CRITICAL REVIEW OF EVOLUTION OF CONTAINER

STANDARDIZATION, TEU’S, ISO & CONCOR

Submitted To

Prof. Saroj Koul

Submitted By

B Vamsee Krishna Vyas

20142116

IBM’14

O P Jindal Global University

Jindal Global Business School

Sonipat
 Contents

1. Introduction

2. History of container standardization

3. Role of ISO & TEU’s

4. Types of containers

5. Benefits of Containers

6. Challenges due to Containerization

7. CONCOR & It’s Operations

8. Conclusion
 History of Container Standardization

The history of containerization can be tracked down to the middle of 20th century. This concept of

container was first introduced by a US business man Malcom Mclean. He wanted to transport huge

quantities of goods at a time and thought these heavy structures could be a solution in minimizing

the trade difficulties in transporting huge quantities of goods.

When we look in the economics on transportation, it was stated that containerization is huge step

towards the transportation technology, which was responsible for the drastic improvement for the

increase in world trade through huge amount of cargo at a one goes. It has also increased the

globalization around the world. It has technologically and organizationally which led to the

revolutionization of freight transport globally.

It has also led to the development of intermodal transportation, increased shipping quantities, fast

delivery time, through ships, trains and trucks.

 Role of ISO & TEU’s

International Orginization for Standardization (ISO) sets atandards which will be suitable for different

modes of transport like truck, rail, or ship. These rules and regulations helps in designing a shipping

container which meets the industry size, strength, and durability requirements. The core idea of these

regulations is to provide a sustainable container which can withstand any time of adverse conditions during

the time of transportation, as well as possess the required dimensions while loading and unloading by

cranes or any other related equipment.

ISO containers are the universally used shipping containers, as their dimensions are controlled and set by

the International Standards Organization (ISO).

Height

Standard ISO containers measure 8 ft. 6 in. Also available in different heights like 4 ft. to 9 ft. 6 in

Width

Most of the ISO containers measure 8 ft. or 2,438 mm wide. Divide in to 2 sub types:

1. 2,438 mm > C, D, E, and F < 2500mm

2. L, M, N, and P > 2500mm

Length

The most common lengths are 20 and 40 ft. Other lengths include 24, 28, 44, 45, 46, 53, and 56 ft.

Codes

There are different codes assigned to the containers, according their usage, which are G,

V,B,S,R,H,U,P,T,A
 Role of TEU’s

The two most common international standardized container types are twenty and forty foot. A twentyfoot

unit measures about 6 meters, a forty foot about 12 meters (external dimensions). The maximum gross

mass for dry cargo TEU is 52,910 lb: 47,770 lb (net load) + 5,140 lb (empty container weight). A TEU can

accommodate 796 bushels of soybeans.

A forty foot container is regarded as two twenty foot containers or 2 TEU (Forty Foot Equivalent Unit)

Types of Containers

Due to the heavy development of containers and intermodalism, there are different sizes of

containers which were put into place, to tackle the growing expectations and ease of use. Due to

different sizes of containers they offer high level of amounts of goods to be transported at a single

time and standardization of quality transported. Different types of containers are as follows

Standard Container / Dry Container: It is one of the most commonly used and oldest form of

container. They carry cargo in forms of bulk or break bulk. They have 2 entry doors, which makes

the work easy while loading and unloading.

Tank Container: It is mostly used to carry “liquid” type of materials. It consists of tank like

structure in it. It contains 4 latching points.

Open Top Container: To handle heavy cargo like machines etc. which can’t be loaded from a

door use these types of containers. The cargo is loaded from the top and is covered by a tarpaulin

(waterproof cloth)
Flat Container: This container has only the base to support the cargo and is exposed to outdoor

conditions from all other sides. But in few cases, it is provided with only front and back door and

no side doors are provided.

Refrigerated Container: It is popularly known as refeer. It is used to carry perishable good. The

temperature in these containers will be equivalent to zero. The temperature is set by using

refrigerator technology.

Benefits of Containers

Multimode Usage: Containers can be used to transport different types of good from cars to oil to

frozen goods etc.. help them to serve different industries and generate revenue accordingly. They

can be also used as homes, shops, restaurants, storage point after their work life completion.

Economies of Scale: due to container standardization, costs have came down drastically as more

amount of goods can be accommodated in a single container. It has increased the flexibility while

doing the operations.

