Session 5B - Containerisation - Part II

Containerisation (Part II)
Ashok Advani
Visiting Professor
IIFT & Jaipuria Institute Of Management, Noida
2
Reefer Containers
Maersk RCM System
Prof. Ashok Advani - Visiting Faculty : IIFT & Jaipuria Institute of Management, Noida
3
Reefer Containers – Maersk RCM System
4
Maersk RCM System
 2,70,000 Reefer Containers
 Circulation: 900,000 times every year
 No end to end visibility and very little control
[Trucks, Terminals, Depots, Vessels]
 Precise temperature and atmospheric control required
 USD 200 Million every year on physical inspections of containers before customer’s use them
 Modem, GPS, Wireless SIM card and Satellite Link – deployed on a global scale
5
Maersk RCM System
“This technology gives us total visibility into our operations, our suppliers’ performance and our
customers’ supply chains, in real-time. That’s a powerful capability, particularly for sensitive
perishable cargo. And no other shipping line has it.”
Catja Rasmussen, Head of RCM for Maersk Line
6
GOH Containers
7
GOH (Garment on Hanger) Containers
8
Insulated or Thermal
Containers
9
Insulated or Thermal Container – 20’ & 40’
10
Providing desiccants for hygroscopic cargoes
 Hygroscopic cargoes are likely to give off moisture during transportation leading to
condensation, commonly referred to as ‘container sweat’ or ‘container rain’. Condensation
may damage the cargo and may lead to biological contamination.
Examples: Rice, Flour, Sugar, Cotton, Tobacco, Cocoa, Coffee and Tea
 Desiccants may be provided, but these are not a failsafe means of preventing condensation
Examples: Insoluble agents: Silica Gel, Bauxite, Calcium Sulphate
Soluble agents: Calcium Chloride and Glycerol
11
Providing desiccants for hygroscopic cargoes
Insulating Materials
 Fiberglass
 Mineral wool
 Cellulose
 Natural fibers
 Polystyrene
 Polyisocyanurate
 Polyurethane
12
Tank Containers
13
Tank Containers : 20’ & 40’
14
Car Carrier Containers
15
Car Carrier
Video
Car Carriers
Car Carriers
HTTPS://WWW.YOUTUBE.CO
Video M/WATCH?V=__L2UFBIQEI
16
17
Special Purpose Containers
18
Special Purpose Containers
19
Swap Containers
20
Swap Bodies
21
Swap Bodies
22
Half Height Containers
23
Half Height Containers
24
Types of Thermal Containers Used in International Trade
Type of Thermal Cargo Suitability Features of Container

Container
Refrigerated (or For cooled foodstuffs, meat, Reefer container has insulated walls, doors, roof, and floor which control
Reefer) Container ovum or ova, fish, vegetables, the range of temperature loss or gain. Reefer container again may be of
fruits, human blood, medicines two types such as Controlled Atmosphere Reefer and Modified
and stem cells etc Atmosphere Reefer containers.
Insulated For fruit, vegetables etc Cooling is ensured in the Box with the dry ice which is used as the cooling
containers medium. Insulated containers do not use any device for cooling purposes.
Ventilated Used for cargo such as fruits or Ventilated containers use to have small venting holes on both sides of
container vegetables which need containers which allows the passage of air. Venting of air is necessary in
ventilation during transit in long transit for commodities like tea, coffee, etc. such venting of air allow
order to preserve the quality of the cargo to lose moisture otherwise it may “sweat” if carried in closed
life. box type containers and may lose the taste as well as value.
25
Various Sub Categories of Special Containers
Bulk • Bulk containers are desinged mainly for transport and carriage of dry bulk cargo like
Container iron ore, other mineral, food grains, coal etc
Ventilated • Ventilated containers have full length ventilation galleries and are used for cargo
Container which require cosntant ventilation for maintenence of product quality such as coffee.
Half-Height • Half-height open top container are suitable for carriage of heavy density cargoes such
Open Top as steel coil, pipes, tubes and strips, zinc bars etc.
Tank • Tank containers are generally used for carriage of a chemicals and liquids such as oil
Container & lubricants and ediable oils.
Open Sided • Open sided container are designed mainly to accommodate specific type of cargo like
Container plywood, perishable commodities and livestock.
26
Sub Categories of Containers : Basis Nature of Cargo
• Flat container are also known as "flat rack" and are the one with flat base only. They
Flat
are used for cumbersome, multi-dimensional and odd sized cargo and weight is put
Container
on to these types of containers and lashed with sling & straps with the container
Bulk • Bulk containers are the one which are fitted with manholes so as to facilitate the
Container loading of bulk cargo through gravity
Garment • These are also known as Hanger’s containers and are fitted with hangers which help
Container in stuffing a large number of garments in hangers into the containers
• Liquid containers are generally made of stainless steel so as to provide protection to
Liquid
liquids from accidents etc. and have manholes for loading and unloading of liquid
Container
cargo
• Gas containers are similar to liquid containers and are made of thick stainless steel.
Gas
They have required mechanical equipment, fixtures and fittings for pumping in and
Container
emptying the liquid gas into/from the containers
Bin • Bin containers do not have doors and are prominently used for heavy dense cargoes
Containers such as nut & bolts, hardware and other industrial inputs
27
Container Unique Number and Safety Plating
Source: http://upload.wikimedia.org/wikipedia/en/e/e1/ Source: http://www.shippingcontainersuk.com/brands/shipping_containers.php

