Container is at Ion

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Containerisation

TABLE OF CONTENTS

CONCEPT OF CONTAINERISATION

CONTAINER STANDARDS

CLASSIFICATION OF CONTAINERS:IDENTIFICATION OF CONTAINERS:

ADVANTAGES OF CONTAINERISATION :

CONCEPTS OF FCL & LCL:

LEASING OF CONTAINERS:

CONTAINER SHIPMANAGEMENT OF CONTAINER SERVICE BY SHIPOWNERS/SHIP OPERATORS:

CONTAINER TERMINAL AND EQUIPMENT:

CONTAINERISATION IN INDIA:RECENT POSITION :PRESENT DIFFICULTIES AT ICD's :

PACKAGING:

CONTAINER CORPORATION OF INDIA :

FUTURE NEEDS:

ISSUESOTHER USES OF CONTAINERS

Bibliography

Basic concept of Containerisation

Containerisation can be defined as a system of intermodal [The term intermodal meansthat the container can be loaded on different means (or modes) of transport - forexample, ships, aircraft, trains, trucks, etc. - with the minium of effort and without haveto unpack and repack the container.] freight and cargo transport using standard ISOcontainers (known as Shipping Containers or Isotainers) that can be loaded and sealedintact onto container ships, railroad cars, planes and trucks.

The idea of using standard containers that could be easily and quickly packed andloaded onto like 'lego blocks' onto ships, aircraft, trucks and trains, resulted in a hugereduction in port handling costs, contribute significantly to lower freight charges,increased cargo security and, in turn, boosted trade flows.


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Origins

Containerisation has its origins in early coal mining regions in England and Germanyfrom the late 1700s on. The global standardization of containers and container handlingequipment was an important innovation in 20th century logistics.

By the 1830s, railroads on several continents were carrying containers that could betransferred to other modes of transport. Originally used for moving coal on and offbarges, 'loose boxes' were used to containerize coal from the late 1780s, at places likethe Bridgewater Canal. By the 1840s, iron boxes were in use as well as wooden ones.The early 1900s saw the adoption of closed container boxes designed for movementbetween road and rail.

In the United Kingdom, several railway companies were using similar containers by thebeginning of the 20th century and in the 1920s the Railway Clearing Housestandardised the RCH container. Five- or ten-foot-long, wooden and non-stackable,

these early standard containers were a great success but the standard remained UK-specific.From 1926 to 1947, in the US, the Chicago North Shore and MilwaukeeRailway carried motor carrier vehicles and shippers' vehicles loaded on flatcars betweenMilwaukee, Wisconsin and Chicago, Illinois. Beginning in 1929, Seatrain Lines carriedrailroad boxcars on its sea vessels to transport goods between New York and Cuba. Inthe mid-1930s, the Chicago Great Western Railway and then the New Haven Railroadbegan "piggy-back" service (transporting highway freight trailers on flatcars) limited totheir own railroads. By 1953, the CB&Q, the Chicago and Eastern Illinois and theSouthern Pacific railroads had joined the innovation. Most cars were surplus flatcarsequipped with new decks. By 1955, an additional 25 railroads had begun some form ofpiggy-back trailer service.

In 1955, businessman (and former trucking company owner) Malcom McLean workedwith engineer Keith Tantlinger to develop the modern intermodal container. Thechallenge was to design a shipping container and devise a method of loading andlocking them onto ships. The result was a 8 feet (2.4 m) tall by 8 ft (2.4 m) wide box in10 ft (3.0 m) long units constructed from 25 mm (0.98 in) thick corrugated steel. Thedesign incorporated a twist-lock mechanism atop each of the four corners, allowing thecontainer to be easily secured and lifted using cranes. Helping McLean make thesuccessful design, Tantlinger convinced McLean to give the patented designs to theindustry; this began international standardization of shipping containers.

Toward the end of World War II, the United States Army used specialized containers tospeed the loading and unloading of transport ships. The army used the term"transporters" to identify the containers, for shipping household goods of officers in thefield. A "transporter" was a reusable container, 8.5 feet (2.6 m) long, 6.25 feet (1.91 m)wide, and 6.83 feet (2.08 m) high, made of rigid steel with a carrying capacity of 9,000pounds. During the Korean War the transporter was evaluated for handling sensitivemilitary equipment, and proving effective, was approved for broader use. Theft ofmaterial and damage to wooden crates, in addition to handling time, by longshoremen


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at the Port of Busan convinced the army that steel containers were needed. In 1952 thearmy began using the term CONEX, short for "Container Express". The first majorshipment of CONEXes (containing engineering supplies and spare parts) were shippedby rail from the Columbus General Depot in Georgia to the Port of San Francisco, thenby ship to Yokohama, Japan, and then to Korea, in late 1952. Shipment times were cut

almost in half. By the Vietnam War the majority of supplies and materials were shippedwith the CONEX. After the U.S. Department of Defense standardized an 8'8' crosssection container in multiples of 10' lengths for military use, it was rapidly adopted forshipping purposes. These standards were adopted in the United Kingdom for containersand largely displaced wooden containers in the 1950s.The railways of the USSR hadtheir own small containers.

Towards standards

During its first 20 years, many container sizes and corner fittings were used; there weredozens of incompatible container systems in the U.S. alone. Among the biggest

operators, the Matson Navigation Company had a fleet of 24-foot (7.3 m) containerswhile Sea-Land Service, Inc used 35-foot (11 m) containers. The standard sizes andfitting and reinforcement norms that exist now evolved out of a series of compromisesamong international shipping companies, European railroads, U.S. railroads, and U.S.trucking companies. Four important ISO (International Organization for Standardization)recommendations standardized containerization globally.January 1968: R-668 definedthe terminology, dimensions and ratings

y July 1968: R-790 defined the identification markingsy January 1970: R-1161 made recommendations about corner fittingsy October 1970: R-1897 set out the minimum internal dimensions of general

purpose freight containers

In the United States, containerization and other advances in shipping were impeded bythe Interstate Commerce Commission, which was created in 1887 to keep railroadsfrom using monopolist pricing and rate discrimination but fell victim to regulatorycapture. By the 1960s, ICC approval was required before any shipper could carrydifferent items in the same vehicle, or change rates. The United States' present fullyintegrated systems became possible only after the ICC's regulatory oversight was cutback (and abolished in 1995), trucking and rail were deregulated in the 1970s andmaritime rates were deregulated in 1984.

Double-stack rail transport, where containers are stacked two high on railway cars wasintroduced in 1984 and first user was in the United States.

