Unit 2 Containeriza on

Containeriza on

"Containeriza on" refers to the prac ce of transpor ng goods in standardized, reusable containers.
This allows for the seamless movement of cargo across different modes of transport, such as ships,
trucks, and trains, significantly improving efficiency and security throughout the supply chain by
minimizing handling and protec ng goods during transit.

Concept of Containeriza on

Containeriza on is a type of virtualiza on in which all the components of an applica on are bundled
into a single container image and can be run in an isolated user space on the same shared opera ng
system. Containers are lightweight, portable, and highly conducive to automa on.

Advantages of Containeriza on

 Efficiency: Lightweight containers reduce fuel consump on and emissions.

 Cost savings: Containeriza on can reduce shipping costs and warehouse storage costs.

 Security: Containers are protected against the and isolated from the host opera ng
system.

 Tracking: Each container has a unique iden fica on number, making it easier to track and
trace.

 Versa lity: Containers can be shipped using mul ple modes of transport.

Disadvantages of Containeriza on

 Maintenance: Containers require regular maintenance and repairs.

 Storage: Incorrect storage of goods can be an issue.

 Toxics: Used shipping containers could contain toxins.

 Regula ons: Container companies must comply with local laws and regula ons.

 Warehousing: Lack of warehousing can be a challenge for trucking companies.

Types of Containeriza on

 Dry Containers: Dry or general-purpose containers are the most commonly used type for
storage and transpor ng a wide range of products. These enclosed steel or aluminum boxes
come in standard sizes, such as 20-foot and 40-foot lengths.
They provide ample space for non-perishable items like clothing, electronics, furniture, and
machinery parts. In addi on, their waterproof design protects the cargo from external
elements during transporta on.
 Refrigerated Containers “Refrigerated containers, or reefers, are essen al in preserving
perishable goods like fruits, vegetables, meat products, and pharmaceu cals throughout
their journey.
Equipped with temperature control systems that maintain specific temperatures (usually
between -25°C to +25°C), these specialized units ensure op mal condi ons for sensi ve
commodi es suscep ble to spoilage due to heat or humidity fluctua ons.

 Flat Racks
Flat racks provide flexibility and capacity when handling oversized or irregularly shaped cargo
that cannot fit into standard dry containers. A flat base with collapsible end walls on either
side can accommodate heavy equipment such as construc on materials or large vehicles by
allowing easy loading from above using cranes or other li ing equipment.

 Open Tops
Open-top containers are similar to dry containers but without a fixed roof, making them ideal
for transpor ng tall or bulky items that cannot be loaded through the doors of regular units.
A removable tarpaulin cover and securing ropes protect the cargo from weather elements
while providing easy access during the loading and unloading. Typical uses include shipping
machinery, mber logs, and large sculptures.
  Bulk-Break Cargo
Bulk-break cargo refers to goods not packed in standard-sized intermodal containers. They
are o en oversized, out of gauge, or too heavy, requiring specialized handling.

Types of Carriers

1. Common carriers : Private or public companies that transport goods for the general public and
businesses

Examples of Common Carriers:

 Transporta on: Airlines, railroads, bus lines, taxi services, trucking companies,
shipping companies.

 Telecommunica ons: Telephone companies, some internet service providers.

 Postal Services: In many countries, the postal service is considered a common

carrier.

 Other: U lity companies, waste removal companies.

2. Contract carriers : Carriers that work under contract with specific shippers to transport goods by
air or water

Examples:

 Trucking Companies: A trucking company that contracts with a manufacturer to

transport their products.
  Airlines: An airline that contracts with a corpora on to provide transporta on for
their employees.
 Shipping Companies: A shipping company contracts with a manufacturer to
transport their goods overseas.
 Specialized Shipping: Contract carriers are o en used for specialized shipping, such
as hazardous materials or oversized cargo, or me-sensi ve deliveries.
3. Private carriers : Carriers that transport freight exclusively for a single company
Examples include retailers like Walmart or Amazon using their trucks for deliveries or
manufacturers transpor ng raw materials or finished goods.
4. Na onal carriers : The largest carriers in a country's transporta on market, with the ability to
transport freight across the country

Examples include Bri sh Airways (UK), Air India (India), and Air France (France).

5. Other types of carriers

 Local carriers: They provide door-to-door service and are o en the least expensive op on

 Regional carriers: Transport goods within a specific region

 Freight forwarders: Middlemen that help with shipping

 Freight brokers: Middlemen who help with shipping

 Specialized carriers: These are shipping companies that specialize in transpor ng specific
types of goods or materials.

Examples of special carriers

 Hazardous materials carriers: These carriers transport hazardous materials.

 Oversized cargo carriers: These carriers transport oversized or overweight cargo.

 Perishable goods carriers: These carriers transport perishable goods.

