Transcription
You [Music]. You must have seen this kind of steel box at some point of time in your life, probably on a road or in a neighborhood. This is a typical shipping container.
Shipping containers are standardized steel boxes we use to ship all kinds of things, from fruits to shoes, from computers to inflammable and hazardous materials for industrial purposes. With container shipping, anyone can transport their cargo from point A to point B. Now, it may seem that transporting a container is a simple process, but in fact, it is a complex system full of checks and procedures. Let's see the journey of a container from its point of origin to its destination. But before beginning, please do subscribe to our YouTube channel and press the bell icon to get connected.
In the container shipping industry, there are three main stakeholders involved: the importer, who wants to receive cargo from another country; the exporter, who wants to sell and send the cargo to the importer; and the shipping company, who delivers the cargo by receiving it from the exporter and sending it to the importer. Apart from them, there are other services involved which help to streamline the process: port, trucking company, shipping agent, freight forwarder, etc.
Let's assume a renowned denim brand from the US wants to outsource its denim bottoms consignment from China. Once the consignment is ready, the exporter will first select a particular shipping company whose container will come to its factory for cargo loading. If the cargo is large enough to accommodate in multiple containers, the exporter will use Full Container Load, that is, full 20 feet or 40 feet containers. When the cargo to be shipped is less in quantity, then Less than Container Load, or LCL, is used. With LCL, you pay per cubic meter or per metric ton for space inside a consolidator's container.
Now, a freight forwarder will assist both the importer and exporter for the transportation of cargo and will get the containers from the shipping company and bring it to the exporter for filling, stuffing, and sealing of cargo. After loading the containers, the containers are sealed and an identical number or a particular ID is given to the exporter so that they can track their goods. If the goods to be transported are dangerous in nature, such as gas or a toxic chemical, IMDG containers are used. Similarly, if the cargo is perishable or temperature-sensitive, refrigerated containers are used to preserve the items for a long journey.
Now, the freight forwarder will arrange for the intermodal transport, that is, transporting the container from the exporter's warehouse or factory to the designated shipping port for loading into the ships. Then, the representative of the exporter, a shipping agent, performs all port paperwork, customs checks, and does the final inspection of the container and pays the port dues. To ship the containers inside the port warehouse or storage facility, the shipping agent will also collect the Bill of Lading from the shipping line after handing over the documents and makes a receipt to the shipping line. Now, the Chamber of Commerce will issue the Certificate of Origin to the exporter.
In the port, the container weights are measured and the entries are made according to that. The container is stacked in the port in such a manner that they can be taken out easily as per the schedule of their assigned vessel. Now, the container is ready to be loaded on the ship. The ship master is informed in advance about the cargo containers to be loaded on board in a particular port. The cargo loading plan is prepared by the shipping company's cargo planner, who will take the data from the chief officer regarding the current load condition of the ship, including the cargo stowage, fuel, and water quantities on the ship.
Once the ship arrives, the container is brought from the port storage facility near the ship by container port trucks, which can carry a single 40 feet container or two 20 feet containers. The container is loaded as per the cargo plan by the gigantic port cranes, which lift it from the truck and transfers it to the ship. The container can be stored in the ship's cargo hold. Container guides are provided to draw and place the container inside the hold. If the container is due for unloading in the next port, it will usually be kept on the deck. All deck containers are provided with extra washing so that they do not become loose and fall overboard when the ship is out in rough seas. The container lashing is done by shore workers known as stevedores. In case of containers carrying dangerous cargo, additional precautions are taken to load and place the container at a safe area as per the IMDG code guidelines. Refrigerated containers are placed on deck as they need power plug points to run the incorporated refrigeration plant.
Once the ship loading is finished, it will now proceed for the next assigned port. The loading plan is of extreme importance, as the container will be loaded and secured on board the ship as per the plan. If the loading plan is incorrect and the containers whose destination is the next port are stacked too deep or inside the cargo hold, the port crane operator will take additional time to take the container out, which means the ship stays more on port and pays for the additional port stay.
During the voyage, the ship officers are responsible to keep a check on the containers. Cargo lashing is checked from time to time to ensure all containers are secured properly. Cargo containers carrying dangerous goods are checked at regular intervals for leakages and damages. While the ship is sailing, once the ship reaches the destined port, the container will be unloaded by the port cranes and is transported to the port bay or warehouse using the port container trucks.
Now, the representative of the importer will present the Bill of Lading and other documents to the port and shipping line. If you remember, these are the same documents received in the port of origin by the exporter. All the documents are then couriered to the importer for receiving the shipment. Once the custody of shipment is acquired by the importer's representative or by the freight forwarder, the cargo will be transported using the intermodal transport to the importer's warehouse, where the container is unloaded. The empty container is now returned to the shipping line's designated container yard, where it will wait for the next booking and onward journey.
The world is now connected by thousands of containers, making it feasible for businesses and people to do trade across the globe [Music].