Today

Today, approximately 90% of non-bulk cargo worldwide moves by containers stackedon transport ships;[ 26% of all container transhipment happens in China. For example in2009 there were 105,976,701 transhipments in China (both international and coastal),and 21,040,096 happening in Hong Kong (which is listed separately), and only


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34,299,572 in the United States. As of 2005, some 18 million total containers make over200 million trips per year. There are ships that can carry over 14,500 Twenty-footequivalent units (TEU), for example the Emma Mrsk, 396 m long, launched August2006. It has even been predicted that, at some point, container ships will be constrainedin size only by the depth of the Straits of Malaccaone of the world's busiest shipping

laneslinking the Indian Ocean to the Pacific Ocean. This so-called Malaccamax sizeconstrains a ship to dimensions of 470 m (1,540 ft) in length and 60 m (200 ft) wide.However, few initially foresaw the extent of the influence containerization would bring tothe shipping industry. In the 1950s, Harvard University economist Benjamin Chinitzpredicted that containerization would benefit New York by allowing it to ship its industrialgoods more cheaply to the Southern United States than other areas, but did notanticipate that containerization might make it cheaper to import such goods fromabroad. Most economic studies of containerization merely assumed that shippingcompanies would begin to replace older forms of transportation with containerization,but did not predict that the process of containerization itself would have a more directinfluence on the choice of producers and increase the total volume of trade. The

widespread use of ISO standard containers has driven modifications in other freight-moving standards, gradually forcing removable truck bodies or swap bodies intostandard sizes and shapes (though without the strength needed to be stacked), andchanging completely the worldwide use of freight pallets that fit into ISO containers orinto commercial vehicles.

Improved cargo security is also an important benefit of containerization. The cargo isnot visible to the casual viewer and thus is less likely to be stolen and the doors of thecontainers are generally sealed so that tampering is more evident. Some containers areoutfitted with electronic monitoring devices and can be remotely monitored for changesin air pressure, which happens when the doors are opened. This has reduced the"falling off the truck" syndrome that long plagued the shipping industry.

Use of the same basic sizes of containers across the globe has lessened the problemscaused by incompatible rail gauge sizes in different countries. The majority of the railnetworks in the world operate on a 1,435 mm (4 ft 8 12 in) gauge track known asstandard gauge but many countries (such as Russia, India, Finland, and Lithuania) usebroader gauges while many other countries in Africa and South America use narrowergauges on their networks. The use of container trains in all these countries makestrans-shipment between different gauge trains easier.

Containers have become a popular way to ship private cars and other vehiclesoverseas using 20 or 40ft containers. Unlike roll-on/roll-off vehicle shipping, personaleffects can be loaded into the container with the vehicle, allowing for easy internationalrelocation.

Container standards

ISO standard


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There are five common standard lengths, 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). United States domestic standard containers aregenerally 48 ft (15 m) and 53-ft (rail and truck). Container capacity is often expressed intwenty-footequivalentunits (TEU, or sometimes teu). An equivalent unit is a measure of

containerized cargo capacity equal to one standard 20 ft (length) 8 ft (width) container.

As this is an approximate measure, the height of the box is not considered, for instancethe 9 ft 6 in (2.9 m) High cube and the 4-ft 3-in (1.3 m) halfheight20 ft (6.1 m)containers are also called one TEU.

The maximum gross mass for a 20 ft (6.1 m) dry cargo container is 24,000 kg, and for a40-ft (including the 2.87 m (9 ft 6 in) high cube container), it is 30,480 kg. Allowing forthe tare mass of the container, the maximum payload mass is therefore reduced toapproximately 22,000 kg for 20 ft (6.1 m), and 27,000 kg for 40 ft (12 m) containers.

The original choice of 8 foot height for ISO containers was made in part to suit a largeproportion of railway tunnels, though some had to be modified. With the arrival of even

taller containers, further enlargement is proving necessary.

Air freight containers

While major airlines use containers that are custom designed for their aircraft andassociated ground handling equipment theInternational Air Transport Association(IATA)has created a set of standard containersizes, the LD-designation sizes are shown below:

DesignationWidth

(in)

Height

(in)

Depth

(in)

Base

(in)

Max load

(lb)

Max load

(kg)

Shape

LD-1 92.0 64.0 60.4 61.5 3500 ~1588 Type A

LD-2 61.5 64.0 47.0 61.5 2700 ~1225 Type A

LD-3 79.0 64.0 60.4 61.5 3500 ~1588 Type A

LD-4 96.0 64.0 60.4 n/a 5400 ~2449 Rectangular


LD-6 160.0 64.0 60.4 125.0 7000 ~3175 Type B

LD-7 125.0 64.0 80.0 n/a 13300 ~6033Rect. orContoured

LD-8 125.0 64.0 60.4 96.0 5400 ~2449 Type B

LD-9 125.0 64.0 80.0 n/a 13300 ~6033Rect. orContoured

LD-10 125.0 64.0 60.4 n/a 7000 ~3175 Contoured


LD-29 186.0 64.0 88.0 125.0 13300 ~6033 Type B


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LD-1, -2, -3, -4, and -8 are those most widely used, together with the rectangular M3containers.

Other container system standards

Some other container systems are:

y PODSy Haus-zu-Haus (Housetohouse) (Germany)[citationneeded]y RACE (Australia)y SECU (Sweden, Finland, UK)y ARKASy Japanese railway containers (Japanese) Containers used by Japan Freight

Railway Company

TYPES OF CONTAINERS

The exterior dimensions of all containers conforming to ISO standards are 20 feet long x8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high cube containers.

VENTILATEDCONTAINER

20'

Ideal for cargo requiringventilation

BULK CONTAINER20' For bulk cargoes

TANK CONTAINER20'

For transportation of liquidchemicals and food stuffs

DRY FREIGHTCONTAINER20' and 40'

General purpose container

HIGH CUBE CONTAINER40' and 45' 9'6" High - For over height andvoluminous cargo

OPEN TOP CONTAINER20' and 40'

Removable tarpaulin for toploading of over height cargo


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FLAT RACK20' and 40'

For over width and heavy cargo

PLATFORM

20' and 40'

For extra length and heavy

cargo

INSULATED CONTAINER20' and 40'

For additional insulation ofsensitive cargo

REEFER CONTAINER20' and 40'

For cooling, freezing or heatingof foods or chemicals

HIGH CUBE REEFERCONTAINER

40' and 45'

9'6" High - For over height andvoluminous cargo requiring

cooling or freezing(a) Dry Container

Dry Containers is the most popular and used fortransportation of various general cargos. It is alsocalled Standard container and it is mostly made ofsteel.

(b) Refrigerated Container (Reefer Container)

Refrigerated container (Reefer container) is used fortransportation of frozen and chilled cargos (eg, fruits,vegetables, meats, seafood and films ). It is equipped

with refrigeration unit and can maintain the targettemperature (from 18 to 20 degrees centigrade).

(c) Open Top Container

Open top container is used for transportation of highheight and heavy cargos. It is covered by canvas inorder to protect from rain and wind when they aremoving.(d) Flat Rack Container

Flat rack container is used for transportation of bulkycargo which is unable to handle by general container. It

is designed for carrying extra wide loads and can beload from both side and top as it has not got any wallsand roof.(f) Tank Container

Tank container is used for transportation of liquid, asmolts, soy sauce and chemical goods and so on. Aframework surrounds a tank with the overalldimensions of a container and it is common to be


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owned by a shipper.

Ventilated containers

Ventilated containers are also known as passive (naturally) ventilated or coffeecontainers. Ventilation is provided by ventilation openings in the top and bottom side

rails. The openings do not let in spray, to prevent depreciation of the cargo by rain orspray, for example.

