Containerisation

TABLE OF CONTENTS

CONCEPT OF CONTAINERISATION STANDARDS CLASSIFICATION OF : IDENTIFICATION OF CONTAINERS: ADVANTAGES OF CONTAINERISATION : CONCEPTS OF FCL & LCL: LEASING OF CONTAINERS: CONTAINER MANAGEMENT OF CONTAINER SERVICE BY SHIPOWNERS/SHIP OPERATORS: CONTAINER TERMINAL AND EQUIPMENT: CONTAINERISATION IN INDIA: RECENT POSITION : PRESENT DIFFICULTIES AT ICD's : PACKAGING: CONTAINER CORPORATION OF INDIA : FUTURE NEEDS: ISSUES OTHER USES OF CONTAINERS Bibliography

Basic concept of Containerisation

Containerisation can be defined as a system of intermodal [The term intermodal means that the container can be loaded on different means (or modes) of - for example, , aircraft, , trucks, etc. - with the minium of effort and without have to unpack and repack the container.] freight and transport using standard ISO containers (known as Shipping Containers or Isotainers) that can be loaded and sealed intact onto container ships, railroad cars, planes and trucks.

The idea of using standard containers that could be easily and quickly packed and loaded onto like 'lego blocks' onto ships, aircraft, trucks and trains, resulted in a huge reduction in handling costs, contribute significantly to lower freight charges, increased cargo security and, in turn, boosted trade flows.

Origins

Containerisation has its origins in early coal mining regions in England and Germany from the late 1700s on. The global standardization of containers and container handling equipment was an important innovation in 20th century logistics.

By the 1830s, railroads on several continents were carrying containers that could be transferred to other modes of transport. Originally used for moving coal on and off barges, 'loose ' were used to containerize coal from the late 1780s, at places like the Bridgewater Canal. By the 1840s, iron boxes were in use as well as wooden ones. The early 1900s saw the adoption of closed container boxes designed for movement between road and rail.

In the United Kingdom, several railway companies were using similar containers by the beginning of the 20th century and in the 1920s the Railway Clearing House standardised the RCH container. Five- or ten-foot-long, wooden and non-stackable, these early standard containers were a great success but the standard remained UK- specific.From 1926 to 1947, in the US, the Chicago North Shore and Milwaukee Railway carried motor carrier vehicles and shippers' vehicles loaded on between Milwaukee, Wisconsin and Chicago, Illinois. Beginning in 1929, carried railroad on its sea vessels to transport goods between New York and . In the mid-1930s, the Chicago Great Western Railway and then the New Haven Railroad began "piggy-back" service (transporting highway freight trailers on flatcars) limited to their own railroads. By 1953, the CB&Q, the Chicago and Eastern Illinois and the Southern Pacific railroads had joined the innovation. Most cars were surplus flatcars equipped with new decks. By 1955, an additional 25 railroads had begun some form of piggy-back trailer service.

In 1955, businessman (and former trucking company owner) Malcom McLean worked with engineer Keith Tantlinger to develop the modern . The challenge was to design a and devise a method of loading and locking them onto ships. The result was a 8 feet (2.4 m) tall by 8 ft (2.4 m) wide in 10 ft (3.0 m) long units constructed from 25 mm (0.98 in) thick corrugated steel. The design incorporated a twist-lock mechanism atop each of the four corners, allowing the container to be easily secured and lifted using cranes. Helping McLean make the successful design, Tantlinger convinced McLean to give the patented designs to the industry; this began international standardization of shipping containers.

Toward the end of World War II, the Army used specialized containers to speed the loading and unloading of transport ships. The army used the term "transporters" to identify the containers, for shipping household goods of officers in the field. A "transporter" was a reusable container, 8.5 feet (2.6 m) long, 6.25 feet (1.91 m) wide, and 6.83 feet (2.08 m) high, made of rigid steel with a carrying capacity of 9,000 pounds. During the Korean War the transporter was evaluated for handling sensitive military equipment, and proving effective, was approved for broader use. Theft of material and damage to wooden , in addition to handling time, by longshoremen at the Port of Busan convinced the army that steel containers were needed. In 1952 the army began using the term CONEX, short for "Container Express". The first major shipment of CONEXes (containing engineering supplies and spare parts) were shipped by rail from the Columbus General Depot in Georgia to the Port of San Francisco, then by ship to Yokohama, Japan, and then to Korea, in late 1952. Shipment times were cut almost in half. By the Vietnam War the majority of supplies and materials were shipped with the CONEX. After the U.S. Department of Defense standardized an 8'×8' cross section container in multiples of 10' lengths for military use, it was rapidly adopted for shipping purposes. These standards were adopted in the United Kingdom for containers and largely displaced wooden containers in the 1950s.The railways of the USSR had their own small containers.

Towards standards

During its first 20 years, many container sizes and corner fittings were used; there were dozens of incompatible container systems in the U.S. alone. Among the biggest operators, the Matson Navigation Company had a fleet of 24-foot (7.3 m) containers while Sea-Land Service, Inc used 35-foot (11 m) containers. The standard sizes and fitting and reinforcement norms that exist now evolved out of a series of compromises among international shipping companies, European railroads, U.S. railroads, and U.S. trucking companies. Four important ISO (International Organization for Standardization) recommendations standardized globally.January 1968: R-668 defined the terminology, dimensions and ratings

y July 1968: R-790 defined the identification markings y January 1970: R-1161 made recommendations about corner fittings y October 1970: R-1897 set out the minimum internal dimensions of general purpose freight containers

In the United States, containerization and other advances in shipping were impeded by the Interstate Commerce Commission, which was created in 1887 to keep railroads from using monopolist pricing and rate discrimination but fell victim to regulatory capture. By the 1960s, ICC approval was required before any shipper could carry different items in the same vehicle, or change rates. The United States' present fully integrated systems became possible only after the ICC's regulatory oversight was cut back (and abolished in 1995), trucking and rail were deregulated in the 1970s and maritime rates were deregulated in 1984.

Double-stack , where containers are stacked two high on railway cars was introduced in 1984 and first user was in the United States.

Today

Today, approximately 90% of non- worldwide moves by containers stacked on transport ships;[ 26% of all container transhipment happens in China. For example in 2009 there were 105,976,701 transhipments in China (both international and coastal), and 21,040,096 happening in Hong Kong (which is listed separately), and only 34,299,572 in the United States. As of 2005, some 18 million total containers make over 200 million trips per year. There are ships that can carry over 14,500 Twenty-foot equivalent units (TEU), for example the Emma Mærsk, 396 m long, launched August 2006. It has even been predicted that, at some point, container ships will be constrained in size only by the depth of the Straits of Malacca²one of the world's busiest shipping lanes²linking the Indian Ocean to the Pacific Ocean. This so-called Malaccamax size constrains a ship to dimensions of 470 m (1,540 ft) in length and 60 m (200 ft) wide. However, few initially foresaw the extent of the influence containerization would bring to the shipping industry. In the 1950s, Harvard University economist Benjamin Chinitz predicted that containerization would benefit New York by allowing it to ship its industrial goods more cheaply to the Southern United States than other areas, but did not anticipate that containerization might make it cheaper to import such goods from abroad. Most economic studies of containerization merely assumed that shipping companies would begin to replace older forms of transportation with containerization, but did not predict that the process of containerization itself would have a more direct influence on the choice of producers and increase the total volume of trade. The widespread use of ISO standard containers has driven modifications in other freight- moving standards, gradually forcing removable truck bodies or swap bodies into standard sizes and shapes (though without the strength needed to be stacked), and changing completely the worldwide use of freight that fit into ISO containers or into commercial vehicles.

