Containnerization.doc

UNITVI

Lecture: Advantages and disadvantages of containerization

Introduction

In this lecture I want to discuss some of the advantages and disadvantages of
containerization as a method of transporting general cargo. First, I want to look at
some of the advantages. These refer to both cost and time. Secondly, I want to look
at some of the disadvantages, which also refer to cost, and at, what might be called,
inconvenience.

Firstly, with reference to cost. Containerization reduces handling. This is because the
goods are only packed once. They are put into the containers at the warehouse or
factory and only taken out at their final destination. In addition, few people are
needed to load containers into ships. All this reduces transport costs. Less handling
also leads to less damage. Inside the container, which is strongly built, the goods are
protected. The container also protects the goods from pilfering. That is, from being
stolen. Stealing from cases which have been broken open is a serious problem in
many ports around the world. A container can be securely fastened. It is hoped that
less damage and less pilfering may lead to lower insurance premiums. However, this
is still under negotiation with insurance companies. Another way in which containers
have reduced costs is by making storage less of a problem. For example, containers
waiting for shipment can be left on the quayside rather than be put in warehouses.

Part 2
Now some of the advantages with reference to time. Time is an important factor and

is directly related to cost, because in any service time costs money. Containerization
reduces handling and less handling means less time is necessary for transporting the
goods. Time is further reduced by the easier stowage of containers compared with
non-containerized general cargo. Containers are of a standard shape and dimensions,
therefore they are easily stowed. In addition to easier stowage, containers are more
easily loaded and unloaded. This is done quickly by special cranes. Time is also
reduced by the fact that less handling means less paperwork. Because the goods
remain in the container they do not have to be checked when loaded and unloaded
into and off the ship.

Part 3

But containerization also has a number of disadvantages. These concern cost and,
what might be called, inconvenience. With reference to cost, a containerized
transport system is expensive to establish. The ship owner has not only to buy
specially designed container ships, but also the containers to go with them. However,
these can be hired and some shippers provide their own containers. Special port
facilities, such as special cranes, must also be provided by the port authority. These
are expensive to build and beyond the means of some countries and port authorities.

Part 4

With reference to inconvenience, containerization causes a number of problems. Not
all cargo can be put into containers. However, the percentage of non-containerizable
cargo falls each year as new types of container are introduced. Another inconvenience
is that different types of container are needed for different journeys and different
times of year. It may also be difficult for a small shipping company to fill a container
to capacity with compatible cargo. It is uneconomical to carry half full containers in
a ship. However, these difficulties have largely been overcome by the co-operation of
all those involved. Finally, a containerized system of transport depends on good road
and rail links with the port and the surrounding countryside. In some countries these
have not yet been developed.

UNIT VII

Shipping forecast at 0640 hours

Gale warnings are in operation in sea areas Forties, Dogger, Fisher and German
Bight.

The general synopsis at midnight last night. A depression of 988 millibars which