If actively ventilated containers are required, i.e. containers with adjustable ventilation,"porthole" containers may be used, which simultaneously act as insulated orrefrigerated containers. Lashing rings, to which the cargo may be secured, are installedin the upper and lower side rails and the corner posts. The lashing rings may take loadsof up to 1,000 kg. The common size for ventilated containers is 20'. Ventilatedcontainers are used especially for cargoes which have to be ventilated in transit. One ofthe most significant of such commodities is green coffee beans, hence the name coffeecontainer.

Bulk container

A bulk container is a type of container use to transport and store bulk materials andfluids. The materials used to construct this type of container are carefully chosendepending on the application it is intended for. There are various types of bulkcontainers: plastic composite bulk containers, steel bulk containers, and stainless steelbulk containers.They are cubic in form and can ship more materials in the same areacompared to cylindrically shaped containers. They can also be used to ship items inconsumer quantities.They use plastic liners that can be easily filled up and dischargedwith different systems.The processor/manufacturer of any product can bulk packagetheir products in one country and ship them to different countries at a more reasonableand affordable cost as the items are subsequently packaged in already final consumerpackage that adheres with the countrys regulations as well as in the language and formsuitable for the country of destination.

High-cube containers

High-cube containers are similar in structure to standard containers, but taller. Incontrast to standard containers, which have a maximum height of 2591 mm (8'6"), high-cube containers are 2896 mm, or 9'6", tall. High-cube containers are for the most part40' long, but are sometimes made as 45' containers. A number of lashing rings, capableof bearing loads of at most 1000 kg, are mounted on the front top end rail and bottomcross member and the corner posts.Many 40' containers have a recess in the floor at

the front end which serves to center the containers on so-called gooseneck chassis.These recesses allow the containers to lie lower and therefore to be of tallerconstruction. High-cube containers are used for all types general cargo (dry cargo).However, they are particularly suitable for transporting light, voluminous cargoes andoverheight cargoes up to a maximum of 2.70 m tall.

Platform containers


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Platform containers of 20 and 40 comprise a reinforced base without ends. The floorstructure has an extremely high loading capacity and makes it possible to concentrateextremely heavy weights on small areas.Platform containers consist of a steel frameand a wooden floor structure. The 40 platforms have a gooseneck tunnel at each endand lashing rings for securing cargo of up to 3,000 kg can be found in the side rails.

Insulated shipping containers

Insulated shipping containers are a type of packaging used to ship temperaturesensitive products such as foods, pharmaceuticals, and chemicals. They are used aspart of a cold chain to help maintain product freshness and efficacy. An insulatedshipping container might be constructed of:

1. a vacuum flask, similar to a "thermos" bottle2. fabricated thermal blankets or liners3. molded expanded polystyrene foam (EPS, styrofoam, etc), similar to a cooler

4. other molded foams such as polyurethane, polyethylene, etc5. sheets of foamed plastics6. reflective materials: (metallised film, etc)7. bubble wrap or other gas filled panels.

High CubeRefrigerated Containers

High Cube Refrigerated Containers (= Reefer Containers) are used for the carriage ofthe goods requiring controlled temperature in transit, such as fruit, vegetables and diaryproducts and meat. It is fitted with a refrigeration unit which is connected to the carryingships electrical power supply. These containers have greater height than the 40 ftRefrigerated Container . For over height and voluminous cargo requiring cooling orfreezing, high cube reefer containers are used.

A containers are made of various materials. The maximum number of containers aremade of steel, aluminium or GRP. (Glass Fiber reinforced plywood). Almost 65% of theentire container fleet presently consist of steel containers.

5. The main advantages of steel containers are :

i. They are the cheapest.ii. They can be more easily repaired compared to aluminium or GRP

containers in view of availability of skilled labourers and equipments tohandle steel. In the USA the aluminium containers can be more easilyrepaired compared to steel containers.

iii. They can resist damage. While a damage can create a hole in analuminium container, it can cause only a dent in a steel container whichmay not warrant an immediate repair.


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6. The disadvantages of steel containers are:

i. They can have an economic life of about 10 years, while aluminium orGRP containers may last longer.

ii. They will have more tare weight compared to other types of container,

thus will be able to carry less payload of cargo.iii. They suffer by being more prone to corrosion. But this can be overcomeby us of alloy steel instead of ordinary steel.

IDENTIFICATION OF CONTAINERS:

15. For identification, containers have marking showing:

i) Owner Code, Serial Number and Check Digit.ii) Country Code and type code.iii) Maximum, Gross and Tare Weight.

This is illustrated below:

Owner CodeSerial NumberCheck Digit

Country CodeSize CodeType Code

ABZU 001234 3 FXX 2030MAS Gross 00000 kg

00000 Lb

Tare 0000 KG

0000 Lb

ADVANTAGES OF CONTAINERISATION :

16. A) For ship-operators

i. Reduction in port time of ships.ii. Improved working ratio of ships.

17. B) For ship-users (i.e. shippers/consignees)

i. Reduction in packaging cost (as example, goods can be placed incontainers packed in cartons instead of in cases);


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ii. Reduction of damage, pilferage and theft;iii. Reduction in marine insurance premium;iv. Greater protection of fragile and easily contaminable cargoes;v. Reduction in inland transport costs;vi. Faster and reliable delivery;

vii. Retention of original quality of goods;viii. Physical separation of 'dirty' cargoes;ix. Simplification of documentary procedures;x. Less inventory costs as a result of less transit time; andxi. Stable inventory control made possible by stabilised ships operaton

schedule.

18. The most outstanding contribution of containerisation is the suitability and capabilityof containers for door-to-door transportation internationally. This is called 'Intermodal orMultimodal' transportation system, eg. from Delhi to Zurich in Switzerland.

CONCEPTS OF FCL & LCL:

19. FCL means Full Container Load. Here the container consists of cargoes meant forone party, i.e. consignee only. The cargo is stuffed at shipper's warehouse and isdestuffed at consignee's warehouse.

Here the responsibility of stuffing, stowing of cargo inside the container is of the shipper.Stuffing charges are on account of the shipper and the destuffing charges on account ofthe consignee.

LCL means Less Container Load. Here the container consists of cargoes meant for

different parties. The carrier collects cargoes from various shippers and stuff all of theminto a container at the pier. At destination, the carrier's agents destuff the cargoes fromthe container and deliver the cargoes to respective consignees.

FCL/LCL. - A shipment of goods which the merchant is responsible for packing into thecontainer and the carrier is responsible for unpacking the container.

LCL/FCL. - A shipment of goods which the carrier is responsible for packing into thecontainer and the merchant is responsible for unpacking out of the container.

LEASING OF CONTAINERS:

20. Containers are taken on lease by carriers from container manufacturing companies.There are four types of leasing arrangements.

i. Trip lease or short term lease: Here lease is taken for one voyage or onetrip.

ii. Long Term Lease: Where containers are usually leased for 3 to 5 years.