Improved cargo security is also an important benefit of containerization. The cargo is not visible to the casual viewer and thus is less likely to be stolen and the doors of the containers are generally sealed so that tampering is more evident. Some containers are outfitted with electronic monitoring devices and can be remotely monitored for changes in air pressure, which happens when the doors are opened. This has reduced the "falling off the truck" syndrome that long plagued the shipping industry.

Use of the same basic sizes of containers across the globe has lessened the problems caused by incompatible rail gauge sizes in different countries. The majority of the rail 1 networks in the world operate on a 1,435 mm (4 ft 8 »2 in) gauge track known as standard gauge but many countries (such as Russia, India, Finland, and Lithuania) use broader gauges while many other countries in Africa and South America use narrower gauges on their networks. The use of container trains in all these countries makes trans-shipment between different gauge trains easier.

Containers have become a popular way to ship private cars and other vehicles overseas using 20 or 40ft containers. Unlike roll-on/roll-off vehicle shipping, personal effects can be loaded into the container with the vehicle, allowing for easy international relocation.

Container standards

ISO standard There are five common standard lengths, 20-ft (6.1 m), 40-ft (12.2 m), 45-ft (13.7 m), 48-ft (14.6 m), and 53-ft (16.2 m). United States domestic standard containers are generally 48 ft (15 m) and 53-ft (rail and truck). Container capacity is often expressed in twenty-foot equivalent units (TEU, or sometimes teu). An equivalent unit is a measure of containerized cargo capacity equal to one standard 20 ft (length) × 8 ft (width) container. As this is an approximate measure, the height of is not considered, for instance the 9 ft 6 in (2.9 m) High cube and the 4-ft 3-in (1.3 m) half height 20 ft (6.1 m) containers are also called one TEU.

The maximum gross mass for a 20 ft (6.1 m) dry cargo container is 24,000 kg, and for a 40-ft (including the 2.87 m (9 ft 6 in) high cube container), it is 30,480 kg. Allowing for the tare mass of the container, the maximum payload mass is therefore reduced to approximately 22,000 kg for 20 ft (6.1 m), and 27,000 kg for 40 ft (12 m) containers.

The original choice of 8 foot height for ISO containers was made in part to suit a large proportion of railway tunnels, though some had to be modified. With the arrival of even taller containers, further enlargement is proving necessary.

Air freight containers

While major airlines use containers that are custom designed for their aircraft and associated ground handling equipment the International Air Transport Association(IATA)has created a set of standard container sizes, the LD-designation sizes are shown below: Width Height Depth Base Max load Max load Designation Shape (in) (in) (in) (in) (lb) (kg) LD-1 92.0 64.0 60.4 61.5 3500 ~1588 Type A LD-2 61.5 64.0 47.0 61.5 2700 ~1225 Type A LD-3 79.0 64.0 60.4 61.5 3500 ~1588 Type A LD-4 96.0 64.0 60.4 n/a 5400 ~2449 Rectangular LD-5 125.0 64.0 60.4 n/a 7000 ~3175 Rectangular LD-6 160.0 64.0 60.4 125.0 7000 ~3175 Type B Rect. or LD-7 125.0 64.0 80.0 n/a 13300 ~6033 Contoured LD-8 125.0 64.0 60.4 96.0 5400 ~2449 Type B Rect. or LD-9 125.0 64.0 80.0 n/a 13300 ~6033 Contoured LD-10 125.0 64.0 60.4 n/a 7000 ~3175 Contoured LD-11 125.0 64.0 60.4 n/a 7000 ~3175 Rectangular LD-29 186.0 64.0 88.0 125.0 13300 ~6033 Type B

LD-1, -2, -3, -4, and -8 are those most widely used, together with the rectangular M3 containers.

Other container system standards

Some other container systems are:

y PODS y Haus-zu-Haus (House to house) (Germany)[citation needed] y RACE (Australia) y SECU (Sweden, Finland, UK) y ARKAS y Japanese railway containers (Japanese) Containers used by Japan Freight Railway Company

TYPES OF CONTAINERS

The exterior dimensions of all containers conforming to ISO standards are 20 feet long x 8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high cube containers.

VENTILATED Ideal for cargo requiring CONTAINER ventilation 20'

BULK CONTAINER For bulk cargoes 20'

TANK CONTAINER For transportation of liquid 20' chemicals and food stuffs

DRY FREIGHT CONTAINER General purpose container 20' and 40'

HIGH CUBE CONTAINER 9'6" High - For over height and 40' and 45' voluminous cargo

OPEN TOP CONTAINER Removable tarpaulin for top 20' and 40' loading of over height cargo

FLAT RACK For over width and heavy cargo 20' and 40'

PLATFORM For extra length and heavy 20' and 40' cargo

INSULATED CONTAINER For additional insulation of 20' and 40' sensitive cargo

REEFER CONTAINER For cooling, freezing or heating 20' and 40' of foods or chemicals

HIGH CUBE REEFER 9'6" High - For over height and CONTAINER voluminous cargo requiring 40' and 45' cooling or freezing

(a) Dry Container Dry Containers is the most popular and used for transportation of various general . It is also called ³Standard container´ and it is mostly made of steel.

(b) (Reefer Container) Refrigerated container (Reefer container) is used for transportation of frozen and chilled cargos (eg, fruits, vegetables, meats, seafood and films ). It is equipped with refrigeration unit and can maintain the target temperature (from ±18 to 20 degrees centigrade).

(c) Open Top Container Open top container is used for transportation of high height and heavy cargos. It is covered by canvas in order to protect from rain and wind when they are moving. (d) Flat Rack Containerά Flat rack container is used for transportation of bulky cargo which is unable to handle by general container. It is designed for carrying extra wide loads and can be load from both side and top as it has not got any walls and roof. (f) Tank container is used for transportation of liquid, as molts, soy sauce and chemical goods and so on. A framework surrounds a tank with the overall dimensions of a container and it is common to be owned by a shipper.

Ventilated containers Ventilated containers are also known as passive (naturally) ventilated or coffee containers. Ventilation is provided by ventilation openings in the top and bottom side rails. The openings do not let in spray, to prevent depreciation of the cargo by rain or spray, for example.

