There are in total four sources of benefits from the implementation of the Container Monitoring System by KGS as depicted in the figure below.

The first three correspond in general to the three major challenges of container logistics introduced earlier. Benefits can come from detection, tracking&tracing, and anti-terror capabilities of smart containers. A fourth source of benefits comprises of mainly image and marketing effects for involved companies.

The shown potential benefits all sound quite theoretic and it is not clear, how exactly a company can actually see these benefits in their bottom line. Therefore, an average trade lane from Europe to Asia of a major consumer goods company has been analyzed regarding the effect of the introduction of the Container Monitoring System by KGS on the company's business performance.

The technology used in all of the 300 sea containers per year on that specific trade lane consists of GPS based tracking and tracing, intrusion sensors (door, light, movement sensors) and GPRS-based communication. The cargo transported clearly classifies as "high important" with an average value per container of €400k. The expected benefits and costs per container load are presented the figure below.

In order to be conservative and most realistic, the expected benefits in this specific case are limited to effects from a lower insurance premium on the one hand and a reduction of the safety stock on the other hand. The new visibility in the supply chain will allow for such insurance premium reductions, because claims can much better be directed to the party that really is responsible for damage or theft. The reduction of safety stock is possible due to the new confidence in the arrival of goods on time. This confidence roots in the new flexibility that in turn comes from the increased visibility. Logistics managers can now quickly react and if necessary expedite shipments or order replacements, should they notice in real-time that important goods are for example left behind at transshipment hubs.

The cost per container load is assumed to be in the order of €300 after cost reductions from economies of scale. The resulting net improvement per container load is expected to be in the order of €1,750.

It is clear, that real-time systems will not help much in the global fight against terrorism, since only 10% of all containers will initially be equipped. However, it is also clear that border controls will be much faster for container using the Container Monitoring System by KGS, which saves time and money for involved parties. In addition, in the case of an attack, the containers that will most likely be allowed to move again first will be the ones with smart technology implemented.