Discuss advantages and disadvantages of containerization?

In export and import containerized movement is the only option even for LCL, consignments are dispatched after consolidation with other consignments.

Now a days, containers are used for domestic movement as well

There are multiple advantages of using containers 

1. Handling is very easy at port while loading and off loading the ship.

2. Containerization makes the multi model transportation effective and economical. Because ship to rail , Rail to road and road to rail movement is possible with de-stuffing and stuffing.

3) Container protect the goods from bad whether and pilferage.

4. Size is standard across the word hence quantum of export and import can be evaluated easily.

5. As compared to truck or trailer the demurrage cost is very nominal.

6. Variable size is available to take care of voluminous and heavy cargo.

7. Because of containerization, loading and unloading ( to the ship and from the ship) becomes fast and mechanized hence improved the throughput of port.

Disadvantage:

1- Size is a constraints in case of ODC

2- In case of domestic, it is bit expensive because of closed roof it is not suitable for all kind of cargo.

3- Where the filling done by crane from top then it is not suitable.

Advantages and disadvantages of containerization:

ADVANTAGES OF CONTAINERISATION:

 For ship-operators it reduces port time of ships and Improve working ratio of ships.

For ship-users (i.e. shippers/consignees) it reduces packaging cost (as example, goods can be placed in containers packed in cartons instead of in cases), Reduction of damage, pilferage and theft; Reduction in marine insurance premium; Greater protection of fragile and easily contaminable cargoes;

Reduction in inland transport costs;

 Faster and reliable delivery;  Retention of original quality of goods; Physical separation of 'dirty' cargoes; Simplification of documentary procedures;  Less inventory costs as a result of less transit time; and  Stable inventory control made possible by stabilized ships operation schedule.

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

DISADVANTAGES OF CONTAINERIZATION:

Site constrains. Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships. A large post-panamax containerships requires a draft of at least 13 meters.

Capital intensiveness. Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important capital investments.

Stacking. Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid and incur additional costs and time for terminal operators.

Repositioning. Many containers are moved empty (20% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption at the global level requires the repositioning of containerized assets over long distances (transoceanic).

Theft and losses. High value goods and a load unit that can forcefully opened or carried (on truck). Vulnerability between terminal and final destination. About 10,000 containers are lost at sea each year (fall overboard).

Illicit trade. Instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism

sorry i'm not expert on this filed

In sea shipment, the goods or products are placed inside a specific size wooden crate or wooden box and then these crates or boxes are stuffed inside a metallic 20ft or 10ft container. This is called containerization.

Advantages:

1.    By use of specific size crate or wooden box, the full space inside the container is utilized.

2.    Goods are not affected by weather conditions while at sea

3.    It is cheaper to transport goods in full container basis

4.    Door to door shipment is quite easy  and it saves shipping time/delivery time

5.    It is quite safe and there is little risk of theft during handling process

Disadvantages:

1.    Sufficient amount of goods are required  for full container shipment. In case of small volume, C&F agent or shipper will still take shipment in crate and then will wait for others to fill the container.

2.    The sub-road connecting to warehouse must be strong enough to take the truck with full container load

Advantage of containerization.  As per the logistic experience.  We must hire the container because the material handling is safe and secure, Concentrating on purchasing and arranging the inbound movement of materials from  supplier to manufacturing to our assembly plant / warehouse. All related documents and Bank LC / Bill of Ladding. Insurance. makes it easy to handle by logistic and its safe.  The arrival of consignment is easy to logistic to shift the container loading from port to client for off loading.  And make safe in time and labour hours.  Its very easy to claim the material if it is theft, before receiveing the container from port, we have to check the seal lock which is important for loose of material in transit.

Disadvantages of Container. 

Delay in documents or Bank payments. Missing of container references, 

If the Port workers are going on strick or some festival holidays. 

If we load the container% that will cost more expensive and the costing will be more to buyer than the principal amount.

Delay on port due to heavy wind that we are not allowed to used crane for off loading.

I fully agree with the answers been added by EXPERTS........Thanks.

The main advantages of containerization are:

• 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.
• 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.
• Costs. Lower transport costs due to the advantages of standardization. Low transport costs; times less than bulk transport. Economies of scale at modes and terminals.
• Velocity. Transshipment operations are minimal and rapid. Port turnaround times reduced from3 weeks to about hours. Containerships are faster than regular freighter ships, but this advantage is undermined by slow steaming.
• Warehousing. The container is its own warehouse; Simpler and less expensive packaging. Stacking capacity on ships, trains (doublestacking) and on the ground (container yards).
• 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).

• Site constrains. Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships. A large post-panamax containerships requires a draft of at least meters.
• Capital intensiveness. Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important capital investments.
• Stacking. Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid and incur additional costs and time for terminal operators.
• Repositioning. Many containers are moved empty (% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption at the global level requires the repositioning of containerized assets over long distances (transoceanic).
• Theft and losses. High value goods and a load unit that can forcefully opened or carried (on truck). Vulnerability between terminal and final destination. About, containers are lost at sea each year (fall overboard).
• Illicit trade. Instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism.