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    line for structures, propulsion, and aero-hydro configura- tion; the experience provided in solving system compatibil- ity problems will also be invaluable. For such reasons, JSESPO plans such a test craft and expects it in the water approximately three years from now.

    Much additional work might also be sponsored in ad- vanced propulsion concepts, improved L/D ideas (drag re- duction techniques), and many other bright engineering approaches; funding limitations preclude the shotgun ap- proach and considerable deliberation and objective com- parisons are made before any given project is underwritten.

    In the past, the amount of resources poured into other forms of transportation has been large in comparison with the efforts supported in advanced high-speed ship design, Fig. 17.[] The institution of the JSESPO programs shows a renewed national interest in sea transport and indicates that a breakthrough in high-speed ship design appears to be within reach. The Joint Surface Effect Ships Program Office under the sponsorship of the Navy and Commerce Departments intends to establish carefully the feasibility of such a breakthrough.


    [I N. McNeil, Aerotrain and naviplane, Barrons, pp. 5-10, Sep- tember 1967.

    B. V. Nakonechny, Survey of present state of technology and practical experiences with air cushion vehicles, David Taylor Model Basin, Washington, D. C., Rept. 2203, p. 4, July 1966.

    21-25 and 4749, October 1966. A Soviet view of antisubmarine warfare,: Navy Magazine, pp.

    [41 A. J. Tachmindji et al., A research and development plan for CAB vehicles, Inst. for Defense Analyses, Research Paper P-260, May 1%.

    The surface effect ship in the American merchant marine, Booz- Allen Applied Research, Inc., August 1965.

    [61 Surface effect ships for Ocean commerce, U. S. Dept. of Com- merce, Final Rept., February 1966.

    [I Presidents Message to the Senate on Transportation, Congres- sional Information Div., office of Legislative Affairs, U. s. Dept. of the Navy, Rept. 34, pp. 44344439, March 3, 1966.

    F. H. Todd et al., A study of the technical feasibility of future high speed Navy vehicles, David Taylor Model Basin, Washington, D. C., Rept. C-2050, July 1965.

    [I T. von Karman, Aerodynamics. Ithaca, N. Y.: Cornell University Press, 1954.

    [I A. G . Ford, Captured air bubble vehicle progress report, AIAA- SNAME Paper 67-348, May 1967.

    [11] M. J. Hanley, Surface effect ships, U. S. Naval Institute Proc., November 1966.

    Containerized Shipping and Integrated Transportation

    E. G . FRANKEL

    Abstract-A discassioa of the ratkmde, esgieeerin& .ad econcdc de-

    f a break-in& md other dry cargo is presented. Be concept of coataine&ed

    control, d co~~~ljdafion is descrkd, fdlaed by a m e y of the require- m e n ~ f o r d r t r ~ m d d o c e n e a t c o a t r d m d t h e ~ ~ m t h e o p a r - t i o o n l m d f i e c t i o l n l ~ o f a r g o a n d M ~ t i o n ~ . I b e r e q a i r e - m a t 3 of integrated baqortaticm md tbe remithg aspects are evaluated.

    V e l o p m e a ~ t h t l e d t o t h e ~ ~ ~ o d o p t i o a o f c o a t n i n a i z c d o c e c l e ~ ~

    s b i p g t h e h P n d l i n g o f e o a t . m e r s ~ o r e d o a b o u d , m d t h e i T ~ ,


    N RECENT YEARS container shipping has made major inroads into break-bulk or general cargo shipping operations. It has led to the development of fewer and

    larger organizations operating throughout the overall field of transport services, thereby facilitating rationalized transocean transportation. It has achieved drastic reduc- tions in total overseas transportation costs. The achievable cost reductions of 50 percent would mean a saving of over $2 billion in U. S. general cargo foreign trade transportation costs and could have major effects on the competitiveness

    Manuscript received October 26, 1967; revised December 20, 1%7. The author is with the Advanced Marine Technology Division, Litton

    Industries, Culver City, C a l i f .

    of U. S. exports and imports. Such changes in transporta- tion costs have historically led to large increases in the volume of trade, and encouraged marginal exports to par- ticipate in world trade. Container shipping requires con- solidation of cargoes, integration of transport services, and optimum utilization of transport resources. It therefore leads to fewer shipping lines, fewer ships, fewer ports, highly integrated transfer points, and a smaller but highly skilled and highly paid labor force. Major cost savings in container shipping result from the proven dramatic increase in the utilization of the capital-intensive transport resources through reduction of time in transit, consolidation of cargo and documentation, and savings in inspection, pilferage, and loss of cargoes en route.

