Putting More Go-Go in Cargo- Containers and World Trade

WILLIAM C. GROW

Ships are taking to the containerships may scorch the waves highway, trucks are sprouting wings, with speeds up to 50 miles an hour. and railroads are crossing the oceans Helicopters or other air vehicles will in a transportation revolution that lift the containers from flatcars, ships, is sweeping the world. It's called or airplanes and transport them to containerization. container yards, warehouses, or even In this dazzling new technique, to retail stores. products are moved from origin to Through rates will be common. Cus- destination—from Illinois to France, toms and immigration procedures will California to Hawaii, Ottawa to be simplified. Movement of containers Saigon—in containers about the size will be governed by computers. of a truck trailer. The container may Present-day containers are usually 8 move first by truck, then by rail to a feet wide, 8 feet high, and mostly from port where it is lifted onto a ship. At 20 to 40 feet long. Many are refrig- a foreign port, it is lifted off the ship erated and maintain an optimum and placed on wheels to go by rail or temperature and humidity for the truck to the distributing warehouse. products they carry. They may be Sometimes the containers move by filled with packages of fruit, poultry, airplane, too. vegetables, meat, or any other com- So, a container is in effect a ship's modity. At the point of production, hold, a truck trailer, a railroad boxcar, the container is filled and the door and even an airplane fuselage. Tradi- locked. From that point on, the tional differences between land, sea, individual packages are not handled. and air carriers cancel out in a highly Advantages are many. One study integrated operation. estimates shipping cost savings of 38 Cost savings are so impressive that percent. Stevedoring costs are reduced U.S. and foreign port cities are hastily 82 percent, loss and damage claims revamping their facilities in a race for 75 percent, and ship operating costs the lion's share of container shipping. by 35 percent. Total investment in containerships in Containers weighing up to 30 tons the near future is expected to reach $ 1 can be loaded or discharged with billion. Some Japanese shippers esti- gantry cranes from a containership at mate that by 1970 half their cargoes rates as high as 20 to 30 containers per will be containerized. hour with fewer men than previously Possibilities in this cargo revolution read like science fiction. Future con- tainerships may travel at speeds of 30 WILLIAM c. GROW is Director of the Transporta- knots or more or about 35 miles per tion and Facilities Research Division, Agricultural hour in your family car. Hydrofoil Research Service. 240 handled only 10 tons an hour. A vessel Meat moved from Texas to Ham- may need to spend only a day in port burg ; poultry from Iowa and Virginia instead of 5 to 7. to Germany, Italy, and Greece; Some vessels carry floating con- peaches from South Carolina to Lon- tainers—or lighters—which can be don ; and mixed vegetables from Belle loaded and discharged directly into Glade, Fla., to West Berlin. Refriger- the water. ated cargoes and canned goods are Since containers are sealed by the moving from the west coast to Europe. shipper after loading, pilferage and Most food moved between the main- damage are virtually eliminated. Cor- land United States and Hawaii and rect temperature in the container can Puerto Rico goes by containership. be maintained throughout the journey This method is also used for transpor- by plugging the equipment into an tation between the west coast and electric current. And because packages Alaska and for intercoastal movement. are not handled individually, they can The military uses refrigerated con- be made of less expensive materials. tainerized service to Okinawa. A fully loaded container was sent In April 1966, the Military Traffic from Illinois to France in less than 10 Management and Terminal Service days. The same shipment by conven- shipped a wide range of products out tional equipment takes weeks or some- of the New York area in 283 con- times months. tainers. By December, the figure was Until 1965, only two steamship lines up to 1,070. It is estimated that 50 could claim they were handling and percent of the freight MTMTS con- transporting major volumes of con- trols could move in this way. By tainerized cargo. In 2 years since then, November 1966, four emergency hos- 70 full or partial containerships were in pitals had been shipped in containers service under the U.S. flag, and orders from Ottawa, Canada, to Saigon. for more such vessels were piling up. More than 50 railroads in the United Upon this development rests the States ofí"er container service. Forty hope of moving more products from firms—mostly steamship lines—off'er U.S. farms and factories to world such service to and from 150 ports of markets and of rejuvenating the U.S. the world. Some 35 airlines haul con- merchant marine. tainers. From the United States con- At the beginning of this revolution, tainers go to Europe, Latin America, U.S. Department of Agriculture trans- Africa, Oceania, the Near East and port researchers began to put con- the Far East. tainers to use in opening up foreign In June 1965, more than 20,000 markets for farm and food products. containers were in marine service. In In 1965 these men