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Containerization & Multimodal Transportation - Class 3
Containerization & Multimodal Transportation - Class 3
Multimodal Transportation
MTL 1113
• 26 April 1956 marks the beginning of what has been described as the ‘container revolution’: 58
boxes were loaded onboard the converted tanker Ideal‐X and sailed from Newark, New Jersey to
Houston, Texas – the American businessman Malcom McLean who later founded Sea‐Land
Services, had invented the modern intermodal shipping container.
• At the time, cargo was usually loaded and unloaded by hand, costing 5.86 USD a ton compared to
16 cents a ton using Ideal‐X; the value of ‘economies of scale’ was introduced.
• The journey to Houston reflects how a simple idea – packing commodities into a 35 foot, six‐sided
box and moving that box between different modes of transport – eventually revolutionized world
trade and laid the foundation for the world’s biggest container business, Maersk Line.
• In the decades to come, it quickly took up pace – and 60 years later, more than 6,000 container
ships, large and small, support trade for local and global customers.
History Of Container
• Container shipping is the most optimal method of shipping freight through sea routes. Bearing rich significance to the nature of
maritime operations, the advent of containerization fueled a much need thrust into the marine sector propelling it to heights
never seen before.
• However, shipping cargo through different types of cargo container units is not a very old method. Find out how containerization
way of cargo started with container ships and how it gained popularity around the world.
• The history of containerization is a development that can be pinpointed to the mid‐20th century. Pioneered by an US‐based
conveyance businessman Malcolm Mclean, cargo containers were fashioned in a bid to simplify the long‐drawn processes involved
in shipping of cargo through sea routes.
• The extremely lengthy processes primarily meant that the cargo had to be suitably dismantled or separated before it could be
loaded into the ships. This meant that effective labor was wasted in the initial dismantling and the later assembling procedures,
and huge amounts of cargo had to be sub‐divided merely because of technical restrictions and there was absolutely
no standardization in the entire shipping processes.
• Malcolm Mclean circumvented this protracted cargo transportation issue by modifying the basic structuring of a Second World
War tanker vessel. The initial cargo containers utilised in the vessel were modified as well, and were wheel‐less truck‐carts. The
entire success of such a novel initiative however depended on whether the modified truck‐carts laded with cargo could be
successfully placed into the vessel and thus transported to the necessary destination.
• Exceeding expectations, the ingeniously devised contraption proved to be a huge success. This success meant that for the
foreseeable future, shipping cargo – bulk or otherwise – could be carried out with the least possible problems.
• There are around 65 million shipping containers in use worldwide. Most of these containers are held on ships by leasing
companies. However, shipping companies don't like to publish the number of containers they currently have though we will have a
statistical discussion later of this class.
Salient Features of Containerization
• Transiting costs for the cargo to be shipped were reduced drastically on account of the elimination of the unwanted processes
• Large amount of cargo could be transported which meant that transporters benefited from the economies of scale
• The feasibility offered by shipping containers also ensured that the water navigable channels could be utilised for transiting freight
internationally
• Development of harbour facilities also took place simultaneously once the qualitative worth of container shipping began to spread far
and wide.
• A major noteworthy development in the history of container ships was realized when major maritime organisations acknowledged the
singularity that shipping containers offered to the marine domain.
• This acknowledgement was also marked by the establishment of set rules and regulations with respect to the sizing of the containers.
In order to bring a common platform to all containers, the International Standardizing Authority (ISO) established the following:
1. Containers that measured 20‐feet lengthwise. Such containers were soon referred to as TEUs (Twenty‐foot Equivalent
Units)
2. Containers that measured 40‐feet lengthwise. Such containers soon came to be referred as FEUs (Forty‐foot Equivalent
Units) or more commonly, as Two‐TEUs
• In the over 50‐years of the initiation of shipping containers into mainstream maritime freight operations, a lot of advancement has
been made. Today the global cargo shipping spectrum has widened to really enormous proportions while also helping several newer
shipping conglomerates and even countries to enter the fray.
• With the extent of containerised operations and technological developments in the same increasing almost every day, it wouldn’t be
wrong to say that cargo movement in the present times cannot be visualised to fruition in the absence of container shipping.
Present Situation of Container Shipping Industry (General)
• The global shipping container industry was $8.7 billion in 2019. It is expected to reach $12 billion by 2027.
• The breakdown of the world seaborne trade is 52% container, 22% tanker, 20% general cargo, and 6% dry
bulk.
• There are about 55,000 merchant ships that trade internationally, including 15,106 general cargo
ships, 12,258 bulk cargo carriers, 7,350 crude oil tankers, 7,027 ro‐ro passenger ships, 5,664 chemical
tankers, 5,307 container ships, and 2,031 liquefied natural gas tankers.
• In the U.S. alone, there are more than 360 commercial ports.
• The Port of Shanghai has the greatest cargo volume in the world. It handles
approximately 43.5 million TEU containers & operated by Shanghai International Port
Group (SIPG).
