How the Automatic Identification System works and tracking on the high seas

Understand the role of Automatic Identification System (AIS) in tracking products in maritime commercial operations in foreign trade. Find out how this technology can benefit supply chain visibility and how accounting can take advantage of these innovations. 

Foreign trade and technology are two worlds that, although distinct, have become increasingly intertwined, especially nowadays. Digital media has played a fundamental role in increasing visibility in the supply chain and monitoring operations.  

The central topic of this article concerns precisely this convergence. The Automatic Identification System (AIS) is a key part of this process, playing a crucial role for those involved in import and export.  

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What is Automatic Identification System (AIS)?

The Automatic Identification System (AIS) is a short-range monitoring system widely used on ships and Vessel Traffic Services. The technology, initially developed for military purposes, was later adapted for the commercial sector with some modifications. 

The purpose of AIS is to identify and locate vessels by exchanging data electronically with other ships and stations that share the same frequency, known as VTS (Vessel Traffic Services).  

This system provides crucial information such as the vessel's identification, position, course and speed. All this data is displayed on a screen or ECDIS (Electronic Chart Display System). Both the equipment and the system help ship's officers and the authorities to track and monitor the movement of ships. 

The AIS integrates a standard VHF transceiver, such as Loran-C or a GPS receiver, along with other navigation sensors, electronic or otherwise, such as gyroscopes, speed, rotation and direction indicators. 

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What is the purpose of Automatic Identification System?

The purpose of Automatic Identification System goes beyond merely tracking vessels. This technology has the function of making maritime operations safer and more efficient. AIS's specific objectives include: 

Ship identification 

AIS allows vessels to be identified immediately, facilitating communication between them and the port authorities. 

Real-time monitoring

The information provided by AIS is updated in real time, allowing port authorities, other vessels and maritime traffic services to track the location of each ship. 

Tracking

Through AIS, it is possible to track a ship's trajectory from its point of origin to its final destination. This is crucial for efficient foreign trade operations. 

Predictability

The use of historical data and predictive analysis, combined with AIS, provides accurate information on the estimated arrival of the cargo and the ship's docking date at the port of destination. This is especially relevant for the supply chain. 

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The role of AIS in foreign trade

The role of the Automatic Identification System in foreign trade is extremely important. It offers a series of benefits that contribute to the efficiency and transparency of operations: 

Cargo tracking

AIS makes it possible to track cargo precisely, from the moment it is loaded until it arrives at the port of destination. 

Predictability

Based on AIS information and the application of technologies such as Artificial Intelligence and Machine Learning, it is possible to estimate cargo arrivals more accurately and thus optimize logistics planning. 

Reduced operating costs 

The visibility provided by AIS helps to avoid extra costs related to delays and penalties. 

Customs and customs control

Customs authorities can use AIS information to improve the supervision and control of cargo. 

Transparency and advanced visibility

AIS provides a clear, real-time view of the entire supply chain, which is key to making informed decisions. 

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Conclusion

In a scenario where technology plays an increasingly essential role in foreign trade, the Automatic Identification System is emerging as a valuable tool.  

Its tracking capacity, predictability and advanced visibility make it crucial for import and export operations. However, the benefits are not limited to logistics and the supply chain. A foreign trade company can benefit completely from AIS, making the maritime logistics of its products much simpler. 

If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.

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