“Containerization is the use of containers to unitize cargo for transportation, supply and storage”.
Container logistics thus incorporates supply, transportation, packaging, storage, and security together with visibility of container and its contents into a distribution system from source to user.
Ports, railways, roads, warehouses, shipping & logistics companies, by virtue of being the primary players dealing with containers, are also the key contributors to the development of container trade and infrastructure.
The advancement in overall trade and benefits due to adoption of containers for transport has brought forward the term “Trading in the Box‟”. Containerization thus, in trade terms, is the driver of various players towards utilizing containers for transporting goods between various places and by various modes of transport.
There are various container types catering to different needs
» General purpose dry cargo containers for boxes, cartons, cases, sacks, bales, pallets, drums in standard, high or half height.
» High cube purpose container, which is a 40- foot container of 9′ 6″ height. It is recommended for light voluminous cargoes which would otherwise not fit in a normal 8′ height container.
» Refrigerated or reefer containers.
» Open top containers for bulk minerals, heavy machinery.
» Open side for loading oversize pallet.
» Flush folding flat-rack containers for heavy and bulky semi-finished goods, out of gauge cargo.
» Platform or bolster for barrels and drums, crates, cable drums, out of gauge cargo, machinery and processed timber.
» Insulated Containers for perishable goods (fruits, vegetables etc.) which require protection from temperature change without necessity of refrigeration.
» Ventilated containers for organic products requiring ventilation.
» Tank containers for bulk liquids and dangerous goods.
» Rolling floor for difficult to handle cargo.
» Collapsible or folding flat rack containers.
» Bulk containers for grain, fertilizers, chemicals etc. in bulk. It is fitted with manholes to facilitate bulk cargo through gravity.
» Garment containers are fitted with hangers to help loading a large number of garments in hangers inside the container.
» Pen container for cattle or livestock. It has netted windows on the side or ends to facilitate ventilation. On the lower part of the side walls it has cleaning and drainage outlets.
The advantages of containerization are well known
A few of them are:
» Effective handling of cargo (specially liquid cargo),
» Minimal or no damage to goods,
» Optimum utilization of storage & warehousing capacity,
» Technology adoption due to mechanized handling required for handling containers,
» Skill development of workers for operating containers,
» Reduction in transport time,
» Door-to-door or end-to-end delivery of goods etc.
Additionally, containers enhance the effectiveness of overall supply chain mechanism in the trade.
The abundant opportunities offered by containers lure various transport sector players to promote the containerization drive. Government of India has taken several initiatives and brought forth policies to increase the utilization of containers.
Containerized cargo commodities
The major cargo commodities that get containerized are garments, electronic goods, agro products, cotton yarn, machinery / parts, granite products, coir products, leather products and jute products. Indian ports have also been seeing many hitherto break bulk cargoes like rice, maize, glass, granite, garnet sand, sugar, soya, cement and flowers now moving in containers.
Some break-bulk cargo such as banana, cotton and green coffee beans have become permanent container fixtures, while others such as pulp, lumber, cocoa and onions migrate from container to ship holds and back to containers, according to the rise and fall of box rates. Even iron ore has been successfully exported from Chennai in containers. All these points to a steady move towards containerization for value added benefits. The main beneficiary would be the container shipping industry and container terminals.
In addition, with regard to the cost economics, the handling cost is lower for containerized cargo as opposed to break bulk leading to containerization of minerals exported. With 40 per cent more imports than exports, incoming containers wait for repositioning to other locations. Container lines, instead of spending on shipping out empties, offer good deals for shippers to specific locations as a result of which soya, sugar, steel plates and agricultural products have gone the container way.
Container movements in India, way of transportation and challenges
Transportation infrastructure works as a catalyst for the economic betterment of any country. Better transportation network in a country leads to faster movement of goods and services, resulting in higher turnover of goods and increase in GDP.
Connectivity to the hinterland is of prime importance to boost the container trade. Adequately planned schedules, well synchronized intermodal network and availability of end-to-end connectivity to the prime destinations or consumption centre improve the distribution network and reduce the transit times.
Roads and railways form an invaluable part of the connectivity network of the Indian Transport System.
