Scribd
Upload
785 views12 pages

Future of Containerization in Logistics: Sarath Chandran P Vrushali Mandlekar Mba P&SM

Containerization has transformed global logistics and trade. It began in the 1950s and standardization of container sizes has allowed for efficient intermodal freight transport. Containerization reduces costs, protects cargo, and speeds up transport. Over 90% of global trade is now carried by sea, with over 50% of that being containerized. This has increased trade volumes and opened new markets. However, challenges remain like overcapacity, port congestion, and higher energy costs. India's container traffic has grown steadily and infrastructure is being expanded through public-private partnerships to handle future growth in trade. The future may see changes to the balance of sea vs land operations, more routing options, and continued evolution of the global supply chain network.

Uploaded by

Sarath Chandran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
785 views12 pages

Future of Containerization in Logistics: Sarath Chandran P Vrushali Mandlekar Mba P&SM

Containerization has transformed global logistics and trade. It began in the 1950s and standardization of container sizes has allowed for efficient intermodal freight transport. Containerization reduces costs, protects cargo, and speeds up transport. Over 90% of global trade is now carried by sea, with over 50% of that being containerized. This has increased trade volumes and opened new markets. However, challenges remain like overcapacity, port congestion, and higher energy costs. India's container traffic has grown steadily and infrastructure is being expanded through public-private partnerships to handle future growth in trade. The future may see changes to the balance of sea vs land operations, more routing options, and continued evolution of the global supply chain network.

Uploaded by

Sarath Chandran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

Future of Containerization

in Logistics

Sarath Chandran P
Vrushali Mandlekar
MBA P&SM
Overview

•What is containerization?
•Containerization as backbone of logistics
•Advantages
•Global Scenario
•Indian Scenario
•Future ahead
 Containerization (or containerisation) is a system
of intermodal freight transport using
standard intermodal containers.

 The global standardization of containers and


container handling equipment was an important
innovation in 20th century logistics.
Evolution of Containerisation

Employed in Coal mines around England and


Germany during late 1870’s

During 1930’s they were used a as a form of


Piggy back service (transporting highway
freight trailers on flatcars)

In 1955, Malcolm McLean worked with


engineer Keith Tantlinger to develop the
modern intermodal container.
The first vessel built to carry containers began
operation in Denmark in 1951

First containerized route was between Seattle

and Alaska in 1951

Standardization of Size of Containers and


introduction of dedicated ships and terminals
Benefits of Containerization

 Suitable for cargo in lots and small in size.

 Protect the cargo from Human and Natural factors

 Saves Time and Labor cost

 Ensure better handling of the cargo

 Containers act as a mode of storage

 Containerisation reduces transit time, which in turn reduces inventory

cost and increase reliability


Current Scenario
More than90% of world merchandise trade is carried by sea and over
50% of that volume is containerized
How container shipping changed the scale and
scope of global freight distribution

 Enabled a greater velocity in freight distribution

 Opened new global market for EXIM trade

 Increase in efficiency of transport terminals


Growth Scenario

Source: World Container Traffic, 1980-2008 (Drewry


Shipping Consultants, 2007) and Projections to 2015
Global Scenario in relation to
Maritime Shipping

 Over Capacity of Shipping fleet Vs Current Demand

 Change in economy of scale of vessels

 Larger vessel creating pressure on terminal & access routes

 Higher energy cost and Port congestion

 Location / geography of trade


Indian Scenario - Containerization

• The container traffic handled in various ports across India


has grown at the rate of 6.7% during 2009

• Development of Infrastructure facilities to increase


efficiency and productivity of terminals.

• Development of CFS and ICD to service the secondary


hinterland

• Introduction of PPP projects in Container Terminal


development and allied infrastructure.
The future ahead for containerization

 A Growing Divide between Sea-based and Land-based Operations?

 A Multiplication of Routing Options?

 A Continuing Global Spatial Divide?

 An Evolution or a Revolution?

You might also like