If actively ventilated containers are required, i.e. containers with adjustable ventilation, "porthole" containers may be used, which simultaneously act as insulated or refrigerated containers. Lashing rings, to which the cargo may be secured, are installed in the upper and lower side rails and the corner posts. The lashing rings may take loads of up to 1,000 kg. The common size for ventilated containers is 20'. Ventilated containers are used especially for cargoes which have to be ventilated in transit. One of the most significant of such commodities is green coffee beans, hence the name coffee container.

Bulk container

A bulk container is a type of container use to transport and store bulk materials and fluids. The materials used to construct this type of container are carefully chosen depending on the application it is intended for. There are various types of bulk containers: plastic composite bulk containers, steel bulk containers, and stainless steel bulk containers.They are cubic in form and can ship more materials in the same area compared to cylindrically shaped containers. They can also be used to ship items in consumer quantities.They use plastic liners that can be easily filled up and discharged with different systems.The processor/manufacturer of any product can bulk package their products in one country and ship them to different countries at a more reasonable and affordable cost as the items are subsequently packaged in already final consumer package that adheres with the country¶s regulations as well as in the language and form suitable for the country of destination.

High-cube containers High-cube containers are similar in structure to standard containers, but taller. In contrast to standard containers, which have a maximum height of 2591 mm (8'6"), high- cube containers are 2896 mm, or 9'6", tall. High-cube containers are for the most part 40' long, but are sometimes made as 45' containers. A number of lashing rings, capable of bearing loads of at most 1000 kg, are mounted on the front top end rail and bottom cross member and the corner posts.Many 40' containers have a recess in the floor at the front end which serves to center the containers on so-called gooseneck chassis. These recesses allow the containers to lie lower and therefore to be of taller construction. High-cube containers are used for all types general cargo (dry cargo). However, they are particularly suitable for transporting light, voluminous cargoes and overheight cargoes up to a maximum of 2.70 m tall.

Platform containers Platform containers of 20¶ and 40¶ comprise a reinforced base without ends. The floor structure has an extremely high loading capacity and makes it possible to concentrate extremely heavy weights on small areas.Platform containers consist of a steel frame and a wooden floor structure. The 40¶ platforms have a gooseneck tunnel at each end and lashing rings for securing cargo of up to 3,000 kg can be found in the side rails.

Insulated shipping containers

Insulated shipping containers are a type of packaging used to ship temperature sensitive products such as foods, pharmaceuticals, and chemicals. They are used as part of a cold chain to help maintain product freshness and efficacy. An insulated shipping container might be constructed of:

1. a vacuum flask, similar to a "thermos" 2. fabricated thermal blankets or liners 3. molded expanded polystyrene foam (EPS, styrofoam, etc), similar to a cooler 4. other molded foams such as polyurethane, polyethylene, etc 5. sheets of foamed plastics 6. reflective materials: (metallised film, etc) 7. bubble wrap or other gas filled panels.

High CubeRefrigerated Containers

High Cube Refrigerated Containers (= Reefer Containers) are used for the carriage of the goods requiring controlled temperature in transit, such as fruit, vegetables and diary products and meat. It is fitted with a refrigeration unit which is connected to the carrying ship¶s electrical power supply. These containers have greater height than the 40 ft Refrigerated Container . For over height and voluminous cargo requiring cooling or freezing , high cube reefer containers are used.

A containers are made of various materials. The maximum number of containers are made of steel, aluminium or GRP. (Glass Fiber reinforced plywood). Almost 65% of the entire container fleet presently consist of steel containers.

5. The main advantages of steel containers are :

i. They are the cheapest. ii. They can be more easily repaired compared to aluminium or GRP containers in view of availability of skilled labourers and equipments to handle steel. In the USA the aluminium containers can be more easily repaired compared to steel containers. iii. They can resist damage. While a damage can create a hole in an aluminium container, it can cause only a dent in a steel container which may not warrant an immediate repair. 6. The disadvantages of steel containers are:

i. They can have an economic life of about 10 years, while aluminium or GRP containers may last longer. ii. They will have more compared to other types of container, thus will be able to carry less payload of cargo. iii. They suffer by being more prone to corrosion. But this can be overcome by us of alloy steel instead of ordinary steel.

IDENTIFICATION OF CONTAINERS:

15. For identification, containers have marking showing:

i) Owner Code, Serial Number and Check Digit. ii) Country Code and type code. iii) Maximum, Gross and Tare Weight.

This is illustrated below:

Owner Code Serial Number Check Digit

Country Code Size Code Type Code

ABZU 001234 3 FXX 2030 MAS Gross 00000 kg

00000 Lb

Tare 0000 KG

0000 Lb

ADVANTAGES OF CONTAINERISATION :

16. A) For ship-operators

i. Reduction in port time of ships. ii. Improved working ratio of ships.

17. B) For ship-users (i.e. shippers/consignees)

i. Reduction in packaging cost (as example, goods can be placed in containers packed in instead of in cases); ii. Reduction of damage, pilferage and theft; iii. Reduction in marine insurance premium; iv. Greater protection of fragile and easily contaminable cargoes; v. Reduction in inland transport costs; vi. Faster and reliable delivery; vii. Retention of original quality of goods; viii. Physical separation of 'dirty' cargoes; ix. Simplification of documentary procedures; x. Less inventory costs as a result of less transit time; and xi. Stable inventory control made possible by stabilised ships operaton schedule.

18. The most outstanding contribution of containerisation is the suitability and capability of containers for door-to-door transportation internationally. This is called 'Intermodal or Multimodal' transportation system, eg. from Delhi to Zurich in Switzerland.

CONCEPTS OF FCL & LCL:

19. FCL means Full Container Load. Here the container consists of cargoes meant for one party, i.e. consignee only. The cargo is stuffed at shipper's warehouse and is destuffed at consignee's warehouse.

Here the responsibility of stuffing, stowing of cargo inside the container is of the shipper. Stuffing charges are on account of the shipper and the destuffing charges on account of the consignee.

LCL means Less Container Load. Here the container consists of cargoes meant for different parties. The carrier collects cargoes from various shippers and stuff all of them into a container at the pier. At destination, the carrier's agents destuff the cargoes from the container and deliver the cargoes to respective consignees.

FCL/LCL. - A shipment of goods which the merchant is responsible for packing into the container and the carrier is responsible for unpacking the container.

LCL/FCL. - A shipment of goods which the carrier is responsible for packing into the container and the merchant is responsible for unpacking out of the container.

LEASING OF CONTAINERS:

20. Containers are taken on lease by carriers from container manufacturing companies. There are four types of leasing arrangements.

i. Trip lease or short term lease: Here lease is taken for one voyage or one trip. ii. Long Term Lease: Where containers are usually leased for 3 to 5 years. iii. Financial Lease: This is more of a hire-purchase or instalment-purchase scheme rather than a lease, as in this , at the end of the term for which containers are taken on financial lease, the ownership of the containers is transferred to the shipowners. iv. Master Lease: In this case one shipowner concludes a deal with a container leasing company for a period of usually 1-2 years whereby he guarantees that a minimum number of containers will alays be under his lease from the leasing company and as against this guarantee, the container leasing company also assure the ship-owner that a minimum number of empties will be made available to the shipowners at the various as agreed upon between the two contracting parties.