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iii. Financial Lease: This is more of a hire-purchase or instalment-purchasescheme rather than a lease, as in this case, at the end of the term forwhich containers are taken on financial lease, the ownership of thecontainers is transferred to the shipowners.

iv. Master Lease: In this case one shipowner concludes a deal with a

container leasing company for a period of usually 1-2 years whereby heguarantees that a minimum number of containers will alays be under hislease from the leasing company and as against this guarantee, thecontainer leasing company also assure the ship-owner that a minimumnumber of empties will be made available to the shipowners at the variousports as agreed upon between the two contracting parties.

Purpose-built ships

Container ship

The first vessels purpose-built to carry containers began operation in Denmark in1951. In the U.S. ships began carrying containers between Seattle and Alaska in1951. The world's first intermodal container system used the purpose-built containership the CliffordJ. Rodgers, built in Montreal in 1955 and owned by the White Passand Yukon Route. Its first trip carried 600 containers between North Vancouver,British Columbia and Skagway, Alaska, on November 26, 1955; in Skagway, thecontainers were unloaded to purpose-built railroad cars for transport north to theYukon, in the first intermodal service using trucks, ships and railroad cars.Southbound containers were loaded by shippers in the Yukon, moved by rail, shipand truck, to their consignees, without opening. This first intermodal systemoperated from November 1955 for many years.

The U.S. container shipping industry dates to April 26, 1956, when truckingentrepreneur McLean put 58 containers aboard a refitted tanker ship, the Ideal-X,and sailed them from Newark to Houston. What was new in the USA aboutMcLean's innovation was the idea of using large containers that were never openedin transit between shipper and consignee and that were transferable on anintermodal basis, among trucks, ships and railroad cars. McLean had initially favoredthe construction of "trailerships"taking trailers from large trucks and stowing themin a ships cargo hold. This method of stowage, referred to as roll-on/roll-off, was notadopted because of the large waste in potential cargo space onboard the vessel,known as broken stowage. Instead, he modified his original concept into loading justthe containers, not the chassis, onto the ships, hence the designation container shipor "box" ship.


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Today's container ships are being built to take 13,000 T.E.U., such as the EMMAMAERSK.

As well as the Twenty foot container, many goods need larger boxes, so there is alarger standard sized container, the FEU (Forty Foot Equivalent Unit). On board amodern containership, the complex method of loading the TEU and FEU in an order thatwill facilitate offloading at the other end is now largely computerised. As if speciallydesigned to give Chief Officers a headache, a modern development is the "high box", astandard container in length and width, but 9' 6" high (instead of the standard 8').Refrigerated containers ("reefer containers") have become very popular for the carriageof meat and fruit. Due to their flexibility of usage, these reefer containers are gradually


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destroying the need for specialised "reefer" ships, whose numbers are declining due totheir business being taken over by these reefer containers.

The containersare anchoredby "twist

locks", whichsimply twistround to lockthe 8 cornersof thecontainer totheneighbouringcontainer. Theoutside of thewhole stack is

then furtherfixed withlashing polesdiagonallyfrom corner tocorner.

These vessels are built for speed, and can reach upwards of 28 knots, movingcargoes around the world. Globally storing and returning empty boxes has become

an industry in itself !

Through-transport or inter-modal transport, means that these containers can beoffloaded from a ship, and rapidly loaded onto trains or onto container lorries foronward transport to the place of delivery.

y MANAGEMENT OF CONTAINER SERVICE BY SHIPOWNERS/SHIPOPERATORS:

y Ship - owners/operators enter into various arrangements to operate a containerservice. This becomes necessary because of very huge financial outlay requiredto acquire, maintain and operate container ships and service.

y Shipowners/operators sometime form container consortium. In a fully integratedcontainer consortium, a separate legal or commercial entity is formed byamalgamation of two or more individual shipowners who contribute their effort,capital and market share in a container service in a specified trade route. Thepartners usually supply and man their vessels to the consortium on time charterbasis. The number of vessels and their carrying capacity to be provided byindividual shipowner is usually determined on the basis of the individual marketshare of the partners commanded prior to formation of the consortium.


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y There can also be Slot Charter Arrangements. Here two or more shipownercome into some slot charter arrangement and do not lose their legal or economicentity. The partners usually run their own vessels and expenses for the vesselsare met by the partner to whom the vessel belongs.

y The slot capacity of the vessel is divided amongst partners depending on their

previous market value. Towards each TEU or slot utilized by the other partners, afixed amount is paid to the ship-owner/partner. This amount is revised regularlyby joint discussions amongst the partners taking into consideration the revisedoperating costs, box rate levels etc. Marketing in a slot charter arrangement isusually done independently by each partners as against the consortium wheremarketing is done jointly. The disadvantage of slot charter arrangements is thatthe partners tend to compete more on the land leg of transportation by quotingcheater inland haulage rates etc.

y Shipowner sometime agree to have Joint Sailing Schedule. Joint SailingSchedule can be operated by two or more shipowner through mutual agreementon joint schedule of vessels based on (a) Money pool where the revenue is

pooled and distributed among partners depending on carrying ratio cost incurredand other factors (b) Joint ownership of vessels where contribution from variouspartners are usually to the extent to their respective quotas in carrying capacity(c) Independent or co-ordinated marketing set up.

y While operating a container service, there are two major limitations: (i) Size of thevessels, and (ii) Frequency. The size of the vessel will be determined by the portlimitations, i.e. the limitation of the ports where the vessels have to call asregards the availability of required draught, quay length, equipments, storageareas etc. The frequency of service required by the trade also limits the vessel'ssize, e.g. if the sailing frequency is set too high, then cargo accumulation duringthe short gap between two sailings may not warrant a vessel of bigger size. If the

sailing frequency is kept too low, then cargo may be lost to competitors and itmay even tarnish the image of the shipowner.

y The frequency of service is more important presently as a large portion ofinternational trade is conducted through letters of credit, which stipulate a lastdate of shipment and last date of negotiation of the document. In order toovercome the difficulty of frequent sailings and also to some extent overcome theproblem of huge capital involved in containerisation, shipowners have organisedthemselves by forming container consortia, slot charter arrangements, jointsailing schedules, etc.

y Feeder Service. Here the deep sea vessels or mother vessels, as they arecalled, only call at a few limited ports and cargo is accumulated at these ports by

feeder service from other ports in the region. Feeder ships are small size vesselsof around 300/400 TEU's. Sometimes this method leads to a longer transit timefor the cargo reaching its ultimate destination. Presently most of the containershipping companies operate through feeder ships, which transfer the containersof deep sea or mother ships at specified ports. Singapore, Colombo and Madrashave been serving as feeder ports where mother ships receive containers fromfeeder ships of the region.


