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05_18 - What is Container(TBD)
05_18 - What is Container(TBD)Business Management and Finance Courses » Udemy - International Logistics & Transportation in Supply Chain. 2023-5 |
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| 05 - Ocean Shipping Udemy - International Logistics & Transportation in Supply Chain. 2023-5 0 00:00,060 --> 00:03,270 What is container shipping before understanding? 1 00:03,270 --> 00:05,430 What is container shipping all about? 2 00:05,580 --> 00:08,910 Let us understand by understanding the history of container shipping. 3 00:09,330 --> 00:18,120 So the first container ship was discovered by Malcolm McLean on 26th April 1956, which sailed with 4 00:18,270 --> 00:22,110 58 containers on itself from Newark to Houston. 5 00:22,350 --> 00:24,750 Now you might be thinking just 58 containers. 6 00:25,170 --> 00:29,160 Nowadays, a ship can carry 23,000, 20 ft containers. 7 00:29,190 --> 00:31,080 So the difference is visible. 8 00:31,320 --> 00:36,690 And from this, you can see that the container shipping industry is growing at a massive pace from just 9 00:36,690 --> 00:39,720 58 containers to 23,000 containers. 10 00:39,990 --> 00:45,150 The carrying capacity and the port handling capacity has shown immense growth. 11 00:45,300 --> 00:52,180 And the biggest container ship is the OOCL Hong Kong, with a carrying capacity of 23,000 TEUS. 12 00:52,470 --> 01:01,200 And when the TEU means one 20 equivalent unit, that is 1x20 foot container and one FEU is 1x40 feet container, 13 01:01,200 --> 01:03,370 that is 40 equivalent units. 14 01:03,390 --> 01:09,810 So 1 FEW = 2x1TEU ports and shipping companies calculate their profit on the 15 01:09,810 --> 01:12,680 basis of number of TEUS they have handled 16 01:13,440 --> 01:17,970 So if they handle 1x40ft container , they will calculate it as the 2x1TEU 17 01:18,270 --> 01:24,030 Now you might be thinking why I am emphasizing so much on container shipping and why it is so much important. 18 01:24,240 --> 01:30,960 See, the reality is the need for a rapidly growing world population can only be met by transporting 19 01:30,960 --> 01:37,920 goods and resources between country at best, and keeping it as container shipping is fulfilling the 20 01:37,920 --> 01:41,790 needs of the people by providing best and cheap mode of transport. 21 01:42,240 --> 01:48,660 Container shipping can claim to be a truly global industry and a global economic engine too, as it 22 01:48,660 --> 01:51,500 connects the countries around the world. 23 01:51,510 --> 01:54,780 And it is very efficient too, due to the size of the ship. 24 01:54,930 --> 02:00,870 The carrying capacity of the ship is so huge that the transportation rate that is the ocean freight 25 02:00,960 --> 02:06,880 for moving a container is the cheapest compared to all other modes of transport, be it by air, road, rail. 26 02:06,910 --> 02:14,010 also it provides very good connectivity as around 200 countries have their ports open to container 27 02:14,010 --> 02:14,250 ships. 28 02:14,310 --> 02:20,880 Just imagine how huge this industry is, which provides millions of exciting jobs and also provides 29 02:20,910 --> 02:23,520 the best and the cheapest transportation solution. 30 02:23,550 --> 02:27,290 Being a global industry, it is a global economic engine to right. 31 02:27,960 --> 02:34,230 So why container shipping is cold as liner shipping container ships maintain a fixed schedule and more 32 02:34,230 --> 02:38,670 in the same route as the arrival and departure time is already known. 33 02:38,670 --> 02:45,240 It is fixed so you can plan your cargo, which is going to be exported to another country before the 34 02:45,240 --> 02:45,900 ships arrive. 35 02:45,900 --> 02:52,950 The port and this arrival and departure time are advertised on the newspapers or on the websites of 36 02:52,950 --> 02:58,530 this shipping company, along with all the details and the cut off times to get in your containers. 37 02:58,560 --> 03:03,450 As this industry is a massive industry, it has to be very disciplined enough. 38 03:03,720 --> 03:10,020 So if you are an exporter and you want to load your container on to the ship on time and you don't want 39 03:10,020 --> 03:16,320 to miss a targeted vessel, you need to make sure that you have the correct arrival and departure time 40 03:16,440 --> 03:21,210 and the schedule of this ship, which is going to arrive the order of loading in your country. 41 03:21,240 --> 03:24,450 So on the basis of the vessel schedule, you can book your cargo. 42 03:24,460 --> 03:31,650 So here is an example of UK West Coast Container Service of a shipping company, MSC, which has a fixed 43 03:31,890 --> 03:38,160 sailing schedule from the South African Port of Durban, Cape Town and Port Elizabeth carrying cargo 44 03:38,160 --> 03:41,480 to UK Port of Felixstowe, Antwerp, Hamburg. 45 03:41,490 --> 03:42,200 Le Havre and 46 03:42,270 --> 03:42,850 Rotterdam. 47 03:42,870 --> 03:49,200 So if everything is already known and exporter is very much familiar, when he has to get in his cargo. 48 03:49,650 --> 03:55,620 He will be ready and he will plan the shipment and he will make sure that the truck arrives, his warehouse 49 03:55,620 --> 03:59,100 on time, the container is stuffed and loaded on to the truck. 50 03:59,190 --> 04:06,690 And the truck has to be delivered at the port on a set date and set time so that the container is loaded 51 04:06,690 --> 04:07,380 on to this ship. 52 04:07,710 --> 04:13,830 So this is how US container shipping industry operates on a fixed time fixed schedule and on a fixed 53 04:13,830 --> 04:14,130 route. 54 04:14,610 --> 04:21,330 This is why container shipping is known as a liner shipping as it follows a fixed route and a fixed 55 04:21,330 --> 04:21,750 line. | ||||
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