Purpose-built ships

Container ship

The first vessels purpose-built to carry containers began operation in Denmark in 1951. In the U.S. ships began carrying containers between Seattle and Alaska in 1951. The world's first intermodal container system used the purpose-built the Clifford J. Rodgers, built in Montreal in 1955 and owned by the White Pass and Yukon Route. Its first trip carried 600 containers between North Vancouver, British Columbia and Skagway, Alaska, on November 26, 1955; in Skagway, the containers were unloaded to purpose-built railroad cars for transport north to the Yukon, in the first intermodal service using trucks, ships and railroad cars. Southbound containers were loaded by shippers in the Yukon, moved by rail, ship and truck, to their consignees, without opening. This first intermodal system operated from November 1955 for many years.

The U.S. container shipping industry dates to April 26, 1956, when trucking entrepreneur McLean put 58 containers aboard a refitted ship, the Ideal-X, and sailed them from Newark to Houston. What was new in the USA about McLean's innovation was the idea of using large containers that were never opened in transit between shipper and consignee and that were transferable on an intermodal basis, among trucks, ships and railroad cars. McLean had initially favored the construction of "trailerships"²taking trailers from large trucks and stowing them in a ship¶s cargo hold. This method of stowage, referred to as roll-on/roll-off, was not adopted because of the large waste in potential cargo space onboard the vessel, known as broken stowage. Instead, he modified his original concept into loading just the containers, not the chassis, onto the ships, hence the designation container ship or "box" ship.

Today's container ships are being built to take 13,000 T.E.U., such as the EMMA .

As well as the Twenty foot container, many goods need larger boxes, so there is a larger standard sized container, the FEU (Forty Foot Equivalent Unit). On board a modern containership, the complex method of loading the TEU and FEU in an order that will facilitate offloading at the other end is now largely computerised. As if specially designed to give Chief Officers a headache, a modern development is the "high box", a standard container in length and width, but 9' 6" high (instead of the standard 8'). Refrigerated containers ("reefer containers") have become very popular for the carriage of meat and fruit. Due to their flexibility of usage, these reefer containers are gradually destroying the need for specialised "reefer" ships, whose numbers are declining due to their business being taken over by these reefer containers. The containers are anchored by "twist locks", which simply twist round to lock the 8 corners of the container to the neighbouring container. The outside of the whole stack is

then further fixed with lashing poles diagonally from corner to corner.

These vessels are built for speed, and can reach upwards of 28 knots, moving cargoes around the world. Globally storing and returning empty boxes has become an industry in itself !

Through-transport or inter-modal transport, means that these containers can be offloaded from a ship, and rapidly loaded onto trains or onto container lorries for onward transport to the place of delivery.

y MANAGEMENT OF CONTAINER SERVICE BY SHIPOWNERS/SHIP OPERATORS: y Ship - owners/operators enter into various arrangements to operate a container service. This becomes necessary because of very huge financial outlay required to acquire, maintain and operate container ships and service. y Shipowners/operators sometime form container consortium. In a fully integrated container consortium, a separate legal or commercial entity is formed by amalgamation of two or more individual shipowners who contribute their effort, capital and market share in a container service in a specified trade route. The partners usually supply and man their vessels to the consortium on time charter basis. The number of vessels and their carrying capacity to be provided by individual shipowner is usually determined on the basis of the individual market share of the partners commanded prior to formation of the consortium. y There can also be Slot Charter Arrangements. Here two or more shipowner come into some slot charter arrangement and do not lose their legal or economic entity. The partners usually run their own vessels and expenses for the vessels are met by the partner to whom the vessel belongs. y The slot capacity of the vessel is divided amongst partners depending on their previous market value. Towards each TEU or slot utilized by the other partners, a fixed amount is paid to the ship-owner/partner. This amount is revised regularly by joint discussions amongst the partners taking into consideration the revised operating costs, box rate levels etc. Marketing in a slot charter arrangement is usually done independently by each partners as against the consortium where marketing is done jointly. The disadvantage of slot charter arrangements is that the partners tend to compete more on the land leg of transportation by quoting cheater inland haulage rates etc. y Shipowner sometime agree to have Joint Sailing Schedule. Joint Sailing Schedule can be operated by two or more shipowner through mutual agreement on joint schedule of vessels based on (a) Money pool where the revenue is pooled and distributed among partners depending on carrying ratio cost incurred and other factors (b) Joint ownership of vessels where contribution from various partners are usually to the extent to their respective quotas in carrying capacity (c) Independent or co-ordinated marketing set up. y While operating a container service, there are two major limitations: (i) Size of the vessels, and (ii) Frequency. The size of the vessel will be determined by the port limitations, i.e. the limitation of the ports where the vessels have to call as regards the availability of required draught, quay length, equipments, storage areas etc. The frequency of service required by the trade also limits the vessel's size, e.g. if the sailing frequency is set too high, then cargo accumulation during the short gap between two sailings may not warrant a vessel of bigger size. If the sailing frequency is kept too low, then cargo may be lost to competitors and it may even tarnish the image of the shipowner. y The frequency of service is more important presently as a large portion of international trade is conducted through letters of credit, which stipulate a last date of shipment and last date of negotiation of the document. In order to overcome the difficulty of frequent sailings and also to some extent overcome the problem of huge capital involved in containerisation, shipowners have organised themselves by forming container consortia, slot charter arrangements, joint sailing schedules, etc. y Feeder Service. Here the deep sea vessels or mother vessels, as they are called, only call at a few limited ports and cargo is accumulated at these ports by feeder service from other ports in the region. Feeder ships are small size vessels of around 300/400 TEU's. Sometimes this method leads to a longer transit time for the cargo reaching its ultimate destination. Presently most of the container shipping companies operate through feeder ships, which transfer the containers of deep sea or mother ships at specified ports. Singapore, Colombo and Madras have been serving as feeder ports where mother ships receive containers from feeder ships of the region. CONTAINER TERMINAL AND EQUIPMENT:

A model container terminal may usually be divided into the following areas :

i. The Ships Area : This comprises a quay line where the container vessels are breathed. Usually the modern container terminals are provided with gantries which are heavy cranes required to handle containers. There gantries are generally mounted on rails and move to and from along the entire length of the container vessels. The gantries are usually fitted with automatic for faster handling of container, which is not possible if the individual containers are to be manually slung to the gantries. The modern container terminals usually have gantries with carrying capacity of 35-50 meters. The output of a gantry in a modern terminal is estimated at 20/25 TEUs per hour. ii. Marshalling Yards: The rear portion of the ship's area is known as marshalling yard and is used to prestack a limited number of export containers as buffer stock for loading and also to prestack a limited number of import containers after being discharged from vessels and prior to their removal to container stacking yard. iii. Stacking Yard or Container Yard: This is the area where the import containers are transferred from marshalling yard and stored until they are taken to container freight station, Inland Container Depots, Consignee's warehouses, etc. Similarly, this is the area where export containers are brought from ship operators warehouse, ICD, CFS, etc. prior to being moved to marshalling yard quay line for being loaded on board a vessel. Container yard is also used to stack empties. Usually the yard is divided into various subdivisions meant for stacking empties, export containers, import containers and, quite often, a seperate yard is provided for seperate shipowners.

