Advantages of containerization and Disadvantages of containerization

CONTAINERIZATION

1. Containerization involves the stacking of goods in large metal containers. These containers usually conform to international standards of 20 ft x 8 ft x 8 ft or 40 ft x 8 ft x 8 ft. The goods are stacked into the container either at the consignor's premises or at the container terminal and transported as a single unit.

2. These standard sized containers can be transferred between different forms of transport, especially between road, rail and sea, as Lorries, rail wagons and ships have been specially designed to hold them. This integration of different methods of transport ensures that goods are facilitated by using special cranes.

3. There is an increasing tendency for shippers to send general cargo like mail bags, etc. in containers.

Advantages of containerization

• As cranes are used for loading and unloading containers, there is speed in their transportation. Moreover lorries carrying containers can drive directly on to a ship.
• Containers are sealed and opened at its destination. So damages caused by rainwater and sunlight can be avoided.
• Theft of goods can also be avoided.
• As the containers are loaded and unloaded with the help of cranes, breakages can be reduced.
• Containers reduce the need to employ labourers to carry the goods. This reduces expenses.
• Containers, which can be stacked, reduce the need for warehousing.
• As there is increased safety in using containers, the insurance cost is reduced.
• Refrigerated containers can be used to transport perishable goods.

Disadvantages of containerization

·         High capital costs are involved in purchasing and maintaining containers.

• High training costs are incurred in training labour to handle the loading and unloading of containers.
• Containers occupy a lot of space and hence large space is needed to keep the containers.
• The weight of the containers, reduce the amount of goods that can be transported.
• Containers are loaded and unloaded with the help of cranes. This replaces human labour thus causing unemployment.