Introduction transport without being opened. Handling is done

Introduction(Containerization)Containerization is a system that use shippingcontainers for freight transportation. Containers have standardized detentions.Those can be loaded, unloaded, stored and transported efficiently over longdistances.

It also makes easy for transferring from one mode to another such asships to rail transport and ship to road transport without being opened.Handling is done with cranes and can be tracked using computerizedsystems.  Containerization origins in early coal mining areas inEngland. In 1766 James Brindley introduced the box boat with wooden containersto transport coal. Since then, structure of container has been developed until1900s.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

In 1951 the Swiss Museum of transport and Bureau international desContainers introduced demonstrations of container system.  Malcom Purcell Mclean was the Americanbusiness who developed intermodal shipping container to modern level.   ISO Standards formodern containers  §  Commonlengths (20ft, 40ft, 45ft, 48ft and 52ft)§  Capacityexpressed in TEU- Twenty Feet Equivalent units.

§  Maximumgross mass for 20ft is 24000 Kgs.§  Heightis not considered for expression. Intermodal containers have been developed to adopt forvarious uses. According to that uses there are lot of container types existingin modern container shipping.   Most Common Container types1.      Drycontainers2.

      FlatRack Containers 3.      Opentop containers4.      Tunnelcontainers5.

      Refrigeratedcontainers6.      Thermalcontainers 7.      Garmentson hangers                                             container shipContainer ships can becategorized based on sizes and structure. Based on the structure, there are twotypes of container ships. Those are,1.

     Gearedcontainer ships.    Advantages§  Some geared ships have gantry cranes are installed. These cranes, specialized forcontainer handling, can roll forward and aft on rails. §  This type of ships can operate cargo in portsthat are not equipped with container handling facilities such as cranes.Disadvantages§  Additional capital expense and maintenance costs and ships will cost more to purchase than a gearless ship.

§  These cranes generally slower in loading and unloadingcontainers more than gantry cranes in seaports.§  Lesscapacity more than gearless container ships. 2.     Gearlesscontainer ships.

         (Source: Clarkson research, March2014)According to this graph operating gearless large ship ismore profitable than operating geared small ship in present conditions. Modernmarket small geared vessels more frequently use as feeder vessels. Other thanthat, most of the large vessels are gearless due to various aspects. Followingadvantages and challengers can be discussed regarding the gearless ships.Advantages§  Large export volumes from stateswill increase demand for creating more plants in several countries.

This willalso drive demand of sourcing out raw materials.§  Larger container ships willbeneficial for helping to contribute to the progress of developing countries.§  When consider socio economicaspects, with the larger capacity, more containers will be carried with lessnumber of vessels, leading to a decreased environmental impact.Challenges §  Due to the Larger sizes, operational processes will be morecomplexes such as placement, distribution, and handling of the containers.

§  Operational risk for operators and owners will be increased.§  Ports have limited space. Therefore, fleet of huge ships canbe caused to occur longed waiting times within cargo loading and unloadingEvolution of Container Ships & Other AspectsSince 1950 container ships were become to play a majorrole of transportation industry. There were main six types of generations ofcontainer ships industry.

Step by step container ships manufactures havedeveloped capacity and other aspects of ships.  (Source: Redirect Notice)1.     Early container shipsIn early stages, tankers and bulk vessels modified andused to transport containers through overseas.

The maximum capacity of thoseships was about 1000TEU’s. The first container ship was “Ideal X” and it wasused in world war 2. It was the first tanker converted as a container ship.Maximum speed of those type of ships were 18 to 20 knots at that time. Afterthat some countries begun to build container ships and then second generationof ships started. Those kinds of ships named as “fully cellular ships”.

2.     PanamaxAmid the 1980s economies of scale quickly pushed forthe development of bigger containerships; the bigger the quantity ofcompartments being conveyed the lower the expenses per TEU. The procedureturned into an idealistic circle exacerbating bigger volumes and lower costs,which fundamentally helped the dissemination of the compartment. The sizefurthest reaches of the Panama Canal, which came to be known as the Panamaxstandard, was accomplished in 1985 with a limit of around 4,000 TEUs.

When thispoint of confinement was accomplished, 10 years go before another age of biggercontainerships was outlined. In the meantime, Panamax compartment dispatchplans were developing to take most extreme preferred standpoint of thechannel’s impediment in bar. The first measurements of the Panama Canal, workedby the US Army Corps of Engineers, are like the measurements of the US InlandWaterways locks, bringing about a restricted and long ship plan.3.     Post Panamax 1 and 2Going past Panamax was seen as a hazard as far as thearrangement of transportation organizes, extra taking care of framework andadditionally draft confinements at ports. The APL C10 containership class, witha limit of 4,500 TEUs, was presented in 1988 and was the primary containershipclass to sur passed the 32.2 m width farthest point of the Panama Canal.4.

     New Panamax or Neo PanamaxAlludes to ships intended to fit precisely in thelocks of the extended Panama Canal, which opened in June 2016. These boats havea limit of around 12,500 TEU, however there are a few setups of Neo-Panamaxdispatches as far as length and width. Like its Panamax partners, Neo-Panamaxships are probably going to characterize a particular ship class ready tobenefit the Americas and the Caribbean, either from Europe or from Asia.5.     Post Panamax 3 and Triple ESince 2006, a third era of post Panamax containershipscame to the industry when Maersk shipping line presented a ship class having alimit in the scope of 11,000 to 14,500 TEUs, the Emma Maersk. They were named”Post New Panamax” since they are greater than the particulars of theextended Panama Canal. Current largest container ship is OOCL HONG KONG whichhas capacity of 21413 TEUs. CommonLoading and Unloading Area.