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CONTAINER TERMINAL AND EQUIPMENT:

A model container terminal may usually be divided into the following areas :

i. The Ships Area : This comprises a quay line where the container vessels

are breathed. Usually the modern container terminals are provided withgantries which are heavy cranes required to handle containers. Theregantries are generally mounted on rails and move to and from along theentire length of the container vessels. The gantries are usually fitted withautomatic spreader for faster handling of container, which is not possible ifthe individual containers are to be manually slung to the gantries. Themodern container terminals usually have gantries with carrying capacity of35-50 meters. The output of a gantry in a modern terminal is estimated at20/25 TEUs per hour.

ii. Marshalling Yards: The rear portion of the ship's area is known asmarshalling yard and is used to prestack a limited number of export

containers as buffer stock for loading and also to prestack a limitednumber of import containers after being discharged from vessels and priorto their removal to container stacking yard.

iii. Stacking Yard or Container Yard: This is the area where the importcontainers are transferred from marshalling yard and stored until they aretaken to container freight station, Inland Container Depots, Consignee'swarehouses, etc. Similarly, this is the area where export containers arebrought from ship operators warehouse, ICD, CFS, etc. prior to beingmoved to marshalling yard quay line for being loaded on board a vessel.Container yard is also used to stack empties. Usually the yard is dividedinto various subdivisions meant for stacking empties, export containers,

import containers and, quite often, a seperate yard is provided forseperate shipowners.

CONTAINERISATION IN INDIA:

The concept of containerisation was introduced in India in 1968 in a seminar held inBombay. Since then the Indian shipowners and the trade started considering its use. Aworking Committee report on the subject came out. Sometime in early 1970s, theShipping Corporation of India Limited acquired its first semi-container ship with threeholds designed to carry containers and other two holds to carry general cargo. Othershipping companies like Scindias and India Steamship followed suit. Later, IndiaSteamship Company acquired a small cellular container ship.

In 1975, the American President Lines scheduled their cellular container ships toBombay, bringing with them the necessary handling equipment. Many European linesalso started scheduling their cellular ships thereafter.


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Only after 1978, India started developing seriously towards containerisation. Major portslike Bombay, Cochin, Madras, Haldia/Calcutta commenced equipping themselves tohandle container ships and containers.

Shippers and consignees also gradually responded to containerisation. Importers from

abroad stipulated in their Letters of Credit that the goods should be containerised.Hence, despite heavy investments required and numerous problems, India had to go infor containerisation, lest exports be seriously affected.

RECENT POSITION :

Six Inland Container Depots (ICDs) came to be commissioned. They are :

(i) Bangalore (Contonment); (ii) Coimbatore; (iii) Guntur; (iv) Anaparti; (v) Delhi; (vi)Amingaon (Guwahati). They are linked with seaports. Bangalore, Guntur and Anapartiwith Madras; Delhi with Bombay; Coimbatore with Cochin/Madras; Amingaon with

Calcutta/Haldia. Combined Transport Documents (CTDs) are issued at these ICDs.

More ICDs are planned to be set up at Hyderabad, Ahmedabad (which are about to becommissioned), Ludhiana, Varanasi, Kanpur, Pune, Quilon, Ranchi, Gorakhpur, Giridih,New Jalpiguri, Muradabad,.Agra, Jammu Tawi and Mirzapur.

Indian Shippers/consignees are spread all over India. Opening of ICDs help them toexport/import to and from Inland Points convenient to them enjoying all necessaryfacilities. Given proper infrastructure facilities, these ICDs will boom with export/importactivities.

PRESENT DIFFICULTIES AT ICD's :

The ICDs so far set up represent only an ad hoc arrangement as Pilot projects withrudimentary facilities. The space available at the ICDs is not adequate and the layout isnot conducive to efficient and fast operations; neither is a schedule laid down formovement of traffic between ports and ICDs, nor is there any guaranteed transit timeindicated for transport of boxes. Operation of the ICDs is entrusted to handlingcontractors nominated by the Railways. In fact, the receipt of container flats is tailored tosuit the capacity of the ICDs. Much remains to be done to develop the ICDs on the rightlines to cater to the container traffic efficiently. The length of the sidings at the existingICDs is not sufficient enough to accommodate one full rake at a time and piecemeal

shunting of flats has to be resorted to for loading/unloading containers. In some of theICDs, due to non-availability/non-functioning of heavy lift cranes/low mast forkliftstrucks, the stuffing or destuffing of containers is carried on the flats. This affectsturnaround and hence better utilization of flats.

Apart from proper infrastructure and operational efficiency at the ICDs and the ports, ashipper also looks at the cost incurred in containerizing his cargo. Obviously he looksfor the best scales of economy involved in transportation.


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In India, the export market is dominated by the buyers and the exporters have tonecessarily concede to the conditions imposed by the buyers. Most of the exports aresold on FOB basis. Due to the conditions imposed on the Indian Exporter by the foreignbuyer, the Indian Exporter has to meet the cost of local transportation. This means thathe bears the cost of positioning the empty container at the ICD, stuffing the cargo into

the container, handling charges at the ICD, rail freight for movement of the loadedcontainer from the ICD to the gateway port and the port handling charges.

40. In India, roughly this Inland Transportation and various services charges isestimated to amount to 40% of the ocean freight while, based on internationalexperience, it should not cost more than 20% of the ocean freight. The incidence of highexpenditure for inland transportation in India is said to be on account of the existence oflarge number of agencies involved in rendering various services required by theexporter in this regard. Each Agency, viz., the freight forwarders, handling agents at theICDs, Railways, Shipping Agents, Stevedores and the ports obviously claims its shareof profit. Only of there were to be one agency and a package deal is offered to the user,

the cost of Inland Transportation and the various services rendered would come downconsiderably.

PACKAGING:

Presently, the Indian exporter is yet to realise the full impact of containerising his cargo.An area which remains largely neglected is packing. In conventional shipping, most ofthe cargoes other than bags, palletised shipments and loose pieces not requiringprotection attracted strong wooden crates to ensure safety of the cargo and withstandmultiple handling of cargoes. Therefore, specialised firms were established to undertakethis work. Thanks to containerisation, some of the risks to which cargo was formerly

exposed, especially those associated with rough handling during transportation andhandling at the docks have been markedly reduced. Therefore, the necessity ofproviding hard, sturdy and unbreakable material for packing has been minimised. Thismeans that packaging costs can now be lowered. More space in the container can alsobe made use of for stuffing of cargoes. A scientific study of proper packaging andstuffing can result in about 25% increase in the use of containers.

HOW TO PACK A MARINE CONTAINER

Although containers are thoroughly tested to ensure that they can withstand every sortof stress and strain, shippers should not assume that they can disregard other cargoprotection precautions.Most cargo losses are preventable. The conscientious trafficmanager will quickly realize that the proper packing of containers will greatly influencesuccessful delivery of his goods.Satisfied customers and repeat orders are only two ofthe benefits that stem from a careful approach to container packing. Reductions of timeand money spent in tracing, locating and making adjustments on lost, damaged orstolen merchandise all lead to a much greater benefit - increased profits.The following suggestions will help you to minimize possible loss and damage.The first