CONTAINERISATION IN INDIA:

The concept of containerisation was introduced in India in 1968 in a seminar held in Bombay. Since then the Indian shipowners and the trade started considering its use. A working Committee report on the subject came out. Sometime in early 1970s, the Shipping Corporation of India Limited acquired its first semi-container ship with three holds designed to carry containers and other two holds to carry general cargo. Other shipping companies like Scindias and India Steamship followed suit. Later, India Steamship Company acquired a small cellular container ship.

In 1975, the American President Lines scheduled their cellular container ships to Bombay, bringing with them the necessary handling equipment. Many European lines also started scheduling their cellular ships thereafter. Only after 1978, India started developing seriously towards containerisation. Major ports like Bombay, Cochin, Madras, Haldia/Calcutta commenced equipping themselves to handle container ships and containers.

Shippers and consignees also gradually responded to containerisation. Importers from abroad stipulated in their Letters of Credit that the goods should be containerised. Hence, despite heavy investments required and numerous problems, India had to go in for containerisation, lest exports be seriously affected.

RECENT POSITION :

Six Inland Container Depots (ICDs) came to be commissioned. They are :

(i) Bangalore (Contonment); (ii) Coimbatore; (iii) Guntur; (iv) Anaparti; (v) Delhi; (vi) Amingaon (Guwahati). They are linked with seaports. Bangalore, Guntur and Anaparti with Madras; Delhi with Bombay; Coimbatore with Cochin/Madras; Amingaon with Calcutta/Haldia. Combined Transport Documents (CTDs) are issued at these ICDs.

More ICDs are planned to be set up at Hyderabad, Ahmedabad (which are about to be commissioned), Ludhiana, Varanasi, Kanpur, Pune, Quilon, Ranchi, Gorakhpur, Giridih, New Jalpiguri, Muradabad,.Agra, Jammu Tawi and Mirzapur.

Indian Shippers/consignees are spread all over India. Opening of ICDs help them to export/import to and from Inland Points convenient to them enjoying all necessary facilities. Given proper infrastructure facilities, these ICDs will boom with export/import activities.

PRESENT DIFFICULTIES AT ICD's :

The ICDs so far set up represent only an ad hoc arrangement as Pilot projects with rudimentary facilities. The space available at the ICDs is not adequate and the layout is not conducive to efficient and fast operations; neither is a schedule laid down for movement of traffic between ports and ICDs, nor is there any guaranteed transit time indicated for transport of boxes. Operation of the ICDs is entrusted to handling contractors nominated by the Railways. In fact, the receipt of container flats is tailored to suit the capacity of the ICDs. Much remains to be done to develop the ICDs on the right lines to cater to the container traffic efficiently. The length of the sidings at the existing ICDs is not sufficient enough to accommodate one full rake at a time and piecemeal shunting of flats has to be resorted to for loading/unloading containers. In some of the ICDs, due to non-availability/non-functioning of heavy lift cranes/low mast forklifts trucks, the stuffing or destuffing of containers is carried on the flats. This affects turnaround and hence better utilization of flats.

Apart from proper infrastructure and operational efficiency at the ICDs and the ports, a shipper also looks at the cost incurred in containerizing his cargo. Obviously he looks for the best scales of economy involved in transportation. In India, the export market is dominated by the buyers and the exporters have to necessarily concede to the conditions imposed by the buyers. Most of the exports are sold on FOB basis. Due to the conditions imposed on the Indian Exporter by the foreign buyer, the Indian Exporter has to meet the cost of local transportation. This means that he bears the cost of positioning the empty container at the ICD, stuffing the cargo into the container, handling charges at the ICD, rail freight for movement of the loaded container from the ICD to the gateway port and the port handling charges.

40. In India, roughly this Inland Transportation and various services charges is estimated to amount to 40% of the ocean freight while, based on international experience, it should not cost more than 20% of the ocean freight. The incidence of high expenditure for inland transportation in India is said to be on account of the existence of large number of agencies involved in rendering various services required by the exporter in this regard. Each Agency, viz., the freight forwarders, handling agents at the ICDs, Railways, Shipping Agents, and the ports obviously claims its share of profit. Only of there were to be one agency and a package deal is offered to the user, the cost of Inland Transportation and the various services rendered would come down considerably.

PACKAGING:

Presently, the Indian exporter is yet to realise the full impact of containerising his cargo. An area which remains largely neglected is packing. In conventional shipping, most of the cargoes other than , palletised shipments and loose pieces not requiring protection attracted strong wooden crates to ensure safety of the cargo and withstand multiple handling of cargoes. Therefore, specialised firms were established to undertake this work. Thanks to containerisation, some of the risks to which cargo was formerly exposed, especially those associated with rough handling during transportation and handling at the docks have been markedly reduced. Therefore, the necessity of providing hard, sturdy and unbreakable material for packing has been minimised. This means that packaging costs can now be lowered. More space in the container can also be made use of for stuffing of cargoes. A scientific study of proper packaging and stuffing can result in about 25% increase in the use of containers.

