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The recent dramatic rise in oil prices coupled with the long-distance logistics of global markets presents a challenge to companies whose business relies on shipping goods or importing resources from around the world. At the more local level, some municipalities are experimenting with new ways to limit air pollution and prevent gridlock in cramped urban centers. As they seek to cope with the changing economics of transportation at all levels, businesses and government agencies are looking to innovative technologies to bring fresh ideas to the table.

Optimizing container management to lower costs

With fuel prices at a premium, cargo transport companies are under pressure to streamline and optimize shipping operations. A key issue is container logistics: to be successful, a shipping company must provide empty containers to any export point, by quantity, type and time required, at minimal cost. The trade imbalance in the world increases the cost of empty container repositioning significantly. Global marine transport companies spend several hundred million dollars per year on empty container repositioning, a complex logistical task frequently calculated by hand. The client sought to optimize its container logistics to boost performance and meet growing customer demands. Building on IBM Haifa Research Lab’s previous work with a global carrier and IBM Transport & Logistics’ deep knowledge of the global shipping industry, IBM Global Business Services worked with the client to develop and implement a Container Logistics Optimization System, while reengineering and improving its business processes. Included in the recommendations were transformational solutions for networking management, yield management, customer relationship management and human resource management. As a result, the client experienced significant reduction in annual empty container repositioning costs.

Ramping up efficiency with cargo management solutions

The same forces driving change in marine cargo shipping are also pushing air cargo carriers to rethink their operations. When a major U.S. airline signaled its interest in a new ramp solution to increase its cargo loading efficiency, IBM Global Business Services was able to adapt an existing ship cargo solution developed by IBM China Research Lab to help optimize the airline’s cargo management system. PROFITS (Pricing and Revenue Optimization for International Transportation Services) uses a rules and optimization engine to drive complex decision making. The goal is increased profits and improved service with no additional operating costs, using pricing optimization and logistics optimization reflecting market supply and demand.

Improving ports and terminal productivity through mathematical modeling

Ports and terminals also play an important role in transportation logistics. One leading global ports and terminals operator sought to stay ahead of the competition by improving the overall productivity of its terminal operations, beginning with the productivity of the prime movers. IBM Research developed a custom solution — the Prime Mover Dispatch System — that used sophisticated mathematical modeling to increase truck and crane utilization.

Reducing traffic woes in urban centers

Meanwhile, city and state governments are wrestling with the issue of an ever increasing number of cars clogging finite-capacity traffic routes. In an innovative approach toward reducing traffic congestion, the City of Stockholm and the Swedish Road Administration sought IBM’s help in designing, implementing and operating a trial system that charged drivers for entering the city center with their vehicles. The solution included a network of 18 drive-through control points surrounding the city center, plus the central computing systems for capturing vehicle identification data and billing drivers for road use. The identification system is powered by an automated optical character recognition system that uses sophisticated algorithms to recognize and decipher the sometimes-blurry plates.

In another engagement with a large metropolitan traffic authority, IBM developed a Traffic Prediction Tool (TPT) to forecast traffic flows over pre-set durations – anywhere from 10 to 60 minutes – with the goal of helping traffic controllers better anticipate and manage the flow of traffic through urban thoroughfares. The TPT uses historical traffic data and real-time traffic input delivered by video cameras, global positioning system (GPS) devices in taxis and sensors embedded in city streets, with a resulting accuracy level well above 85 percent. The city government plans to use the TPT information for sign messaging, traffic signal timing and ramp metering. Future applications could include dynamic road pricing, congestion-based tariff setting, and route planning and advice.

Meeting competitive challenges with transportation logistics

The ongoing crisis surrounding rising fuel costs is spurring companies to pursue smarter ways of doing business, including leveraging technology to gain a competitive advantage over industry rivals. Advances in analytics and other technologies from IBM Research are providing IBM clients with a wide array of tools and solutions geared toward meeting the challenges of the transportation industry. As a leader in the field of advanced analytics, IBM is strongly positioned to help devise smarter strategies for cargo management, container logistics and vehicular traffic control.

For more information on engaging IBM technical expertise to help improve your transportation logistics, contact IBM Research Services today