Researching of Containerization

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Table of Contents

Introduction
Types of Containers Used
Advantages of Containerization
Challenges Facing Containerization
Conclusion
References

Introduction

Containerization is a method in which freights are transported by placing them inside containers. This method of moving cargo was developed in the 20th century. The containers are designed to have a standard shape and size to be transported via rail, sea, or road. The method was not widely used, but around the 1960s, containerization became a significant part of ocean transportation. This was enhanced by the creation of new cargo ships that were able to carry many containers. It was introduced by Malcolm McLean, who was an entrepreneur. During this period, containers were mainly used on roads, but Malcolm saw the opportunity of using the containers in water transportation networks. The beginning of the containerization era was marked by the movement of the first container ship from New York to Houston in 1956. Before the introduction of containerization, cargo ships spent a significant amount of time in the ports being loaded and unloaded, which was more than the time they spent on the sea. Currently, containerization forms the basis of the international transport system. The research focuses on the various types of containers currently available and the benefits and challenges of containerization.

Types of Containers Used

Containers are categorized into five main types: standard containers, tank containers, open-top containers, flat containers, and refrigerated containers. First, the standard containers are designed to accommodate various types of cargo and are usually labeled as dry containers (Rodrigue, 2020). It is labelled dry containers since its main purpose is to carry goods classified into either less common or most common (Maslarić et al., 2019). Second, tank containers carry liquid products, from chemicals to foodstuffs. The size of the tank containers is the same as the standard containers, which are 20 feet long surrounded by a metal structure to facilitate the size.

Third, the open-top containers have an open roof at the top and are used for carrying large cargo which cannot fit in the standard containers. Most of the goods carried by this container are machinery and other large vehicles. It is loaded from above and has a tarpaulin to cover its contents (Rodrigue, 2020). Fourth, flat containers are used for carrying heavy and oversized goods; they are open at the top and sides. They are open during transportation making it to be exposed to environmental conditions (Coşar & Demir, 2018). Lastly, refrigerated containers are used for goods that require maintenance at temperatures below freezing. The containers are equipped with refrigeration equipment used to maintain the required temperature.

Advantages of Containerization

The containerization method of distribution has various advantages, such as standard transport product, the flexibility of use, economies of scale, operational velocity, and warehousing and security. First, on the standard transport product, the container can be manipulated in any part of the world since its dimension is as per the ISO standards (Cosar & Demir, 2017). The infrastructure for transferring the container enables it to be transported easily by using vehicles. The standardization enables the consumer to easily access the distribution networks, lowering capital investments on terminals and other modes. The founder of containerization made it easy for world organizations to access the containers by not having a patent. All the companies that compete in the area have access to the same standards (Rodrigue, 2020). Despite leading to the creation of specialized ships to handle containers, most of the existing modes of transportation can be modified to handle containers (Cosar & Demir, 2017). This is among the factors that have promoted the development of containerization to be part of the global trade chain.

Secondly, the containers are flexible in terms of use as it is designed to carry multiple products, such as chemicals and raw materials. Furthermore, perishable products are also transported by containers because of specialized refrigerated containers. Currently, most perishable products use containerization, and it constitutes approximately 70% of the goods transported via cargo (Cosar & Demir, 2017). No longer functional, containers create retail structures, offices, housing, mobile clinics, and storage zones. The containers usually have a unique identification code that enables the transportation management to identify its destination as well the owner of the goods (Rodrigue, 2020). Technology has significantly impacted containerization by creating computer programs that provide easy container management. This has reduced time-wasting significantly hence increasing its usage globally.

Third, on the economies of scale, containerization significantly lowers transportation costs. Previously, it used to be costly to transport goods by ships because of other associated costs, such as loading and unloading. Furthermore, handling goods with cargo ships was necessary, but with containerization, the goods were within the containers (Cosar & Demir, 2017). Additionally, numerous companies have opted to engage in the logistic business, leading to increased container ships.

Fourth, the operation velocity has increased significantly with the increased use of the ports and modal assets. Modern container ships are designed to carry numerous containers, which could take more than a month when carried by the conventional cargo ship (Rodrigue, 2020). During the loading and unloading, mega cranes have been designed to make more than 30 movements in an hour. This has lowered the turnaround time of the ships at the ports, thereby increasing their convenience. A ship carrying 1000 twenty-foot equivalent units (TEUs) can now be loaded or unloaded on an average of 10 to 20 hours (Cosar & Demir, 2017). The usual cargo ship carrying a similar quantity of goods takes approximately 70 to 100 hours. Larger ships are provided with several cranes, which increases their efficiency during transshipment (Rodrigue, 2020). Large ships ranging from 5,000 TEU and 20,000 TEU are available, and loading and unloading depend on the number of cranes. This portrays the effectiveness of containerization as they depend on the available equipment. Container ships are faster than regular freight ships, with a speed of 19 knots compared to 14 knots of freight ships.