IWT in India is not well developed and is also not available for the last mile connectivity. Thus Indian goods transport has to rely a lot on the roads and railways for the end-to-end delivery of goods.
The Government of India has taken up the challenge to form a dedicated network of highways and railway lines through various schemes and plans. The Expressway and the Golden Quadrilateral are some of the examples of the highways network development initiatives while the Dedicated Freight Corridor is a representative of the efforts by the Ministry of Railways. Additionally, Indian Railways and the Railway Ministry have set out quite a few policies like Private Freight Terminals policy etc. for enabling the container infrastructure set-up.
Indian roads
India is a country having one of the largest road networks of approximately 42.36 lakh km. However, the quality of the road infrastructure is inferior as compared to other countries. Analysis of the transport budgets of some states shows that the amount of money allocated to the sustenance of the existing road network far surpasses the allocation to the new road development. In some regions, it is almost double the budget for new works. Despite this, the quality of the roads and their actual life expectancy is far less than expected.
As per the Road Transport & Highways Department, around 60% of the total freight and around 87% of passenger traffic is carried by Indian roads. The traffic forecasts show that the road traffic is expected to grow at the rate of around 8-10%.
Infrastructure development at ports
Ports provide an interface between the ocean transport and land-based transport. India’s port infrastructure constitutes of 13 major ports and 187 non-major ports. Of the non-major ports, only about 48 are operational; while the rest are only fishing harbours.
While the non-major ports contribute significantly to the overall traffic, the containerization traffic mostly belongs to the major ports. Only select non-major / intermediate ports like Pipavav Port and Mundra Port cater to the containerized traffic. In other words the container infrastructure and trade are untapped by the non-major ports. The reason for it may be the drafts required for the large container ships or due to the major investments required to be done in the containerization process.
Dedicated container terminals have been constructed across almost all the major ports to cater to the demand of container traffic. Private players have set up the CFSs / ICDs in proximity of the major ports.
The growth of container traffic is primarily dependent on items like capital and engineering goods, textiles and food items which are transported in containers.
Container logistics thus incorporates supply, transportation, packaging, storage, and security together with visibility of container and its contents into a distribution system from source to user.
Ports, railways, roads, warehouses, shipping & logistics companies, by virtue of being the primary players dealing with containers, are also the key contributors to the development of container trade and infrastructure.
The advancement in overall trade and benefits due to adoption of containers for transport has brought forward the term “Trading in the Box‟”. Containerization thus, in trade terms, is the driver of various players towards utilizing containers for transporting goods between various places and by various modes of transport.
There are various container types catering to different needs
» General purpose dry cargo containers for boxes, cartons, cases, sacks, bales, pallets, drums in standard, high or half height.
» High cube purpose container, which is a 40- foot container of 9′ 6″ height. It is recommended for light voluminous cargoes which would otherwise not fit in a normal 8′ height container.
» Refrigerated or reefer containers.
» Open top containers for bulk minerals, heavy machinery.
» Open side for loading oversize pallet.
» Flush folding flat-rack containers for heavy and bulky semi-finished goods, out of gauge cargo.
» Platform or bolster for barrels and drums, crates, cable drums, out of gauge cargo, machinery and processed timber.
» Insulated Containers for perishable goods (fruits, vegetables etc.) which require protection from temperature change without necessity of refrigeration.
» Ventilated containers for organic products requiring ventilation.
» Tank containers for bulk liquids and dangerous goods.
» Rolling floor for difficult to handle cargo.
» Collapsible or folding flat rack containers.
» Bulk containers for grain, fertilizers, chemicals etc. in bulk. It is fitted with manholes to facilitate bulk cargo through gravity.
» Garment containers are fitted with hangers to help loading a large number of garments in hangers inside the container.
» Pen container for cattle or livestock. It has netted windows on the side or ends to facilitate ventilation. On the lower part of the side walls it has cleaning and drainage outlets.
