Container Shipping

Continuing to teach the fundamental and very basic issues of international logistics, we started with the history of shipping and continued with ports and their types. In this article, we will go into container shipping and related training. You will also find the following topics in this article:

• An introduction to container shipping
• Features of standard containers
• Container trade
• Division of ESCAP member countries in Asia
• Ranking of different parts of the world in global container trade
• Expansion of container trade in Europe
• Trade flows of Nordic countries
• Container trade in the Persian Gulf region
• Container trade in the Indian subcontinent
• The largest container ship in the world

An introduction to container shipping

One of the most significant changes that have happened in recent decades in the maritime transportation of the world is the containerization of goods and the expansion of container transportation at the same time as the construction and use of huge container ships. Cargo containers have found a special place in sea (and land) transportation by removing the system of loading small cargoes and also the possibility of sealing the goods in the entire transportation route.

Features of standard containers

Standard containers are easily placed on ships, trains, trucks, and even cargo planes and facilitate combined transportation. In the simplest case, cargo is transported by train or truck to ports, where it is loaded onto container ships for worldwide distribution. In the country’s port of destination, the containers are moved again by the ground transportation network to deliver the goods to the final destination.

1-Number:

Currently, the number of container ships in the world has reached 4325 with a capacity of 10.8 million TEU, most of which were built after 1995 and 950 in the last three years.

2-Volume:

The volume of container transportation during the year in the world reaches one billion tons.

It is estimated that 60% of the total container transportation is by container ships, and 25% by roll-on-roll-on ships (ships that have two openings in the front and back, trucks and containers, and even wagons). High trains enter from one side and exit from the opposite opening. The rest are carried by multi-purpose ships and other sea transport.

3-Path:

Container distribution routes are clearly known. About 80% of container ships are traveling on American, European, and Asian routes. The points of origin and destination in these three continents have the highest volume of container traffic.

4-Speed:

The transformation of the global container industry continues to evolve. The speed of container movement will significantly impact the demand of port and shipping sectors. In contrast to this increase, investments should be made quickly in emerging markets.

Container trade

What is certain is that the growth of container trade has a direct relationship with economic growth. The International Monetary Fund (IMF) believes that the following factors are effective in the volume of export and import of containers:

• Changes in exchange rates
• Changes in the economic structure
• Change in the composition of the gross domestic product (GDP)

According to the IMF, the growth rate of most advanced economies will slow during the next decade. On the other hand, developing countries in Asia, especially China and India, will continue their rapid growth. The growth forecast for Africa, Eastern Europe, and the Russian Federation is also positive.

Division of ESCAP member countries in Asia

In the study you are looking at, Asia is grouped according to the division of SCAP member countries as follows:

• East Asia (China including Hong Kong, Taiwan)
• North Asia (North Korea, South Korea, Japan, and Russia’s coast in the Pacific Ocean)
• Southeast Asia (Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam)
• South Asia (India, Pakistan, Bangladesh, Sri Lanka, Iran)

Ranking of different parts of the world in global container trade

Europe ranks second and accounts for 22% of global container trade, followed by North America with 17%. (The statistics in this article are from 2015)

East Asia will increase its role as the biggest driving force of container trade up to 32%, while the share of Europe and North America will decrease to 18% and 13%, respectively. Meanwhile, Southeast Asia will surpass North Asia by increasing its share. The decrease in the share of North Asia will be mainly due to the decrease in container exports from Japan. Overall, it is expected that Asia’s share of global container exports will increase from 55% in 2002 to 64% in 2015, and the share of imports will increase from 46% to 53%.

Expansion of container trade in Europe

In Europe, the expansion of trade among the member states of the Union, especially after the arrival of eastern countries such as Poland, has led to the development of land container trade. The northern countries of Europe, that is, the northern ports of France, Germany, Belgium, and the Netherlands, are the center of European container demand, or in other words, the center of concluded contracts. Since 1980, container transportation operations in the ports of northern countries have grown by more than 200% and account for half of the container operations of the European continent.

German market

The performance of ports in Germany and the Netherlands is 70% of the total performance of northern countries. Especially, the market share of Germany has increased from 29.1 to 33.8 percent with the amazing development of ports and coastal areas, especially in Hamburg. Also, with the increase in capacity in Antwerp and Zeebrugge, the market share of Belgian ports has also increased significantly. The container performance of French ports has decreased, especially in Le Havre (for reasons such as traffic rerouting).

Trade flows of Nordic countries

Among the commercial flows of the Nordic countries, logistics traffic (servicing ships) is mostly related to the UK/Ireland and Scandinavian/Baltic markets. Due to the pressure of financial conditions on modern shipping lines, the demand for maritime trade in the Baltic has decreased and has been replaced by intensified logistics operations. The construction of large infrastructural structures for container transportation such as the Channel Tunnel or the Sweden-Denmark bridge/tunnel complex has developed land and rail container transportation.

Container trade in the Persian Gulf region

In the Persian Gulf region, the expansion of ports such as Jabal Ali in the United Arab Emirates or Chabahar in Iran in response to market demand for trans-shipment (container transit and transfer from ship to ship/truck/rail) in South and Southwest Asia. and Central Asia. This development also includes service and logistics structures.

Container shipping in the Indian subcontinent

The rapid economic growth in the Indian subcontinent has also made this country face an increase in the volume of exports and, of course, the expansion of the demand for container trade. This has led to extensive planning and investment in port areas such as Jawaharlal Nehru Port in India.

The largest container ship in the world

Currently, the largest container ship in the world, named Tais, belongs to the Swiss-owned Mediterranean Shipping Lines. This ship is 366 meters long and has a capacity of 14 thousand containers. The world’s largest shipping company Maersk of Denmark has 501 ships and the second Mediterranean shipping company belongs to Switzerland with 376 ships. According to the latest statistics, 1.9 million containers are used in the world’s transportation network today.