Tuesday, May 22, 2018

What is container transport?

Container transport

Containerisation is a wider application of the concept of unitisation.The use of intermodal containers for transport of a variety of cargoes has become increasingly common in recent years.
Intermodal transport involves rapid movement and transport of standard cargo containers by sea, land and air. It has reduced cargo handling, particularly in Door to Door shipments.
 containers in this context maan large boxes of regulated sizes, constructed of strong light-weight metal, specifically designed for carriage by custom- built cellular container ships. A fully laden container ship will normally include one or two tiers of container cargo" on deck ".

Containers vary in size and in designs according to the requirements of the container operators and shippers. Generally accepted standard sizes by the ISO (nternational Standards Organisation) are: 8 or 8.5 feet high by 8 feet wide and 10 or 20 or 30 or 40 feet long.

The main standard used is 20 feet in length expressed as TEU (Twenty Foot Container Equivalent Unit) .Such containers fit into the specially constructed holds of container vessels as well as in the holds of most conventional ships and can be placed on a suitable transport for rail or road haulage.

For the purpose of shipping, the contents of a container are described as Full Container Load (FCL) or a Less-than-Container Load (LCL).

Container transport

FCL implies a full load for a single shipper.

LCL is the term used for a smaller consignment consolidated with goods of other exporters to fill the container.

 A shipper who plans to dispatch a full load can take delivery of an empty container at his own premises for loading by in-house staff. lf it is then intended for delivery to a single consignee, the ideal of door-to-door transportation is possible, ie. from the consignor's to the consignee s premises without breakdown of contents. 

if, however, the shipper chooses to use the packing services of an outside freight forwarder, a groupage depot or a container packing station or if the contents are to be distributed to various consignees after the container arrives at the destination container terminal, an element of conventional transportation at both the shipping and destination ends cannot be avoided.
LCL and fCL

 Therefore, all LCLs begin and end their transit by conventional conveyances. An underwriter should atways inquire in this aspect and the rating should reflect which of these altermatives will apply that is, whether FCL or LCL and whether door-to-door or canventional handling and delivery. 

Institute Cargo Clauses goes further in case of FCL containers and excludes losses occurring due to faulty or improper stowage inside the container, provided such storage is carried out prior to attachment of insurance or by the Assured or their servants or employees: In case of LCL, since stowage is generally done by shipping company, defective stowage is not the insured's fault and so exclusion may not apply to LCL.