Chapter 4 - Containerisation

• What is another name for Inland Container Depot (ICD)?


  Container Freight Station
• When was the Multimodal Transportation of Goods Act enacted?

  1993
• What is the purpose of a Multimodal Transportation document?


  It is given to an exporter and is similar to a Bill of Lading (B/L).
• Who are stevedores and porters?


  They are involved in the traditional method of transporting goods.
• What is containerisation?


  • Packing goods in suitable containers
  • System of intermodal freight using standard-sized containers
• When did the movement of cargo begin?

  1930
• In what year did the idea of shipping goods emerge?

  1955
• Who are the participants involved in the international container shipping process?

  • Importers: Normal buyers
  • Exporters: The sellers
  • Banks: Negotiate contracts for payment
  • Insurance Organizations: Cover risks
  • Freight Forwarders: Mediators in logistics
  • Customs House Agent (CHA): Provides customs clearance
  • Shipping Organizations: Owners of the ships
  • Customs: Provide clearance for goods
  • Port Authorities: Clear goods for loading and entry
  • Intermodal transport providers: Facilitate cargo movement
• What is the role of banks in the international container shipping process?


  They negotiate contracts between buyers and sellers for modes of payment.
• What is the function of a Customs House Agent (CHA)?


  They provide customs clearance for goods from customs authorities.
• What do shipping organizations do in the container shipping process?


  They own the ships that carry goods from port to destination.
• Why is the presence of two customs authorities important in international trade?


  One is needed from the exporting country and one from the importing country for clearance.
• What do port authorities provide in the shipping process?

  They provide clearance for goods to be loaded onto a ship and for goods entering the country.
• What is the role of intermodal transport providers?


  They facilitate the movement of cargoes/containers from production or warehouse.
• What is the Registration-cum-Membership-Certificate (RCMC)?


  It is a registration made by an exporter.
• What does ISO stand for?

  International Organization for Standardization
• What are the benefits of containerisation?

  • Standardisation: Unique identification number and size code
  • Flexibility: Carries goods of various shapes and sizes
  • Costs: Reduces transport costs
  • Warehousing: Acts as a moving warehouse
  • Security and Safety: Protects goods from theft and loss
  • Velocity: Enhances distribution efficiency
• What are the types of containers used in shipping?

  • General Purpose Container
  • Specific Purpose Container
• What are the sub-types of General Purpose Containers?

  • Dry Containers: Fully covered for dry products
  • Open-top Containers: Removable top for tall products
  • Flat-rack Containers: Detachable and collapsible sides
  • Closed Ventilated Containers: Protects against humidity
• What is a Specific Purpose Container (SPC)?


  • Used for carrying specific goods like food items and perishable commodities
• What are the disadvantages of containerisation?

  • Site Constraints
  • Capital intensiveness
  • Stacking
  • Repositioning
  • Theft and losses
  • Illicit trades
• Insurance Organizations


  most crucial players of conatiner shipping process, helps in covering risk.
• Banks


  Third Parties, they negotiate contracts between buyer and seller for mode of payment (which bank)
• Insurance Organizations 


  most crucial players of container shipping process, helps in covering risk.
• Freight Forwarders 


  mediators between buyer and seller, involved in logistic activities
• Customs House Agence (CHA)


  provides customs clearance to the goods from custom authorities
• Customs 


  provide customs clearance for export/import of goods, presence of two customs authorities in international trade is a must.
• General Purpose Container 


  most common types used for shipping, made of steel
• Thermal Containers 


  a.k.a as "reefers", insulated from inside and outside to protect from external factors
• Insulated Shipping Containers 


  Like Thermal containers but has no device for controlling the temperature
• Refrigereted Shipping Containers


  temp. inside is regulated by icebox/gas
• Mechanically Refrigerated Container 


  required an external supply of power to maintain the temperature.
• Heated Containers


  goods required for high-temperature to keep them safe. Needs external power supply to maintain temp.
• Named Cargo Containers


  transport cars, poultry, livestock and other such specific commodities.
• Dry Bulk Containers 


  do no require external packaging like grains and other dry
• Tank Containers


  for storage and transport of liquid products. Made from strong steel and anti-corrosive materials.