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?