Survey: Better Freight Visibility Could Drive More Shippers to Rail

U.S. shippers could increase their use of rail if they had better visibility into freight while it is in transit, according to research commissioned by security technology company Giesecke+Devrient.

The survey of 500 U.S. logistics, transportation and supply chain decision-makers found that 84% would be more likely to increase their use of rail if they had greater visibility into their shipments.

Only 23% said they can continuously track both the location and condition of goods moving by rail. About 26% have access to real-time location tracking during the rail portion of a shipment, while 14% receive only occasional location updates and another 14% are limited to departure and arrival information.

Nearly three-quarters of respondents, 73%, described real-time visibility into goods in transit as a high priority, including almost one in five who called it critical.

Better information could also help shippers manage operations after freight leaves the railroad. About 45% said improved visibility would help them plan and optimize downstream operations.

Other cited uses included producing evidence to challenge demurrage and accessorial charges, monitoring the condition of perishable, pharmaceutical or hazardous cargo, and receiving earlier alerts about theft or unexpected movement.

Cargo security was another concern, with 90% of respondents saying they were at least somewhat concerned about theft.

The survey also found widespread concern about rail-related fees. Eighty percent said demurrage and accessorial charges were at least sometimes inaccurate, excessive or otherwise worth contesting, while the same percentage said greater shipment visibility would make them more likely to challenge those charges.

Beyond location, respondents identified damage detection, tampering alerts, door-opening detection, temperature monitoring, moisture monitoring and shock detection as useful applications for connected freight monitoring.

Censuswide conducted the survey Aug. 7-17 among 500 U.S.-based decision-makers responsible for logistics, transportation or supply chain operations.