in cooperation with less than a year and a half the number shippers, a railroad, and a steamship doubled, and it is expected to reach line made a containerized shipment of half a million by 1975. U.S. railroads grapefruit from Florida to a whole- use 32,000 flat cars in piggyback- saler in Basel, Switzerland. The fruit container service. arrived in less time, in better condi- Containerships need special port tion, and at lower cost than by con- facilities. They operate best from ventional methods. The reaction of berths with wide aprons that provide the Swiss buyer was "How can I get easy access to the ship's side. For each regular delivery of this quality ship's berth at least 10 to 12 acres of product?" land is required for assembling con- Many other containerized shipments tainers to be shipped and space for have been made since to test equip- those being unloaded. The most ad- ment, costs, and service. Fresh orange vanced terminals are equipped with juice moved to Germany in bottles shore-based cranes for loading and with hardly a broken bit of glass. Reg- unloading containers, but many con- ular commercial movements followed. tainerships have their own cranes so 241 they can operate in ports without pioneers have extended their service to shore-based cranes. Europe and the Far East, and the idea The port of New York has taken the has excited the imagination of the lead in getting ready to meet the shipping world. requirements of this transportation Billions of dollars are being invested revolution and is already recognized in containers, containerships, and port as the "Container Capital of the facilities. Yet many problems must be World." The Port of New York Au- solved before the full potential of this thority, a corporate body established development can be achieved. And by compact between the States of New these solutions must come fast to avoid York and New Jersey, has embarked costly mistakes. on a construction program which will Benefits of containerization flow produce 37 containership berths on a largely from having an integrated 900-acre site. Twelve of these are transportation system. The containers already in operation. The city of New must be handled by rail, truck, ship, York has announced plans for similar and air; by many companies; through undertakings. many countries; and they must trans- While New York is conceded the port a wide range of commodities. No. 1 position for North Atlantic Getting agreement and coordinated container shipping, the race is on action from all the firms and organiza- between Baltimore and the Norfolk tions that comprise the system is a area for the No. 2 spot. Other Atlantic herculean task. coast facilities for handling container- First, agreement on the sizes of con- ships are in operation or soon will be tainers is imperative. These boxes must at Wilmington and Morehead City, have universal interchange. They must N.C.; Savannah, Ga. ; Charleston, stack, fasten together, fit onto trucks S.C; and Jacksonville and Miami, and railcars, go through tunnels, meet Fla. On the west coast they are op- highway requirements, fit into planes, erating at the California ports of San be lifted on and off ships by the same Francisco, Oakland, Stockton, and cranes, and hold quantities economical Long Beach and also at Portland and to transport. They must maintain the Seattle. The gulf coast ports of Mobile, correct temperatures and humidity to Ala., New Orleans, La., and Houston prevent spoilage of the contents, be and Galveston, Tex., are expected to secure against water damage, and meet construct such terminals. a host of other requirements. Finding Other countries also are moving the facts on each of these aspects is a rapidly into this new form of trans- big job. Reaching a consensus seems portation. The ports of England, Ger- almost impossible. many, the Netherlands, Scandinavia, For maximum use shippers must be Belgium, and France are preparing able to get containers when they need for container shipping. them. This requires a large supply and Japan has announced a $400 million competent management or containers program for 34 containerships and will be in the wrong place at the wrong terminal facilities and a program to time. Common ownership and man- purchase 50,000 containers. Australia agement of the supply may be the has decided to introduce containeriza- answer with appropriate rental charges tion on a national scale. for their use, but such an approach Containerized ocean transport has raises still other questions. Computers come a long way since the spring of might help keep up with their where- 1956 when what is now Sea-Land abouts and plan their distribution. Idle Service carried 60 truck trailers on a time and empty backhauls must be trial run from New York to Houston avoided, of course. and since August 1958 when the Mat- Proper stowing of products in a con- son Navigation Co. introduced con- tainer is important. The maximum tainerized service to Hawaii. These quantity should go in the cube to save 242 From Florida citrus grove to Germany by piggyback—three-page photo story of a containerized test shipment. Right, grapefruit is picked in grove at Cler- mont, Fla. Lower left, USDA repre- sentatives explain how electric fan in the container door will ventilate grape- fruit during trip. Lower right, fruit is loaded in container on truck at Lake- land, Fla., packing plant.

