| Written by Mark Buzinkay
What processes are prominent in car logistics?
In 2024, seaborne car shipments were projected to reach approximately 25 million vehicles, marking a 17% increase from 2019 levels. (1) Major ports contribute significantly to this volume; for instance, the Port of Bremerhaven in Germany handles over 1.7 million vehicles annually, while the Port of Antwerp-Bruges in Belgium manages more than 2 million vehicles each year.
Car logistics in a car terminal involves highly coordinated processes to ensure the efficient handling, storage, and distribution of vehicles. These operations occur in large-scale logistics hubs, typically near ports, manufacturing plants, or rail terminals, encompassing vehicle reception, storage, quality checks, and preparation for delivery (see also: Vehicle yard management).
The process begins with vehicle reception and unloading. When vehicles arrive at the terminal, they are transported by ships, trains, or car carriers. Upon arrival, they undergo an initial inspection to check for any transport-related damage. Vehicles arriving via roll-on/roll-off (RoRo) vessels are driven off the ship by trained logistics personnel. In the case of containerized transport, vehicles must be carefully unloaded from shipping containers using specialized equipment. Similarly, vehicles arriving by rail or truck are offloaded onto designated staging areas.
Once unloaded, vehicles move to the vehicle check-in and documentation stage. Each vehicle's identification, including its Vehicle Identification Number (VIN), is scanned and registered in the terminal's logistics system. This allows vehicle tracking throughout the logistics chain. This step ensures the vehicle arrives at the correct destination and matches its accompanying shipping documents. If any discrepancies or damages are identified, reports are generated, and corrective actions are taken.
Following check-in, vehicles are directed to the storage and parking area. Car terminals have vast parking areas designed to accommodate thousands of vehicles in an organized manner. Vehicles are assigned specific parking zones based on destination, priority, or type (such as electric vehicles, SUVs, or special orders). Some vehicles may require temperature-controlled storage, especially electric cars that need battery charge monitoring.
During the storage period, vehicles undergo quality control and inspection checks. Logistics teams verify that vehicles are in optimal condition, checking for any signs of damage or defects. If any damages are detected, they are either repaired at an on-site facility or scheduled for further servicing. Vehicles may also require software updates or recalibration of certain electronic components before delivery.
One of the key processes in a car terminal is vehicle preparation and customization. This stage includes a range of tasks to ensure that vehicles are ready for final delivery. Standard vehicle preparation includes removing transportation protection materials (such as plastic covers, seat protectors, or exterior protective films), refuelling or charging batteries for electric vehicles, and performing final cleaning and detailing. Some vehicles may also require customization based on customer specifications, such as installing accessories, navigation systems, or branded decals.
Before vehicles leave the terminal, they go through final inspection and quality assurance. Trained inspectors check each vehicle's condition one last time, ensuring that all required modifications, repairs, or customizations have been successfully completed. This step also involves verifying fluid levels, tyre pressure, and electronic system functionality.
Once ready, vehicles proceed to the dispatch and loading process. Based on their final destination, they are assigned to outbound transport via trucks, trains, or vessels. Vehicles are carefully loaded onto car carriers to maximize space while preventing damage. Export shipments are securely driven onto RoRo vessels or loaded into containers according to strict safety guidelines.
At the final stage, tracking and documentation completion ensures that each vehicle is accounted for before it leaves the terminal. Logistics systems update vehicle statuses in real-time, and necessary customs and regulatory paperwork is completed for international shipments. Customers, dealerships, or importers receive notifications about the shipment status, allowing them to track the vehicle's journey.
These processes exist in many variants and colours, depending on the car terminal's size, place and conditions. However, efficient car terminal logistics depend on highly organized workflows, technology-driven tracking systems, and well-trained personnel. The ultimate goal is to ensure that vehicles are handled with care, delivered in perfect condition, and reach their destination on time.
How is vehicle identification possible?
Proper vehicle identification is essential in logistics for tracking, security, and operational efficiency. Various methods are used to achieve accurate vehicle identification.
One of the most common approaches is visual identification. License plates serve as the primary method, using standardized alphanumeric codes issued by authorities. Additionally, vehicle colours and unique markings, such as company logos, fleet numbers, and decals, help in quick recognition. QR codes and barcodes can also be placed on vehicles, enabling automated checkpoint identification.
Electronic and automated systems play a significant role in vehicle identification. RFID (Radio-Frequency Identification) tags, affixed to vehicles, can be scanned at entry and exit points, streamlining logistics operations. GPS tracking provides real-time location data and identification, ensuring vehicles are accounted for at all times. ANPR (Automatic Number Plate Recognition) uses cameras and software to read license plates, allowing for efficient monitoring and tracking.
Onboard telematics and IoT integration provide another layer of identification. OBD-II and ELD devices collect and transmit vehicle data, including unique IDs. Bluetooth and NFC tags facilitate short-range identification, particularly useful in fleet management. Cellular connectivity also plays a role, as vehicles can be identified based on SIM-based network connections.
