The container shipping industry is a critical component of global trade, responsible for transporting vast amounts of goods across the world’s oceans. Despite its importance, the industry faces numerous challenges, including inefficiencies, environmental impact, and security threats. Katalysen portfolio venture ConexBird is at the forefront of addressing these challenges with its innovative vibration technology, having recently closed a new share issue to accelerate the company’s go-to-market efforts globally. With this article, we hope to give our network a short introduction to the importance of ConexBird’s work and to invite anyone interested in this sector to reach out to ConexBird to learn more.
Current Challenges in Container Shipping
1. Inefficiencies and Operational Costs
Container shipping lines manage an estimated 150 million TEUs (twenty-foot equivalent units) annually, with significant expenses tied to container maintenance and operational services. Containers frequently suffer from structural weaknesses and damage over time, leading to high maintenance costs and long waiting times for inspections and repairs. This inefficiency not only drives up operational costs but also impacts the availability of containers for shipping, causing delays in the supply chain. The industry spends an estimated €2,500 per TEU on maintenance and operational services, amounting to billions of euros annually .
2. Environmental Impact
The environmental footprint of container shipping is substantial, contributing significantly to global CO2 emissions. Traditional practices result in high emissions of CO2 and other pollutants. As global pressure mounts to reduce carbon emissions, the industry faces the urgent need to adopt greener practices. Container shipping is estimated to emit around 1 billion tonnes of CO2 annually, representing approximately 3% of global greenhouse gas emissions.
3. Security Threats and Contraband
Security is a paramount concern in container shipping, with ports and shipping lines being key points for potential smuggling activities. Less than two percent of the approximately 750 million containers shipped globally each year are inspected, providing ample opportunities for contraband and illegal activities. Ensuring the security of container contents without causing delays is a significant challenge for customs and border security. For example, in one notable case, the seizure of drugs from an MSC ship in 2019 resulted in $50 million in fines and significant reputational damage.
4. Aging Infrastructure and Workforce Challenges
Many ports and shipping companies operate with outdated infrastructure, which limits their ability to efficiently manage modern shipping demands. Additionally, there is a growing shortage of skilled labor, particularly in areas requiring expertise in advanced inspection and monitoring technologies. The average waiting time for containers in storage is an estimated 30 to 40 days, exacerbating delays and inefficiencies.
ConexBird: Innovating for Efficiency, Security, and Sustainability
ConexBird is addressing these challenges with its groundbreaking technology, offering unique solutions that enhance container health monitoring, operational efficiency, and security.
Real-Time Container Health Monitoring
ConexBird’s technology provides real-time data on the condition of each container, using smart sensors and advanced analytics to detect structural weaknesses and potential damages during the lifting process. This immediate feedback allows for timely interventions, reducing downtime and preventing costly repairs. By ensuring containers are always in optimal condition, ConexBird significantly cuts down on waiting times and improves the turnaround efficiency for shipping lines. The system can detect multiple damages on containers, providing a reliable alternative to traditional inspection methods.
Enhancing Security with Advanced Detection
One of the standout features of the solution being developed by ConexBird is its potential to detect anomalies in container contents during the lifting process. By comparing real-time measurements with expected cargo data, one can quickly identify if additional, potentially illegal items have been added. This capability not only enhances security but also streamlines the inspection process, allowing customs to focus their efforts on high-risk containers without causing delays. This technology can detect anomalies such as additional weight indicative of contraband, with alerts delivered within one minute.
ConexBird is starting a cooperation project with customs to increase the efficiency of the customs X-ray process cost-effectively without slowing down the process. All containers entering the country are measured with ConexBird, and a preliminary inspection result is made from the measurements which helps customs decide which containers to target and inspect with the already existing X-ray process. A message about a suspicious container is sent to the customs staff immediately after the container is lifted to shore. This information is used in connection with the X-ray process, increasing the efficiency of existing X-ray equipment.
Several major shipping companies have already shown interest in the project, and a starting port for the project has been selected, but ConexBird is open to including other ports based on the needs of interested shipping companies.
Reducing Environmental Impact
ConexBird contributes to environmental sustainability by optimizing container usage and reducing unnecessary repositioning. The insights provided by ConexBird’s technology help in better planning and utilization of containers, leading to fewer emissions from container movements. The company estimates that its technology can save up to 6 million tonnes of CO2 annually, equivalent to taking approximately 2 million cars off the road. Additionally, the technology supports the use of alternative fuels and the adoption of electric and hybrid vehicles for port operations.
Cost Savings and Increased Efficiency
By providing detailed data on container durability and availability, ConexBird helps shipping lines and container owners to better manage their fleets. This leads to significant savings in operational and capital expenses. For instance, by reducing the need for extensive manual inspections and repairs, ConexBird’s system cuts down on labor costs and increases the availability of containers for shipment. The annual cost savings from reduced container repositioning alone are estimated to be in the range of €15-20 billion globally .
Conclusion
“In the US alone, cargo inspection technology will be purchased at over a billion dollars per year over the next ten years. It is common knowledge that only every tenth container is inspected, for instance using X-ray machines. For practical reasons, increasing the ratio of containers that are inspected using X-rays is very difficult because the transport times will increase and the shipping company’s inspection fees will rise. Today, container inspection fees are hundreds of dollars each. Using ConexBird's unique vibration technology, we can provide customs with a preliminary inspection report on all containers that pass through a port, helping customs to better pinpoint which containers to inspect more closely with X-ray,” comments Teuvo Heikkilä, CEO of ConexBird.
The container shipping industry is on the brink of a technological revolution, driven by the need for greater efficiency, security, and sustainability. ConexBird stands out as a transformative player in this landscape, offering innovative solutions that address some of the most pressing challenges faced by the industry. With its real-time container health monitoring, enhanced security features, and contributions to environmental sustainability, ConexBird is well-positioned to lead the future of container shipping into a new era of efficiency and innovation.
