Lesson no.2
In this lesson, I would like to discuss about the impact of globalization towards containerization. I had an experience handling 10 ft container during my internship at Ninja Van and 20 ft container when I am doing part time at Daiso Sdn Bhd.
Containerization is the packaging of software code with just the operating system (OS) libraries and dependencies required to run the code to create a single lightweight executable or known as container that runs consistently on any infrastructure.
The impact of globalization in logistic industry especially in railways, had changed the perspective and the way people transfer goods. In this lesson I will more focus on containerization.
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Containerization is a system of intermodal freight transport using intermodal containers (also called shipping containers and ISO containers).
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In this globalization era, logistic can be intermodal transportation and various mode of logistics can be used during a logistic process. It is unique for certain countries to use their type of transport because in Europe such as Switzerland they must use piggy back for truck if they want to use railways. In Malaysia, we use container at the railways.
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Example of containerization in
Intermodal Transport
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Sea transport > land transport
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the container will be move to rail & truck by using huge gantry cranes.
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Land transport > air transport
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usually most logistician try to avoid using air transport because this type of mode cost much more money than other mode of transport.​
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Sea transport > land transport > air transport
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not every countries can have this kind of transportation mode and it is costly compared to other mode of transport.
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It is no doubt that the impact of globalization is changing the logistic industry especially in containerization and make the process of supply chain and management for effective and efficient. Every process must have advantages and disadvantages.
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Economies of Scale
The cost of transporting goods by containers is said to be 20 to 25 times less than the cost of transporting the same goods as loose bulk or LCL. Containerization has drastically brought down the transport cost element in the pricing of goods.
Economies of scale is a major factor here. In general, economies of scale is the advantage companies get as a result of producing or dealing in bulk.
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Durability
Depending on the usage, a shipping container can last for 10 to 25 years. Once they are condemned after it is no longer usable, containers are often used for storage or converted as living quarters. Empty containers are used as temporary storage space by warehouses and distributers especially when their storage facility has reached its capacity. Containers can be placed in any convenient location in the warehouse yard. It provides temporary and flexible storage for companies when required.
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Standardization
Since ISO-certified containers are of standard size and dimensions they can be handled universally by any standard transport and MHE. This makes it easier to use, transport, and store the containers.
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Space constraints
Containers, whether carrying cargo or empty, take up a lot of space. Terminals need to have enough stacking space to accommodate containers that come in and go out of it. Containers that must go out first must not be at the bottom of a stack. The latest container handling equipment and other infrastructure have to be in place to ensure minimum port turnaround times for cargo ships.
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Infrastructure Costs
The latest dockside gantry cranes and other terminal equipment cost several million US dollars. Leading ports and terminals are those that can make these investments and also keep the equipment upgraded according to advances in technology. While developed nations can make such investments others may find it difficult to keep up with the race.
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Smuggling
Smuggling of contraband such as arms, drugs, and even human trafficking happens through containers. Typically, customs authorities the world over inspect containers at random. It is possible that contraband can sometimes slip through. Other reasons that prompt the authorities to inspect certain containers are tip-offs, irregular documentation, suspicious patterns of shipping goods.