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step, of course, is to check and prepare each container before packing it. Forexample:EXTERNAL:a) The container must not have any obvious holes or tears in the outside paneling.b) The doors should be in good order. Check that gaskets, door hinges and locks are

not broken or twisted.c) Before packing open-top and open-side containers make sure the canvas tilts arecomplete and not ripped. Customs seal ropes should fit correctly and their end piecesshould be intact.d) Soft-topped containers should have all the roof-bows (supports) in place. The sameapplies to the removable stanchions found on flats.e) Any labels remaining on the outside of the container which refer to the previous cargo(e.g. IMCO Labels) should be removed to avoid misunderstandings and penalties.f) When using refrigerated containers, check whether the temperature setting is correctfor the commodity about to be packed.INTERNAL:

a) The container should be clean and there should be no evidence of the previouscargo.Make sure that nails or other protruding objects will not cause damage to yourcargo.b) If delicate goods, susceptible to odor damage, are to be packed, the container shouldbe treated. Either burning coffee beans or using a deodorant spray can saturate crosstaint.c) Before packing highly delicate goods the container should be lined with paper orplastic.d) Make sure the interior is absolutely dry. Any sweat or frost should be wiped off toavoid moisture damage.e) To check whether the container is watertight, enter the unit and have both doors shut.If any light can be seen, water can gain entry.f) If you intend to ship goods liable to leakage and/or producing bad odors the containershould be protected by plastic foils and absorbing material (e.g. peat, sawdust,infusorialearth, etc.).In box and open-top containers, the superimposed pressure caused by the load isspread over the floor to the bottom cross members. Hence it follows that when utilizingthe full payload of such containers, all bottom cross members should preferably bestraddled.The maximum permissible load per container (e.g. 4.5 t/m in 20-footers and 3 t/m in 40-footers) must not be exceeded. If you intend to ship a relatively heavy item with a smallfloor contact area, then this contact area needs to be enlarged to stay within thepermissible load capacity. A good spread of weight can be achieved by a double layerof timber dunnage (the boards laid crosswise on the floor with the lower layer put downalong the length of the container). Or by means of a sled with its skids tightly fastened tothe load. Skids should preferably run lengthwise to minimize the load.


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In principle, cargo within a container should be distributed in such a way that the centerof gravity meets the crucial point of the container vertically. The resulting sum of allindividual loads, longitudinally as well as crosswise, should be in the middle to thecontainer. Longitudinally, the center of gravity may be a maximum out of the middle:For 20 ft containers, + 0.60 m.

For 40 ft containers, + 0.90 m.If for some reason you cant keep to these tolerances, inform all carriers concerned. Thecenter of gravity should be indicated, as transportation systems are not the sameeverywhere.Sometimes containers with one end more heavily loaded than the othermay not fit into a vessels cell guides and can be carried on deck only. The dynamicload on the floor of a container, imposed by a laden forklift truck, is limited as follows(according to ISO recommendation DIS 1496/1):Front axle weight - max. 5.460 kgWeight per front wheel - max. 2.730 kgContact area per wheel - min. 142 sc. CmWheel width not less than 180 mm

Wheel centers about 760 mmTo achieve the most efficient use of a container, choose the most suitable unit for yourpacking possibilities. Make sure that the type of container you choose suits yourconsignees facilities as well. In addition, you should obtain information about themaximum permissible gross weights of the container for road and rail haulage. Thisapplies to pre-carriage to the port of loading, as well as to on-carriage in the country ofdestination.To make the optimum use of the container you should make up a stowage plan, toscale, ongraph paper showing the vertical and horizontal section of the container. Eitherdraw in those packages which have to be stowed, or cut out the packages to scale andfit in the complete furnishing plan. Or you can pre-stow your cargo in a rectangle,marked by chalk or paint,representing the internal dimensions of the container. In no case must it be forgottenthat door and roof openings are normally smaller than the maximum internaldimensions.Container transportation implies the possibility or the shipper to reduce theamount of packing material and thus cut costs. In house-to-house moves packaging(e.g. of machine) can often be relaxed. In most other cases, the packaging used fordomestic transport is sufficient for shipment in containers.You should also check whether the cargo, after being stripped from the container, isstored for a certain time or whether it goes directly into the consignees production ordistribution chain. Excessively radical steps to cut down the material strength or qualityof packaging materials may result in handling damage. The shipper, therefore, shouldfind out whether the transport consists of through freight or whether, at some stage, it isto be forwarded in the conventional way (i.e. transported and stowed outside theprotection of the container). Materials strength is also of importance concerning theheight to which goods are stowed on top of the packaging. It should be able towithstand the pressure and vibrations that occur at full load height. Intermediate layersof strong cardboard, plywood, timber, etc., may distribute top pressure and reduce it.

A risk of damage also arises when goods in different types of packaging are to beloaded


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together. It has been found that goods packed in wooden crates often cause damage togoods packed in cartons or corrugated board.Should the contents of the packages be able to withstand the stacking pressure, thedemand made on the packaging is reduced to a corresponding extent.Considerably greater stacking strength is required for cardboard boxes. It should be

based on moisture conditions and voyage duration.It is impossible to state any generalrules for the tipping and shocking strength of packages.Estimates must be made ineach individual case.Besides protection against mechanical damages, packaging should provide protectionagainst climatic changes.Once the doors of a dry freight container are properly shut, itbecomes virtually watertight.(Open-top and open-sided containers do not achieve thesame degree of water-tightness.)Once the container is loaded and the doors securelyshut, the only way in which weather can affect the cargo is through changes intemperature. Unless the internal temperature of the container is controlled somehow, itwill match the temperature of the air outside.

Another problem is condensation. Moisture thus formed can cause the following

damage to cargo; rust, discoloration, mould, caking and clogging, dislodging of labels,collapse of packages and parts of the stow (depending on the commodity, itspackaging, the time factor, and other variable conditions).There are two types of condensation affecting container cargoes: container sweat andcargosweat. Each is caused by a separate set of circumstances, and each affects cargoin a different way.For condensation to appear at all two conditions must be present;there must be a source of moisture and there must be a temperature gradient. Thesource of moisture may be the cargo itself, the dunnage restraining the cargo, thepackaging, the pallets or skids supporting the cargo, or the air trapped at time ofpacking. The temperature gradient may be caused by a sudden change in outsidetemperature, or change of cargo temperature, for instance, selfheating fishmeals, etc.Heres a look at how cargo sweat occurs. A container is packed with cartons of cannedgoods that have been stored in a highly humid atmosphere for some weeks. The doorsare shut and the container is sitting in an open area. The sun heats the roof during theday, warming the air between roof and cargo. Being warmer, the air is able to hold morewater vapor, which it draws off the relatively damp cartons. The temperature of the cansthough, is much slower in rising because of their relative density and distance from thesource of heat. So they remain cold and the moisture collected by the recently warmedair condenses on them. There is another way in which cargo sweat can form. When acontainer that has been kept relatively cool is opened in a hot and humid atmosphere,the warm air entering the container can cause condensation to form on the relativelycool cargo. Although this situation is not desirable, the damage caused is usually muchless than when condensation forms during transit.Container sweat occurs differently.When night falls, accumulated heat in a containers outside paneling is quicklydissipated in the cool air. A clear sky will even hasten the cooling of thecontainer roof. The roof now becomes colder than the air inside the container, and thatair deposits moisture on the inside of the roof. If enough is deposited, or if the containeris moved, that moisture will fall in drops upon the cargo beneath it. But how can sweatwater be avoided? If the source of moisture within the container is eliminated or if notemperature gradient is allowed to develop there can be no sweat! Lets look


