History, Advantages, Problems, and Future of Containerization Report

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The multi-billion humanity needs a daily supply of food, equipment, and other resources for its functioning. Some of them are at a considerable distance, and their transportation is a complex, multi-phased task. However, with the advent of containers and the infrastructure necessary for their transportation, the problem of long-distance has ceased to be as acute as before. Logistics management, terminals, cargo ships, and ports are part of the containerization system. This approach in the transportation of goods has many advantages that contribute to developing a logistics system for the delivery of goods.

History

The development of containerization was facilitated by global trade relations between the world’s largest countries. Among the trading blocks that have played a vital role in the development of this type of goods transportation are European Union (EU), the North American Free Trade Agreement (NAFTA), the Association of South East Asian Nations, and others (Neise, 2018). It led not only to the popularization of containerization but to the development of infrastructure and unique types of transport. According to Neise (2018), “historically, since 1792, containers were transported using rail and horses. Times have changed, and at least 80 percent of cargo is now ferried on the sea” (p. 11). In addition to the emergence of new ways of transportation, related processes such as industrialization and technological progress have also influenced the development of infrastructure for containerization.

Advantages

Containerization has many benefits, making this type of supply significantly effective. Among them, portability, faster delivery, improved security, faster app startup, easier management, and flexibility should be highlighted (Neise, 2018). Proper construction of logistics allows for achieving these advantages. One of the advantages of using containers is the possibility of convenient and long-term storage of goods. According to Song (2021), “port operations also include the management of container storage and other logistic activities under the concept of port-centric-logistics maintenance” (p. 21).

Consequently, the infrastructure designed to transport containers facilitates easy storage and sorting. The next advantage of containerization is the possibility of using different types of transport. Among them, trains, ships, and trucks can be emphasized (Song, 2011). It is important to stress that good logistics will enable the integration of all types of transport for more efficient container transport.

Problems

One of the main problems of containerization is the cost of maintaining the infrastructure necessary for this type of transportation. Although in the previous paragraph, the availability of quality infrastructure for transporting and storing containers was seen as an advantage, it also has a negative effect. All the components mentioned above of containerization, including seagoing ships and ports, require significant financial resources for their construction, maintenance, and updating of equipment. In addition, the main problems of containerization include space constraints, container management failure, re-positioning of empty containers, and smuggling (//). It is important to stress that factors that can be seen as benefits can also have a negative impact.

Future

The future of container transport depends on the economic component and the financing of this type of goods transportation. Moreover, although the majority of traffic is carried out on cargo ships, it is vital to pay special attention to the environmental component of containerization. Therefore, it is worth emphasizing that, in the future, the infrastructure for containers and their transport will adapt to the new challenges facing humanity.

Conclusion

In conclusion, it is essential to emphasize that while containerization has many advantages in the modern world of transportation of goods, attention should be paid to some of the drawbacks of this type of logistics. Using the examples discussed in the literature, the main advantages and problems associated with containerization were identified. However, with proper logistics and sufficient financing, the benefits of containerization will be far more critical than the disadvantages.

References

Neise, R. (2018). Container Logistics: The Role of the Container in the Supply Chain. Kogan Page Publishers.

Song, D. P. (2021). Container Logistics and Maritime Transport. Routledge.

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IvyPanda. "History, Advantages, Problems, and Future of Containerization." December 3, 2023. https://ivypanda.com/essays/history-advantages-problems-and-future-of-containerization/.

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