Containernumber.jpg
28
Container Unique Number and Safety Plating
https://www.scf.com.au/resources/tools/check-digit-calculator/
29
Numbering & Marking of Containers
Example
▪ Container No. : AACU3070079
▪ AAC : 3 Alphabets - Owner’s Code

▪ U : 1 alphabet - Type of container
▪ 307007 : 6 digits - Serial no. of container
▪ 9 : Last digit 9 - check digit
▪ The equipment category identifier consists of one of the following capital letters of the Latin alphabet
▪ U for all freight containers
▪ J for detachable freight container-related equipment
▪ Z for trailers and chassis
30
Standard External Container Dimensions
20’ 40’
Container Length 20’ 40’
Container Width 8’ 8’
Container Height
Standard 8’6” 8’6”
High Cube 9’6” 9’6”
31
Standard Internal Container Dimensions
20’ 40’
Inner Length 19’3” 39’4”
Inner Width 7’7” 7’7”
Inner Height
Standard 7’9” 7’9”
High Cube 8’9” 8’9”
32
Standard Container Cubic Capacity
20’ 40’
Cubic Capacity
Standard 1160 cu. ft. 2360 cu. ft.

[32.87 cu. mts.] [66.87 cu. mts.]
High Cube NA 2660 cu. ft.
[75.38 cu. mts.]
Tare Weight 2.5 M.T. 4.5 M.T.
[Weight of Empty Container]
Gross Weight 24 – 30 M.T. 30 M.T.
[weight of Cargo + Empty
Container]
33
Cost Savings
▪ Choice of right type of container
▪ Cost differentials
o 20’ & 40’
o 40’ GP & HC
o Special Equipment's
▪ Factory stuffing best option
▪ ICD stuffing under personal supervision

Container Stuffing (Part 1 & 2)
Any Fool Can Stuff A Container (Part 1)
HTTPS://WWW.YOUTUBE.COM/WATCH?V=K
Container Stuffing (Part 1 & 2) _TVFC4XRRQ
Any Fool Can Stuff A Container (Part 2)
Video HTTPS://WWW.YOUTUBE.COM/WATCH?V=O
ATNI7CRXGG
34
Container Manufacturing
Container Production
https://www.youtube.com/
watch?v=AYs_SyNn47o
Video
35
Discussion Points
36
37
Discussion Points
What is a Freight Ton?
38
Discussion Point
What is the difference between:
“Laden on Board” and “Shipped on Board”
39
Laden on board : Confirmation from the entity issuing the bill of lading that the cargo has been loaded
on board and when accompanied with a date, it means that the cargo described on the bill of lading has
been loaded on board the ship on the specific date mentioned
If no date is mentioned, the bill of lading date will be deemed to be the date that the cargo was loaded
on board
Shipped on board : Confirmation from the entity issuing the bill of lading that the cargo has been
loaded on board and the ship has sailed. When accompanied with a date, it means that the cargo
described on the bill of lading has been loaded on board the ship and the ship has sailed on the specific
date mentioned
If no date is mentioned, the bill of lading date will be deemed to be the date of shipment
Bill of Lading
40
UCP600 Article 20 – Section A – sub-section ii clarifies this point as below:
An on board notation indicating the date on which the goods have been shipped on board
The date of issuance of the bill of lading will be deemed to be the date of shipment unless the bill of
lading contains an on board notation indicating the date of shipment, in which case the date stated in the
on board notation will be deemed to be the date of shipment.
41
Discussion Point
Difference between Transshipment & Cargo in Transit?
42
Transhipment is the act of off-loading a container from one ship (generally at a hub port) and loading it
onto another ship to be further carried to the final port of discharge
A cargo that is moved from an origin point across international borders to another country over land is
termed as “Cargo in Transit”
▪ Ethiopia uses port of Djibouti in Djibouti as their gateway port

