Preview

Containerization: Cargo and Traditional Bulk Transport

Good Essays
Open Document
Open Document
602 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Containerization: Cargo and Traditional Bulk Transport
1. What is containerization and how did the innovative use of containers transform the distribution of goods?

The traditional way of transporting goods from one place to another was highly labor intensive and goods were in individual crates of different sizes and shapes and they had to be manually lifted and stowed in the holds of ships. As the time passed by, the concept of containerization emerged. Basically, 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 that can be loaded and sealed intact onto container ships, railroad cars, planes, and trucks. The concept of containerization is considered as the key innovation in the field of logistics which has revolutionized freight handling in the twentieth century. 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 technologies and advancements are developing, it is expected to bring more innovations which will further simplify the tasks of logistics.

The innovative use of containerization has transformed the distribution of goods in following ways: * Goods in lots which are too small for the traditional bulk transport can be moved using containers * It 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 * It reduces the transit time

You May Also Find These Documents Helpful

  • Powerful Essays

    geo 225 notes

    • 2161 Words
    • 9 Pages

    Annual global trade estimated at 150 million TEUs “Invented” in 1956 The largest container ships 1995-1998 4,000 to 8000 TEUs 2003- 2006 8000 to 12,000 TEUs 2013 18,000 TEUs Emma Maersk Built in Denmark Capacity of 11000 TEU “Post- Panama” vessel Crew of 13 Dubbed “SS Santa” in December 2006 for hauling goods from China to US Voyage of the “ SS Santa” Left the port of Shenzhen china Export 30000 containers per day Global nature of trade Scale of the global economy An uneven ‘global’ economy 26% of all containers start 01-23-14 Thur. World’s busiest container ports?…

    • 2161 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    which also just take up space. Transporting only when needed and where needed. Inventory control…

    • 1412 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Mgt448 Week 1 Dq's

    • 738 Words
    • 3 Pages

    Transportation technological advancements include commercial airlines and containerization (Hill, 2009). Commercial airlines make it possible for people to travel globally in a shorter amount of time. Containerization has decreased the amount of labor it takes to ship globally. Furthermore, containerization is more efficient and less expensive.…

    • 738 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    To transport some goods, the Papas used a container…

    • 950 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    A major benefit of _____ is that it protects the products and simplifies handling during shipping.…

    • 19490 Words
    • 78 Pages
    Powerful Essays
  • Good Essays

    One of the main ‘flows’ on transport, are goods (food, objects) that will be traded with other countries. The main improvement that has taken place in recent times is the creation of the freight transport, containerization. These containers can be loaded and unloaded, stacked, transported efficiently over long distances, and transferred from one mode of transport to another—container ships, rail and semi-trailer trucks—without being opened. The system, developed after World War II, led to greatly reduced transport costs, and supported a vast increase in international trade. Because of this increase in trade, containerization has help build a more interconnected world. Better relations are built and more trade is available to ship via this improvement in transport.…

    • 610 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    References: 1. 2. 3. The Economist, Profits at Last. Dec. 19, 2002. http://www.economist.com/. Gould, J., Driven to Shop? Role of Transportation in Future Home Shopping. In Transportation Research Record 1617, TRB, National Research Council, Washington, D.C., 1998, pp.149-156. Golob, T. F. and A. C. Regan. Impacts of Information Technology on Personal Travel and Commercial Vehicle Operations: Research Challenges and Opportunities. Transportation Research Part C (9), 2001, pp. 87-121. Lyons, G., Internet: Investigating New Technology’s Evolving Role, Nature and Effects on Transport. Transport Policy 9, 2002, pp. 335-346. Campbell, A.M. and M. Savelsbergh. Decision Support for Direct Grocery Initiatives. University of Iowa, working paper. 2002. Cairns, S., Delivery Alternatives: Successes and Failure of Home Delivery Services for Food Shopping. Transport Policy 3 (4), 1996, pp. 155-176. Nagarajan, A., E. Canessa, W. Mitchell, and C.C.White III. E-Commerce and the Changing Terms of Competition in the Trucking Industry: A Study of Firm Level Responses to Changing Industry Structure. Presented at the Berkeley Roundtable on the International Economy (BRIE), University of California at Berkeley, CA, April 28-29, 2000. Nemoto, T. J. Visser and R. Yoshimoto, Impacts of Information and Communication Technology on Urban Logistics System, Presented at the OECD/ECMT Joint Seminar on ‘The Impact of E-commerce on Transport: Session 4 Transport and Local Distribution’, Paris, June 5-6, 2001. Forrester, US eCommerce Overview: 2003 To 2008, Forrester Research, Cambridge MA, July 2003 http://www.forrester.com…

    • 6794 Words
    • 28 Pages
    Powerful Essays
  • Satisfactory Essays

    Intermodalism is very necessary in that it simplifies the movement of freight by utilizing different modes of transportation. As mentioned by DeWitt and Clinger, manufactured products will not reach the shelves of stores without intermodal freight transportation. For example, through intermodalism, goods carried by ship can be transported by either train, trucks, bardges or delivery vans enabling customers can gain access to such products. Intermodal transportation is needed because of geographically disbursed location of customers needing products. Another reason intermodal transportation is needed is because, of the limitation of each of mode of transportation. A vessel may be appropriate for transporting freight across the ocean, but is…

    • 225 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    The Container Store was first opened on July 1,1978 in a small retail place in Dallas, Texas. The idea behind “The Container Store” was to originate new category of retailing of storage and organization. The Store was selling shoe boxes, sweater boxes of many different sizes and…

    • 721 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Business Fedex

    • 1439 Words
    • 6 Pages

    * After the sorting process, the packages will arrive at the hole that connects direct to the large cargo container. The container are shape in such a way that they will fit into a plane with a maximum efficiency. Before the…

    • 1439 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    EPT is the most obvious involved designing products so that they can be efficiently packed and stored. When transport systems are efficient, they provide economic and social opportunities and benefits that result in positive multipliers effects such as better accessibility to markets, employment and additional investments. When transport systems are deficient in terms of capacity or reliability, they can have an economic cost such as reduced or missed opportunities. Efficient transportation reduces costs, while inefficient transportation increases costs.…

    • 984 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    | * Concerned with receiving and storing externally sourced materials. * Includes receiving, storing, inventory control, transportation scheduling.…

    • 894 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    • Global commerce trade is primarly dependent on trans-ocean shipping; roughly 90% of general cargo is shipped via container Based on the container shipping value chain, there are several segments to expand and integrate the business and enter the market. This would provide benefit of business diversification hence decreasing risks According to the volume of growth of shipping lanes (Exhibit 6), every lane has steadily increased during the last years and is expected to grow further in the future…

    • 975 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    Case Study

    • 562 Words
    • 3 Pages

    May increase the number of people using container to ship from those location, since the transportation fee is cover or lower than the market price.…

    • 562 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Dubai Port Case

    • 1233 Words
    • 5 Pages

    Around 90% of world trade is carried by the international shipping industry. Without shipping the import and export of goods on the scale necessary for the modern world would not be possible. The international shipping industry transported 6.2 billion tones of cargo in 2003, with a fleet of 26,280 deep sea cargo ships. Poor and inefficient port handling services have become one of the main causes of inefficient logistics in shipping industry. Such as poor communication, inaccurate paperwork, or inefficient port operation, upset shipping lines greatly.…

    • 1233 Words
    • 5 Pages
    Powerful Essays