• The Port of Shanghai is the busiest port in the world in terms of cargo tonnage and
comprises a deepsea port and a river port. Located in Shanghai, China, the port covers
an area of 3,619.6km² at the mouth of the Yangtze River Port of Shanghai
• The Port of Los Angeles has the greatest cargo volume in the U.S. It handles
approximately 9.2 million TEU containers.
• The Port of Los Angeles is made up of 7,500 acres of land and reaches over 43 miles of
shoreline.
• The Ports of Los Angeles and Long Beach handle about 40% of receiving containers in
the U.S.
• About 1,000 people are employed by the Los Angeles Harbor Department.
***Info. from Thomas Insights (Jan 26, 2022) Port of Los Angeles & Long Beach
History of Sea going Ships : Austronesians were first to sail the seas
• Who were the world's first great ocean‐going people? The Vikings? The
Phoenicians? The Portuguese or Spanish, with their galleons of gold? The
Chinese, with their junks?
• None of them. At least 2000 years before the Vikings invented their long
boats, a people who shared a language and culture we know as
Austronesian set sail to conquer the final frontier.
• Bit by bit, they sailed towards the sunrise, island‐hopping eastwards across
the Pacific. Their journey took them by canoe via New Guinea, the Solomon
Islands, Vanuatu, Fiji, Tonga, Hawaii, Easter Island, the coast of South
America and, just 700 years ago, the last uninhabited islands capable of
sustaining human life: New Zealand.
A replica of a traditional Austronesian sailing Trimaran.
• Other Austronesians were spreading westwards across the Indian Ocean.
Eventually they would reach Madagascar and, it is presumed, Africa itself. Illustration of Viking Longship: Longboats or Dragon Boats
• The next to the Austronesians and in different territory, from around A.D.
800 to the 11th century, a vast number of Scandinavians left their
homelands to seek their fortunes elsewhere. These seafaring warriors–
known collectively as Vikings or Norsemen (“Northmen”)–began by raiding
coastal sites, especially undefended monasteries, in the British Isles.
• Container ships’ origins can be traced back to 1955 when Malcolm P. McLean customized an oil tanker to
transport his trucks. And today, most of the world’s goods are transported over the sea.
• The first models of container ships were launched in the early 1950s and were mainly designed to ferry
goods trains’ freight cars. Using crane and ramp systems, these freight cars could be loaded and unloaded
from the vessels.
• Over the years, technological advancement has made it possible for comparatively far more feasible
methodologies. However, crane systems still play a significant role in the loading and unloading operations of
the containers to and from the vessels’ holds. Specialised lashing and cargo handling systems are used to
secure the containers in their places.
• Container vessels are typical in that they are constructed to accommodate immense possible cargo loads.
The load holding capacitance of container vessels is measured in terms of Twenty‐foot Equivalent Units or
TEUs. As of present day, the giant container ships can carrying as much as over 20,000 ‐24,000 TEUs.
History of Container Ships : Evolution
Types of Container Ships
• One of the most potent methods of hauling goods is done by Container Ships. These ships have made it
feasible to transfer towering quantities of cargo at a time and have changed the global trade efficaciously.
• There are ConRo Ships & LoLo ships which carry other cargo in combination with containers. Container ships
are the cargo ships which carry most seagoing non-bulk cargoes. In today’s world, container vessels carry
around 80-90% of the world’s non-bulk cargoes. One of the main ways of carrying ready goods worldwide is
through Container Vessels.
• These containers are of a standardised size so that they can be easily transferred to various modes of transport.
Anything can be carried on a Containership. Because of the increasing demand in the market, increasing cargo
carrying capacity, increasing operating efficiency and improvement in environmental processes and operation of
a container vessel in liner service, the container vessels have become bigger and bigger continuously.
• Mother vessels are used to transit between major ports and feeder vessels are used for feeding service between
small and main port. The container carrying capacity of container ships today has increased more than 1200%
as compared to 1968. They have become more technologically advanced and fuel-efficient by the time.
• There are different types of container ships, based on their size and different types of cargo they carry along
with the containers. The container ships can be categorized in different ways which is clearly explained in next
video.
https://www.youtube.com/watch?v=-dGUwNu55po
Types of Container Ships
Criteria: Development Generations:
•
• Panamax Post‐ Panamax
• Post‐Suezmax
• APL introduced a new transportation net without
using the Panama Canal. This created the ‘Post‐ • These are Ultra‐large container vessels with a
Panamax’ type. The Introduction of Regina Mærsk carrying capacity of 18000 TEU with a breadth
of 60m 21m max draught.
• Suezmax in 1996 started a new development in the container
ship market with an official capacity of 6400 TEU. • These vessels are known as Post Suezmax as
• Post‐Panamax’s development was climactic. In the their dimensions are too big for the vessel to
present world, they occupy nearly 30% of the pass the Suez canal.
world’s fleet.
• Post‐Panamax
• These sizes of vessels were subversive, introducing
new ideas and methods in the container shipping
market. • Post – Malacamax
• Post‐Suezmax • The concept of cellular container vessels was • This size emulates the maximum permissible
draught of 21m of Malacca Strait.
introduced. The cell guides ran from the bottom of
the hold to some tiers above the deck. This reduced
the running cost of ship owners as no lashing • The port authorities must be ready for this
materials were used to secure the containers but vessel to enter the Ports. Presently only two
• Post‐Malaccamax also improved the speed of loading and discharging ports in the world are prepared to accept this
size of ship, i.e., Singapore & Rotterdam.
and reduced container shifting.
