Maersk has taken a stake in the container tracking company Traxens, and will install its tracking system on 50,000 dry containers.
Marseille-based Traxens, and A.P. Moller - Maersk have announced that “Maersk will be joining CMA CGM and MSC Mediterranean Shipping Company as a key shareholder and customer of Traxens”.
Traxens is the start up founded in 2012 to bring container tracking and monitoring to the container shipping industry. Rather than selling hardware, Traxens created a business model based on the value of the data container tracking can generate. As quoted in WorldCargo News in 2016, Tim Baker, Marketing Director at Traxens, said the company was offering lines and container owners a monitoring system “at a lower price they they can ever do it themselves”, in return for the “right to sell and use the data.” The basic idea is that lines would use the data to manage their assets and control costs, while Traxens would generate revenue selling value added data to shippers.
Maersk has now joined CMA CGM and MSC in embracing this model. “The agreement will see Maersk invest capital in Traxens, in which it will have similar shareholder rights as CMA CGM and MSC. Maersk also commits to order up to 50,000 Traxens devices, a similar order to those placed earlier by CMA CGM and MSC,” the announcement read.
This is not the model Maersk chose for its reefer monitoring system, which is a proprietary one designed and built in-house and fully controlled by Maersk. While the reefer monitoring system is now installed across the entire reefer fleet of Maersk and Hamburg Sud, this announcement highlights that Maersk is not prepared to make a similar investment in its own dry box tracking system, where the value of cargo data is lower than for perishable cargo.
Maersk is nevertheless upbeat about joining Traxens. “Creating visibility into the condition and location of containerized cargo is bringing Maersk’s strategy to offer digital end-to-end solutions to life,” said Ingrid Uppelschoten Snelderwaard, Vice President, Head of Equipment, A.P. Moller - Maersk, said. “Having pioneered IoT-technology in our reefer fleet, we are excited to join Traxens and collaborate on the huge potential within connected containers. With this investment we look forward to working with key industry players to advance a leading solution within connected products and technologies for high value cargo, while ensuring customer choice through interoperability and open standards.”
Having the world’s largest shipping line onboard is a major step forward for Traxens, and the whole IoT/box tracking market will certainly sit up and take notice. As the company points out between them CMA CGM, MSC and Maersk operate nearly half the global box fleet. “Traxens can now further focus on strengthening its solution and drive interoperability based on non-proprietary technologies and open standards”, the company stated. “The development of Traxens as an open industry solution will benefit the strategic ambition of digitizing the container shipping industry”.
Jacques Delort, General Manager of Traxens, said: “We are delighted to welcome Maersk among our backers alongside CMA CGM and MSC. Having three of the world’s largest shipping companies now supporting us, this will help accelerate our international development and contribute to our solution becoming a global market standard for the entire supply chain.”