The advantages of containerization are well known
A few of them are:
» Effective handling of cargo (specially liquid cargo),
» Minimal or no damage to goods,
» Optimum utilization of storage & warehousing capacity,
» Technology adoption due to mechanized handling required for handling containers,
» Skill development of workers for operating containers,
» Reduction in transport time,
» Door-to-door or end-to-end delivery of goods etc.
Additionally, containers enhance the effectiveness of overall supply chain mechanism in the trade.
The abundant opportunities offered by containers lure various transport sector players to promote the containerization drive. Government of India has taken several initiatives and brought forth policies to increase the utilization of containers.
Containerized cargo commodities
The major cargo commodities that get containerized are garments, electronic goods, agro products, cotton yarn, machinery / parts, granite products, coir products, leather products and jute products. Indian ports have also been seeing many hitherto break bulk cargoes like rice, maize, glass, granite, garnet sand, sugar, soya, cement and flowers now moving in containers.
Some break-bulk cargo such as banana, cotton and green coffee beans have become permanent container fixtures, while others such as pulp, lumber, cocoa and onions migrate from container to ship holds and back to containers, according to the rise and fall of box rates. Even iron ore has been successfully exported from Chennai in containers. All these points to a steady move towards containerization for value added benefits. The main beneficiary would be the container shipping industry and container terminals.
In addition, with regard to the cost economics, the handling cost is lower for containerized cargo as opposed to break bulk leading to containerization of minerals exported. With 40 per cent more imports than exports, incoming containers wait for repositioning to other locations. Container lines, instead of spending on shipping out empties, offer good deals for shippers to specific locations as a result of which soya, sugar, steel plates and agricultural products have gone the container way.
Container movements in India, way of transportation and challenges
Transportation infrastructure works as a catalyst for the economic betterment of any country. Better transportation network in a country leads to faster movement of goods and services, resulting in higher turnover of goods and increase in GDP.
Connectivity to the hinterland is of prime importance to boost the container trade. Adequately planned schedules, well synchronized intermodal network and availability of end-to-end connectivity to the prime destinations or consumption centre improve the distribution network and reduce the transit times.
Roads and railways form an invaluable part of the connectivity network of the Indian Transport System.
IWT in India is not well developed and is also not available for the last mile connectivity. Thus Indian goods transport has to rely a lot on the roads and railways for the end-to-end delivery of goods.
The Government of India has taken up the challenge to form a dedicated network of highways and railway lines through various schemes and plans. The Expressway and the Golden Quadrilateral are some of the examples of the highways network development initiatives while the Dedicated Freight Corridor is a representative of the efforts by the Ministry of Railways. Additionally, Indian Railways and the Railway Ministry have set out quite a few policies like Private Freight Terminals policy etc. for enabling the container infrastructure set-up.
Indian roads
India is a country having one of the largest road networks of approximately 42.36 lakh km. However, the quality of the road infrastructure is inferior as compared to other countries. Analysis of the transport budgets of some states shows that the amount of money allocated to the sustenance of the existing road network far surpasses the allocation to the new road development. In some regions, it is almost double the budget for new works. Despite this, the quality of the roads and their actual life expectancy is far less than expected.
As per the Road Transport & Highways Department, around 60% of the total freight and around 87% of passenger traffic is carried by Indian roads. The traffic forecasts show that the road traffic is expected to grow at the rate of around 8-10%.
Infrastructure development at ports
Ports provide an interface between the ocean transport and land-based transport. India’s port infrastructure constitutes of 13 major ports and 187 non-major ports. Of the non-major ports, only about 48 are operational; while the rest are only fishing harbours.
While the non-major ports contribute significantly to the overall traffic, the containerization traffic mostly belongs to the major ports. Only select non-major / intermediate ports like Pipavav Port and Mundra Port cater to the containerized traffic. In other words the container infrastructure and trade are untapped by the non-major ports. The reason for it may be the drafts required for the large container ships or due to the major investments required to be done in the containerization process.
Dedicated container terminals have been constructed across almost all the major ports to cater to the demand of container traffic. Private players have set up the CFSs / ICDs in proximity of the major ports.
The growth of container traffic is primarily dependent on items like capital and engineering goods, textiles and food items which are transported in containers.
Containerization have a lot of benefits as it ensures the safety of package.
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