Containerization is an inter-modal system of transporting the general cargo or product in lots which are too small for the traditional bulk transport system, using ISO standard containers. The goods can be easily moved from one location to another in these containers which can be loaded intact onto the container ships, trucks, railroad cars and planes.

The concept of containerization is considered as the key innovation in the field of logistics which has revolutionized freight handling in the twentieth century.

Benefits of Containerization

Goods in lots which are too small for the traditional bulk transport can be moved using containers.

Containerization is best option for high-value and delicate cargo as it provides safety from human and natural factors.

As containers are moved intact, substantial amount of time and labor cost is saved which would otherwise have incurred in loading and unloading goods.

It prevents poor handling of goods that results from bulk transport systems.

Containers can act as mode of storage anywhere along the transport route.

Container ships provide regular service to overseas ports, thus it minimizes the waiting time.

Containerization reduces the transit time which not only offers a means of marketing for the producer that bulk systems cannot provide, but also helps to reduce the inventory costs and increases reliability.

Following part explains the containerization in past, present future:

The carrying of containers through ships started in 1951 between Alaska and Seattle. The first purpose built container ship the Clifford J. Rodgers was built in Montreal in 1955 which was owned by the White Pass & Yukon Route. In its maiden trip it carried 600 containers between Skagway, Alaska and North Vancouver, British Columbia. These containers could be moved by rail, truck and ships. This way gradually, the whole inter- modal system started operating.

Malcom McLean, the US trucking industry player innovated the idea of using large containers, Error! Hyperlink reference not valid.transferable on an inter-modal basis. With the abolition of Interstate Commerce Commission's regulatory, deregulation of maritime rates, trucking and railway it became possible to develop fully integrated system.

Present

Today containerization has become the integral part of logistics. It has revolutionized the cargo shipping. Today, nearly 90% of non bulk cargo moves by containers put on transport ships. One fourth of world’s total containers start from China.

With the use of ISO standard containers, the size and shapes of commercial vehicles carrying containers are also getting standardized.

Today, improved cargo security is seen as an added benefit of containerization. The cargo is not visible and hence less likely to be stolen and also doors of the containers are sealed so that its safety can be assured.

Worldwide standardization of sizes of containers has lessened the problems of incompatibility and gauge. Today most of the trains in the world operate on 4 feet 8½ inch gauge track but many countries like Russia, Australia, Spain and Finland while countries in Africa and South America use narrower gauges.

Some of the largest global players containerizing containers today are Bowen Exports, Theiler & Sons Goods, LLC and Patrick Global Shipping.

Types of containers available to meet different needs:

Open top bulk containers

Open side containers

General purpose dry vans

Platform containers

High cube pallet wide containers

Containers with temperature controlling facility

Ventilated containers

Tank containers

Flush folding flat-rack containers

Future

Containerization reduces time in transit, the inventory costs and increases reliability. Such benefits are forcing the industry to make it more favorable in terms of cost, flexibility and speed. As the Internet and other new communication technologies are developing, it is expected to bring more innovations which will further simplify the tasks of logistics.

Many companies are designing the freighters capable of 14000 TEU.

Container traffic from Asia is expected to grow more rapidly in near future. The containerization in terms of expansion is expected to be far rapid in China. The Asia's share of containerized exports to world’s total exports is expected to reach nearly 64 % in 2015.

Past

The effort to ship cargo in container initiated in the beginning of 19th century. These containers could be shifted from railroads to ships or trucks. The containers used at that time were much smaller than what we see today.

In the mid 1920s Milwaukee Railway and Chicago North Shore started using shippers' vehicles and motor carrier vehicles on flatcars between the route of Milwaukee and Chicago. Later, Seatrain Lines carried railroad boxcars on ships to move goods between Cuba and New York. Also, the Chicago Great Western Railway and the New Haven railroad began transporting highway freight trailers on flatcars. In the early 1950s, these flatcars got more equipped with new decks.

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