 Supplyand Demand in the Container Shipping Industry towards global trendsShipping industry is oneof the back bone of the development of international trade. The internationalmarket is highly depending on shipping companies which enables differentnations to import and export anything in this world. During 2008 and 2009,Global shipping industry experienced a hard time due to financial crisis.

However, it had overcome in 2010 and made a solid growth in 2011. And it iskeeping on growing as the enhancement of the world economy and newopportunities.Political climate is oneof the obvious factor which affects the market condition of the containershipping industry globally. And there is some factor listed below are somefactors which affects the supply and demand in the container shipping industry.

§  The overcapacity in the containersegment does not match the financial cycles: (Source: Clarkson research, March 2014)Timing is anotherimportant factor for the balance of supply and demand. It is very hard to fitinto the financial cycle to give a balance between supply and demand for thegiant ships of 14000 TEUs. This is a difficult task in an unstable market whereprices move vigorously and uncertainly.

§  Industries adapt their freight to thecontainer shipping method:Containerizationis the new trend in this industry. Another trend is that industries are adapting containerization. Forinstance, the paper industry has reformed their freight to the containershipping method by changing the size of paper rolls to fit the containers. Thefreight is transported directly to the consumer, to make it more efficient andto decrease the risk of damages. §  Increasing demand for customer focusand new technology:Weare in the era of a technical revolution where everyone in the full logisticschain from manufacturer to collector.

Invest all the resources to develop newsystem to achieve higher efficiency. More transparency is expected by thecustomers within the entire logistic chain with the help of the development ofIT systems. §  Lower demand for shipments to &from the Far East:Chinahad a fast-economic growth during the recent decades and the country has been agreat force for enhancing global trade. However, the earlier year we could seethe predicted growth actually weaken which has headed to a lower demand forshipments to and from the Far East.§  Capacity in ports raises faster thantrade volumes:Thereare many seaports contributing to an imbalance between supply and demand insome regions. Shippers need to select which ports to invest in and there is arisk with only a little big port monitoring the logistics streams.

Singleterminal operators might only keep attention in signing up with one or twoalliances leads to no diversity in the industry.Futurepotential in the container ship marketTen years back world’s sea –going container carriedpanamax-size container ships that have 5000 TEU capacity. But with thedevelopment of the international trade, transport network and the logisticsneeded much larger container ships to do the trade between Europe and Asia,Asia and West Coast America.

§  Economiesof scaleEconomies of scale is a universal word that use in thecontainer shipping industry. So, vessels are getting larger and larger tosupport this concept. To do so ports are expanding and collaborating to achievegreater economies of scale in present.

Also, with the future plans of transitmuch larger containers of the Panama Canal and the increasing transit capacityof the Suez Canal will result to produce container ships that carrying over28000 TEU in the next decade. So, these container ships will be appearing inAsian, American and Brazilian ports sooner.§  ArcticWarming and the Canada’s Northwest PassageThere is a future potential to allow the Canadianpassage to transit container ships for perhaps three months period for a yearbecause of the changing weather pattern of the global and warming of theArctic. Also, from another 25 years Canadian northwest sailing season will beextended from May to October because of those reasons. Because of thatcontainer ships will tend to sail via Canadian passage from Asian ports to eastcost American ports and European ports.

   §  WorldGDP and the container shipping Since 2010 container shipping industry wasn’t able to adapt to new typical where request develops by a variousof worldwide GDP development of one or even the container shippingindustry has ended up with lower fleet growth than the demand growth. Becauseof this IMF forecast that the coming years will neither improve or worsen inthe container shipping industry.So maybe the future of the containershipping industry will smaller than expected because of the imbalance betweenthe supply and demand§  Growthof ChinaAsia has the market share of 64% in the containerized cargo.

The main reason for this is the development of the China’s trade among theglobe. China imported and exported 52 million   20-foot equivalent units (TEUs) in 2015 compared with 13 million in 2000.So, in near future china will gain more market share on the containerizedshipping industry. Suggestionsto improveWhen designing the network if the shipping companiescan use new utilized calculations and methods to make more effective decisionsrather than using outmoded approach will be result for the high varied supplythat matched with the demand in the sea trade.  Also, the shipping companies must help to find newtechniques and ways to motivate the employees to search for the improvement ofthe industry rather than just thinking about how to increase the capacity. Also,the shipping companies must be ready to bet on the future opportunities andthey must be able to get the maximum benefit from each opportunity by actingafter analyzing the past data belong to each situation. So with that shippingcompanies will be able to achieve the desired profit.With the technical revolution and the logistic networkshipping companies can gain the real time data about the operations.

So, ifthey can have some transparency in their operations with other shippingcompanies and make alliances it will be reduce the cost and improve the serviceof the container shipping.Other main thing is increasing the commodities such astimber, malt and fertilizers. These things are shipped in containers. So, theshipping companies can forecast the increasing demand for these components andsupply according to that. So, with a better analyzing about the trends with thehelp of the new information technology, logistics network and the engineeringtechnology they can identify the capacity of the container ship is needed for eachtrade and the region.