Explain Containerization

Explain Containerization.

Ans.    Containerization revolutionized cargo today since approximately 90% of cargo moves by containers stacked on transport ships. Over 200 million containers per year are now moved between those ports. The widespread use of ISO standard containers influenced modifications in other freight moving standards, gradually forcing removable truck bodies or swap bodies into the same sizes and shapes and changing completely the worldwide use of freight pallet. A pallet is a flat transport structure made of wood or plastic (and in a few cases metal) which is meant to support a variety of goods in a stable fashion while being lifted by any mobile forklift device. The goods are placed on top of the pallet which fit into ISO containers or into commercial vehicles.

Universal advantages of container as a packaging unit

1.      Reduction in loss, pilferage and damage of goods since the goods are inside the container.

2.      Reduction in paper work

3.      Expedites door to door pick up and delivery

4.      Eliminates multiple handling of contents as this is shipped as a single unit into the ships deck.

5.      Consolidation of movement of small lots.

6.      Standardization of handling methods and equipment since the container are of standard size.

7.      Reduction in packaging cost as container itself acts like a package

8.      Optimizes the services of various modes. Container can easily be transshipped.

Infrastructure of Containerization :

1.      Deep water ports

2.      Mechanized handling equipment-Equipment used to load and unload are container cranes which are very expensive

3.      Inland container depots Container ships- are built for optimum utilization of space, easy stowing in the holds, to facilitate fast & easy loading and unloading of container

Disadvantage of Containerization:

1.      Need for special cranes and equipments.

2.      Dimensions are restricted.

3.      Not useable for some trades like live stock.

4.      Container owning company has to ensure full utilization-shipping back empty containers will be very expensive.

5.      There can be road restrictions particularly in case of 40′ containers.

6.      A huge investment is required for the container.