What is Advantages and Disadvantages of Containerization ?

Advantages are as follow:

1. MINIMIZING RISK OF DAMAGE

Up to maximum extend, the risk of damage   to cargo is reduced greatly, if not totally. As you know, export orders goods are transported thousands of miles away from its origin place and there could be different trans shipment points in transit. Damage risk and pilferage risk may be high if proper packing of goods not done.

2. MINIMIZING RISK OF PILFERAGE

Up to maximum extend the risk of pilferage can be reduced, if a full container is used for an import export shipment.

3. SAFETY OF EXPORT GOODS

Cargo arrives in a better and safer condition and that provides a better image of the exporter. Indeed, it proves to be an edge to the exporter, in comparison to others who do not use containers.

4. REDUCTION OF PACKING EXPENSES

Packing costs are reduced substantially, if a consignment is shipped in a container.

5. STANDARDIZATION

Standard transport creation that can be treated wherever (ISO standard) through specialized modes (ships, trucks, barges and wagons) and equipment. Each container has an unique identification number as well as a size type code.

6. FLEXIBILITY

Can be used to carry a wide variety of goods such as commodities (coal, wheat),manufactured goods, cars, refrigerated (perishable) goods. Adaptedcontainers for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of discarded containers.

Disadvantages are as follow:

1. SITE CONSTRAINS

Large consumption of terminal space (mostly for storage); move to urban periphery. Draft issues with larger containerships. A large post-panamax containerships requires a draft of at least 13 meters.

2. CAPITAL INTENSIVENESS

 Container handling infrastructures and equipment (giant cranes, warehousing facilities, inland road, rail access), are important capital investments.

3. STACKING

Complexity of arrangement of containers, both on the ground and on modes (containerships and double-stack trains). Restacking difficult to avoid and incur additional costs and time for terminal operators.

4. REPOSITIONING

 Many containers are moved empty (20% of all flows). Either full or empty, a container takes the same amount of space. Divergence between production and consumption at the global level requires the repositioning of containerized assets over long distances (transoceanic).

5. THEFT AND LOSSES

 High value goods and a load unit that can forcefully opened or carried (on truck). Vulnerability between terminal and final destination. About 10,000 containers are lost at sea each year (fall overboard).

6. ILLICIT TRADE

Instrument used in the illicit trade of goods, drugs and weapons, as well as for illegal immigration. Concerns about the usage of containers for terrorism.