CONTAINERISATION. 1 Prof. Ashok Advani - Jaipuria Institute of Management, Noida
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1 CONTAINERISATION 1
2 2 Containerization Definition
3 Containerization - Definition 3 A container is a single, rigidly sealed, reusable metal box in which merchandise is shipped by vessel, truck or rail.
4 4 Containerization Freight Container
5 Containerization Freight Container 5 A freight container is an article of transport equipment with the following characteristics: Strong for repeated use Designed to facilitate carriage of goods by one or more modes of transport, without intermediate re-loading Fitted with devices for ready handling [transfer from one mode of transport to another] Designed for easy filling and emptying Has an internal volume of at least 1 cu. Meter [35.3 cu.ft.] or more
6 6 Containerization History
7 History of Containerisation Before 1956 cargo was loaded and unloaded to and from the hold of the ship using cranes and slings. This required costly manpower, was time consuming and sometimes resulted in damaged or lost cargo. Malcom Purcell McLean may be considered the father of containerisation. In 1956, McLean developed the metal shipping container, which replaced the traditional break bulk method of handling dry goods and revolutionized the transport of goods and cargo worldwide. He later founded Sea-Land Service, Inc., one of the pioneers in the intermodal cargo transport business. McLean was named "Man of the Century" by the International Maritime Hall of Fame. 7
8 History of Containerisation 80 s-90 s Few carriers, focused trades Regional players Smaller ships 2000 teu 4000 teu Not service sensitive Hub and spoke model Transpacific, transatlantic trade dominant Average growth of 8.5% Y-o-Y Commoditization of container shipping Globalization of networks More direct products, fewer hubs Rate wars, with escalating oil prices Large tonnage TEU ships Service reliability Slow Steaming Rationalization of services Laying up of ships Far East, India focus Average growth of 6.6% Y-o-Y Larger tonnage TEU ships Expansion of the Panama canal by 2014 (revolutionize world trade further) Aggressive competition, plummeting rates, Laying up of ships Survival of fittest, with deep pockets Few causalities Higher demands from trade on reliability, frequency Consolidation of service, shipping lines South America and Africa focus 8
9 Container Vessel Evolution 9
10 10 Prof. Ashok Advani - Jaipuria Institute of Management, Noida
11 11 Prof. Ashok Advani - Jaipuria Institute of Management, Noida
12 Containerization 12 Malcolm Mclean Father of Containerisation Conceived the idea of using the entire truck trailer to load onto & off the ship In 1956 Malcolm adopted a ship for carrying containers Established the multimodal transportation company called Sea Land Inc Regular container services commenced [New York Los Angeles San Francisco] 1966 Transatlantic container service commenced [America Europe capacity TEU s knots] 1970 s Panamax ships [L Meters, Beam 32.3 Meters, Capacity TEU s]
13 Containerization s cellular container vessels 1980 s Panamax ships 4000 TEU s 1990 s Post Panamax ships 4400 TEU s
14 14 Containerization Development
15 Containerization - Development 15 Increasing drafts to 52 feet Vessel sizes TEU s Increase in container berths Installing suitable material handling equipment State-of-the art technology million TEU s worldwide million TEU s worldwide Singapore 307,27,702 Hong Kong 244,04,000 USA 429,02,041 UAE - 167,80,386
16 Containerization Traffic Handled 16 Container Handling Major World Ports Rank Port, Country Volume 2012 (Million TEUs) Volume 2011 (Million TEUS) 1 Shanghai, China Singapore,Singapore Hong Kong, China Shenzhen, China Busan, South Korea Ningbo-Zhoushan, China Guangzhou Harbor, China
17 Containerization Traffic Handled 17 Container Handling Major World Ports Rank Port, Country Volume 2012 (Million TEUs) Volume 2011 (Million TEUS) 8 Qingdao, China Jebel Ali, Dubai, United Arab Emirates Tianjin, China Rotterdam, Netherlands Hamburg, Germany Antwerp, Belguim Jawaharlal Nehru, India
18 Containerization Traffic Handled 18 TRAFFIC HANDLED AT MAJOR PORTS (LAST 7 YEARS) TO Mill. Tonnes PORT KOLKATA HALDIA PARADIP VIZAG ENNORE CHENNAI TUTICORIN COCHIN NMPT MORMUGOA MUMBAI JNPT KANDLA TOTAL
19 Containerization - Development 19 Toyota & Honda use containerization to develop justin-time manufacturing. They manufacture the goods only as the customer needs them and then ship them in containers to reach the buyer at a specified time
