It is the practice of packing goods in metal containers to transport goods from one place to another. It portable and can be easily shift between different modes of transportation. Those containers are ISO (International Organization for standardization) containers.
Advantages of containers
Faster loading and unloading: With the availability of port side equipments
capable of handling standard ISO containers, the loading and unloading time
for containers at the terminals have been considerably reduced when
compared to the break-bulk days. This benefit must be evaluated in the light
of developments which have taken place in the mechanized material handling equipment technology.
Easier handling: The standard sizes of containers have led to the
development of equipment specially designed to handle them, thereby,
making them liable for easier handling. In addition, the loading and unloading
of the containers can take place in a location away from the ships (for
example, cranes with long booms can unload a container at a far distance
from the ship), unlike in case of break-bulk cargo, where the actual cargo
loading and unloading took place on the ship.
Faster turnaround time for ships: Higher productivity of the ports due to
mechanization of container handling operations have led to faster
turnaround times for ships, thereby contributing to increasing thoroughputs
at each port.
Ease of cargo transfer across multiple modes: Containerization has also
provided a fillip to multimodalism. While the slots in the ships are designed
for specific dimensions of containers, railway wagons and truck designs are
also amenable to handling these containers. As a result, cargo can be easily
transferred across multiple modes
Economies of scale arising out of use of container: The standard internal
dimensions of containers allow for developing appropriate stowage plans to
maximise the utilization of the space. Many ships are designed for making
maximum utilization of space for loading containers. Both these contribute to achieving higher economies of scale while transporting goods.
Greater security of cargo from damages or theft: Containers are sealed
properly before beginning their voyage over sea, which allows for greater
security from damage or theft.
Possibility of mechanized handling, leading to reduction in labour costs:
Due to their considerable weights when filled or even empty, containers
require mechanized equipments for handling. Such mechanization reduced
the need for people and hence reduces labour cost.
Reduced cost of packaging: Due to their sturdy construction, containers
provide protection from damage due to packaging. Thus, individual items
need not be packed using high-strength material, as the container itself
provides protection to all the material that that gets loaded into them.