HOW TO PACK A MARINE CONTAINER

Although containers are thoroughly tested to ensure that they can withstand every sort of stress and strain, shippers should not assume that they can disregard other cargo protection precautions.Most cargo losses are preventable. The conscientious traffic manager will quickly realize that the proper packing of containers will greatly influence successful delivery of his goods.Satisfied customers and repeat orders are only two of the benefits that stem from a careful approach to container packing. Reductions of time and money spent in tracing, locating and making adjustments on lost, damaged or stolen merchandise all lead to a much greater benefit - increased profits. The following suggestions will help you to minimize possible loss and damage. The first step, of course, is to check and prepare each container before packing it. For example: EXTERNAL: a) The container must not have any obvious holes or tears in the outside paneling. b) The doors should be in good order. Check that gaskets, door hinges and locks are not broken or twisted. c) Before packing open-top and open-side containers make sure the canvas tilts are complete and not ripped. Customs seal ropes should fit correctly and their end pieces should be intact. d) Soft-topped containers should have all the roof-bows (supports) in place. The same applies to the removable stanchions found on flats. e) Any labels remaining on the outside of the container which refer to the previous cargo (e.g. IMCO Labels) should be removed to avoid misunderstandings and penalties. f) When using refrigerated containers, check whether the temperature setting is correct for the commodity about to be packed. INTERNAL: a) The container should be clean and there should be no evidence of the previous cargo.Make sure that nails or other protruding objects will not cause damage to your cargo. b) If delicate goods, susceptible to odor damage, are to be packed, the container should be treated. Either burning coffee beans or using a deodorant spray can saturate cross taint. c) Before packing highly delicate goods the container should be lined with paper or plastic. d) Make sure the interior is absolutely dry. Any sweat or frost should be wiped off to avoid moisture damage. e) To check whether the container is watertight, enter the unit and have both doors shut. If any light can be seen, water can gain entry. f) If you intend to ship goods liable to leakage and/or producing bad odors the container should be protected by plastic foils and absorbing material (e.g. peat, sawdust, infusorial earth, etc.). In box and open-top containers, the superimposed pressure caused by the load is spread over the floor to the bottom cross members. Hence it follows that when utilizing the full payload of such containers, all bottom cross members should preferably be straddled. The maximum permissible load per container (e.g. 4.5 t/m in 20-footers and 3 t/m in 40- footers) must not be exceeded. If you intend to ship a relatively heavy item with a small floor contact area, then this contact area needs to be enlarged to stay within the permissible load capacity. A good spread of weight can be achieved by a double layer of timber dunnage (the boards laid crosswise on the floor with the lower layer put down along the length of the container). Or by means of a sled with its skids tightly fastened to the load. Skids should preferably run lengthwise to minimize the load. In principle, cargo within a container should be distributed in such a way that the center of gravity meets the crucial point of the container vertically. The resulting sum of all individual loads, longitudinally as well as crosswise, should be in the middle to the container. Longitudinally, the center of gravity may be a maximum out of the middle: W§For 20 ft containers, + 0.60 m. W§For 40 ft containers, + 0.90 m. If for some reason you can¶t keep to these tolerances, inform all carriers concerned. The center of gravity should be indicated, as transportation systems are not the same everywhere.Sometimes containers with one end more heavily loaded than the other may not fit into a vessel¶s cell guides and can be carried on deck only. The dynamic load on the floor of a container, imposed by a laden forklift truck, is limited as follows (according to ISO recommendation DIS 1496/1): W§Front axle weight - max. 5.460 kg W§Weight per front wheel - max. 2.730 kg W§Contact area per wheel - min. 142 sc. Cm W§Wheel width not less than 180 mm W§Wheel centers about 760 mm To achieve the most efficient use of a container, choose the most suitable unit for your packing possibilities. Make sure that the type of container you choose suits your consignee¶s facilities as well. In addition, you should obtain information about the maximum permissible gross weights of the container for road and rail haulage. This applies to pre-carriage to the port of loading, as well as to on-carriage in the country of destination. To make the optimum use of the container you should make up a stowage plan, to scale, ongraph paper showing the vertical and horizontal section of the container. Either draw in those packages which have to be stowed, or cut out the packages to scale and fit in the complete ³furnishing plan´. Or you can pre-stow your cargo in a rectangle, marked by chalk or paint, representing the internal dimensions of the container. In no case must it be forgotten that door and roof openings are normally smaller than the maximum internal dimensions.Container transportation implies the possibility or the shipper to reduce the amount of packing material and thus cut costs. In ³house-to-house´ moves packaging (e.g. of machine) can often be relaxed. In most other cases, the packaging used for domestic transport is sufficient for shipment in containers. You should also check whether the cargo, after being stripped from the container, is stored for a certain time or whether it goes directly into the consignee¶s production or distribution chain. Excessively radical steps to cut down the material strength or quality of packaging materials may result in handling damage. The shipper, therefore, should find out whether the transport consists of through freight or whether, at some stage, it is to be forwarded in the conventional way (i.e. transported and stowed outside the protection of the container). Materials strength is also of importance concerning the height to which goods are stowed on top of the packaging. It should be able to withstand the pressure and vibrations that occur at full load height. Intermediate layers of strong cardboard, plywood, timber, etc., may distribute top pressure and reduce it. A risk of damage also arises when goods in different types of packaging are to be loaded together. It has been found that goods packed in wooden crates often cause damage to goods packed in cartons or corrugated board. Should the contents of the packages be able to withstand the stacking pressure, the demand made on the packaging is reduced to a corresponding extent. Considerably greater stacking strength is required for cardboard boxes. It should be based on moisture conditions and voyage duration.It is impossible to state any general rules for the tipping and shocking strength of packages.Estimates must be made in each individual case. Besides protection against mechanical damages, packaging should provide protection against climatic changes.Once the doors of a dry freight container are properly shut, it becomes virtually watertight.(Open-top and open-sided containers do not achieve the same degree of water-tightness.)Once the container is loaded and the doors securely shut, the only way in which weather can affect the cargo is through changes in temperature. Unless the internal temperature of the container is controlled somehow, it will match the temperature of the air outside. Another problem is condensation. Moisture thus formed can cause the following damage to cargo; rust, discoloration, mould, caking and clogging, dislodging of labels, collapse of packages and parts of the stow (depending on the commodity, its packaging, the time factor, and other variable conditions). There are two types of condensation affecting container cargoes: container sweat and cargosweat. Each is caused by a separate set of circumstances, and each affects cargo in a different way.For condensation to appear at all two conditions must be present; there must be a source of moisture and there must be a temperature gradient. The source of moisture may be the cargo itself, the dunnage restraining the cargo, the packaging, the pallets or skids supporting the cargo, or the air trapped at time of packing. The temperature gradient may be caused by a sudden change in outside temperature, or change of cargo temperature, for instance, selfheating fishmeals, etc. Here¶s a look at how cargo sweat occurs. A container is packed with cartons of canned goods that have been stored in a highly humid atmosphere for some weeks. The doors are shut and the container is sitting in an open area. The sun heats the roof during the day, warming the air between roof and cargo. Being warmer, the air is able to hold more water vapor, which it draws off the relatively damp cartons. The temperature of the cans though, is much slower in rising because of their relative density and distance from the source of heat. So they remain cold and the moisture collected by the recently warmed air condenses on them. There is another way in which cargo sweat can form. When a container that has been kept relatively cool is opened in a hot and humid atmosphere, the warm air entering the container can cause condensation to form on the relatively cool cargo. Although this situation is not desirable, the damage caused is usually much less than when condensation forms during transit.Container sweat occurs differently. When night falls, accumulated heat in a container¶s outside paneling is quickly dissipated in the cool air. A clear sky will even hasten the cooling of the container roof. The roof now becomes colder than the air inside the container, and that air deposits moisture on the inside of the roof. If enough is deposited, or if the container is moved, that moisture will fall in drops upon the cargo beneath it. But how can sweat water be avoided? If the source of moisture within the container is eliminated or if no temperature gradient is allowed to develop there can be no sweat! Let¶s look at a few specific examples:W§Cargo - The cargo should be dry before packing. Commodities with a high moisture content must not be packed with goods susceptible to moisture damage. W§Packaging - Cardboard packages can hold a high proportion of moisture. If the moisture content is kept below 12%, however, the chance of moisture migrations is very low. In the case of canned goods, using shrink wrapping instead of fiberboard cartons can further reduce the risk of condensation. The