International Trans & Insurance

CONTAINERS
Group
HISTORY
- Used as early as in 1830s, for transportation of ore, limestone and
coal.
- Marine containers was introduced in 1950 by Malcolm McLean,
who was a trucker to a trucking service operator
- He bought the Pan-Atlantic Steamship Corporation and
renamed Sea-Land
- In 1930, McLean had come up with using containers to transport
goods after watching loose cargo being hoisted onto ships from
the trucks at the dockside.

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HISTORY

- In 1960, container ship sailed New York – Venezuela making the container’s
entrance into the international trade market.

- Railroad companies started piggyback service, containers on flatcars (COFC).

 The port of New York Authority constructed the first terminal exclusively for
containers : the Port Elizabeth Marine Terminal

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WHAT IS CONTAINERRISATION ?

- The technique or practice of stowing freight in reusable containers so that they are suitable for
transportation.
- Also a facilitates intermodal transport, using different modes of transport such as roadways,
railways, shipping or airlines etc.

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CONTAINER LANGUAGE
- A shipper has enough cargo to fill up a container to its full
capacity and he would take an empty container from the
shipping line and stuff it exclusively with his own goods before
returning the container to the carrier as a FCL shipment.
- The consignor and the consignee are responsible for packing
and discharging the container

Full Container Load (FLC)

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CONTAINER LANGUAGE
- The transportation of small ocean freight shipments not
requiring the full capacity of an ocean container – Usually less
than 20 CBM (cubic meters). A freight forwarder may create a
“Consolidation” by putting together multiple LCL shipments.
- The forwarder is responsible for loading and unloading the
container.

Less Than Container Load

(LCL)

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CONTAINER LANGUAGE
Container Yard (CY)

The container yard is the area within the terminal where containers
are stored, pending either arrival of the vessel for loading, or pending
arrival of the hauler for inward delivery.

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CONTAINER LANGUAGE
Container Freight Station
(CFS)

The container freight station is the warehouse where LCL shipments

are received by the ship operator, while waiting to be either
packed into containers for export or unstuffed from containers for
import.

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CONTAINER LANGUAGE
Liner Terms

The freight costs (either paid by the seller or the buyer) is all-
inclusive, incorporating all expenses in relation to the loading,
carriage and discharge of goods

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CONTAINER LANGUAGE
FIO ( FREE IN/OUT TERM)

- Free In ( FI ): The carrier is exempt from liability and charges for loading goods onto the ship at the loading port
but they are responsible to the cost of unloading at the port of discharge.

- Free Out ( FO ): The carrier is responsible for the loading and unloading of goods from the port of loading but
they are exempt from liability and costs of unloading from the ship at the port of discharge.

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CONTAINER LANGUAGE
Transhipment

- The act of loading and unloading a container from a ship (usually at the hub port) and putting it on another
vessel to the Port of Discharge. It includes transferring onto either the same mode of transport or another
mode of transport.
- The local agent of the ship operator, who has issued the Through Bill of Lading (TBL) will take responsible for
arranging the transhipment, and ensuring that expenses incurred are kept to a minimum.

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 WHAT IS CONTAINER ?
1. Ocean freight containers :
- Used in international freight movement
- Included : bags, boxes, buckets, barrels, ISO containers, crates, trunks and
others.
- General-purpose containers are large, enclosed rectangular or square box-
type cases (also called cube containers).
2. A standard container
Carry up to 20 US tonnes when it is fully loaded.
- Keep shipments together while protecting the cargo from damage or theft.
- Many different types of shipping containers are available in various durable materials, depending on their
purpose.
- Structures must be strong enough to withstand the continuous rough handling that occurs throughout the
entire transportation process.
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HOW ARE CONTAINERS CONSTRUCTED ?

1. Steel
Characteristics:
- Low material cost
- Easy to repair around the world
- High tare weight
- Susceptible to corrosion
- Difficult to clean, owing to corrugated walls
2. Aluminium
Better tensile strength, as aluminium is lighter and more
elastic
Characteristics:
- Low tare weight
- High material costs
- Easily deformed, very quickly dented
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HOW ARE CONTAINERS CONSTRUCTED ?

3. Plywood / Fibreglass :

- A steel framework with the walls, doors and top made of plywood, and an added waterproof
coating of fiberglass
- Greater tensile strength and elasticity, but also minimises condensation and increases
insulation of the container.
Characteristics:
- Easy to clean owing to smooth surfaces
- Strong and resilient, does not dent
- Moderate material costs
- Moderate tare weight

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HOW ARE CONTAINERS CONSTRUCTED ?