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at a few specific examples:Cargo-The cargo should be dry before packing.Commodities with a high moisture content must not be packed with goods susceptibleto moisture damage.Packaging-Cardboard packages can hold a high proportion of moisture. If themoisture content is kept below 12%, however, the chance of moisture migrations is very

low. In the case of canned goods, using shrink wrapping instead of fiberboard cartonscan further reduce the risk of condensation.The timber used in packing cases and crates must also be dry. Moisture content of upto 18% is acceptable in timber. Wooden pallets, skids, and dunnage boards must alsobe seasoned and dry.RustPrevention-Bare metal parts can be well protected by either chemical coatingsor modern VCI-papers. Plastic foils should completely cover the cargo and no source ofmoisture must be allowed inside the wrapping. If only hoods are used, there is a riskthat moisture will condense underneath them.Desiccants, such as silica gel, are relatively ineffective for two main reasons:(1) Although they absorb moisture they also, under extreme conditions, return the

moisture to the surrounding air.(2) The quantities required to have a noticeable effect in a 20-ft. container would bequite high.Desiccants can be effective only if used in a completely airtight space. A rule of thumbfor measuring the amount required is 500 g of desiccant per cubic meter of entrappedair.The above steps can eliminate the sources of moisture within the container; the risk of atemperature gradient forming is more difficult to guard against. A container standing inthe sun on a windless day, even in winter, will achieve relatively high skin temperatures.Damage to goods shipped in containers is usually caused more by faulty stowing andsecuring than by the severe stresses that occur during transportation.In most containers, the following techniques can be used to secure your goods:Wooden container floor. For anchoring with wedges and timber connectors.Internal walls To support lightweight goods.Corner posts. Suitable for securing by bracing.Bull rings (eyelets) and lashing bars Attaching points for lashing ropes, wires, chains,steel strapping, span-sets, etc.Corrugated steel walls in open-top containersCrossbeams may be anchored in the corrugation.Wooden beams and planks. For shoring and relieving pressure vertically andhorizontally.Intermediate decks and walls. For loading at different levels and for separation.Bars or rods movable vertically or horizontally.For securing the load in sections.Nets To secure fragile cargoes.

Air bags (inflatable dunnage) To absorb sudden impacts and to prevent the loadfrom shifting.Timber connectors To secure pallets, skids and cases to the containerfloor.Rope, wire, steel-strips, terylene straps,span-sets.


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To fix the load to bull rings or lashing bars.Blocks of styropor, corrugated paper,used tires, empty pallets.To block off empty spaces.Lets now turn to packing techniques for specialized cargoes.

BAGSToo often, bagged cargo is carelessly thrown into a container with the only objectivebeing tomake sure the consignment fits in. Unfortunately, bags not packed in a block stowage(eachlayer bound by the next) tend to shift as soon as the ship starts rolling.Shifting bagged cargo not only puts extreme pressure on the container walls but is alsolikely toburst out of the container when the doors are opened.

As it takes a comparatively long time to pack and unpack a container of bagged cargo,one

should investigate whether or not the use of expendable pallets would be moreeconomical.The size of the pallets depends on the internal dimensions of the container, the shapeof thebags, and the weight to be loaded. There are various type of straps which can be usedto lashthe bagged cargo onto the pallet. Particular attention is drawn to the method ofshrinkwrapping.BALESThe strength, shape and rigidity of a bale are supplied by its contents. The outercovering maybe of hessian, paper, or some other material. When packing bales into a container, careshouldbe taken not to damage this outer covering.Normally, bales are stuffed into the container by forklift trucks. When stowing bales ofpaper orwood pulp, wooden battens of the same length as the truckload should be laid out onthecontainer floor and the lower layer of bales to assure mechanical discharge.Protection must also be provided against sharp corners and edges. If the load does notfill thecomplete internal length of the container it should be secured by using timber struttedagainstthe corner posts.CARTONSCartons chafe easily, so a tight stow, using filler pieces, strutting or lashing is essentialtoabsorb any movement. Packing is started at the front end of the container and filling iscarriedout from the sides to the middle. Try to avoid unnecessary wasted space.


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If free space still remains, the cargo needs to be strutted. This is particularly important inthecase of fragile goods with light packaging.If you definitely know before packing is started that the entire cube of the container isnot going

to be utilized, then the stowing height should be modified so that the load covers theentire floor.This reduces the need of strutting and also saves labor since the lifting height isreduced.SMALL CASES AND CRATESIn principle, the same precautions and stowage patterns as for cartons apply. Toimprove thestability of the stow, cases should be turned or staggered to give a three-dimensionalbrick walleffect. To reduce movement and the possibility of collapse when the doors are opened,try

nailing the cases to each other.7PALLETS AND UNIT LOADSThe cargo should be secured to the pallet by striping, gluing, or shrink-wrapping. Thedimensions of the pallets should conform to those of the container for maximum spaceutilization. To fully utilize the floor area of the container only four-way entry palletsshould beused.If the dimensions are such that there is only room for one unit across the width of thecontainer,then the row should be stowed down the middle.If the dimensions of the unit load or pallet are such that there is room for two or moreunitsbeside each other across the width of the container, then the rows should be locatedclose tothe sides.When pallets are stowed in a single layer, two to four timber connectors under eachpallet aresufficient for securing. If the pallets are stowed in several layers on top of each other,securingshould be done by means of timber strutting or air bags. These recommendations applyto allcargoes that are normally handled by forklift trucks.DRY BULK CARGOESFor transportation of bulk solids many steamship lines offer 20 ft-bulk containers.However,closed and open-top units may also be used. Additional door protection may also beneeded,depending on the specific gravity of the commodity to be shipped.LIQUID BULK CARGOES


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Special tank containers have been built for transportation of bulk liquids. The minimumtankfillinggrade should be 80%, to avoid dangerous surging. To keep up with possible heatexpansion, a maximum filling grade of 95% must not be exceeded. The workingpressures

marked on the outside of the tank containers must be regarded as well.DANGEROUS GOODS (CHEMICALS)Attention should be paid to the following points before packing the container:1) The unit should be sound, dry and clean.2) Labels referring to previously carried dangerous cargo must be removed.Here are a few pointers to consider while packing the container:1) The usual packing rules apply for stresses, payloads and distribution of weight withinthecontainer.2) Packaging for dangerous goods must comply with current regulations.3) Only safe and sound packages may be loaded.

4) Each individual package must bear the relevant IMCO Dangerous Goods Code ClassLabel.5) Dangerous goods packed together in one container must be of the same IMCO class.Goods of the same class may only be packed together if this is in accordance withcurrent regulations and the goods concerned are compatible.6) When dangerous goods form only part of a container load, they must be packed soas tobe accessible from the doors of the container.7) When a container is to be packed with poisons, corrosives, foul-smelling goods orgoodsliable to drain liquids, the unit should be protected against damage or contamination.88) The goods must be tightly packed within the container and adequately secured forthevoyage. Packing of a container and bracing of the goods should preferably be done atthe same time, under supervision of a responsible person.9) Containers in which dangerous goods are packed must carry four IMCO DangerousGoods Code Class Labels. One should be placed on the front wall and one at the doors.The label on the right sidewall is to be placed so as not to be concealed when the unitsdoor is opened. The left sidewall is marked accordingly, but the label should be placedmore to the front end of the container.10) Those responsible for packing dangerous goods into a container should provide aContainer Packing Certificate certifying that this has been properly carried out andembodying the following provisions:The container was clean, dry and apparently fit to receive the goods.No incompatible substances have been packed into the container.All packages have been externally inspected for damage, and only sound packagespacked.All packages have been properly packed in the container and secured.The container and packages are properly marked and labeled.