timber used in packing cases and crates must also be dry. Moisture content of up to 18% is acceptable in timber. Wooden pallets, skids, and dunnage boards must also be seasoned and dry. W§Rust Prevention - Bare metal parts can be well protected by either chemical coatings or modern VCI-papers. Plastic foils should completely cover the cargo and no source of moisture must be allowed inside the wrapping. If only hoods are used, there is a risk that moisture will condense underneath them. Desiccants, such as silica gel, are relatively ineffective for two main reasons: (1) Although they absorb moisture they also, under extreme conditions, return the moisture to the surrounding air. (2) The quantities required to have a noticeable effect in a 20-ft. container would be quite high. Desiccants can be effective only if used in a completely airtight space. A rule of thumb for measuring the amount required is 500 g of desiccant per cubic meter of entrapped air. The above steps can eliminate the sources of moisture within the container; the risk of a temperature gradient forming is more difficult to guard against. A container standing in the sun on a windless day, even in winter, will achieve relatively high skin temperatures. Damage to goods shipped in containers is usually caused more by faulty stowing and securing than by the severe stresses that occur during transportation. In most containers, the following techniques can be used to secure your goods: Wooden container floor. For anchoring with wedges and timber connectors. Internal walls To support lightweight goods. Corner posts. Suitable for securing by bracing. Bull rings (eyelets) and lashing bars Attaching points for lashing ropes, wires, chains, steel , span-sets, etc. Corrugated steel walls in open-top containers Crossbeams may be anchored in the corrugation. Wooden beams and planks. For shoring and relieving pressure vertically and horizontally. Intermediate decks and walls. For loading at different levels and for separation. Bars or rods movable vertically or horizontally. For securing the load in sections. Nets To secure fragile cargoes. Air bags (inflatable dunnage) To absorb sudden impacts and to prevent the load from shifting. Timber connectors To secure pallets, skids and cases to the container floor. Rope, wire, steel-strips, terylene straps,span-sets. To fix the load to bull rings or lashing bars. Blocks of styropor, corrugated paper, used tires, empty pallets. To block off empty spaces. Let¶s now turn to packing techniques for specialized cargoes. BAGS Too often, bagged cargo is carelessly thrown into a container with the only objective being to make sure the consignment fits in. Unfortunately, bags not packed in a block stowage (each layer bound by the next) tend to shift as soon as the ship starts rolling. Shifting bagged cargo not only puts extreme pressure on the container walls but is also likely to burst out of the container when the doors are opened. As it takes a comparatively long time to pack and unpack a container of bagged cargo, one should investigate whether or not the use of expendable pallets would be more economical. The size of the pallets depends on the internal dimensions of the container, the shape of the bags, and the weight to be loaded. There are various type of straps which can be used to lash the bagged cargo onto the . Particular attention is drawn to the method of shrinkwrapping. BALES The strength, shape and rigidity of a bale are supplied by its contents. The outer covering may be of hessian, paper, or some other material. When packing bales into a container, care should be taken not to damage this outer covering. Normally, bales are stuffed into the container by forklift trucks. When stowing bales of paper or wood pulp, wooden battens of the same length as the truckload should be laid out on the container floor and the lower layer of bales to assure mechanical discharge. Protection must also be provided against sharp corners and edges. If the load does not fill the complete internal length of the container it should be secured by using timber strutted against the corner posts. CARTONS Cartons chafe easily, so a tight stow, using filler pieces, strutting or lashing is essential to absorb any movement. Packing is started at the front end of the container and filling is carried out from the sides to the middle. Try to avoid unnecessary wasted space. If free space still remains, the cargo needs to be strutted. This is particularly important in the case of fragile goods with light packaging. If you definitely know before packing is started that the entire cube of the container is not going to be utilized, then the stowing height should be modified so that the load covers the entire floor. This reduces the need of strutting and also saves labor since the lifting height is reduced. SMALL CASES AND CRATES In principle, the same precautions and stowage patterns as for cartons apply. To improve the stability of the stow, cases should be turned or staggered to give a three-dimensional brick wall effect. To reduce movement and the possibility of collapse when the doors are opened, try nailing the cases to each other. 7 PALLETS AND UNIT LOADS The cargo should be secured to the pallet by striping, gluing, or shrink-wrapping. The dimensions of the pallets should conform to those of the container for maximum space utilization. To fully utilize the floor area of the container only four-way entry pallets should be used. If the dimensions are such that there is only room for one unit across the width of the container, then the row should be stowed down the middle. If the dimensions of the or pallet are such that there is room for two or more units beside each other across the width of the container, then the rows should be located close to the sides. When pallets are stowed in a single layer, two to four timber connectors under each pallet are sufficient for securing. If the pallets are stowed in several layers on top of each other, securing should be done by means of timber strutting or air bags. These recommendations apply to all cargoes that are normally handled by forklift trucks. DRY BULK CARGOES For transportation of bulk solids many steamship lines offer 20 ft-bulk containers. However, closed and open-top units may also be used. Additional door protection may also be needed, depending on the specific gravity of the commodity to be shipped. LIQUID BULK CARGOES Special tank containers have been built for transportation of bulk liquids. The minimum tankfilling grade should be 80%, to avoid dangerous surging. To keep up with possible heat expansion, a maximum filling grade of 95% must not be exceeded. The working pressures marked on the outside of the tank containers must be regarded as well. (CHEMICALS) Attention should be paid to the following points before packing the container: 1) The unit should be sound, dry and clean. 2) Labels referring to previously carried dangerous cargo must be removed. Here are a few pointers to consider while packing the container: 1) The usual packing rules apply for stresses, payloads and distribution of weight within the container. 2) Packaging for dangerous goods must comply with current regulations. 3) Only safe and sound packages may be loaded. 4) Each individual package must bear the relevant IMCO Dangerous Goods Code Class Label. 5) Dangerous goods packed together in one container must be of the same IMCO class. Goods of the same class may only be packed together if this is in accordance with current regulations and the goods concerned are compatible. 6) When dangerous goods form only part of a container load, they must be packed so as to be accessible from the doors of the container. 7) When a container is to be packed with poisons, corrosives, foul-smelling goods or goods liable to drain liquids, the unit should be protected against damage or contamination. 8 8) The goods must be tightly packed within the container and adequately secured for the voyage. Packing of a container and bracing of the goods should preferably be done at the same time, under supervision of a responsible person. 9) Containers in which dangerous goods are packed must carry four IMCO Dangerous Goods Code Class Labels. One should be placed on the front wall and one at the doors. The label on the right sidewall is to be placed so as not to be concealed when the unit¶s door is opened. The left sidewall is marked accordingly, but the label should be placed more to the front end of the container. 10) Those responsible for packing dangerous goods into a container should provide a ³Container Packing Certificate´ certifying that this has been properly carried out and embodying the following provisions: W§The container was clean, dry and apparently fit to receive the goods. W§No incompatible substances have been packed into the container. W§All packages have been externally inspected for damage, and only sound packages packed. W§All packages have been properly packed in the container and secured. W§The container and packages are properly marked and labeled. W§The Dangerous Goods Declaration required in sub-section 9.3 of the International Maritime Dangerous Goods Code has been received for each dangerous goods consignment packed in the container. TEMPERATURE CONTROLLED CARGOES For these goods we recommend refrigerated containers with integral reefer units and insulated containers for refrigeration by ship¶s equipment or ³clip-on-unit´. The temperature range to be kept depends on the cargo. Generally, the following applies: W§Deep-frozen cargo may be stowed as a solid block. An ³´ of cold air then surrounds the complete block. W§Fresh fruit and vegetables are ³breathing´ and therefore give off heat and carbon dioxide. Proper air flow through (as well as around´ the stow is therefore essential. Some packages are so designed and the content so arranged that air flows through the package and no intermediate dunnage is required. Where this does not occur, vertical 10-15 mm strips of timber should be inserted between every second row. The air stream thus reaches each individual package. Care must be taken not to block any permanent air channels. Make sure that the container is correctly packed and that the cargo is secured in the right manner. Putting a copy of the packing list inside the container is a useful custom. Close doors and, according to the type of container, all other openings carefully. Reduce the risk of theft by sealing doors and other openings. Containers are usually transported over great distances and for long periods of time. They stand on terminals and trucks. These situations create ample opportunities for thieves. Seals, in addition to strong wiring or locks, give better protection against theft and make control possible. Finally, customs seals on containers should never be opened, even if an accident happens. Only customs officials are allowed to open the seals

