Containerization is a system of intermodal freight cargo transport, using standard ISO containers (known as shipping containers or isotainers) that can be loaded and sealed intact onto container ships, railroad cars, planes, and trucks. The introduction of containers resulted in vast improvements in port handling efficiency, thus lowering costs and helping lower freight charges and, in turn, boosting trade flows.


In this page

  1. Containerization
  2. Sea Freight Container Types
  3. Air service export import terms
  4. Basic Terminology used in container industry
  5. Container Decks

Containerization

Containerization is a system of intercontinental freight transportation using Standard Containers. These containers are shipped using container ships between containers or distant port. Once at port the containers can be loaded and transported inland using Trucks or Railroad.

Container Ships are freight cargo ships that carry Standard container between seaports within a country or between continents.

Marking and Identification: The rating, tare mass and payload of a container is marked on its wall, usually on the end (read) door in the case of an end-loading dry cargo container. Serial no of a container is a combination of 4 letter characters which identify the Container operator and 7 digit numeric character which identify the container serial no.



Sea Freight Container Types

  • General Purpose Dry Cargo: Container is most common type: 20', 40' or 40' high cube.
  • Open Top Container is for heavy or overweight loads.
  • Side Open Container for easy loading of overweight loads.
  • Flat Rack Container for heavy over width or oversize loads.
  • Tank Container for carrying liquid goods like edible oil and chemicals etc.
  • Ventilated for Refrigerated Container also called as reefer to carry perishable food items
  • Insulated Container to carrying food items which are moisture and temperature sensitive
  • Livestock Container to carry livestock where proper ventilation and monitoring during travel can be carried out.

 

Container Interior Dimension
(LxWxH) mm
Door Opening
(W x H) mm
Tare Weight Cubic Capacity Payload

20's Dry Freight

5919 x 2340 x 2380

2286 x 2278

1900 Kegs.

4180 lbs

33.0 cbm

1165 cu. Ft.

22100 kgs

48721 lbs

40's Dry Freight

12045 x 2339 x 2379

2280 x 2278

3084 kgs

6799 lbs

67.3 cbm

2377 cu. Ft.

27396 kgs

60397 lbs

40's High Dry Freight

12056 x 2347 x 2684

2340 x 2585

2900 kgs

6393 lbs

76.0 cbm

2684 cu. Ft.

29600 kgs

65256 lbs

45's High Dry Freight

13582 x 2347 x 2690

2340 x 2585

3900 kgs

8598 lbs

85.7 cbm

3025 cu. Ft.

28600 kgs

63052 lbs

Air service export import terms

Airway Bill is a bill of lading that covers both domestic and international flights carrying goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligate it to carry the consignment to the airport of destination according to specified conditions.

Antidumping: If a company exports a product at a price lower than the price it normally charges in its home market, it's said to be dumping the product. Member countries of the World Trade Organization may be able to impose certain measures on other members that dump products on their markets.

Arbitrage is the process of buying foreign exchange, stocks, bonds and other commodities in one market and immediately selling them in another market at higher prices.

Beneficiary is the person in whose favor a letter of credit is issued of draft is drawn

Bill of Lading is a document that establishes the terms of a contract between a shipper and a transportation company under which friend is to be moved between specified points for a specified charge. This document is usually prepared by the shipper or their freight forwarder on approved forms issued by the carrier. It also serves as a document of title a contract of carriage and a receipt for goods.

Certificate of Origin is a document confirming on the origin of goods. You may need one if you're exporting to a number of countries.

CIF means cost, insurance and freight. It is a pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price. But the importing buyer bears all risks after delivery.

Consolidator is the company issuing bills of lading (see Bill of lading) for the carriage of cargo on vessels or aircraft.

CFT means cost and freight. A pricing term indicating that the cost of the goods and freight charges are included in the quoted price; the buyer arranges for and pays insurance.

Commercial Invoice is a bill listing the goods and prices shipped by an exporter.

Consignment is the delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until the consignee has sold them. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Correspondent Bank is the bank that handles in its own country the business of foreign bank.

Demurrage: A fee that imposed for exceeding the "free" time allowed for container at warehouse.

Export Invoice is a part of the documentation needed when goods are shipped abroad. It should contain full description of goods, their price, weight and country of origin.

FOB means free on board. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods upon an overseas vessel provided by or for the buyer. Buyer bears all shipping costs and risks.

Forwarding Agent is the agency which quotes for freight costs and other charges, prepares most of the freighting and customs documents, arranges marine insurance and attends to other freighting details.

Inspection Certificate is required by the importer's country to confirm that the shipped goods meet its specifications.

Inspection Certificate is required by the importer's country to confirm that the shipped goods meet its specifications.

Letter of Credit is a banking mechanism that allows importers to offer secure terms to exporters. In a letter of credit the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee. It is issued by an overseas bank but also confirmed by a local bank. Under these circumstances the exporter is paid by the local bank even if buyer or the other bank defaults, providing the terms of the letter are met.

Manifest: Document which lists the specifications of goods loaded in a means of transport of equipment for transportation purposes. As rule cargo manifests are drawn up by the agents in the place of loading.

Open Account is a trade arrangement under which goods are shipped by the exporter without guarantee of payment. Open account payment should only be used if exporter has an established relationship with the buyer.

Basic Terminology used in container industry

  • Capacity is measured in TEU. It is the number of standard 20 foot containers a vessel can carry.
  • CBM is cubic measurement of Cargo
  • Container Capacity is the total cube a container can accommodate
  • FCL is Full Container Load
  • LCL is Loose Container Load
  • Payload is the maximum permitted mass or weight of payload can be loaded in a container. Payload = Rating - Tare Mass
  • Rating is the maximum gross weight of container (container weight + contents).
  • Recommended load volume (RLV) is maximum cube to use in calculating a full container load
  • Tare Maxx is the mass or weight of empty container. The tare mass of containers may vary due to the different construction techniques and materials used in the container
  • TEU is measure of containerized cargo capacity equal to one standard 20 feet container.
  • ULD is Unit Load Device is air equivalent.

Container Decks

Containers are positioned on vessels according to nature of goods. There are 4 major container deck of a container ship

 

Nature of Goods Outer deck Inner Deck Stowage above waterline Stowage below waterline
Moisture sensitive
Temperature sensitive
Ventilation required

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