Containerization refers to the use of standard intermodal containers in freight transport. It has led to vast improvements in port efficiency and lower shipping costs. The key developments were the standardization of container sizes and specifications in the 1960s and the use of container ships, trains, trucks and ports. The top five container ports globally are Shanghai, Singapore, Shenzhen, Ningbo-Zhoushan and Hong Kong. The main advantages of containerization are standardized containers that can be transported anywhere by multiple modes, flexibility, lower costs, and increased speed of transport. Potential requirements for hub ports include location on major shipping routes and access to large hinterlands via multiple transport modes.

1. CONTAINERIZATION
in Global Supply
Chain Management

2. DISCUSSION POINTS
A) What is containerization?
B) History of Containerization.
C) Types of Containers and
Standardization.
D) Players in the container supply
chain.
E) World’s Largest Container ports.
F) Advantages and Disadvantages of
Containerization.
G) Hub Port Possibility in the World.

3. WHAT IS
CONTAINERIZATION?
Containerization(or containerization)is a system of
intermodal all freight transport using standard intermodal
containers as prescribed by the International Organization for
Standardization (also 'SHIPPING CONTAINERS','ISO').These can
be loaded and sealed intact onto container ships, railroad cars,
planes, and trucks. The introduction of containers resulted in
vast improvements in port handling efficiency, thus lowering
cost and helping lower freight charges and, in turn, boosting
trade flows. Most goods can be shipped by container.
ISO Standard for containers:
a. Containers are available in common standard lengths of 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).Capacity is expressed in TEU – Twenty-feet
Equivalent Units
b. Height is not considered for expression
c. The maximum gross mass for a 20-ft dry cargo container is
24,000 kg, and for a 40-ft container (inc. 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 there reduced to
approx. 21,600 kg for 20-ft, and 26,500 kg for 40-ft containers.
Some big names in Container Transport:
NYK Line, Evergreen Marine, CMA-CGM, Maersk Line, MSC,
Hapag-Lloyd, APL, Hanjin, CSCL, COSCO.
In India – Shipping Corporation of India

4. HISTORY OF CONTAINERIZATION
 Up until the 1950's, most goods transported via water were
shipped loose or packaged in boxes, bags, barrels or other
relatively small containers based on the commodity... in other
words, break bulk shipping. The major cost in break bulk
shipping at the time was time and labour spent loading and
unloading the ships at ports. To put the time and costs into
perspective, the cost of loading and unloading was up to 75%
of the total shipping costs and the ship could take as long to
unload and load as it did in transport over the water. Just
imagine what the process would look like with today's new
18,000 teu mega ships if commodities came into the port in
break bulk form.
 So, how did we get from mega 18,000 container ship break
bulk to where we are today? Intermodal transportation goes
back to the 1700's when coal was moved in coal containers
on England's Bridgewater Canal. By World War I, the Great
Eastern Railway was using wooden containers to transport
passenger luggage between trains and sailings.
Containerized shipping began to be seen in the USA when the
U.S. Military began using 8'6"x6'3"x6"10" metal shipping
containers during World War II. By the 1950's, commercial
uses of containerized shipping in the United States were
being lead by Malcolm McLean. The concept was simple: use
metal shipping containers, similar to those used by the U.S.
Military, but in sizes that were larger yet still capable of being
transported by truck or train (intermodal). P.t.o.

5.  By the 1960's, intermodal shipping became the preferred
method of ocean transport with standardized box sizes,
weight and container build & tolerance specs allowed for
large scale investment around the standardization that solved
the cost and time issues.
 In 1984, intermodal shipping known as 'double-stack rail
transport' hit the intermodal scene, making for greater
efficiencies. Fast forward to today and intermodal is now
considered another mode of shipping, like truckload, LTL and
air versus thought of as a cost alternative to trucking freight.
The advent of the 53' domestic container as an alternative to
the 53' OTR dry van has helped the transition.
 Now with the history behind us, I just wanted to briefly
remind everyone that this simple invention revolutionized
the world world we live in today by facilitating international
commerce and global manufacturing in a way that could have
never occurred without the simple rectangular box.
Employment among cities, regions and countries have been
impacted, which also plays into the politics and culture of
each country across the global to allow for efficiencies,
specialization and expertise by region. So, while the
container was intended to cut costs at ports and improve the
speed the loading and unloading of goods, it has forever
changed the world we live in, and to my dismay, I'm surprised
that this invention has not hit many top 10, 25, 50 type lists
on the greatest inventions in world history.

6. TYPES OF CONTAINERS
 INSULATED OR THERMAL CONTAINERS -
These are the shipping storage containers that come with a
regulated tem premature control allowing them to maintain a
higher tempera true. The choice of material is so done to allow
them long life without being damaged by constant exposure to
high temperature. They are most suitable for long distance
transportation of products.
a)TANKS -
Container storage units used mostly for transportation of liquid
materials, they are used by a huge proportion of entire shipping
industry.
b)HALF HEIGHT CONTAINERS-
Another kind of shipping containers includes half height
containers. Made mostly of steel, these containers are half the
height of full sized containers. Used especially for good like coal,
stones etc. which need easy loading and unloading.
c)REFRIGERATED CONTAINER -
Refrigerated container (Reefer container) is used for
transportation of frozen and chilled cargos (e.g., fruits,
vegetables, meats, seafood and films).can maintain the target
temperature (from –18 to 20 degrees centigrade).
d)FRUIT CONTAINER -
These are insulated containers with internal dimensions slightly
longer.
e)BULK CONTAINERS -
These containers are design for carriage of dry powders and
gram substances in bulk.
f)VENTILATED CONTAINERS -
These containers have full length ventilation galleries.
g)OPEN SIDED CONTAINERS -
These containers are designed to accommodate specific
commodities such as plywood

7. STANDARDIZATION
 The use of container requires the application of
precise rules to meet standard of strength and size
when goods are carried by road, rail or sea.
In response to the large numbers of different types of
service worldwide, a classification system based on
use has been developed. All container must comply
with international ISO certification can be obtained
from AFNOR (Association franchise de normalization),
which issues an ‘’NF CONTSINERS’’ label to denote
compliance with standards.