Biometric and access control methods enhance security by ensuring only authorized drivers operate specific vehicles. Driver authentication systems verify identities before allowing access, including biometric scans, PIN codes, and smart cards. Key fobs and digital keys provide an additional layer of controlled entry, ensuring that only designated personnel can use a vehicle.
Paper-based and manual identification methods remain relevant in certain logistics operations. Whether physical or digital, trip manifests and logbooks record important vehicle details and trip histories. Handwritten fleet numbers are still used in smaller-scale logistics environments where automated systems are not in place.
Blockchain and digital identity solutions are emerging as advanced identification methods in logistics. Digital certificates and secure IDs, backed by blockchain technology, ensure vehicle authenticity and prevent fraud. Vehicle fingerprinting, which uses sensors and digital signatures, allows for precise identification based on mechanical and operational characteristics.
By combining multiple identification methods, logistics operations can achieve greater accuracy, security, and efficiency. Each method has its advantages, depending on the scale and requirements of the logistics process.
The Vehicle Identification Number
The VIN (Vehicle Identification Number) is a unique alphanumeric code assigned to every motor vehicle, acting as its fingerprint. It is a standardized method of identifying vehicles globally and is used extensively in logistics for tracking, compliance, and vehicle history verification.
Each VIN is 17 characters long, consists of both letters and numbers, and follows international standards such as ISO 3779 and ISO 3780. The uniqueness of a VIN ensures that no two vehicles share the same identifier, making it a crucial element in vehicle logistics.
The structure of a VIN looks like:
- World Manufacturer Identifier (WMI) (1-3 characters): Identifies the vehicle's manufacturer and country of origin.
- Vehicle Descriptor Section (VDS) (4-9 characters): Provides details about the vehicle model, body style, engine type, etc.
- Vehicle Identifier Section (VIS) (10-17 characters): Includes the production year, manufacturing plant, and a unique serial number.
The World Manufacturer Identifier (WMI) is a unique code assigned to vehicle manufacturers worldwide, forming the first three characters of a Vehicle Identification Number (VIN). This code helps identify the country of origin and the specific manufacturer of a vehicle.
Structure of the WMI
The WMI consists of three characters:
- First Character: Denotes the region or country where the manufacturer is located.
- Second Character: Combined with the first character, it specifies the country more precisely.
- Third Character: Identifies the specific manufacturer or the vehicle type.
For instance, in the WMI "1HG":
- 1: Indicates the United States.
- H: Specifies Honda.
- G: Denotes a particular division or type of vehicle.
Regional and Country Codes
The first character of the WMI indicates the region:
- Africa: A–H
- Asia: J–R
- Europe: S–Z
- North America: 1–5
- Oceania: 6–7
- South America: 8–9
For example, WMIs starting with "J" are assigned to Japan, while those beginning with "W" are designated to Germany.
Examples of WMIs
Here are some examples of WMIs and their corresponding manufacturers:
- 1FA: Ford Motor Company (USA)
- 2HG: Honda Canada
- 3VW: Volkswagen Mexico
- JHM: Honda Motor Co. Ltd. (Japan)
- WDB: Mercedes-Benz (Germany)
For a more comprehensive list of WMIs, you can refer to resources like the Vehicle Identification Numbers (2), which provides an extensive compilation of WMIs and their associated manufacturers.
Structure of the VDS (Characters 4–9)
The six-character VDS is manufacturer-specific, meaning different brands may structure it differently. However, it generally includes the following information:
- 4th Character: Vehicle Series / Model, e.g. "F" for Ford F-Series, "C" for Chevrolet Camaro
- 5th Character: Body Type / Trim Level, e.g. "D" for 2-door coupe, "S" for sedan, "T" for truck
- 6th Character: Engine Type, e.g. "8" for V8 engine, "E" for electric, "D" for diesel
- 7th Character: Restraint System / Safety Features, e.g. "A" for airbags, "X" for advanced safety systems
- 8th Character: Transmission Type / Drivetrain, e.g. "M" for manual, "A" for automatic, "4" for 4WD
- 9th Character: Check Digit (Ensures VIN validity), e.g. numeric value (0–9) or "X"
Example VDS Codes
- FJ8AX9: F = Ford Series, J = Jeep, 8 = V8 Engine, A = Airbags, X = AWD, 9 = Check Digit is a Ford F-150 Truck
- TS4D78: T = Toyota, S = Sedan, 4 = 4-cylinder engine, D = Diesel, 7 = Automatic, 8 = Check Digit is a Toyota Camry
- WBA3A3: W = BMW, B = Body Type (Sedan), A = Engine Type (Petrol), 3 = 3-Series, A = Airbags, 3 = Check Digit is a BMW 3-Series
Structure of the VIS (Characters 10–17):
- 10th Character: Model Year, e.g. "R" for 2024, "N" for 2022
- 11th Character: Manufacturing Plant, e.g. "A" for Detroit, "B" for Mexico
- 12th-17th Characters: Production Serial Number (Unique to the vehicle), e.g. "123456"
Scanning identifiers to make the process more efficient
In logistics, the VIN plays a vital role in vehicle tracking and inventory management, allowing fleet operators to monitor vehicles throughout their lifecycle. It also ensures regulatory compliance by verifying adherence to transportation laws, emissions regulations, and safety standards. Additionally, the VIN is used for maintenance and service history tracking, enabling easy access to service records and maintenance schedules. It is equally important for ownership and insurance verification, playing a key role in legal documentation, insurance claims, and vehicle resale. Moreover, the VIN is a powerful tool in anti-theft and fraud prevention, helping law enforcement and regulatory agencies identify stolen or tampered vehicles.
