Supply Chain

Container Logistics in Ocean Freight: Mastering Complexity with SAP TM and EWM

Container Management — The Underestimated Lever in Global Supply Chains

At first glance, containers appear to be the simplest element in logistics: standardized steel boxes that fit everywhere. In reality—especially in international ocean freight—every outbound container is part of a tightly interwoven system of regulatory requirements, physical constraints, and operational interfaces.

Even minor inconsistencies can have disproportionate consequences. Incorrectly declared weights can lead to delays at ports, poor load distribution may damage goods, and missing safety documents can hold up customs clearance. Container management is therefore not a peripheral operational task, but a strategic discipline with a direct impact on cost, delivery reliability, and compliance.

Where Complexity Arises

The regulatory framework is clear. Since 2016, the SOLAS (Safety of Life at Sea) convention requires shippers to provide a Verified Gross Mass (VGM) for every ocean container prior to loading. In addition, the IMDG Code for the transport of dangerous goods by sea imposes strict rules on classification, packaging, labeling, and documentation.

In practice, compliance rarely fails due to lack of knowledge, but rather due to process fragmentation:

  • Warehouse, transportation, and compliance systems operate on inconsistent data sets
  • Weight and packing data are entered multiple times manually, increasing the risk of errors
  • Responsibilities between shipper, freight forwarder, and carrier are not clearly defined
  • Tight cut-off times leave no room for corrective actions

The result is a process that works—but remains under constant pressure and quickly reaches its limits as volumes grow or audit requirements heighten.

Case Study: A Global Manufacturer with Evolving Processes

In a recent project, we supported a European household appliance manufacturer with global distribution. Over time, container processes have grown organically—spread across multiple systems, dependent on individual expertise, and held together by Excel spreadsheets and email coordination.

Initial situation:

  • More than 12,000 ocean freight containers per year shipped to over 40 ports worldwide
  • VGM captured in a standalone tool, disconnected from the shipping process
  • Approximately 9% of containers required subsequent weight corrections
  • Around 3 hours of manual effort per container for documentation and cut-off coordination

The operational impact was significant: occasional port delays, recurring escalations with freight forwarders, and increasing risks in external compliance audits.

The Solution: SAP TM and EWM as an Integrated Backbone

Together with the client, we implemented an end-to-end container process in SAP Transportation Management (TM) and Extended Warehouse Management (EWM), complemented by targeted custom developments tailored to specific requirements.

Three key design principles guided the solution:

1. One Continuous Process Instead of System Silos
From warehouse packing through load planning to handover to the carrier, containers now follow a single end-to-end data flow. Packing, weight, and shipment data are captured once and consistently propagated— eliminating system breaks between EWM and TM.

2. Built-In Compliance—Not an Afterthought
VGM, IMDG classification, and all associated documentation are integrated into the system logic. Missing or incorrect data is detected before the cut-off, not at the terminal. Data is transmitted automatically to freight forwarders and carriers.

3. Planning with the Container in Mind
SAP’s planning tools optimize not just shipments, but the container itself. Capacity utilization, weight distribution, and stowage space are considered during load planning. This reduces empty space, ensures proper weight balance, and enables realistic forecasting of container requirements per shipment.

Results:

After implementation, the following measurable improvements have been achieved:

  • Instances of container weight correction reduced from 9% to below 1%
  • Manual effort per container reduced by approximately 60%
  • Average container utilization improved by 7%
  • No more port delays due to missing or incorrect VGM data
  • Audit-ready documentation available at the push of a button—including dangerous goods records

Most importantly, the client has regained control over its logistic processes. Container management is no longer a collection of exceptions and workarounds, but a well-defined and manageable standard process.

Conclusion

Container logistics in ocean freight is far more complex than its standardized nature suggests. SOLAS, IMDG, and VGM are not formalities—they are operational requirements with direct impact on shipping execution. Companies handling significant container volumes benefit greatly from embedding these requirements directly within their SAP landscape rather than managing them in parallel systems.

audaxes has an experienced team of experts specializing in supply chain automation with SAP TM, EWM, and BTP. Schedule a Container Readiness Check with us now, to assess the efficiency and audit readiness of your organization’s current container processes—concise, fact-based, and non-binding.

About audaxes

audaxes is an IT consulting company specializing in supply chain optimization. We are dedicated to supporting enterprises of all scales in automating business processes through the use of innovative IT solutions and advanced technologies.

LEARN MORE

Need Help?

Get in touch with us directly.