Advantages and Drawbacks of ContainerizationEven if containerization conveys numerous

advantages to freight distribution, it does not come without challenges. The main advantages
of containerization are:

Standardization. Standard transport product that can be handled anywhere in the

world (ISO standard) through specialized modes (ships, trucks, barges and wagons)
and equipment. Each container has an unique identification number and a size type
code.
Flexibility. Can be used to carry a wide variety of goods such as commodities (coal,
wheat), manufactured goods, cars, refrigerated (perishable) goods. Adapted containers
for dry cargo, liquids (oil and chemical products) and refrigerated cargo. Reuse of
discarded containers.
Costs. Lower transport costs due to the advantages of standardization. Low transport
costs; 20 times less than bulk transport. Economies of scale at modes and terminals.
Velocity. Transshipment operations are minimal and rapid. Port turnaround times
reduced from 3 weeks to about 24 hours. Containerships are faster than regular
freighter ships, but this advantage is undermined by slow steaming.
Warehousing. The container is its own warehouse; Simpler and less expensive
packaging. Stacking capacity on ships, trains (doublestacking) and on the ground
(container yards).

Security and safety. Contents of the container is unknown to carriers. Can only be
opened at the origin (seller), at customs and at the destination (buyer). Reduced
spoilage and losses (theft).

The main drawbacks of containerization are:

Site constrains. Large consumption of terminal space (mostly for storage); move to
urban periphery. Draft issues with larger containerships. A large post-panamax
containerships requires a draft of at least 13 meters.
Capital intensiveness. Container handling infrastructures and equipment (giant
cranes, warehousing facilities, inland road, rail access), are important capital
investments.
Stacking. Complexity of arrangement of containers, both on the ground and on modes
(containerships and double-stack trains). Restacking difficult to avoid and incur
additional costs and time for terminal operators.
Repositioning. Many containers are moved empty (20% of all flows). Either full or
empty, a container takes the same amount of space. Divergence between production
and consumption at the global level requires the repositioning of containerized assets
over long distances (transoceanic).
Theft and losses. High value goods and a load unit that can forcefully opened or
carried (on truck). Vulnerability between terminal and final destination. About 10,000
containers are lost at sea each year (fall overboard).
Illicit trade. Instrument used in the illicit trade of goods, drugs and weapons, as well
as for illegal immigration. Concerns about the usage of containers for terrorism.