With the rise of digital integration, VINs can be scanned and stored electronically in logistics management systems, improving efficiency and accuracy. Online databases allow for VIN decoding, retrieving important details about vehicle specifications and history. Emerging technologies like blockchain and IoT are increasingly being used to link VINs with secure vehicle identity records, enhancing security and transparency in the automotive supply chain.
Ideally, car logistics companies have a flexible solution available to identify vehicles quickly and reliably. Such a solution should be able to identify visually by all means that are available. Sometimes, it is the car plate, but very often it is a printed sheet of paper behind the window with a barcode or QR code. Optimally, the VIN is directly scanned and used as it is a unique identifier.
FAQ Vehicle Identification
Why is vehicle identification important in car logistics?
Vehicle identification is crucial in car logistics as it ensures accurate tracking, security, and efficient processing within a terminal and a vehicle processing center. Identifying each vehicle correctly allows logistics operators to monitor its movement from reception to delivery. This process involves scanning identifiers such as license plates, QR codes, and barcodes, as well as using RFID and GPS tracking for real-time monitoring. The Vehicle Identification Number (VIN) is particularly significant because it is a unique identifier assigned to each vehicle, ensuring that it reaches its correct destination and matches the shipping documentation. Effective identification reduces errors, prevents fraud, and enhances overall logistics efficiency.
What is a VIN, and how is it structured?
The Vehicle Identification Number (VIN) is a 17-character alphanumeric code assigned to every motor vehicle, serving as its unique fingerprint. It follows international standards such as ISO 3779 and ISO 3780, ensuring global consistency. The VIN is divided into three main sections: The World Manufacturer Identifier (WMI), which occupies the first three characters and identifies the manufacturer and country of origin; the Vehicle Descriptor Section (VDS), which spans characters four to nine and provides details about the vehicle model, body style, engine type, and other key specifications; and the Vehicle Identifier Section (VIS), covering characters ten to seventeen, which includes the production year, manufacturing plant, and a unique serial number. The VIN plays a vital role in vehicle tracking, compliance, and verification throughout the logistics process.
How does VIN scanning improve efficiency in car logistics?
VIN scanning enhances efficiency in car logistics by automating vehicle identification, reducing manual entry errors, and improving tracking accuracy. When vehicles arrive at a terminal, scanning the VIN ensures that each unit is correctly registered in the logistics management system. This process facilitates seamless movement through quality control, storage, and final dispatch. Modern logistics solutions use barcode and QR code scanners, optical character recognition (OCR) for license plates, and RFID systems to streamline identification. Additionally, digital integration enables real-time VIN decoding, allowing logistics operators to retrieve vehicle specifications and track their history. Emerging technologies like blockchain and IoT further enhance VIN-based security, ensuring transparency and traceability across the supply chain.
Takeaway
Vehicle identification is critical to efficient car logistics, ensuring accurate tracking, compliance, and security throughout the supply chain. The VIN serves as a unique fingerprint for every vehicle, facilitating seamless documentation, quality checks, and dispatch. Advanced identification methods, including barcode scanning, RFID, and GPS tracking, enhance efficiency and minimize errors. Digital integration further optimizes processes through real-time data management. Modern solutions like Asset Agent Lite from Identec Solutions provide automated tracking, allowing ports and terminals to streamline operations, improve vehicle visibility, and enhance workflow automation, ensuring smooth and error-free logistics management in automotive supply chains.
Delve deeper into one of our core topics: Car logistics
Glossary
ISO 3780:2009 specifies the structure of the World Manufacturer Identifier (WMI), a three-character code forming the initial section of a Vehicle Identification Number (VIN). This standard ensures global consistency in identifying vehicle manufacturers across various types, including motor vehicles, towed vehicles, motorcycles, and mopeds. The WMI facilitates unique identification of manufacturers, contributing to standardized vehicle identification worldwide. (3)
Sources:
(1) https://www.ft.com/content/b83fd704-b6e8-4576-a908-f832acad4d8f
(2) https://en.wikibooks.org/wiki/Vehicle_Identification_Numbers_%28VIN_codes%29/World_Manufacturer_Identifier_%28WMI%29
(3) https://www.iso.org/standard/45844.html