20 Containerization 20 What is Unitization?
21 Containerization - Unitization 21 Unitization is combining small units of load into a single large unit, by strapping or binding them together
22 Containerization - Unitization 22 Methods of Unitization Pallet Platform Wooden boxes or bags strapped to the pallet Handled by a hand truck or twin forks of forklift truck Containerization most advanced form of unitization
23 Containerization - Unitization 23
24 Containerization - Sizes 24 20, 40 and 45 feet long Load carrying capacity of a ship measured in terms of TEU s it can carry A TEU represents a 20-feet equivalent unit of a container A FEU represents a 40-feet equivalent unit of a container [1x40 = 2x20 ]
25 Containerization - Types 25 Dry Storage Container 20, 40 GP & 40 HC
26 Containerization - Types 26 Flat Rack Container 40
27 Containerization - Types 27 Open Top Container 20 & 40
28 Containerization - Types 28 Reefer Container 20 & 40
29 Containerization - Types 29 Insulated or Thermal Container 20 & 40
30 Containerization - Types 30 Tank Container
31 Containerization - Types 31 Car Carrier
32 Containerization - Types 32 Special Purpose Container
33 Containerization - Types 33 Swap Bodies
34 Containerization - Types 34 Half Height Containers
35 Containerization - Dimensions 35 Standard External Container Dimensions Container Length Container Width Container Height Standard High Cube
36 Containerization - Dimensions 36 Standard Internal Container Dimensions Inner Length Inner Width Inner Height Standard High Cube
37 Containerization - Dimensions 37 Standard Container Cubic Capacity Cubic Capacity Standard 1160 cu. ft cu. ft. High Cube 1310 cu. ft cu. ft. Tare Weight 2.5 M.T. 4.5 M.T. Gross Payload M.T. 30 M.T.
38 Containerization - Benefits 38 Shipper Ship Owners Port Authorities
39 Containerization Benefits - Shipper 39 Reduction in Transportation Costs Containerized cargo economical than break-bulk cargo Attractive rates from S/Lines Cost saving benefits to customers Global contracts Multinationals use global volumes for price discounts Walmart Ikea
40 Containerization Benefits - Shipper 40 Saving in Port Charges Containerized cargo economical to handle Economical as compared to break-bulk cargo Ease & speed of handling by overhead cranes & forklift trucks Reduction in Warehousing & Inventory Costs Reduced time in warehouses Reduced time in transit
41 Containerization Benefits - Shipper 41 Reduction in Packing Costs Container provides protective metallic cover to cargo Protects cargo from Pilferage Damage from water, oil etc Damage due handling Expensive packing material not required Reduction in Insurance Premium Better protection given by containers Lesser chances of damage, pilferage, theft etc Lower insurance premiums passed on to customers increases competitiveness
42 Containerization Benefits - Shipper 42 Greater Convenience MTO assumes responsibility Risk coverage Better co-ordination Door to door delivery Emergence of New Markets Cheaper Ocean Freights Reduction in transaction costs due EDI
43 Containerization - Benefits 43 Benefits to Ship Owners S/Lines
44 Containerization Benefits Ship Owners 44 Reduction in Turn Around Time Faster handling Dedicated container terminals Lesser time in ports Saving in port charges Increased Cargo Carrying Capacity Carrying more tonnage Higher operating speeds faster round voyage time Reduced idle time in ports General cargo ships 50% of voyage time in ports
45 Containerization Benefits Ship Owners 45 Global Contracts [Ship Owners/S. Lines Shippers] S/Lines secure base cargoes Guaranteed large volumes Profitable voyages MNC s Global Contracts Proctor & Gamble General Motors Nestle Samsung
46 Containerization Benefits Ship Owners 46 Higher Profitability Cost modern container ship exceeds USD 75 million High operating cost of container vessel USD 50,000 per day Standing cost in port USD 5,000-6,000 per day Inland Operations Manufacturing bases moved to hinterlands Proximity of activities to manufacturing bases Undertaking movement of containers to inland locations Adds to revenue
47 Containerization - Benefits 47 Benefits to Port Authorities
48 Containerization Benefits Port Authorities 48 Reduced Port Congestion Faster unloading & handling of containers Faster Turn around Time Ports recognized as a major revenue source Infrastructure development Time Saving Unique Serial Number Easy identification in container yards [EDI] Faster movement Vessel Load Plans [EDI]
49 49
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