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With globalization, means of transport have improved dramatically, and the need for efficient distribution systems has increased recently. Containerization is an intermodal freight method of transport that uses intermodal containers (Ducruet & Itoh, 2021). This process is also known as container stuffing which involves the unitization of exports in cargo. The purpose of this enactment is to allow developers of this system to create and deploy applications more securely and faster. In the initial methods, the code was developed by a particular computing environment, but when transferred to a new location, many errors and bugs were often found; hence, the development of this implementation. Users of this structure run in an isolated space, and they share the same operating system. The global supply chain has been affected by this arrangement since commodities can be easily accessed from anywhere in the world without too much physical human involvement. This paper explains how this scheme has provided efficiency since the resources are available and overhead is minimized.
Containerization is advantageous in several ways, which involve standardization of transport. It provides a standard way of moving goods from one place to another. The products can be handled from anywhere in the world through specialized equipment, modes that include trucks, ships, wagons, barges, and terminals (Garg & Kashav, 2019). Each container carries a unique number that has special details giving the managing department the easy task of tracking the exact location of the shipment.
A wide variety of commodities, including wheat, coal, manufactured products, refrigerated goods, and cars, can be transported from one continent to another. This gives the trading nation flexibility hence an easy and affordable means of transacting. These containers are designed differently to accommodate the different types of products. Some are adapted for liquids, dry cargo, and others with freezers. They can also be recycled for other purposes instead of disposed of once they are discarded.
The costs of transporting goods have been made cheap due to the standardization process. A container carrying the same amount of break-bulk freight is 20 times cheaper than conventional means. The containers enable economies of scale at terminals, which is impossible through break-bulk handling standards. They can accommodate a lot of weight compared to other means, thus making it a convenient way of moving products (Styliadis & Chlomoudis, 2021). Globalized production and consumption of products have made the world shrink into a global village.
Containerization provides warehousing facilities since the container itself is a warehouse. Goods packed in a container are very safe; therefore, it protects the cargo it contains. It is; hence, a simple and less expensive way of packaging cargo, especially goods for consumption. Additionally, it is easy to stack them on ships, trains, and also on the ground in yards. It makes it possible for the container yards to increase their stacking density if they have the proper equipment.
There is assurance of security and safety since they have serial numbers that seal the containers. The contents of the container are only known by the seller, the buyer, and the customs. The carriers do not have the opening details and therefore cannot open the goods. This reduces the risk of theft or spoilage hence a reliable means of transportation (Pourakbar & Zuidwijk, 2018). The International Maritime Organization (IMO) has worked with the International Labor Organization (ILO) to develop a global code of practice for handling cargo transportation by land and sea.
Although containerization has had positive impacts on global chain supply, some drawbacks have made the process difficult. These include site constraints whereby the containers occupy a large space in terminals where they are stored as they wait for further transfer to their specific locations where the buyers are. Many of these terminals have been located in urban areas hence having limited storage areas. Some containers require good space; for instance, the Panamax containership needs a 13 meters draft. In addition, the stacking process is complex for the arrangement of the containers during transportation involving double-stack trains and containers on the ground. The packing requires frequent stacking, which can be costly and take a lot of time for the people operating at the terminals. The operational management might become more technical if the load unit or yard is large. Some regulations are put in place to avoid careless accidents in the terminals, which should be established by the safety supervisor (Li et al., 2021). For instance, the height for stacked containers should be reasonable, and the operators always exercise caution. The maximum height should also consider the lift equipment used to stack the containers.
There is capital intensiveness due to the handling of equipment, including the giant cranes, inland roads, warehousing facilities, rail access, and infrastructures required for the process to be successful and effective (Kashav et al., 2022). This might push the organization to deal with container resources from corporates and financial institutions. Technological development is pushing the system towards automation which, on the other hand, is increasing the capital intensiveness of the intermodal terminal operations.
Trade imbalances can lead to repositioning containers that might be moved empty. Whether the container is full or empty, it takes the same amount of space hence the issue of repositioning. The production and consumption level globally requires the repositioning of containerized assets that are transported over long distances. It is easy for illicit trade of goods, weapons, and drugs to take place as well as illegal immigration, although it is rare (Kashav et al., 2022). High-value goods can be lost on the way or stolen if a load unit is forcefully opened or carried away. Human forces cannot prevent some containers at sea due to bad weather.
