Standards Setting Needs for Freight Management

Working Paper Prepared for ISO TC204 ITS/TICS
May 15-17, 2002

The purpose of this working paper is three-fold: to provide information about standards and pilot activities related to freight security and productivity; to stimulate discussion; and to suggest that Forum members encourage appropriate colleagues to participate in the standards and pilot activities. This is certainly not the last word on the subject, but a step to improve our understanding and generate effective action.

The paper discusses the need to establish more coherent and effective global standards to facilitate the secure and efficient movement of freight and its associated information worldwide, between many diverse interests that are responsible for freight along the supply chain, as goods make their way from origin to destination. Productivity associated with freight management is, in many instances, a hostage to the intensity and speed at which paper flows through the process. Shipping papers, and their associated complexities, may be as big a problem in moving freight expeditiously as the physical hurdles in the transportation network. Electronic Data Interchange (EDI) standards have made a huge contribution, but more is needed to bridge inconsistent EDI standards, to fill in gaps related to security information, and to build universal message standards to improve productivity and to provide consistent oversight tools for security interests in government and industry. In addition to data-related standards, the electronic tools used in the movement of data, such as electronic seals and transponders, are critical to the overall security and productivity of freight processes. To be most useful in a global environment, those tools should operate in a standard manner at every point where data transfers occur.

1. Current Issues

a. Role of the FHWA and USDOT in freight technology operational tests and standards development

As part of the Federal Highway Administration (FHWA) reorganization in February 1999 the Office of Freight Management and Operations (HOFM) was created and given responsibility to focus attention on freight's impact on the nation’s transportation system and to find tools that could be used to alleviate the strain on the system. This has required isolating out freight travel data from general population travel data, and analyzing current impacts on the system as well as those forecasted within the next 20 years. The data analysis has included all transportation modes including cargo movements through airports, seaports and land border crossings. Analysis of the results has shown that freight volumes could nearly double by 2020 and the solutions to the expected increase in congestion are likely to involve both infrastructure improvements and technology innovations. Included in this will be a need for a backbone information system that will provide all transportation entities the oversight they need to track and trace their shipments. Bold steps between government and industry need to be taken to realize the potential of technology to advance productivity and security through the intermodal freight system.

USDOT's Office of Intermodalism (S-3) and HOFM have developed a working relationship with the freight industry through the Intermodal Freight Technology Working Group (IFTWG) under Intelligent Transportation Society of America (ITSA). The IFTWG and USDOT have been working together to determine where and how technology may be applied to improve origin-to-destination freight movement. The collaboration between IFTWG and USDOT has included mapping freight processes from origin-to-destination, design and implementation of several operational tests, and developing strategies for a freight architecture and freight data exchange standards.

Events of September 11, 2001 have greatly heightened security concerns in freight transportation. International container movement has been particularly highlighted as a concern. The USDOT, in cooperation with US Customs set up a Container Security Group under the new National Infrastructure Security Committee (NISC) with subgroups, including one on security technology. Technology innovations are expected to play a significant role in improved container and intermodal freight security.

If technology innovations are to be a large part of the roadmap to future productivity gains and reduced security risks in the transportation system, then the emphasis for the backbone information systems will be on product interoperability and on data exchange standards. HOFM's role is being shaped to include standards development as part of its overall responsibility, and to focus on the emphasis areas.

b. Product and Data Exchange Standards

To facilitate the electronic movement of data requires product standards for wireless devices, as well as standards for the "shipping paper" messages that need to move across the freight information highway. For the wireless products to communicate most effectively with the freight information highway requires a universal protocol to handle data from all types of devices.

Seal and Transponder Products

Currently there is one international standard for electronic products to facilitate wireless movement of freight-specific data; that standard is voluntary, and we know of only one container carrier that uses it throughout its operations. (That standard, approved by the International Organization for Standardization (ISO), is for intermodal container transponders). Although further standards development activity is underway, there is none other in place for freight-related radio frequency ID (RFID) products and cellular products. There may also be issues associated with global positioning satellite information and latitude-longitude GIS maps.

There are draft proposals within the ISO Technical Committee (TC) structure to create a worldwide standard for electronic seals and work is anticipated to update the voluntary standard for RFID transponders for containers. ISO TC 104, Freight Containers, is working on both standards.