8. PLAYERS IN THE
CONTAINERIZATION
CARGO SHIPSFREIGHT TRAINS
INLAND CONTAINER
DEPOT
TRUCKS

9. WORLD’S LARGEST CONTAINER
PORTS
Port Country
Volume
2014
(Million
TEU)
Volume
2015
(Million
TEU)
Shanghai China 36.54 35.29
Singapore Singapore 30.92 33.87
Shenzhen China 24.20 24.03
Ningbo-
Zhoushan
China 20.63 19.45
Hong Kong China 22.23 20.07
Bussan South Korea 18.65 19.45
Qingdao China 16.62 17.47
Guangzhou
Harbour
China
16.16 17.22
Jebel Ali,
Dubai
United Arab
Emirates
15.25 15.60
Tianjin China 14.05 14.11
Rotterdam, Netherlands 12.30 12.23
Port Klang Malaysia 10.95 11.89

10. ADVANTAGES OF
CONTAINERIZATION
 Even if containerization conveys numerous advantages to
freight distribution, it does not come without challenges.
The main advantages of containerization are:
a. Standardization- Standard transport product that can be
handled anywhere in the world (ISO standard) through
specialized modes (ships, trucks, barges and wagons) and
equipment. Each container has an unique identification number
and a size type code.
b. Flexibility- Can be used to carry a wide variety of goods such as
commodities (coal, wheat), manufactured goods, cars,
refrigerated (perishable) goods. Adapted containers for dry
cargo, liquids (oil and chemical products) and refrigerated cargo.
Reuse of discarded containers.
c. Costs- Lower transport costs due to the advantages of
standardization. Low transport costs; 20 times less than bulk
transport. Economies of scale at modes and terminals.
d. Velocity- Transhipment operations are minimal and rapid. Port
turnaround times reduced from 3 weeks to about 24 hours.
Containerships are faster than regular freighter ships, but this
advantage is undermined by slow steaming.
e. Warehousing- The container is its own warehouse; Simpler and
less expensive packaging. Stacking capacity on ships, trains
(doubles tacking) and on the ground (container yards).
f)Security and safety- Contents of the container is unknown to
carriers. Can only be opened at the origin (seller), at customs
and at the destination (buyer). Reduced spoilage and losses
(theft).

11. DISADVANTAGES OF
CONTAINERIZATION
a) Ports or terminals with container facility may
not be available in certain parts of the world.
b) Even where such facilities are available, delays
may occur due to overburden of loads.
c) Large capital expenditure may be essential to
handle ‘container based’ networks.

12. BASIC TRANSHIPMENT
REQUERMENTS OF A HUB PORT
Experience suggests that several port characteristics
facilitate the creation of transhipment hubs:
Location close to major world or regional shipping routes,
leading to minimum deviation from that
Shipping route, Preferably already handling a considerable
volume of base import and export cargo , Land area available
for cargo storage and / or value adding activities, Access to a
large hinterland, preferably with more than one transport
mode, Sufficient depths in approach channel and the port and
the possibility to increase the depth if required by the port
users (shipping lines), Little or no queuing of ships (“the
berth has to wait for the ship and not the other way around”),
Safe and secure port access from land and sea and a secured
(ISPS) port area, Efficient ship and cargo handling operations;
Good relations between port employers and employees
(unions), Reasonable level of port performance, Active port
business community, Banking and communication facilities,
Limited or rather no corruptive practices, Stable political
systems, and Regional role.

13. POTENTIAL HUB PORTS NAME IN THE
WORLD
 The top five transhipment hubs in the world:
a. Port of Singapore-
As the world’s largest transhipment hub, the Port of Singapore
handled a total of 32.63 million TEU in 2013, 85% of which was
transhipped to another port of call, according to PSA
International, a terminal operator for Singapore.
Being the top transhipment hub, Singapore is connected to 600
ports in 123 countries globally.
b. Port of Shanghai-
The Port of Shanghai handled 15.27 million TEU of transhipped
cargo in 2013, according to Yangtze Business Service.
It is currently the largest port in the world, having handled a
whopping 33.62 million TEU in 2013.
c. Port of Shenzhen-
The Port of Shenzhen handled 23.32m TEU in 2013, around half
of which was transhipped to another port of call.
According to USA Today, Shenzhen is the second largest port city
in the world and has become China’s wealthiest region.
d. Busan Port-
Busan Port handled just under 9 million TEU of transhipment
cargo in 2013, according to the Journal of Commerce.
Busan’s feeder network has enabled it to connect to ports in
Russia, China and Japan and its transhipment incentives enable it
to attract larger volumes of cargo, according to the Busan Port
Authority.
e. Port of Hong Kong-
In 2014, just under five million TEU of transhipped goods passed
through the Port of Hong Kong, according to the Loadstar.

14. POTENTIAL HUB PORTS
OTHER ISSUES
IT Infrastructure
 Standardization , network and information sharing
and knowledge products requires policy interference to
build more robustness and effectiveness around the IT
systems.
 Usage of GPS and RFID should be introduced
Leasing and Manufacture
 More encouragement should be given to manufacturing of
support elements for the marine supply chain through
containerization. This would comprise of containers,
wagons, tractors/trailers and cranes
 Leasing by non-shipping line owners is a beneficial
business model as observed in other countries

15. THE END