3. Container Floors :
- The floors of containers are generally made of wood, either planking or plywood.

Characteristics:
- - Strong and resilient
- - Does not dent
- - Easily replaced during repairs
- - Adequate coefficient of friction (important for securing cargo)

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STANDARD CONTAINER SPECIFICATION

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TYPES OF CONTAINERS
1. Standard of box container (GP Container) – Container khô
- Standard containers are also known as General purpose containers (GP containers) and are used for all types
of general (dry) cargo. The most commonly used shipping containers.

- Containers are also differ in weight and size, though 20ft and 40ft are the most common.

- There are two-hinged doors on the end of containers through which the cargo is loaded and unloaded, and
the containers may be additionally equipped with the following optional extras:
• Forklift pockets.
• Gooseneck tunnel (40ft containers).
• Lashing rings can be attached to the top side rail.

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 TYPES OF CONTAINERS
2. High-cube container
- High-cube containers are used for the transportation of all types of general (dry) cargo, but they are
particularly suitable for lightweight, voluminous and over-height cargo, of up to 2.7 m tall.
- In contrast to standard containers, which have a maximum height of 2,591 m, high-cube containers are 2,896 m
tall, and are for the most part 40' long, although they can sometimes be as long as 45'.

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 TYPES OF CONTAINERS
3. Hard-top container – Container hở mái
Hard-top containers are used for all types of general (dry) cargo and are used primarily for transporting heavy
or over-height cargo. They are 20' or 40' long, and their structure is usually made out of corrugated steel, while
the floor is made of wood.
.
They have two typical structural features:
- Steel roofs, weighing approximately 450 kg can be lifted off by a
forklift truck.
- In the case of over-height cargo, the roof can then be fastened to
a side wall on the inside of the container and stored vertically

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TYPES OF CONTAINERS
4. Open-top container – Container hở mái
- Open-top containers are used for all types of general (dry) cargo and are used primarily for transporting
machinery, sheet glass, and other heavy, bulky or long objects.
- They are similar in construction to the hard-top version. The difference is that, instead of a rigid roof, open-top
containers have a movable or removable cover made of tarpaulins, canvas, plastic or reinforced plastic
material, supported on movable or removable roof bows. These materials make the inside weatherproof.

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TYPES OF CONTAINERS
5. Flat container (Flatrack) – Container mặt bằng.
- Flat containers or flatracks are mainly used to transport heavy- lifts and over-height or over-width cargo, for
example, project cargo.
- They consist of a floor structure with a high loading capacity, composed of a steel frame, a softwood floor
and two end walls, and are available in 20' and 40' sizes.

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 TYPES OF CONTAINERS
6. Platform container (Plat) – Container mặt bằng
- Platform containers are used principally for transporting oversized and very heavy cargo.
- The platform container consists of a steel frame and a wooden floor structure, and is available in 20' and 40'
sizes. It is similar to the flat container, except that it does not have any side or end walls. The floor structure has an
extremely high loading capacity, which makes it possible to concentrate very heavy weights on a small area.

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 TYPES OF CONTAINERS
7. Ventilated container – Container thông gió :
- Ventilated containers are used especially for cargo that require ventilation during transit, such as hides. One of the
most common commodities transported is green coffee beans, hence its alternative name: coffee container.
- Although openings in the top and bottom longitudinal rails facilitate natural ventilation, they are constructed such
that they do not let in any rain or spray, so the container remains weatherproof and the cargo does not deteriorate.

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TYPES OF CONTAINERS
8. Bulk container – Container hàng rời
- Bulk containers may be used for general cargo, but in particular they are used for transporting bulk cargo, such as
malt, grain, foodstuff and spices.

- They pour from top to bottom loading hatches, and unloading at the bottom or side (discharge hatch).

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 TYPES OF CONTAINERS
9. Tank container – Container bồn :
Tank containers are used for transporting liquid cargo that needs to be kept at a constant temperature such as:
fuels, oils, fruit juices…
- Tank containers must be filled to least 80% capacity, to prevent any dangerous surging of the liquids while in
transit. As a rule, however, the liquids must not exceed 95% capacity.
- Due to the nature of the cargo, all containers must be cleaned before they are returned to their owners.