Self-Warehouse: The container can mitigate most of the risks are raised to harm the cargo from

whether conditions, heavy moment etc… which makes them as a protector of goods. Companies

also spent comparatively less amount of insurance when they are transferring the cargo through

containers.
Security: The containers act as security check because they have been assigned their own codes

and be unlocked by the main authorities and customs. This makes them less reliable to thefts and

misplacement of the goods.

Identification: Cargo when transported through containers are assigned to a specific container

which has it’s own unique identification code. It helps the authorities to locate it in case of

mishandling.

Challenges of Container Standardization

Stacking: Every container should be loaded as per its own unloading point and these should be a

hinder to other containers which will be unloaded later. They also have to be arranged so that no

double work should be done further, either in a containerships or double-stack trains.

Empty Travel: Containers main functioning is to carefully ship goods from one point o other.

But, after the unloading process the containers are to be shipped back to their home location. But

this a huge problem. Nearly 10 to 15 years of containers lifetime only in the relocating process,

which is turning as cost burden to the companies. Instead the empty container should be shipped

exclusively by other shippers, which will help to decrease the cost.

Illicit Trade: Due to the heavy size of containers and number of containers being transported from

one country to the other it is becoming difficult to analyze all the containers, which are illegally

transporting drugs, weapons and in some cases illegal migrants. This will turn out as national

problem to any country. More security standards to be increased to decrease these types of

activities.
Site Constraints: As many containers are being transported worldwide, there should be enough

space to unload and store them. But the capacity of the ports does not the meet the required

standards, which makes the vulnerable.

Container Corporation of India Ltd (CONCOR) –

Container Corporation of India Ltd. (CONCOR), was started in March’1988. incorporated

in March 1988 under the Companies Act, It commenced its operations on 1989taking over the

7 ICD’s functioning under the railway network at that time.

In addition to providing inland transport by the railways for containers segment, it has later

expanded into air cargo, cold chains, management of ports.

Intermodalism and containerization were the main outcomes of this era and were composed

to metamorphosize transport of "general cargo", by moving it 'seamlessly' through sea and

land ways. Nearly 40 years back, the methodology of export and import of goods was very

difficult. Goods are needed to be transported by lorry till the port, unloaded into a warehouse

and then reloaded into the ship 'piece by piece'.

Indian Railway's strategic initiative to containerize cargo transport put India on the multi-

modal map for the first time in 1966. Given the overall distances of India (almost 3000 km

from North to South and East to West), rail transport has been the cheaper option for all

cargo to cover medium and long distances, especially if the cost of inter-modal transfers could

be minimized. Containerized multi-modal, door-to-door transport provided the ideal solution

to this problem. It was this idea that saw the Indian Railways to enter into domestic cargo

especially in DSO containers segment.

Though the first ISO marine container had been handled in India at Cochin as early as 1973,

it was in 1981, the very 1st ISO container was moved inland at Bengaluru.
 Services of CONCOR

CONCOR offers both national and international services, which are as follows.

Domestic Services:

 Volume Discount Scheme

 Door delivery & Pick Ups

 Cabotage of ISO containers

 Terminal Handling Charges

International Services:

 LCL Hub Services

 Air Cargo Movements

 Bonded Ware Housing

 Reefer Services

 Factory Stuffing/Destuffing

 Discount Schemes

 Cabotage of ISO container

Cabotage of ISO Containers

Shipping-line empty containers is undertaken by CONCOR to balance the differential levels of

exports and imports in the country today. This movement of empty containers represents the de-

utilization of such a capacity, particularly on the routes where domestic traffic is abundant both on

rail and road. A "cabotaged" container is effectively taken on loan by the shipping company to the

carrier (here CONCOR) for a very short time frame. During this travelling time, the carrier is
permitted to use the container for movement of domestic cargo. By "cabotaging" these

containers, CONCOR can therefore offer and get substantial discount to both shipping lines and

the domestic client. This is an area of focus and more practices should be introduced to boost

volumes and profitability.

Conclusion

In the coming future, more advancements should be done in the containers industry, as it is moving

towards as a saturated market. More technology should be bought in in placement and sizing of

the containers which would help financially for the companies to do trade via sea route.

Citations

https://people.hofstra.edu/geotrans/eng/ch3en/conc3en/ch3c6en.html

http://www.worldshipping.org/about-the-industry/history-of-containerization

http://www.globalspec.com/learnmore/material_handling_packaging_equipment/material_handli

ng_equipment/iso_containers

https://www.researchgate.net/publication/256050923_Estimating_the_Effects_of_the_Container

_Revolution_on_World_Trade

http://www.concorindia.com/background.asp

http://www.concorindia.com/isocontainers.asp

http://www.concorindia.com/interdivision.asp