243 ^B^^^^^^^HH 1 '"' i In Fort Pierce, Fla., container of grape- ^ P fruit is loaded on flatcar, above, for rail ^ trip to New York. Taken across the At- lantic on United States Lines ship, con- tainer is offloaded in Antwerp, below, and put on a Belgian tractor trailer, right. .- A 1

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244 European press turns out in snowstorm to examine grapefruit when the container reaches Frankfurt, Germany, left. Grape- fruit arrives at the Hertie Department Store near Munich, Germany, below, in time to be featured during special sale of U.S. products.

MAIN TAU Nil ZEI»' transportation cost, but some com- through responsibility are also among modities require air circulation. Pal- the essential requirements. letizing packages inside containers re- A major problem in foreign com- duces handling costs, but wastes some merce is paperwork. President Johnson space. Stowing by amateurs can lead said that "We have mounted a sizable to large product losses. Government-industry program to ex- Costs of terminal facilities with all pand exports, yet we allow a mountain their land, cranes and other expensive of redtape paperwork to negate our equipment, and the need for quick efforts." The National Committee on turnaround time for ships will tend to International Trade Documentation create a concentration of movement at estimates at $5 billion the annual cost a few large ports. A properly designed of paperwork related to our interna- and located containership terminal can tional trade. This documentation must handle 500,000 long tons annually per be simplified. ship berth. To achieve optimum vol- Many obstacles to be overcome in ume at a port without increasing the containerization are physical and eco- total transportation cost for the entire nomic, but the greatest is that of journey is a hairy problem to be getting people to work together. Suc- worked out. cess in overcoming the obstacles can Regular and dependable service is save billions of dollars and facilitate essential. Coordination of movement the exchange of surplus products of of a container handled by several one country for those needed from carriers requires accurate scheduling another. More hungry people can be of arrivals and departures. When re- fed. Food deterioration and spoilage ceivers in a foreign country cannot get can be reduced, and the general world dependable and regular deliveries, standard of living raised. they find it difficult to meet demands Transportation research people in of their customers. If the service is too the U.S. Department of Agriculture undependable, they will have to find are helping in many ways to solve the other sources of supply. problems of containerization. For in- Institutional barriers must be re- stance, they are working with shippers duced and compliance with regula- and transportation companies to im- tions simplified. Varying inspection prove equipment. From this research requirements, commodity standards, has come : health laws, tariffs and customs regu- • Equipment to maintain uniform lations, restrictions on weight and size temperature throughout the journey; of vehicles, and a host of other regula- • Better insulation for refrigerated tions of transportation and commerce containers ; may be burdensome. Without some in- • Development of a forced air circu- ternational cooperation on such prob- lating system so as to provide uniform lems, delays will be encountered and temperature throughout the load; the flow of commerce impeded. • Evaluation of newer refrigerants Through service, through rates, and such as liquid nitrogen;

STATES LINES USA-EUROPE NGER - E.XPRESS - SERVICE m 9' . • Development of a multipurpose a packing plant in Fremont, Nebr., to van container in which products in a supermarket in Honolulu. In March one part of the container can be main- 1965, Southern Railway containers tained at low temperature while the loaded with grapefruit were moved products in another part of the same through the streets of Paris and over container can be maintained at a the highways of Germany. higher temperature ; One enterprising man in Africa • A new type of vent plug that will handled meat in a container cooled let air in and keep water out; with liquid nitrogen from a livestock- • A thermal rating system for the producing area to city consumers containers. hundreds of miles away, moving it Researchers are studying sizes of over roads and on a riverboat. In this cartons or packages used in this way storage, refrigeration, and two country and comparing them with methods of transportation were com- standards required in other countries. bined to do the job in a developing They are developing packages suitable country—and at a profit. for foreign shipment in containers. On the horizon is an international Conversion systems have been devel- container system that could move from oped so the same vehicle can be used 50 to 75 percent of ocean commerce, if for refrigerated or for nonrefrigerated it is properly nourished and developed. products; for packaged goods in one Fully automated container trains, direction and for liquid or bulk com- shorter than the usual freight train, are modities in another. Better loading envisioned. These trains will bypass patterns have been developed. Quality classification yards and speed directly of many products has been checked on to major distribution points and ports. arrival at foreign markets so any off- All major world ports, and many quality may be detected and corrective small ones, will have container yards. action taken. To conserve land, many of the larger Test shipments are organized with yards will stack containers instead of the cooperation of shippers, truckers, spreading out. In these yards con- railroads, airlines, ocean carriers, and tainers will move automatically into foreign receivers. Thus the perform- and out of storage and on and off ance of equipment, handling methods, flatcars, containerships, trucks, and and packages is checked. And changes planes at the push of a button. are recommended to cut costs, speed Specially designed containerships up handling, expand the service, and with space for 1,200 containers will be maintain quality. fully automated. According to one These USDA researchers are work- study they will be able to operate at ing with all groups involved to get 39 percent capacity with rates 25 to 35 regular and dependable service through percent below present Atlantic rates. ports that can move our farm and food Many containers will bypass con- products. They are serving on industry ventional warehouses and may even and government committees to estab- be used as small warehouses or become lish standards for containers and a detachable part of warehousing and devices needed to handle them, to handling facilities. simplify paperwork, and to get inter- When these things happen we really national standards for package sizes. will have an efficient, low cost, fast, Theirs is a concerted effort to stream- and safe system of transportation so line the physical handling of products essential to the tremendous era of between our farms and all possible world trade which lies on the horizon. markets at home and abroad. To bring this about requires ingenuity, A decade ago containerization was hard work, and the cooperation of only a dream. By April 1965, a con- many groups in many lands. But the tainerized shipment of 36,500 pounds payoff will be the enrichment of life of packaged meat moved directly from for people throughout the world. 247