Effective Container Tracking

1. Combine Multiple Tracking Sources: Start with the carrier’s website and supplement it with a third-party platform for a comprehensive view.
2. Use IoT and GPS for High-Value Shipments: IoT devices provide real-time data, including temperature and tamper alerts, valuable for high-value shipments.
3. Set Up Automated Alerts and Notifications: Enable notifications for key events to stay updated without constant checking.
4. Integrate Tracking with ERP or SCM Systems: Integration streamlines operations and improves internal visibility.
5. Stay Updated on External Factors: Tools like Xeneta or Freightos provide insights into external factors affecting shipping timelines.
6. Prioritize Essential Documents for Customs: Ensure all necessary documents, like the Bill of Lading and Commercial Invoice, are ready to avoid customs delays.

How Limbiq Helps Import Managers Track Shipments and Containers

Limbiq provides a centralized dashboard that consolidates data from multiple carriers, offering real-time visibility over all shipments, whether FCL or LCL. With Limbiq, import managers can track shipments across the entire supply chain and receive automated notifications for key events such as customs clearance, delays, and estimated arrivals. Limbiq

’s predictive analytics feature offers insights into potential disruptions, enabling proactive inventory management and schedule adjustments. Integration with ERP and SCM systems ensures seamless data flow, allowing managers to boost tracking efficiency, reduce manual effort, and gain a competitive edge in logistics management.

Conclusion

For import managers, container tracking is about ensuring smooth flow, anticipating delays, and enhancing operational efficiency. By understanding essential documents, knowing the impact of Incoterms, and using best practices, you can strengthen your supply chain. Embrace tracking platforms, leverage IoT for critical shipments, and stay prepared with documentation for accurate, efficient tracking and a competitive edge in managing imports.

Frequently Asked Questions (FAQ)

1. What is the most important document for container tracking?
2. The Bill of Lading (BOL) is often the most critical document for tracking purposes, containing key details like the container and booking numbers.
3. Can I track LCL shipments the same way as FCL shipments?
4. Yes, but there are differences. FCL is tracked directly by the container, while LCL often requires tracking through the freight forwarder.
5. Are there free services available for container tracking?
6. Yes, platforms like Track-Trace, SeaRates, and VesselFinder offer free tracking options, although advanced features may require a subscription.
7. Can I combine multiple tracking platforms to improve accuracy?
8. Absolutely. Combining carrier-provided tracking, third-party platforms, and IoT for high-value shipments can enhance tracking accuracy.
9. Do I need IoT or GPS devices for container tracking?
10. Optional but beneficial, especially for high-value or sensitive shipments needing detailed, real-time data.
11. How can Limbiq help with container tracking?
12. Limbiq offers a centralized tracking platform with features like automated alerts, predictive analytics, and ERP integration, making it easier to manage shipment statuses and disruptions proactively.

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