Reduced congestion in ports
The freight and logistics industry previously encountered the problem of overcrowding in ports. Delays in transporting and the loading process were the major contributor to this problem. However, when the containers have globally helped the ports to decongest, and the loading and offloading process were a bit easier and more manageable.
How did congestion reduce?
Containers can fit more goods packed systematically. Previously goods were stacked in the terminals and the process of loading and of loading the goods was quite slow. Thus products remained in the terminal for many weeks making the port congested.
With containers, the loading and of loading process using cranes and forklifts is very fast thus the turnover of goods in the terminals is higher leading to decongested at the terminals.
More profits to the freight and logistics industry
With shortened shipping time and faster transportation of goods, it is now possible to transport more goods in a day. Additionally, a container can handle more products than break-bulk shipping leading to more transportation at a lesser cost.
The industry now experiences fewer losses of goods and damage to goods. Thus the cost of compensating their customers has significantly dropped. The sector can enjoy more profits than before. The benefits are used to make the transportation process more effective and more modernized.
In the future, it is expected that the transportation system will be advanced and desirable to all users. The process of transporting goods will also be more effective and less costly than today.
Ability to handle all type of products
Previously the logistics and freight industry was limited to the kind of products it could handle. Containers come with specialized storage facilities and can accommodate all variety of goods. It is possible to transport perishable, durable, fragile, among other products.
Many companies are now relying on the industry locally and internationally transport different types of goods. The industry can make more returns due to the over-reliance of their containers by many industries.
Standardization of transportation globally
Overseas containers are mostly standardized thus it is possible for containers to conform to all transport vessels globally. The logistics and freight industry has revolutionized and has made ease of the transport system easier globally.
The industry has not only benefited from the evolution but has been named as a significant vessel that has enabled the possibility of practical import and export of goods. It is a highway for international trade, and the government has made significant investments in the industry allowing it to become better and more efficient.
The make of most containers is similar and can fit perfectly from one vessel to another. Additionally, it is possible for every crane and other lifting equipment to handle the container.
Containerization enabled the employment of experienced and trained personnel
The industry is now hiring only skilled personnel with the right qualifications. The staff who can manage containers and load them are being handled in the industry. Additionally, the industry now has a control space where it can regulate the movement of goods to and fro.
It is correct to state that the people managing the industry are efficient with the right skills and managerial strategies. Thus the industry has evolved to proper management and ability to handle delicate and expensive products.
How overseas shipping containers used for storage changed the logistics and freight industry negatively:
Challenge of terminal space
Despite the many advantages of containers to the freight and logistics industry, they have their drawbacks. Occupying is one of the disadvantages of overseas shipping containers.
The industry has a significant challenge in the terminal space. Containers occupy a large area and limit and congest the terminals. The congestion at the terminal limits activities at the port and makes it impossible for a new ship to offload its containers while there are other containers in the terminal.
It is correct to stay that limited space in the terminal leads to delays in shipment by other ships. It is a challenge that the freight and logistics industry has not been able to handle effectively.
Costs of acquiring the handling instruments are very high
It is impossible to handle containers manually. They are too heavy, and beyond human capabilities thus the freight and logistics company needs to buy cranes and forklifts to load and of load containers to the transportation vessels.
The equipment is costly to buy and maintain. Additionally, there is a need to hire professional personnel to operate the material, and experts might demand high salaries due to their professional experience.
Arrangements of the overseas containers are complex
However, the arrangement of products in the containers is complex and costly. The industry needs to hire specialists in the arranging process( who are expensive to recruit and maintain).
Different goods require different handling capacities. Some are fragile, others are durable, and others are perishable. Thus it is impossible to store the products in one container. The storing process is involved, and the industry is incurring a lot of overhead costs in ensuring the goods are well saved and transported safely.