▪ Uganda uses port of Mombasa in Kenya as their gateway port
▪ Moldova uses port of Constanta in Romania as their gateway port
43
Discussion Point
44
Discussion Point
45
Bills of Lading and Manifest for cargoes bound for such inland country destinations, must carry the clause
Cargo in transit to “name of country”
In some cases, shipping lines or government regulations might dictate/insist that the clause reads as
“Cargo in transit to “name of country or final destination” on client care, risk and cost”
46
Containers Advantages of Containers
47
Advantages of Containers in Trade Logistics
▪ Increase in Logistical Efficiency
▪ Permits Door To Door Services
▪ Reduced Risks of Cargo Thefts, Pilferages and Damages
▪ Lower Packing Needs
▪ Quicker Transit Times
▪ Increasing Trade Volumes Generate Greater Economies of Scale

48
Advantages of Containerization in Trade Logistics
Permits Door To •Containers are Standard in Size (ISO Container) and can be used anywhere in the world at
Door Services different types of ships, trucks, barges and railway wagons
•Containers can be used for all types of cargo i.e. raw materials such as coal & wheat,
Flexibility of manufactured goods such as industrial goods & frozen products, chemical and liquids such as
Usage oil, lubricant and editable oil and refrigerated cargo . Old & discarded containers can be used
for office space and temporary housing
•Unique identification number of containers helps in easy management of transport in terms
Ease in Operations
of unit identification, stuffing and de-stuffing at various stages of transhipment and logistics
Increase in
Logistical •Containerization result in low transport costs almost 20 times less than bulk transport
Efficiency
Quicker Transit •Trans-shipment operations for Containerized Cargo are minimal and rapid. Port turnaround
Times times is reduced and logistics operations become faster than regular freighter ships
•Containers in itself are warehouse and facilitates simpler and less expensive packaging. It
Warehousing &
also facilitates stacking of containers thus optimizing space capacity on ships, trains and
Temporary Storage
ground.
•Contents of the container are unknown to various stakeholders in logistics chain and can
Increased Cargo
only be opened at the origin or at place of destination. it reduce chances for spoilage, thefts
Security
and other losses
49
Disadvantages of
Containers
Containers
50
Disadvantages of Containers
▪ Highly Capital Intensive
▪ Additional Fuel Costs
▪ Containers Associated Hazards
▪ Additional Cost on Reverse Logistics of Empty Containers
▪ Loss at Sea
▪ Unsuitability for Logistical Operations
51
Innovative Uses of Container
▪ Last Voyage containers to remote areas
▪ Container as packing material/machinery etc.
▪ Portable Bunk Houses
▪ Temporary Storage
52
Containers Sealing of Containers
53
Container Seals
54
Sealing of Containers
Container seals come in different shapes & forms
▪ Embossed lead wire seals
▪ Plastic seals
▪ Metal bullet seals
▪ Padlocks
It is compulsory for every container to have at least two seals

before the shipping line accepts it for shipment
55
Sealing of Containers
▪ Normally two seals put on the container (Customs & S/Line)
▪ High security bolt seals most preferred
56
Sealing of Containers : Where to be put?
▪ It should be at the right place ….. Important
▪ A container has two lock rods on each door. The left door closes first and then the right door
▪ The seal can be put on either one or both the lock rods. An additional seal can be put on the left
door, but in terms of security, there is no benefit
57
Sealing of Containers :
Where to be put?
Most Effective Place
Right door of the shipping

container as that opens first
58
Sealing of Containers : Where to be put?
▪ Anti theft locking device (ATD) in some containers ….. Fix high security seal
▪ Optional seal fixed on the secure cam ….. Located bottom of third locking bar
▪ When available high security bolt seals should be placed in the “Secure Cam” position
[Bottom end of the left locking bar of right door]
59
Sealing of Containers : Where Secure Cam seal is to be put?
60
Sealing of Containers : Is it absolutely secure?
Whichever type of seal or how many you put ….. Remember a seal is not designed
to eliminate theft or pilferage …….
In most cases it is just a seal standing between the thieves and the cargo
61
Sealing of
Containers
How many seals

should be
affixed?
62
▪ Seal numbers on documents and containers ….

