Decision analysis of EPC compliant electronic seals for in-transit container transport

Compared to ISO 17712 compliant mechanical seals, electronic seals (e-seals) can further enhance container security by the features of automatic seal verification and data capture. However, e-seal solutions are not widely adopted in customs because of additional seal costs and uncertain application environment. To provide customs administration a decision tool for the evaluation of EPC compliant e-seal adoption, this study developed an influence diagram model based on the operations of in-transit container transport. Uncertain variables of our model include hand-held device moving speed, container travel speed, documentation time, installation time, paperwork check time, seal inspection time, seal verification time, read error rate, total labor hour, average hourly labor rate and unit cost of e-seal. Our findings indicate that customs authority may consider the investment of e-seal solutions when the unit cost of e-seal and average hourly labor rate can be controlled within reasonable ranges.