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he Curious Case ofhe Curious Case ofContainersontainers

Prepared by A f e e f & N o u s h a dFalcon Institute of Logistics

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Falcon Institute of Logistics 2

The answer for this question isquite similar to everyone. As the

name itself indicates, closed boxthat contains something.

Well, on Logistics point of viewcontainer are closed box for

carrying different kinds ofgoods for multimodaltransportation.

What is a Container?

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Falcon Institute of Logistics 3

Advent of

Containers

The concept of intermodalshipping in maritime trades was

born when Malcom.P.McLeanmade that first shipment on

April 26, 1956.

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Falcon Institute of Logistics 4

Malcom Maclean hit upon the idea of using containers

for transportation of goods years back while watching

goods being hoisted onto ships from trucks at the dock side

where he and his truck were waiting for their turn.

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Falcon Institute of Logistics 5

His ideas were based on thetheory that efficiency could bevastly improved through asystem of "intermodalism", inwhich the same container,with the same cargo, can betransported with minimuminterruption via differenttransport modes during its

journey.

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Falcon Institute of Logistics 6

Containers could be movedseamlessly between ships,trucks and trains. This wouldsimplify the whole logisticalprocess and, eventually,implementing this idea led toa revolution in cargotransportation andinternational trade over thenext 50 years.

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For the private sector, containers held the

promise of secure, dry storage of cargo

and controlled climates and added

shelf life for perishables. Yet, despite

favorable reports about the use of

containers, the concept of

containerization seemed far-fetched to

all but the most forward-thinking in

the early 1950s.

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After buying the two steamship companies he started

conducting trials with containers on his tankers ships.

Finally, on April 26 1956,a Pan Atlantic T2 Tanker called

Ideal X sailed from Port Newark NJ to Houston carrying

58 x 35 containers.

u rn a ro u n d u rn a ro u n dIn v e n tio nn v e n tio n

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Fate of Containers Today

In the year 2000, the container trade recorded amassive 200 million TEUs and the traffic is estimatedto grow at an average rate of 5 per cent per annum

over the next 10 years. It might even double by 2010.

As more Asian and Latin American economies pick up,a further growth of the container trade looksinevitable

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Root of Containers Birth

The idea of using some type of shipping container was

not completely novel. Boxes similar to modern

containers had been used for combined rail- andhorse-drawn transport in England as early as 1792 .

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First containers used in america in during war

Like many 20th century

innovations, containers were born

out of a sense of urgency. First used

by the U.S. government during the

war, they proved the ideal means of

quickly and efficiently unloading

and distributing supplies, which was

of paramount importance at the time.

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Falcon Institute of Logistics 12

Instead of shippingcommodities in bulk,army and navyspecialists began tomix cargo by loadingfreight onto pallets,then loading the palletsinto specially

constructed boxes.

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Falcon Institute of Logistics 13

Indian Emergence of

ContainersContainerisation came to India

in Nov 1973, when APL.s

President Taylor called

Cochin. Indian ports puttogether achieved a throughput

of 2.2 million TEUs in 2000

with JNPT emerging as the

leader of the pack.

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Falcon Institute of Logistics 14

The growth of containerization in India has not been as

commendable as in certain other Asian countries.

But of late a major shift in focus is seen, with the

Government showing bigger initiative and the major

ports going in for expansion of their container

handling facility.

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Falcon Institute of Logistics 15

Though in the 70.s and early 80.s there were mainlinevessels calling Indian ports, the later part of 80's andearly 90's saw that stop because the ports failed todevelop itself to accommodate the Panamax and PostPanamax vessels.

This led to Colombo, Singapore and Dubai becomingthe transshipment hubs for ports in India.

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Containers Awaiting theFuture

Containerization reduces time in transit, the inventory

costs and increases reliability. Such benefits are

forcing the industry to make it more favorable in

terms of cost, flexibility and speed.

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Falcon Institute of Logistics 17

Container traffic from Asia is expected to grow more

rapidly in near future. The containerization in terms of

expansion is expected to be far rapid in China.

The Asia's share of containerized exports to worlds total

exports is expected to reach nearly 64 % in 2015.

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Falcon Institute of Logistics 18

es o a eCompanies

Company TEU capacity Number of shipsA.P.Moller-MaerskGroup 2,022,956 539

Mediterranean Shipping Company S.A.1,517,200 409

CMA CGM 1,023,208 365

Evergreen Marine Corporation 594,154 162

American President Lines 531,865 135

Hapag-Lloyd 475,282 120

COSCO 469,848 146

China Shipping Container Lines 449,469 139

NYK Line 412,711 109

Hanjin Shipping 406,462 90

http://en.wikipedia.org/wiki/A.P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/A.P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/A.P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/Mediterranean_Shipping_Company_S.A.http://en.wikipedia.org/wiki/Mediterranean_Shipping_Company_S.A.http://en.wikipedia.org/wiki/CMA_CGMhttp://en.wikipedia.org/wiki/Evergreen_Marine_Corporationhttp://en.wikipedia.org/wiki/American_President_Lineshttp://en.wikipedia.org/wiki/Hapag-Lloydhttp://en.wikipedia.org/wiki/COSCOhttp://en.wikipedia.org/wiki/China_Shipping_Container_Lineshttp://en.wikipedia.org/wiki/NYK_Linehttp://en.wikipedia.org/wiki/Hanjin_Shippinghttp://en.wikipedia.org/wiki/Hanjin_Shippinghttp://en.wikipedia.org/wiki/NYK_Linehttp://en.wikipedia.org/wiki/China_Shipping_Container_Lineshttp://en.wikipedia.org/wiki/COSCOhttp://en.wikipedia.org/wiki/Hapag-Lloydhttp://en.wikipedia.org/wiki/American_President_Lineshttp://en.wikipedia.org/wiki/Evergreen_Marine_Corporationhttp://en.wikipedia.org/wiki/CMA_CGMhttp://en.wikipedia.org/wiki/Mediterranean_Shipping_Company_S.A.http://en.wikipedia.org/wiki/A.P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/A.P._Moller-Maersk_Grouphttp://en.wikipedia.org/wiki/A.P._Moller-Maersk_Group

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Falcon Institute of Logistics 19

Conclusion

It is quite clear now that due to the emergenceof containers there had been a massive changein the world trade.

It has changed the Logistics with a new life byproviding improved transportation facilities.

I conclude this project by believing that it hadbeen enough worthy to study about thissubject.

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