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 TYPES OF CONTAINERS
10. Isulated container – Container cách điện :
- Insulated containers are for transporting goods that must be kept at a constant temperature: fruit, vegetables,
meat and dairy products (for example, butter and cheese). They are classified as either chilled goods or frozen
goods.
- In the port, the container temperature is controlled by the refrigeration system of the ship or terminal.

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 TYPES OF CONTAINERS
11. Refrigerated (Reefer) container – Container lạnh :
Refrigerated containers are essentially insulated containers, carrying similar cargo, although apart from foodstuff
and other perishables (such as vaccines), reefer containers are also used to transport hazardous chemicals which
need to be kept cool for safety.

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THE CONTAINER MARKINGS

#1 The first part of container

#2 The number of check
#3 The length, height & type
of container

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Check digit
Số tương Lũy thừa
Kí tự ứng 2^𝑛
(a) (b) (a)x(b)
T 31 2^0 31
E 15 2^1 30
M 24 2^2 96
U 32 2^3 256
9 9 2^4 144
3 3 2^5 96
2 2 2^6 128
9 9 2^7 1152
4 4 2^8 1024
9 9 2^9 4608
TỔNG 7565

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Type of containers:

U = Freight containers

J = Detachable freight container related equipment

R = Reefer containers

Z = Trailers & chassis

The length:

2 = 20 feet

4 = 40 feet

L = 45 feet

M = 48 feet

The height:

0 = 8 feet

2 = 8 feet 6 inches

5 = 9 feet 6 inches

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HOW THE CONTAINER HAS
FACILITATED INERNATIONAL TRADE
BEFORE
- In 1960s, exporting shipments and
cargo handling was a lot risky
- Many cumbersome, time – consuming
process. Ship needed to stay in port for
more 10 days
=> Delays shipments
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AFTER
- Shippers could be easily stored and loaded
goods on to vessels. (Then the vessels set sail
again for a day or 2 days)
- Shipping times decreased
- Containers are now used in most seaports
around the world.
  THE IMPORTANCE OF INLAND
CONTAINER DEPOTS
Inland container have important role in the
transportation process. They carry out the
following task:
• Checking
• Reporting
• Repairs
• General maintenance
• Storage
• Disposition
• Other Responsibilities

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 CONTAINER
LEASING
Many containers are needed to facilitate the
enormous amount of cargo that is transported
around the world every year
ADVANTAGES
• Containers may be leased out immediately;
• Containers may be returned once a line
can again cover its needs with its own
equipment;
• A line does not need to tie up too much of
its capital, or invest heavily in buying its own
equipment.

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 Operation
One- A one-way lease from Vancouver to
ways Yokohama: the container being originally
leased from a depot in Vancouver, and then
being returned to the lessee’s leasing depot in
Yokohama.
Round The container would be returned to
Trip the depot from which it was originally
leased

Short The leasing of a container for 60 to 90 days.

Term

Long The leasing of a container for

Term two to three years, or more.

Is a continuing arrangement,
Master where more containers can be
Lease added to the lease contract
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parties executing a new contract
 THE
ECONOMIC
IMPORTANCE
OF
CONTAINERS
 For the merchant
The use of secure containers has meant that
goods are far less likely to be either damaged or
stolen en route, as compared to if they were
stored loose. The merchant also saves on
packing costs, and can expect a fast door-to-
door transit time. Several disadvantages of using
these containers are the restrictions on the
storage size for bulky or irregularly shaped cargo,
and the difficulty in not being able to fill the
container to full capacity.
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 For the freight
forwarder
Containerisation has enabled the freight
forwarder to consolidate cargo and act as an
NVOCC, although ship owners now wish to
arrange their own land transport, which was
previously the forwarder’s domain

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 For the port
Newer and more efficient cranes are now being
used as container handling equipment in the
ports, in place of more conventional handling
methods. This has made it possible to achieve
much faster turnaround times for loading and
unloading of vessels. Ports are able to handle a
far greater volume of cargo, with greater
efficiency in the use of manpower.

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 For the shipping lines
Containerisation has cut dramatically the length
of time taken for cargo to be discharged and
loaded in the port. Ship owners gain a much
higher financial return on this “down time".

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 For the railway
With the enormous investments required, many
railways have converted from the old
conventional dispatch methods to
containerisation, by setting up new container
terminals and buying modern (double stack)
container railcars and road vehicles for
combined transport movements.

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THANK YOU FOR
YOUR LISTENING