Advantages of using containers
1- Speed and economy in handling, particularly at the interfaces (ie ports). Ten or 12 men can discharge and load a container ship in three or four days instead of 100 men taking three to four weeks. These increased ship productivity and reduced cargo-handling costs are probably the main reasons that caused shipowners to convert to containerisation. By the end of the 60s liners spent more than 50% of their time in port and more than 50% of their revenue on cargo handling!
2- Safety in terms of both breakages and pilferage, the latter being a significant problem in transporting many cargoes, such as whisky and radios.
3- Packaging can be reduced.
4 -A real door-to-door transport service can be offered.
Disadvantages of using containers
1- Money. Massive capital outlay for the ship, which is more expensive than a conventional ship.
2- Each ship needs three sets of containers, ie one set at each terminal and one on the ship, and even an ordinary container is an expensive item of equipment. They have to be repaired and maintained and have a life of perhaps only about seven years. Special containers such as ‘reefer’ containers are even more expensive. A USCG study indicates that: 45% of container damage is done at terminal 30% of container damage is done during transit 25% of container damage is due to improper stowage However, a more important factor is probably the specific trade. Containers handled at well-equipped container terminals on and off cellular container ships will have a longer life than containers swung onto a break-bulk vessel using a ship’s derrick.
3-Special terminals have to be constructed with expensive high-speed cranes capable of lifting 40 tons plus. Expensive machines also have to be bought to move the containers around the terminal.
4-Although the container does reduce the level of petty pilfering, it has opened up new possibilities for the organised criminal gangs who have not been slow to accept the challenge.
5- The problem of ‘an imbalance of trade’ in containerisable cargo. This leads to the unprofitable movement of empty containers. (30% of containers moved worldwide are empty. However, on certain trades, such as the Persian Gulf trade, it can be as high as 83%.)
6- There have also been a number of introductory problems involving customs, documentation and legal difficulties, but these are now gradually being solved.
An explanation of a few abbreviations For a shipper with a full container load (FCL) the door-to-door service presents no problems, but with less than a container load (LCL) the shipper has to use an inland clearance depot (ICD). TEU stands for 20 foot equivalent unit, eg one 40 ft container = 2 TEUs. FEU stands for 40 foot equivalent unit.
CSC Container Safety Convention – set up by the IMO in 1977. Its function is to ensure that containers are maintained in a safe condition. It introduced the ‘safety plate’ in 1984. This ensures that containers have regular safety inspections.