The electronic seal secures the hasp and rod bolts of the container doors. If the seal has been tampered with, it will communicate such upon interrogation by an electronic reader. The draft standard includes both low cost, low security capability seals (using passive RF technologies) and moderate cost, moderate security capability seals (using active RF technologies). It is hoped the standard will facilitate growth to accommodate higher security capability seals as technology improves and costs come down. The standard would facilitate interoperable exchange of information, not identical products. The seal standard has promise of being approved as a global standard within a year or so. Before and after approval of a standard, it makes sense to conduct diverse pilots, using different scenarios and different products, to determine the mix of product and operating practices that best supports security and productivity.

The ISO container transponder is a device that is installed on both sides of the container and, if a reader infrastructure is installed appropriately, they could read the transponders in the port, on the highway and on the rail system. Compatible transponders are used on a modest fleet of domestic containers in the U.S., readable when carried by railroads. Use in other modes is rare, although some seaport terminals have used them for yard management purposes. There is limited use of the container transponders outside the US.

ISO TC 104 is beginning the process of reconsidering the voluntary container-tagging standard. It is based upon the Amtech passive technology and is not battery powered. It derives its power from the interrogation device signal beam, and therefore does not have long-range capability. Some industry members have requested USDOT’s assistance in developing a container transponder standard. DOT may have a role, especially in the security arena, to help identify containers that are off-route or being tampered with. HOFM is also conducting a chassis-tracking test in which the chassis-tracking device is expected to be capable of reading container transponders. This will help link the load with the chassis on the freight information highway, and have the chassis become the communications platform for the assets and cargo; i.e., dray tractor, container and chassis.

Radio frequency issues are closely related to the standards issues. Global supply chain security and efficiency are best served with consistent global frequencies. However, there is no single frequency available for logistics applications across the major trading theaters (Asia, Europe, and North America). An added complexity is that two frequencies may be needed, one for passive RFID applications and another for active applications. Both passive and active have valid roles, but cannot operate on the same frequency in the same place and time without interference. One strategy to implement consistent global frequencies is for ISO to petition the International Telecommunications Union to adopt the same position as ISO on global frequencies. ISO TC104 is in the process of balloting consistent global frequencies for vehicle to roadside wireless devices. Once the standards adoption is made within ISO it could go for ITU for similar adoption and then the various telecommunication regulatory bodies in each country could be urged to provide those frequencies for container and trailer transportation purposes.

There are other activities in ISO, which may have applicability but need to be further researched. The first is Joint Technical Committee 1 (JTC-1), Subcommittee (SC) 31, which is a primary developer of RFID standards. Both the ISO and the International Electrotechnical Commission (IEC) charter JTC-1. The second is ISO TC 154 (Processes, data elements, and documents in commerce, industry, and administration), which produced the EDIFACT standard. (EDIFACT is EDI for Administration, Commerce, and Transport).

Data Exchange Standards

Mapping the intermodal freight process from origin to destination, under the umbrella of the Intermodal Freight Technology Working Group, showed at least 63 hand-off points for freight where either paper had to change hands or an Electronic Data Interchange (EDI) message set was exchanged. Most of the exchanges still include paper. The EDI transactions largely follow the American National Standards Institute (ANSI) EDI X12 standards, which are used by ocean carriers bringing goods to the US.

The two widely used EDI standards—ANSI X12 and EDIFACT—do not correlate seamlessly and there are unreconciled differences. In effect, there is no single and complete set of international freight data exchange standards. More research needs to be done in this area.

Strategy: To establish near-optimal international data exchange standards for freight and security will require both participation in the ISO process and coordination with on-going commercial activities.

One strategy is to begin a coordinated process through ISO TC 204, the Transportation Information and Control Systems (TICS) committee. The scope of TC204 includes "Standardization of information, communication and control systems in the field of urban and rural surface transportation, including intermodal and multimodal aspects thereof [and] commercial transport."

Since there are other technical committees working on these issues, the strategy calls for exchanging liaisons with other relevant technical committees and global standards organizations. There are at least three other ISO committees with which to exchange liaison. One is TC 8, Ships and Marine Technology. The second is TC 104, Freight Containers, and the third is TC154 on UN/Edifact data standards. TC 204 and TC 8 have already made proposals to work together on this issue. TC204 and TC104 are finalizing liaisons. Liaison between TC204 and TC154 are being pursued.