CONTAINER CORPORATION OF INDIA :

Indian Railways have set up a Container Corporation of India to co-ordinate and manage container movements and ICDs in India. A well planned and co-ordinated approach is very essential. The Corporation is a subsidiary of , working with the co-operation and guidance of the Ministry of Commerce.

FUTURE NEEDS: With the opening of various ICDs, best attention should be paid to develop the necessary infrastructure facilities - road and rail link, adequate container flats, handling equipment, customs facilities etc. They must rise to the occasion to meet the requirements. The transit time between the ICDs and the gateway ports should, as far as possible, be predetermined. The schedule of container trains between the ports and ICDs should be announced well in advance. Time and cost should be of prime consideration. The shipping lines should endeavour their best to offer a competitive total ocean freight on warehouse basis. Customs should look into the laws with regard to movement of containers and relax them to enable movement of containers by road by the shipping lines. Deterrant action should be taken if there is violation of the relaxed conditions stipulated by the Customs.

The Freight Forwarders should form themselves into a consortium to function as Multimodal Transport Operators and assume responsibility for the cargo from the consignor's end down to the consignee's end. With proper safeguards, the Freight Forwarders may be encouraged to function as Non-Vessel Operating Multimodal Transport Operators (NVOMTOs). Combined Transport Documents in this respect should be properly worded and issued. To help exporters having Less than Container Load Cargoes, consolidators should be encouraged to assume responsibilities. There is vast scope for the business of consolidation in

Issues

Increased efficiency

Although there have been few direct correlations made between containers and job losses, there are a number of texts associating job losses at least in part with containerization. A 1998 study of post-containerization employment at United States ports found that container cargo could be moved nearly twenty times faster than pre- container break bulk. The new system of shipping also allowed for freight consolidating jobs to be moved from the waterfront to points far inland, which also decreased the number of waterfront jobs.

Additional fuel costs

Containerization increases the fuel costs of transport and reduces the capacity of the transport - as the container itself must be shipped around, not just the goods. For certain bulk products this makes containerization unattractive. However, for most goods the increased fuel costs and decreased transport efficiencies are currently more than offset by the savings in handling costs. On railways the maximum weight of the container is far from the railcar's maximum weight capacity, and the ratio of goods to railcar is much lower than in a break-bulk situation. In some areas (mostly the USA and Canada) containers can be double stacked, but this is usually not possible in other countries.

Hazards Containers have been used to smuggle contraband. The vast majority of containers are never subjected to scrutiny due to the large number of containers in use. In recent years there have been increased concerns that containers might be used to transport terrorists or terrorist materials into a country undetected. The U.S. government has advanced the Container Security Initiative (CSI), intended to ensure that high-risk cargo is examined or scanned, preferably at the port of departure.

Empty containers

Containers are intended to be used constantly, being loaded with new cargo for a new destination soon after having been emptied of previous cargo. This is not always possible, and in some cases, the cost of transporting an empty container to a place where it can be used is considered to be higher than the worth of the used container. Shipping lines and Container Leasing Companies have become expert at repositioning empty containers from areas of low or no demand, such as the US West Coast, to areas of high demand such as China. However, damaged or retired containers may also be recycled in the form of shipping container architecture, or the steel content salvaged. In the summer of 2010, a world wide shortage of containers developed as shipping increased post-recession, while new container production had largely ceased.

Loss at sea

Containers occasionally fall from the ships, usually during storms; between 2,000 and 10,000 containers are lost at sea each year.For instance, on November 30, 2006, a container washed ashore on the Outer Banks of North Carolina USA, along with thousands of bags of its cargo of Doritos Chips. Containers lost in rough waters are smashed by cargo and waves and often sink quickly. Although not all containers sink, they seldom float very high out of the water, making them a shipping hazard that is difficult to detect. Freight from lost containers has provided oceanographers with unexpected opportunities to track global ocean currents, notably a cargo of Friendly Floatees.In 2007 the International Chamber of Shipping and the began work on a code of practice for container storage, including crew training on parametric rolling, safer stacking, the marking of containers and security for above-deck cargo in heavy swell.

Trades union challenges

Some of the biggest battles in the container revolution were waged in Washington, D.C. Intermodal shipping got a huge boost in the early 1970s when carriers won permission to quote combined rail-ocean rates. Later, non-vessel- operating common carriers won a long court battle with a U.S. Supreme Court decision against contracts that attempted to require that union labor be used for stuffing and stripping containers at off-pier locations.

Other uses for containers Shipping container architecture is the use of containers as the basis for housing and other functional buildings for people, either as temporary or permanent housing, and either as a main building or as a cabin or workshop. Containers can also be used as sheds or storage areas in industry and commerce.

Containers are also beginning to be used to house computer data centers, although these are normally specialized containers.

Bibliography

y S.K. BHATTACHARYYA, LOGISTICS MANAGEMENT, S. Chand & Company Ltd y Integrated Business Communications Alliance, www.ibcaweb.org y Supply Chain Management Research Center, www.cio.com/research/scm