Advantages and Drawbacks of ContainerizationEven if containerization conveys numerous advantages to freight distribution, it does not come without challenges. 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; 20 times less than bulk transport. Economies of scale at modes and terminals.

Velocity. Transshipment 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.

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).

The main drawbacks of containerization are:

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.