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Advantages of containerization

Advantages of containerization

Through the ensuing four decades, the container has become a vital part of the transportation industry the world over and containerization / intermodalism is indispensable to world commerce. Containerization which is also commonly called intermodality or multimodality had caused a tremendous impact on the organization. Operations and structure of the transport industry and international trade. To achieve the objective of intermodality, cooperation and coordination among the various elements of transport are essential. Carriers belonging to the road transport, shipping or railways can no longer operate based on maximizing their profits and displaying disregard for other links in the transport – distribution chain. In the intermodal transport perspective, a transport mode can no longer consider itself as a separate entity, it has to interact and adapt itself to the
requirement of the intermodalism. Increased coordination and integration among shipping lines, ports, railways, trucking companies have helped in the formation of large multi-modal transport conglomerates like Lloyd, Maersk, just to name a few. Advantages of containerization:

  1. permits the door to door service which may be from the factory or warehouse of shippers to the warehouse of the buyer.
  2. No intermediate handling at the port or transshipments points
  3. Low risk of cargo damage and pilferage
    enables more favourable cargo insurance premium to be obtained compared with conventional eliminates shipments.
  4. The absence of intermediate handling plus quick transit eliminates risk cargo damage and pilferage.
  5. Elimination of intermediate handling at terminal points ensures substantial savings in labour.
  6. Cargo arrives in a proper condition
  7. Freight rates are much competitive when
    compared with those for less than container loads.
  8. Transits are a much quicker combination of faster vessels, the rationalization of ports of call and substantially quicker cargo handling.
  9. Helps in the development of trade, quicker payment of export invoices.
  10. Container vessels attain much-improved utilization of port facilities and are generally more productive.
  11. Faster transits help importers to hold reduced stocks/ spares.
  12. Provision of thorough documentation
  13. More reliable transits
  14. The emergence of new markets
  15. Overall provides much-improved quality of service
  16. Less packing needs for containerized shipments. The risk in container traffic is mainly attributable to the introduction of house stuffing at the port from November 1992. Apart from traditional items of cargo, several new items of cargo are also now being exported in containers through the port since the introduction of house stuffing. Certain items of cargo which had earlier been diverted to ports like Tuticorin are also routed Cochin port for export. A feature of container traffic at the port is that there is an imbalance in the import of a large number of empty containers to meet the needs of the growing export traffic.