Mismatch … Joint Survey
Sealing of ▪ Loaded / Empty containers placed doors facing

Containers
each other
▪ Avoid illegal stuff into the container
[Weapons : Drugs : Contraband : Counterfeit]
▪ Empty container movement between demand and

Other Aspects supply areas …. Sealing …. Avoid illegal immigrants,
Refugees, Asylum seekers, Human traffickers,
Terrorists
63
Sealing of Bolt Seals : Evidence of tampering

Containers
Tampering : Container Seal
https://www.youtube.com/watch?v=2w9YCi
Qipog
Video
64
Electronic Sealing of
Containers
65
Electronic Sealing of Containers
Applicability
▪ For FCL’s sealed at an approved premise
▪ Automatic qualification for those availing sealing under supervision
▪ Those availing sealing above can automatically start electronic sealing without any approval /
permission from jurisdictional commissioner
▪ All exporters having GST registration and filing GST returns can start electronic sealing of
containers after obtaining approval from the respective jurisdictional Commissioner
[Ref : Customs Circular – 41 / 2017 – Customs Dated: 30.10.2017]
66
Procedure
▪ For FCL’s sealed at an approved premise
o If a full container load is received at a port or ICD with electronic self-sealing RFID, then it would be
deemed to be the equivalent of a container sealed under the supervision of an officer
▪ Full containers brought to ports without RFID e-seals would be taken to a CFS or allowed direct port
entry and subject to usual RMS treatment
▪ Full Containers Loads arriving at ICDs, without RFID e-seals, will be subject to usual risk
management parameters
▪ In case of good reasons or intelligence to warrant inspection or if the electronic seals are tampered, then the
containers would be subject to the normal processing with supervision
67
Sealing Specifications
The exporter should seal the container with tamper-proof electronic seal of the specified
standard. A unique number should be assigned to the Electronic Seal, which should be
mentioned in the shipping bill. In addition to it, the exporter should specify details such as
his/her name, IEC code, GSTIN number, description of the goods, tax invoice number, name of
the authorized signatory and shipping bill number in the electronic seal.
68
Electronic Sealing of
Containers
JT700 is a type of GPS tracker

device mainly designed for
managing and tracking ISO
containers.
Features: Support door open

alarm, Tamper alarm, Waterproof,
low-power design, High-capacity
battery, Dual-way locating …….
69
Container Related Terminologies
70
CY - CY
▪ CY denotes Container Yard
▪ A place within a port or terminal where containers are stored
o Prior to loading on vessel or rail (ICD) …. Exports
o After offloading from vessel or rail (ICD) …. Imports
▪ In certain cases CY is mentioned as a suffix to the Port name in POL or POD name
[Example: Durban CY or Mundra CY …. Defines Responsibility of carrier]
▪ If notation CY /CY mentioned on Bill of Lading, Shipper / Consignee is responsible for any
movement, costs or risks before container delivered to the carrier at the CY or picked up from
CY
71
Typical CY
72
CFS
▪ CFS denotes Container Freight Station
▪ A warehouse(s) where goods belonging to exporters / importers are:
o Consolidated (Grouped) …. Exports
o Deconsolidated (De-grouped) …. Imports
▪ Depending on the nature of the shipment i.e. LCL / Groupage the CFS would be operated by
shipping line / groupage operator or any other enterprise
▪ Customers use CFS facility to:
o Deliver cargoes for custom clearance and stuffing for exports
o Pick up cargo from nominated CFS after de-stuffing and custom clearance
73
Difference : LCL & Consolidation
74
LCL Consolidation : Shipping Line or Consolidator
LCL Consolidation
▪ For LCL shipments Bills of Lading will be issued by the S/Line (CFS / CFS)
▪ CFS / CFS denotes S/Line responsibility commences and ceases there
Groupage shipments
▪ Consolidator will issue House Bill of Lading (CFS / CFS)
▪ S/Line will issue Master Bill of Lading to Consolidator (CY / CY)
75
Difference in Transit Time : FCL

& LCL : Same Destination
Discussion
76
Difference in Transit Time : FCL & LCL : Same Destination
FCL
Example : GTIL (Nhava Sheva) to Fremantle (Australia)
o NYK
o Weekly service
o Transshipment Singapore
o Departure GTIL (Thursdays), Arrival Singapore (Monday)
o Departure Singapore (Thursday), Arrival Fremantle (Friday)
o Transit Time GTIL – Singapore : 11 Days
o Transit Time Singapore – Fremantle : 15 Days
77
Transshipment
https://www.msc.com/ind
https://www.safmarine.com/
78
Container Service Types
79
Container Service Types : FCL
FCL : Full Container Load
▪ Full container used by a customer for his cargo
▪ Packed either at customers premises or at ICD / CFS
▪ Clients responsibility for packing and condition of cargo
▪ Container stuffing at customers premises done under his & Excise supervision
▪ Container stuffing at ICD / CFS done under S/Line’s or Freight Forwarder’s supervision
80
Container Service Types : LCL
LCL : Less than Container Load
▪ Same container used for cargoes belonging to multiple shippers and consignees
▪ Client delivers cargo at CFS
▪ Consolidator stuffs cargo on behalf of client
▪ Consolidator could be a S/Line (India, Durban … S/Lines do not offer this service)
▪ Service provider (S/Line or Consolidator : Responsible for packing, condition, stuffing and
delivery of cargo)
81