Lastly, the container is a warehouse that safeguards the goods inside. It reduces the risk of goods getting damaged since it is resistant to adverse weather conditions as well as shocks. The shape of the containers makes it easy for the packaging of goods to occupy less volume (Rodrigue, 2020). This is useful in reducing insurance costs as the goods are less prone to damage. Moreover, the containers fit together, enabling them to get stacked together on the ground, ship, or train. During transportation, three to four containers are usually superimposed (Brooks et al., 2021). The contents within the containers are anonymous to outsiders as the owner of the goods are the ones allowed to view them once the container has been delivered. The cargo ships carrying goods were prone to goods theft at the harbor, and this has been reduced by containerization as its structure secures the goods inside.

Challenges Facing Containerization

Despite containerization having numerous benefits, there are various challenges associated with this method of distribution which include site constraints, infrastructure costs, theft and losses, empty, travel, and illicit trade. First, site constraint is because of the space requirement by containerization. Loading and unloading a container ship with 5,000 TEU requires a minimum of 12 hectares to create space for stacking the containers (Song, 2021). The conventional ports present usually are not suitable because they do not have the required infrastructure and the location necessary for the transshipment. Container vessels require a minimum of 14 m drafts, while other large containers require 15 m (Rodrigue, 2020). This challenge is also extended to the train terminal hence the need for relocation outside metropolitan areas. However, large container handling infrastructures are in other locations while the suitable area is the city’s or town’s periphery.

Second, containerization requires enormous infrastructure investment. The port system, road, and railway networks have to be in good condition to manage the movement of containers from the source to the consumer (Rodrigue, 2020). It requires significant input on machinery such as modern container cranes that are expensive to purchase. This has made it challenging for developing countries to purchase such machinery. It hinders containerization distribution as containers are arranged depending on the time of unloading, where others have to be unloaded first. Third, despite containerization curbing thefts, the anonymity of the containers has also been an issue. The world shipping council report shows that more than 500 containers are lost annually under the usual port operations.

Fourth, maritime container shipping and logistics operate daily in line with the shipping networks. The space utilized by the containers is the same even if they are empty (Rodrigue, 2020). This effect does not generate income as resources have been set up to handle the containers. More than 2.5 million TEUs are empty and stored in depots or yards (Song, 2021). This leads to additional allocation of funds to transport the containers from one location to another. Lastly, illicit trade use containerization to transport goods such as weapons, drugs, human trade, and counterfeit goods (Pérez et al., 2017). Most containers are not checked at the port, leaving room for illicit business activities. Terrorism has expanded because of containerization as they are used to hide weapons of mass destruction.

Conclusion

Containerization has formed a significant part of the transportation system since its introduction in the 20th century. There are various types of containers that are currently available for use. First, standard containers are used to carry dry goods and are 20 feet long. Second, tank containers carry liquid such as chemicals and foodstuffs. Third, open-top containers are used for carrying large size cargo that cannot fit in the standard container. Fourth, flat containers are open on top and sides and are used to carry machinery. Lastly, the refrigerated container is designed for perishable goods below freezing. Containerization has various advantages, which include standard transport products, flexibility of use, economies of scale, operational velocity, and warehousing and security. However, some challenges are associated with it, such as site constraints, infrastructure costs, theft and losses, empty, travel, and illicit trade.

References

Brooks, L., Gendron-Carrier, N., & Rua, G. (2021). The local impact of containerization. Journal of Urban Economics, 126, 1-12. Web.

Cosar, K., & Demir, B. (2017). Shipping inside the Box: Containerization and Trade (pp. 1-42). Web.

Coşar, K., & Demir, B. (2018). Shipping inside the box: Containerization and trade.Journal of International Economics, 114, 331-345. Web.

Maslarić, M., Nikoličić, S., Bojić, S., Debelić, B., & Vilke, S. (2019). Logistics characteristics of goods and containerization level. In 4th Logistic International Conferance Belgarade. Web.

Pérez, J., Lumbreras, J., de la Paz, D., & Rodríguez, E. (2017). Methodology to evaluate the environmental impact of urban solid waste containerization system: A case study.Journal of Cleaner Production, 150, 197-213. Web.

Rodrigue, J. (2020). The geography of transport systems (5th ed.). Routledge, Taylor & Francis Group.

Song, D. (2021). A literature review, container shipping supply chain: Planning problems and research opportunities.Logistics, 5(2), 1-13. Web.

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