Activities at four other international standards organizations merit further research and potential coordination. One is the IEC. The scope of its TC 9, Electric Railway Equipment to prepare international standards for the railway field, which includes rolling stock, fixed installations and their interfaces. The second is the Institute of Electrical and Electronic Engineers (IEEE). One of its technical committees, while considering emergency response for dangerous goods incidents, developed a draft data dictionary that includes transportation items. The third, the World Customs Organization, is developing a WCO customs data model and the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), the fourth, is developing a reference model of the international supply chain.

There is also a significant commercial activity underway to improve standards for supply chain operations. The EAN International and Uniform Code Council, two non-profit standards and education organizations that work together, are investing significant resources in a Global Standards Management Process (GSMP). There is significant industry participation in Europe and the U.S. as well as elsewhere. Although shippers are the driving force behind GSMP, there are important transportation activities and implications. A major focus is assembling a Global Data Dictionary (GDD). It is important to learn more about this process and establish liaison.

Current Activity. FHWA/USDOT drafted a preliminary work item (PWI) for an intermodal freight data dictionary. It was approved by the US Technical Advisory Group (TAG) to ISO TC 204 in early winter 2001 and it will be presented to the TC 204 plenary in May. The PWI is on the agenda for potential adoption as a formal work item at TC204's semi-annual meeting in London May 13-17. Approval requires an affirmative ballot by a majority of participating member countries. If the PWI is approved by the TC, the designated project leader will schedule a series of meetings to focus on the preparation of a draft document as the basis for a New Work Item Proposal (NP). An NP ballot requires a majority P-Member approval plus agreement by five member countries to work on it. There is interest from the US, Canada and the UK to work on it. Other members expected to sign up are Japan, China, and Korea. It would be good to get more active EU participation as well.

c. Intermodal Freight Operational Tests

FHWA/USDOT intermodal freight operational tests that are currently underway will help to shed more light on best practices to be adopted, i.e. the best ways to share information between users, and the best ways that technology products can be used in the process. Three tests that are expected to provide the most insights are the Air Cargo Security test in Chicago, the Washington State electronic seal test, and the chassis tracking and information highway test.

The Air Cargo security test includes the development of a smart card to be used to ID the custodian of cargo as it moves from origin to destination. The card includes a biometric identifier, an electronic manifest and an electronic copy of a commercial driver license. The electronic manifest has proven beneficial in the process will be very helpful as a baseline in creating a worldwide standard for such a manifest.

The Washington State electronic seal test will provide lessons learned and best practices to employ for using an electronic seal to identify the cargo as it moves through Customs checkpoints in any country.

The chassis tracking and information highway test will provide lessons learned and best practices on gathering data from different sources and packaging it so that it can be understood and utilized by all users in the test.

d. Future Field Operational Tests (FOT's)

The USDOT is planning on conducting a container security test in partnership with industry and other governmental agencies. In addition to testing the utilization of electronic seals for secure end-to-end movement of containers and cargo, the FOT would include the wireless movement of data and electronic data exchange as a replacement for the paper intensive process. This will probably require some ad hoc modification to EDI standards for the purpose of the test. Another possibility is to use the ISO's ad hoc standards process, referred to as the Publicly Available Specifications (PAS) process. The PAS process is similar to the International Standards process; however, it has fewer steps and less stringent approval requirements. It is nominally viewed as an interim measure, which would ultimately lead to a full standard.

2. Future Activities

Meaningful success for improving freight security and efficiency requires active international collaboration, especially concerning standards. Work needs to be done to coordinate with other world bodies such as APEC, the International Maritime Organization (IMO), and the International Telecommunications Union, which could contribute to getting both the data and product standards implemented once they are developed. The USDOT (US Coast Guard and MARAD) will be taking freight security proposals (including electronic seals) to the upcoming IMO meeting in London. The World Customs Organization (WCO) is planning a symposium of government and industry representatives for customs, transportation, health, security, safety and environment, tentatively set for February 2003. The purpose of the symposium will be to explain the objectives of the WCO Data Model project and to enlist agency support and participation in the development of this comprehensive international trade data model. The USDOT looks forward to partnering with interested parties to help work toward international intermodal interoperability and help advance critical standards issues through the appropriate world bodies including ISO.

Prepared by: Michael P. Onder, FHWA/USDOT in collaboration with:
Andrew Schoka, Chief Standards Engineer, Mitretek Inc.
Michael Wolfe, Senior Associate North River Associates

EAN International is the proper name for the organization formerly known as European Article Numbering, International.