Containerization involves packaging goods in containers for easy transport without decomposing contents. It allows for multiple transport options, reduces potential for damage, and lowers costs.
Containerization is an approach to transporting goods and services in quantities that are smaller than the batches normally carried by bulk carriers. The basic concept is that these smaller batches are packaged and sealed in containers that can be easily stacked and transported intact, without the need to decompose the contents along the way. This approach makes it possible to use multiple options in real transport, including road, rail, water, and air transport options.
An easy way to understand containerization is to consider transporting many finished products from a textile factory to a customer who lives in a different country. To manage the process, textiles are usually loaded into a container attached to a long haul trailer. The trailer is transported via a freight line to a waterfront dock, where the container is processed through customs and loaded onto a barge or steamer for transport via a waterway. When the container arrives at the country of destination, it is unloaded from the boat, passes through customs and is picked up again by a freight line that delivers the goods to the customer by road. During the entire container process, goods are not transferred from one container to another, making moving from one mode of transport to the next a quick and easy process.
There are several benefits associated with containerization. The potential for damage to the transported goods must be minimized. Other methods require loading and unloading of cartons or pallets of goods at each point of the intermodal exchange. Each time merchandise goes through this process, there is some potential for damage. By loading the goods into a used container during transit, there is less handling of the actual goods in transit and less chance of those goods being damaged.
In the case of transporting goods to an international location, there are many container ships that make regular routes to a wide variety of destinations. This can help streamline the shipping process, allowing the customer to receive the order in less time. The costs associated with containerization are often lower than using other shipping methods as there are fewer concerns with proper storage and it even has an impact on inventory costs that may be related to shipping. The fact that many of the containers are airtight and watertight also helps to protect the goods to a degree that is difficult to achieve using other shipping methods.
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