International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
national and international transport modes, whether rail, sea, road or air.
Containers facilitate what is known as the ‘intermodel’ system of freight
transport enabling the smooth movement of goods in bulk, from one
transport mode to another.
The main attributes of containers and containerization are as follows:
• They enable a number of small packages to be consolidated into large
single unit loads.
• There is a reduction in the handling of goods as they are distributed from
the point of origin to the point of destination.
• There is a reduction in individual packaging requirements, depending on
the load within the container.
• There is a reduction in damage to products caused by other cargo.
• Insurance charges are lower due to the damage potential is reduced.
• Handling costs at the docks and other modal interfaces are reduced.
• Turnaround time is faster for all types of transport used. Port utilization
also improves.
• The all round delivery time is faster and hence service levels are better.
• Documentation is much simpler – this applies to both company and
custom documentation.
• The concept of ‘through transit’ become feasible and allows a truly
integrated transport system to be developed.
• The systems that were developed in the early days of containerisation,
have been integrated across the different modes. This has considerably
improved transportation in recent years.
• There is a need for special facilities and handling equipment, which are
expensive. Thus, only a limited number of transfer points are feasible.
• The initial cost of the containers is quite high.
• Trade is seldom evenly balanced. Very often return loads may not be
available and so the cost increases.
• Containers may leak, thereby causing damage due to rain or sea water.
• Loads may be affected by the position in which they are stowed, e.g.,
above or below deck.
Sea freight container details
Container
Type
20’ day
Outside Dimensions
6.045m
2.438m
2.438m
Only for Private Circulation