However, the introduction of global shipping containers has made international trade possible and easy. The relationship between economic development and technological change, which is containerization, shipping line operations, and ports, has impacted the former ways of transactions. Before the adoption and the invention of the standardized shipping container, goods were damaged while in transit because boats were the main means of transport, and merchandise was loaded and offloaded by hand. The process was unpredictable, expensive, and time-consuming. The improved technology has changed how things are handled, making it safe and reliable (Balci & Surucu-Balci, 2021). The containers can easily be stacked on ships, thus making it easy for crane operators at the port terminals to take them off and place them on tail cars or truck frames. The traders of goods can count the value of the goods since the process is relatively predictable, quicker, inexpensive, and safe from theft.
There is no need to site manufacturing plants near the consumers since shipping has become cheaper and easier. Factories can be anywhere in the world and still serve people globally. Technology has also facilitated customers to know where plants are located and order for delivery. The internet has saved a lot of human physical involvement since they buy online, and responsible shippers that involve few people simplify the process (Pavlić Skender et al., 2019). The products are sold at an affordable price because many manufacturers have relocated to areas where cheap labor is available. They have also considered places where human rights laws are non-existent or lax in achieving their goals and objectives.
The products have become cheaper, and people around the world can afford the items and are within their economic reach. The rising demand has supercharged, thus making the manufacturing industries more reliant on shipping. The ease of transportation and predictability has resulted in just-in-time delivery (Ducruet & Itoh, 2021). The companies do not need to maintain huge warehouses since the products can be distributed and shipped to their final destination immediately after they are processed. For instance, the automobile industries used to have large spaces for building their cars to ensure that the assembly lines could be fed, but nowadays, the procedure is different.
In conclusion, the impact of containerization on the global supply chain has eased international trade. Even though there are factors that influence the shipping of products from one point due to extreme weather patterns that are unforeseen. But technology has facilitated the economic growth of many countries worldwide. Goods are transported easily and faster with minimal risks of loss, theft, or spoilage. The advent of shipping containers has made ships carrying cargo larger and larger to accommodate more containers that are being moved from place to place in exchange for exports and imports. The process is reliable, useful, and essential in the transportation and distribution of industrial goods.
References
Balci, G., & Surucu-Balci, E. (2021). Blockchain adoption in the maritime supply chain: Examining barriers and salient stakeholders in containerized international trade.Transportation Research Part E: Logistics and Transportation Review, 156, 102539.
Ducruet, C., & Itoh, H. (2021). Introduction to global container shipping market. In Global Logistics Network Modelling and Policy (pp. 3-30). Elsevier.
Garg, C. P., & Kashav, V. (2019). Evaluating value creating factors in greening the transportation of Global Maritime Supply Chains (GMSCs) of containerized freight.Transportation Research Part D: Transport and Environment, 73, 162-186.
Kashav, V., Garg, C. P., Kumar, R., & Sharma, A. (2022). Management and analysis of barriers in the maritime supply chains (MSCs) of containerized freight under fuzzy environment.Research in Transportation Business & Management, 100793.
Li, W., Pundt, R., & Miller-Hooks, E. (2021). An updatable and comprehensive global cargo maritime network and strategic seaborne cargo routing model for global containerized and bulk vessel flow estimation. Maritime Transport Research, 2, 100038.
Pavlić Skender, H., Adelajda Zaninović, P., & Srića, E. (2019). Review of modern transportation technologies with focus on containerization. Pomorski zbornik, 57(1), 111-121. Web.
Pourakbar, M., & Zuidwijk, R. A. (2018). The role of customs in securing containerized global supply chains. European Journal of Operational Research, 271(1), 331-340.
Styliadis, T., & Chlomoudis, C. (2021). Analyzing the evolution of concentration within containerized transport chains through a circuitist approach: The role of innovations in accelerating the circuits of liner and container terminal operators.The Asian Journal of Shipping and Logistics, 37(4), 321-328.
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