Roles of intermediaries in logis cs:

 Bulk breaking: Buying large quan es of goods from manufacturers and then breaking them
down into smaller units for resale to retailers, making it easier for smaller businesses to
purchase the required amount.

 Inventory management: Storing goods in warehouses and managing stock levels to ensure
mely delivery to customers.

 Transporta on coordina on: Arranging transporta on services like trucking, shipping, and
air freight, including finding the most efficient and cost-effec ve op ons.

 Customs clearance: Handling customs formali es for interna onal shipments, including
documenta on and necessary approvals

 Order processing: Receiving and processing customer orders, coordina ng with

manufacturers to fulfill those orders

 Price nego a on: Nego a ng prices with manufacturers and retailers on behalf of clients to
secure favorable deals
  Informa on flow: Providing visibility into the supply chain by tracking shipments and
communica ng updates to all par es involved

 Freight Forwarders: Coordinate all aspects of interna onal shipping, including customs
clearance and transporta on

 Third-Party Logis cs Providers (3PLs): Manage outsourced logis cs func ons like
warehousing, distribu on, and transporta on

 Wholesalers: Purchase large quan es of goods from manufacturers and sell them to
retailers in smaller units

 Distributors: Manage the distribu on of goods to retailers and customers

 Agents and Brokers: Facilitate transac ons between buyers and sellers by nego a ng deals
and managing logis cs aspects

Modes of transporta on

 Air Transport: Perishable goods, urgent deliveries, high-value items requiring quick
transport.

 Sea Transport: Bulk cargo like raw materials, large quan es of non-perishable goods where
me is not cri cal.

 Land Transport: Domes c deliveries, smaller shipments, door-to-door delivery, goods

requiring flexibility in route and delivery me

Key Differences:

 Speed:

 Air: Fastest, ideal for me-sensi ve deliveries.

 Land: Moderate speed, depending on distance and traffic.

 Sea: Slowest, suitable for large volumes of cargo where me is not cri cal.

 Cost:

 Air: Most expensive due to high fuel consump on and opera onal costs.

 Sea: Generally the cheapest op on for large cargo volumes.

 Land: Cost varies depending on distance and type of vehicle, o en falling between
air and sea.

 Capacity:

 Sea: Highest capacity for large and bulky cargo.

 Land: Moderate capacity, depending on vehicle size.

 Air: Lower capacity due to limited space on aircra .

 Flexibility:

 Land: Highly flexible, can reach diverse loca ons, and adapt to different cargo types.
  Sea: Less flexible, limited to established shipping routes.

 Air: Rela vely flexible, but may have limita ons on cargo size and weight. .

Freight Management

Freight management in logis cs is the process of planning and managing the transporta on of goods
from one place to another. It involves using logis cs and supply chain exper se, physical assets, and
technology to move goods efficiently and cost-effec vely.

What does freight management involve?

 Planning: Selec ng carriers, routes, and modes of transporta on

 Coordina ng: Working with intermediaries like freight forwarders to manage the logis cs of
shipping

 Tracking: Monitoring shipments in real me to ensure mely delivery

 Documen ng: Handling customs formali es and other documenta on

 Accoun ng for disrup ons: An cipa ng and addressing poten al disrup ons along the way

Route Planning

Route planning in logis cs is the process of determining the most efficient and cost-effec ve way to
deliver goods. It involves crea ng routes for a fleet of vehicles to make deliveries.

How it works

1. Gather data: Collect informa on on the delivery loca ons, vehicle capabili es, and traffic
condi ons

2. Generate routes : Use route op miza on so ware to create routes that consider factors like
distance, delivery windows, and vehicle capacity

3. Review and adjust : Check the routes for any changes or unexpected events, and make
adjustments as needed

4. Communicate: Provide the op mized routes to drivers, along with naviga on tools

Role of ports

In logis cs, ports serve as crucial hubs where goods are loaded and unloaded from ships. They act as
a vital transfer point between mari me transporta on and other modes like trucks and trains,
effec vely connec ng different parts of the global supply chain and facilita ng the smooth
movement of cargo between countries through interna onal trade. Ports essen ally act as gateways
for import and export opera ons.

Key aspects of the role of ports in logis cs:

 Cargo Handling: Ports are equipped with specialized infrastructure and equipment to
efficiently load and unload various types of cargo, including bulk commodi es, containerized
goods, and liquid cargo.

 Storage and Distribu on: Ports provide temporary storage facili es for goods un l they are
ready for further transporta on to their final des na on.
  Trade Facilita on: Ports facilitate interna onal trade by providing infrastructure and services
for import and export ac vi es.

 Customs Clearance: Ports facilitate customs inspec ons and clearance procedures for
imported and exported goods.