Container Loading Records by a Ship
Date of departure Ship Built Length (m) Loaded TEUs Capacity (TEUs) Utilization Port Destination
14‐Aug‐21 Ever Ace 2021 399.9 21,710 23,992 90% Yantian Rotterdam
8‐Apr‐21 CMA CGM Jacques Saadé 2020 399.9 21,433 23,112 93% Singapore Le Havre
12‐Oct‐20 CMA CGM Jacques Saadé 2020 399.9 20,723 23,112 90% Singapore Le Havre
8‐May‐20 HMM Algeciras 2020 399.9 19,621 23,964 82% Yantian Rotterdam
28‐Jul‐19 MSC Gülsün 2019 399.9 19,574 23,756 82% Tanjung Pelepas Algeciras
1‐Jun‐19 Monaco Maersk 2017 399.0 19,284 20,568 94% Tanjung Pelepas Rotterdam
11‐Feb‐19 MOL Tribute 2017 400.0 19,190 20,170 95% Singapore Southampton
Aug‐18 Mumbai Maersk 2018 399.0 19,038 20,568 93% Tanjung Pelepas Rotterdam
List of largest Container Shipping companies
• This is a list of the 30 Rank Company name Headquarters Total TEU Capacity Ships Market Share Alliance
largest container 1 MSC (Mediterranean Shipping Company) Switzerland/ Italy 4,471,789 690 17.40% 2M
2 Maersk Denmark 4,264,693 732 16.60% 2M
shipping companies as
Ocean
of 11 August 2022, 3 CMA CGM France 3,305,667 581 12.80%
Alliance
according to 4 COSCO China 2,882,156 465 11.20%
Ocean
Alphaliner, ranked in Alliance
5 Hapag‐Lloyd Germany 1,760,591 248 6.80% THE Alliance
order of the twenty‐ Ocean
foot equivalent unit 6 Evergreen Marine Corporation Taiwan 1,580,977 204 6.10%
Alliance
(TEU) capacity of their 7 ONE (Ocean Network Express) Japan 1,498,154 201 5.80% THE Alliance
fleet. 8 HMM Co. Ltd. South Korea 818,075 76 3.20% THE Alliance
9 Yang Ming Marine Transport Corporation Taiwan 685,189 93 2.70% THE Alliance
10 ZIM (Zim Integrated Shipping Services) Israel 514,579 138 2.00%
11 Wan Hai Lines Taiwan 428,937 155 1.70%
• Top 30 Companies 12 PIL (Pacific International Lines) Singapore 288,700 90 1.10%
13 KMTC (Korea Marine Transport Corporation) South Korea 149,255 66 0.60%
cumulatively covers 14 SITC (Shandong International Transportation Corporation) China 146,254 100 0.60%
approx. 95% of the 15 IRISL Group Iran 143,468 32 0.60%
Container fleet around 16 Unifeeder Denmark 142,749 90 0.60%
the world. 17 X‐Press Feeders Singapore 138,493 89 0.50%
18 Zhonggu Logistics Corporation China 115,738 99 0.40%
19 TS Lines Taiwan 106,227 51 0.40%
20 SM Line South Korea 93,410 18 0.40%
• In January 2022, MSC 21 Antong Holdings (QASC) China 88,039 91 0.30%
22 Sea Lead Shipping Singapore 87,198 24 0.30%
overtook Maersk for 23 CULines (China United Lines) China 83,073 33 0.30%
the container line with 24 Sinokor Merchant Marine South Korea 82,134 66 0.30%
the largest shipping 25 RCL (Regional Container Lines) Thailand 78,236 40 0.30%
capacity for the first 26 Emirates Shipping Line United Arab Emirates 69,514 15 0.30%
27 Matson United States 68,563 29 0.30%
time since 1996. 28 Global Feeder Shipping LLC United Arab Emirates 68,556 23 0.30%
29 Swire Shipping China 65,520 33 0.30%
30 Arkas Line Turkey 51,869 32 0.20%
List of Top Container Leasing Companies
• The role of container leasing companies is Rank Container Leasing Companies TEU Capacity
to lease shipping containers or manage
fleets for investors. Their operations
include acquisitions, leasing, re‐leasing, 1 TRITON International 7.1 million
selling, and trading intermodal containers.
2 Textainer Group 4.4 million
Containers moved
By By From
Destination Port Ship Transhipment Port Ship Scheduled Ship Stack to PORT
(MTY/LDN)
By
Road/
Rail
Laden Containers
being moved to
EMPTY Containers
Containers Moved Buyer’s
return to
to ICDs/Depot Warehouse or
By By ICD/Depot/Port
(Destination) Road Facility for De‐ Road
for Onward
(MTY/LDN) Stuffing (*If
Usage/Movement
Required only)
Open Discussion
• What could be the constraints of Container Shipping?
‐‐‐ Think about the cargo size and tonnage.