    For the present general cargo volume handled in U. S. overseas trade, more than 82 percent of which could be handled in containers, the total number of container berths required would be less than 60 compared to several thou- sand general cargoberths currently in use in U. S . ports. It has been shown that, with containerization, ship produc- tivity increases by a factor of about 3 while the productivity of dock labor and terminal resources increases by a factor


    of 10. Container shipping introduces economies of scale not achievable with break-bulk shipping, due to the virtual in- dependence of port time and unit container ship load. As a result, major incentives accrue for container concentration in a few ports served by regularly scheduled, large container ships. These incentives feed back to the rail, road, or inland water feeder lines as a result of concentrated resource utilization with consolidation or distribution points re- moved from the pierside. Container shipping permits the functional integration and operational separation of trans- port elements. Basically, it allows optimum utilization of the capability, capacity, and rate of the various productive transport factors and reduces nonproductive transport factors.

    Results of container shipping therefore are expected to lead to:

    1) dramatic transport cost reductions; 2) stimulated increased trade with resulting overall in-

    3) integrated inland transport consolidation and dis-

    4) fewer but large and more efficient transfer facilities; 5 ) shorter time of delivery; 6) reduced document, control, and inspection require-

    7) lower insurance cost and pilferage or loss; 8) increased capital intensity in transportation re-

    9) labor-extensive transportation;

    crease in transportation sales;

    tribution system;


    sources ;

    10) functional integration and operational separation of transport elements and information flow as well as control.

    In short, container shipping may permit the introduction of integrated production flow techniques and the advantages of batch processing into overseas transportation.

    HISTORICAL BACKGROUND Since World War 11, major changes in the economics of

    operating dry cargo ships have occurred which have forced a reevaluation of conventional methods of dry cargo move- ment in Ocean transportation. The factors which forced these changes are the ever-increasing percentage of crew costs as a function of total operating cost and the relative reduction of fuel costs. Similarly, the large increase in the capital costs of ships makes it imperative to increase the utilization of the ship by reducing the turnaround time. These and other considerations leading to the reduction of port time and costs have had major effects upon the eco- nomics of ship size, ship speed, and cargo handling. Con- ventional break-bulk cargo operations in a multiport trade route seldom result in more than 60 percent of actual sea or transport time with over 40 percent of the active ships time spent in port unproductively. Since all costs except fuel costs continue to be incurred by the ship while in port and additional expenses accrue as a function of port time, the cost/productivity, costlrevenue, or potential profit factor becomes a direct function of the percentage time a ship spends at sea.

    As a result of these considerations, larger and faster cargo ships have been developed for scheduled and un- scheduled services. Simultaneously, cargo handling meth- ods have been improved. About a decade ago, it was found that lift-on lift-off operations using modem cargo handling equipment could only be effectively utilized if cargo is unitized. Large sling and palletized unitization handling methods, therefore, became standard practices. It was found that the hnit weight and volume unitization feasible with sling or pallet operations was limited. This resulted in investigations of large metal pallets with or without side walls or containers for the unitization of cargo. Various methods of handling large pallets containing a number of smaller pallets or filled containers from pier to shipboard were used and evaluated. For many years, discussion per- taining to the relative advantages of roll-on roll-off of pallets and containers on wheeled bodies versus lift-on lift- off operations continued. While roll-off roll-on cargo hand- dling operations are normally found to be more efficient, reducing handling time and effort while assuring better integration with feeder line land operations, the large amount of wasted volume and deadweight on the ship resulting from the carriage of the chassis led many operators t