 Intermodal Transfer: Ports act as cri cal junc ons where cargo is seamlessly transferred
between different modes of transport, such as ships, trucks, and trains.

 Logis cs Hubs: Many ports func on as logis cal hubs offering value-added services like
warehousing, consolida on, and distribu on to op mize supply chains.

 Economic Impact: Efficient ports contribute significantly to a region's economy by a rac ng

businesses, genera ng employment, and fostering interna onal trade.

ICD

Inland Container Depot (ICD) is a logis cs facility that handles containers for import and export. ICDs
are also known as dry ports because they are located inland, away from ports.

Role of ICDs (Inland Container Depots)

 Customs clearance: ICDs handle customs formali es for import and export

 Warehousing: ICDs provide warehousing services for containers

 Re-export: ICDs facilitate the re-export of goods

 Maintenance: ICDs provide maintenance and repair services for containers

 Container Handling: ICDs handle containerized cargo, including stuffing, unstuffing, and
storage.
 Inland Transporta on: ICDs connect to inland transporta on networks, facilita ng the
movement of cargo to and from ports.
 Reduced Conges on: ICDs help reduce conges on at ports by providing addi onal capacity
for container handling.

CONCOR

The Company. Container Corpora on of India Ltd. (CONCOR), was incorporated in March 1988 under
the Companies Act, and commenced opera on from November 1989 taking over the exis ng
network of 7 ICDs from the Indian Railways.

Role of CONCOR (Container Corpora on of India)

1. Containerized Cargo: CONCOR specializes in handling containerized cargo, providing services such
as container leasing, transporta on, and storage.

2. Inland Container Depots: CONCOR operates ICDs, providing customs clearance, container
handling, and inland transporta on services.

3. Logis cs Solu ons: CONCOR offers logis cs solu ons, including warehousing, transporta on, and
freight forwarding.

4. Economies of Scale: CONCOR's large network and economies of scale enable it to offer
compe ve pricing and efficient services.
Global shipping op ons

It include economy shipping, overnight shipping, and mari me transport. You can also consider
factors like delivery speed, tracking, and insurance when choosing a shipping service.

1. Economy shipping : A good op on for non-urgent items, economy shipping is usually slower
than standard or express shipping but also cheaper. It can take 7–20 days to deliver
2. Overnight shipping : Overnight shipping services can deliver to almost any des na on
worldwide
3. Mari me transport: Sea freight is a good op on for non-urgent bulk shipments like clothing,
electronics, and machinery. It is considered eco-friendly because it produces fewer carbon
emissions per ton of cargo than air freight

Shipping services

 DHL: A leading interna onal courier delivery service with advanced shipping tools, tracking
systems, and weekly billing

 FedEx: Offers a variety of shipping op ons, including FedEx Express Saver, FedEx 2 day
shipping, and FedEx Standard Overnight

 United Parcel Service (UPS): A large package delivery company that offers tracking and
automa on solu ons

 USPS : Offers cost-effec ve solu ons for interna onal shipping, with a wide range of shipping
op ons .When shipping interna onally, it's important to consider insurance to protect your
packages

Global Shipping Op ons

1. Container Shipping: Container shipping is a popular mode of transporta on for global trade,
offering flexibility, security, and efficiency.

2. Breakbulk Shipping: Breakbulk shipping involves transpor ng cargo that is not containerized,
o en used for oversized or heavy cargo.

3. Bulk Shipping: Bulk shipping involves transpor ng large quan es of cargo, such as grains,
minerals, or liquids.

4. Intermodal Shipping: Intermodal shipping involves using mul ple modes of transporta on, such
as sea, land, and air, to move cargo.

Key Players in Global Shipping

1. Shipping Lines: Shipping lines, such as Maersk, COSCO, and CMA CGM, operate container ships
and offer global shipping services.

2. Freight Forwarders: Freight forwarders, such as DHL, DB Schenker, and Kuehne + Nagel, provide
logis cs services, including freight forwarding, warehousing, and customs clearance.

3. Port Operators: Port operators, such as DP World, APM Terminals, and PSA Interna onal, manage
and operate ports, providing cargo handling and logis cs services.
Challenges and Opportuni es in Global Shipping

1. Digitaliza on: The shipping industry is undergoing digitaliza on, with the adop on of technologies
such as blockchain, ar ficial intelligence, and the Internet of Things (IoT).

2. Sustainability: The shipping industry is under pressure to reduce its environmental impact, with
ini a ves such as reducing greenhouse gas emissions and implemen ng sustainable fuels.

3. Trade Tensions: Trade tensions and protec onism are impac ng global trade, with shipping lines
and freight forwarders adap ng to changing trade pa erns and regula ons.

4. Infrastructure Development: Infrastructure development, such as port expansion and inland

transporta on network development, is cri cal to suppor ng growing global trade volumes.