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The Dangerous Goods Declaration required in sub-section 9.3 of the InternationalMaritime Dangerous Goods Code has been received for each dangerous goodsconsignment packed in the container.TEMPERATURE CONTROLLED CARGOES

For these goods we recommend refrigerated containers with integral reefer units and

insulatedcontainers for refrigeration by ships equipment or clip-on-unit. The temperature rangeto bekept depends on the cargo. Generally, the following applies:Deep-frozen cargo may be stowed as a solid block. An envelope of cold air thensurrounds the complete block.Fresh fruit and vegetables are breathing and therefore give off heat and carbondioxide.Proper air flow through (as well as around the stow is therefore essential. Somepackagesare so designed and the content so arranged that air flows through the package and no

intermediate dunnage is required. Where this does not occur, vertical 10-15 mm stripsoftimber should be inserted between every second row. The air stream thus reaches eachindividual package. Care must be taken not to block any permanent air channels.Make sure that the container is correctly packed and that the cargo is secured in therightmanner. Putting a copy of the packing list inside the container is a useful custom.Close doors and, according to the type of container, all other openings carefully.Reduce therisk of theft by sealing doors and other openings. Containers are usually transportedover greatdistances and for long periods of time. They stand on terminals and trucks. Thesesituationscreate ample opportunities for thieves. Seals, in addition to strong wiring or locks, givebetterprotection against theft and make control possible.Finally, customs seals on containers should never be opened, even if an accidenthappens.Only customs officials are allowed to open the seals

CONTAINER CORPORATION OF INDIA :

Indian Railways have set up a Container Corporation of India to co-ordinate andmanage container movements and ICDs in India. A well planned and co-ordinatedapproach is very essential. The Corporation is a subsidiary of Indian Railways, workingwith the co-operation and guidance of the Ministry of Commerce.

FUTURE NEEDS:


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With the opening of various ICDs, best attention should be paid to develop thenecessary infrastructure facilities - road and rail link, adequate container flats, handlingequipment, customs facilities etc. They must rise to the occasion to meet therequirements. The transit time between the ICDs and the gateway ports should, as faras possible, be predetermined. The schedule of container trains between the ports and

ICDs should be announced well in advance. Time and cost should be of primeconsideration. The shipping lines should endeavour their best to offer a competitive totalocean freight on warehouse basis. Customs should look into the laws with regard tomovement of containers and relax them to enable movement of containers by road bythe shipping lines. Deterrant action should be taken if there is violation of the relaxedconditions stipulated by the Customs.

The Freight Forwarders should form themselves into a consortium to function asMultimodal Transport Operators and assume responsibility for the cargo from theconsignor's end down to the consignee's end. With proper safeguards, the FreightForwarders may be encouraged to function as Non-Vessel Operating Multimodal

Transport Operators (NVOMTOs). Combined Transport Documents in this respectshould be properly worded and issued. To help exporters having Less than ContainerLoad Cargoes, consolidators should be encouraged to assume responsibilities. There isvast scope for the business of consolidation in

Issues

Increased efficiency

Although there have been few direct correlations made between containers and joblosses, there are a number of texts associating job losses at least in part withcontainerization. A 1998 study of post-containerization employment at United Statesports found that container cargo could be moved nearly twenty times faster than pre-container break bulk. The new system of shipping also allowed for freight consolidating

jobs to be moved from the waterfront to points far inland, which also decreased thenumber of waterfront jobs.

Additional fuel costs

Containerization increases the fuel costs of transport and reduces the capacity of thetransport - as the container itself must be shipped around, not just the goods. Forcertain bulk products this makes containerization unattractive. However, for most goodsthe increased fuel costs and decreased transport efficiencies are currently more than

offset by the savings in handling costs. On railways the maximum weight of thecontainer is far from the railcar's maximum weight capacity, and the ratio of goods torailcar is much lower than in a break-bulk situation. In some areas (mostly the USA andCanada) containers can be double stacked, but this is usually not possible in othercountries.

Hazards


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Containers have been used to smuggle contraband. The vast majority of containers arenever subjected to scrutiny due to the large number of containers in use. In recent yearsthere have been increased concerns that containers might be used to transportterrorists or terrorist materials into a country undetected. The U.S. government hasadvanced the Container Security Initiative (CSI), intended to ensure that high-risk cargo

is examined or scanned, preferably at the port of departure.

Empty containers

Containers are intended to be used constantly, being loaded with new cargo for a newdestination soon after having been emptied of previous cargo. This is not alwayspossible, and in some cases, the cost of transporting an empty container to a placewhere it can be used is considered to be higher than the worth of the used container.Shipping lines and Container Leasing Companies have become expert at repositioningempty containers from areas of low or no demand, such as the US West Coast, to areasof high demand such as China. However, damaged or retired containers may also berecycled in the form of shipping container architecture, or the steel content salvaged. Inthe summer of 2010, a world wide shortage of containers developed as shippingincreased post-recession, while new container production had largely ceased.

Loss at sea

Containers occasionally fall from the ships, usually during storms; between 2,000 and10,000 containers are lost at sea each year.For instance, on November 30, 2006, acontainer washed ashore on the Outer Banks of North Carolina USA, along withthousands of bags of its cargo of Doritos Chips. Containers lost in rough waters aresmashed by cargo and waves and often sink quickly. Although not all containers sink,they seldom float very high out of the water, making them a shipping hazard that is

difficult to detect. Freight from lost containers has provided oceanographers withunexpected opportunities to track global ocean currents, notably a cargo of FriendlyFloatees.In 2007 the International Chamber of Shipping and the World Shipping Councilbegan work on a code of practice for container storage, including crew training onparametric rolling, safer stacking, the marking of containers and security for above-deckcargo in heavy swell.

Trades union challenges

Some of the biggest battles in the container revolution were waged in Washington, D.C.Intermodal shipping got a huge boost in the early 1970s when carriers won permission

to quote combined rail-ocean rates. Later, non-vessel- operating common carriers wona long court battle with a U.S. Supreme Court decision against contracts that attemptedto require that union labor be used for stuffing and stripping containers at off-pierlocations.

Other uses for containers


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Shipping container architecture is the use of containers as the basis for housing andother functional buildings for people, either as temporary or permanent housing, andeither as a main building or as a cabin or workshop. Containers can also be used assheds or storage areas in industry and commerce.

Containers are also beginning to be used to house computer data centers, althoughthese are normally specialized containers.

Bibliography

y S.K. BHATTACHARYYA, LOGISTICS MANAGEMENT, S. Chand & Company Ltd

y Integrated Business Communications Alliance, www.ibcaweb.org

y Supply Chain Management Research Center, www.cio.com/research/scm

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