Groupage Containers
82
Container Service Types : Groupage
Groupage
▪ Multiple Shipper’s / Single Consignee
[Examples: Walmart, GAP, IKEA etc.]
▪ Cargo stuffing done by a groupage operator
▪ Groupage operator (Go) books the container with the S/Line (20’, 40’ GP or 40’ HC etc.)
▪ Go gets Master B/L from the S/Line
▪ Go issues own House Bills of Lading to Shippers
▪ Go’s agent / own office delivers cargo to consignee in receiving country

83

Terms of Shipment
84
Container Service Types : Terms of Shipment
Terms of Shipment
▪ FCL / FCL : One Shipper / One Consignee
▪ FCL / LCL : One Shipper / Multiple Consignee’s
▪ LCL / FCL : Multiple Shipper’s / One Consignee
▪ LCL / LCL : Multiple Shipper’s / Multiple Consignee’s
85
Contact Details
Name: Ashok Advani
Mobile No: +91-9810333002
Whattsapp No: +91-9810333002
E-Mail Id: ashokadvani53@gmail.com
LinkedIn: https://www.linkedin.com/in/ashok-advani-b622936b/
86
Assertive & Persuasive Communication
Prof. Ashok Advani - Visiting Faculty : IIFT & Jaipuria Institute

of Management, Noida

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Containerisation (Part II)

Reefer Containers – Maersk RCM System

 2,70,000 Reefer Containers

 Circulation: 900,000 times every year

 No end to end visibility and very little control

[Trucks, Terminals, Depots, Vessels]

 Precise temperature and atmospheric control required

Catja Rasmussen, Head of RCM for Maersk Line

GOH (Garment on Hanger) Containers

Insulated or Thermal Container – 20’ & 40’

Examples: Insoluble agents: Silica Gel, Bauxite, Calcium Sulphate

Soluble agents: Calcium Chloride and Glycerol

Tank Containers : 20’ & 40’

Car Carrier Containers

Special Purpose Containers

Special Purpose Containers

Half Height Containers

Half Height Containers

Type of Thermal Cargo Suitability Features of Container

Source: http://upload.wikimedia.org/wikipedia/en/e/e1/ Source: http://www.shippingcontainersuk.com/brands/shipping_containers.php

▪ Container No. : AACU3070079

▪ AAC : 3 Alphabets - Owner’s Code

Standard External Container Dimensions

Container Length 20’ 40’

Standard 8’6” 8’6”

High Cube 9’6” 9’6”

Standard Internal Container Dimensions

Inner Length 19’3” 39’4”

Inner Width 7’7” 7’7”

Standard 7’9” 7’9”

High Cube 8’9” 8’9”

Standard Container Cubic Capacity

Standard 1160 cu. ft. 2360 cu. ft.

▪ Choice of right type of container

▪ Factory stuffing best option

▪ ICD stuffing under personal supervision

Any Fool Can Stuff A Container (Part 1)

Any Fool Can Stuff A Container (Part 2)

What is a Freight Ton?

What is the difference between:

“Laden on Board” and “Shipped on Board”

“Laden on Board” and “Shipped on Board”

“Laden on Board” and “Shipped on Board”

UCP600 Article 20 – Section A – sub-section ii clarifies this point as below:

on board notation will be deemed to be the date of shipment.

Difference between Transshipment & Cargo in Transit?

Difference between Transshipment & Cargo in Transit?

▪ Ethiopia uses port of Djibouti in Djibouti as their gateway port

Difference between Transshipment & Cargo in Transit?

Containers Advantages of Containers

▪ Increase in Logistical Efficiency

▪ Permits Door To Door Services

▪ Reduced Risks of Cargo Thefts, Pilferages and Damages

▪ Lower Packing Needs

▪ Quicker Transit Times

▪ Increasing Trade Volumes Generate Greater Economies of Scale

▪ Highly Capital Intensive

▪ Additional Fuel Costs

▪ Containers Associated Hazards

▪ Additional Cost on Reverse Logistics of Empty Containers

▪ Unsuitability for Logistical Operations

▪ Last Voyage containers to remote areas

▪ Container as packing material/machinery etc.

▪ Portable Bunk Houses