Container shipping: The flexible spine of global supply chains

We are going to break this topic into three pieces. This one is a basic primer on containers. A second post will cover technical IoT solutions for marine use. The third post will address a rapid movement towards end to end connectivity. Topics include; AI, autonomous vessels, mega ships, blockchain, robotics and weather tech. Let’s roll on…

Containerization is the engine that keeps global trade running. Since the 1950’s containers filled with goods travel across oceans. Containerized shipping is highly efficient but it faces unique challenges at sea.

How Container Shipping Works

Containerized logistics relies on standard length steel containers, which allow goods to be packed, sealed, and transferred from ships to trucks and trains seamlessly. The standard intermodal box is the 20-foot container (often called a TEU, or Twenty-Foot Equivalent Unit). These are stacked and secured on massive cargo ships, some of which carry up to 24,000 TEUs in a single journey.

The statistics are massive: 90% of all goods shipped are sent by sea, 60% of those are carried in containers. There are different types of container:

  • Standard – 20ft, 40 ft, 45 ft
  • High Cube – taller, but come in standard lengths
  • Opentop – top loading containers
  • Flexitank – liquid transport
  • Reefer- refrigerated
  • Flatrack – Box shape, no roof or sides

For carrier companies the best option is standard, but cargo comes in all shapes, weights and sizes. Marine transport works in a liquid environment of rocks, reefs and waves, night and day, 365 days a year. Once at sea, containers are exposed to the elements. They must withstand everything from storms to temperature fluctuations and the attrition of a saline environment. What is inside is often perishable or fragile.

Common Issues Containers Face at Sea

  1. Weather Hazards: High Winds and Heavy Seas
    • Rough weather is one of the biggest challenges. Strong winds and massive waves can knock containers off ships or cause them to shift, which endangers the ship’s balance. According to the World Shipping Council, 661 containers were lost at sea in 2022 and 221 in 2023 out of 250 million carried—often because of rough weather.
  2. Stacking and Collapse Risks
    • Containers are stacked high on ships, often in stacks up to ten tall. Rough seas and high waves can cause containers to shift, leading to “container collapses.” These incidents are costly, sometimes sending thousands of dollars’ worth of goods overboard.
  3. Temperature and Humidity Changes
    • Being on deck at sea means extreme temperatures and humidity. Cold chain shipping: For perishable goods, temperature-controlled “reefer” containers are necessary, but even these can experience fluctuations. When these systems fail, valuable shipments of food or medicine can be ruined.
  4. Security Risks and Piracy
    • In certain regions, piracy still poses a threat to container ships. While modern container ships have security protocols, there’s still a risk of piracy, especially in areas like the Gulf of Guinea. While piracy is catchy, most goods disappear from warehouses in transit, due to “spoilage” or mishandling.
  5. Customs and Port Delays
    • Even after a long journey, containers often face delays upon arrival due to customs checks, port congestion, or logistical bottlenecks. “The problem has intensified with the growth of the container fleet, with its deadweight tonnage surging from 11 million metric tons in 1980 to about 293 million by 2022, including a 4.5% increase in 2021 alone.”
    • Customs can retain cargo or ships for an unstated period, often during political turmoil, or in locations dealing with narcotics, weapons or human trafficking.
    • Delayed deliveries for customers. Customers can, and do, legally reject cargo.

The bottom line

Despite the challenges, container shipping is the backbone of global trade. It’s efficient, cost-effective, and scalable, making it possible to ship large volumes of goods across the world at a relatively low cost.

By standardizing the container size, the industry has created a system where goods can be loaded and unloaded quickly, keeping the world’s goods in motion.

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