What is Containerized Shipments

The use of containers in export shipments makes the transport and handling easier and faster. The crane and gantry are commonly used in handling containers. The forklift is also used at the docks and container terminals to move the 20' and shorter dry cargo containers, which are equipped with forklift pockets---fork pockets or tine pockets.

The ports worldwide handle over 100 million TEUs annually. The unit TEU (twenty-foot equivalent unit) is used to express the relative number of containers based on the equivalent length of a 20' container. For example, 100 containers of 20' is 100 TEUs, while 100 containers of 40' is 200 TEUs.

The container ships used in the international traffic are designed with the cells (compartments with cell guides) resembling a honeycomb wherein the containers are placed, thus named cellular container ships.

The ships are bigger and faster nowadays, especially those used in the deep-sea voyage (long haul). Those rated below 20 knots are common in the short-sea voyage (short haul). The knot is a unit of ship's speed, being one nautical mile per hour. One nautical mile is 1.852 kilometers. A ship that steams at 20 knots is moving at a speed of about 37 kilometers per hour.

Some cellular container ships in the 20 to 23 knot range can accommodate 2,000 to 3,000 TEUs. Some rated 24 knots have a carrying capacity of 4,000 to 4,900 TEUs and load of 56,000 to 75,000 metric tons. The length of the vessel can be about 900' (275 meters) and the beam---the widest part of a ship---can be about 125' (38 meters). The size of vessel is huge compare to a standard football field having a goal line of 300' (91.44 meters) and an end line of 160' (48.77 meters).

Convenience of Containers in Multimodal Transport and Transhipment

Containers are designed to facilitate the carriage of goods without intermediate reloading. They are fitted with devices permitting their ready handling, particularly in the multimodal transport and transhipment (the word "transhipment" is also written with two letter 's' as "transshipment").

The prefix 'multi-' means at least two or many. The term mode refers to the way or means. Multimodal transport means at least two different modes of transportation. In export shipping, it refers to delivery using a combination of usually ocean and land (rail or road) carriers, and using only one shipping document known as through bill of lading or combined transport bill of lading, issued usually by the ocean shipping company or its agent.

Theft, Pilferage, Damage, and Insurance

The cargo security of container shipments against theft, pilferage and damage is improved, especially in the CY/CY container service. Hence, the cargo insurance in a container shipment generally is lower than in a break-bulk shipment.
The metal seal that is provided by the carrier and used in securing the container doors is tamperproof, but it is easily removed. In some countries, the importer's customs broker may use padlocks to secure the doors of container for their client once the FCL (full container load) shipment reached the destination port.

Importer's Specified Container Shipping Company

Importers may specify in the purchase order and/or the letter of credit (L/C) the container shipping company or the vessel to use for their shipment. Big importers, such as chain stores, and large shippers may have a contract with the shipping company to deliver an annual minimum TEU (twenty-foot equivalent unit) at preferred or discounted freight rates.