The Role of Shipping Containers in Modern Supply Chain Management
All methods of supply chain management were inefficient, time-consuming and tough before the introduction of shipping containers in the mid-20th century. Goods were loaded and unloaded individually with high risk of damage and theft, but containers have streamlined the whole procedure. Nowadays, goods are packed and transported speedily and efficiently – no higher time consumption. In fact, they are a cost-effective solution, allowing for seamless integration between different modes of transport. In this article, we’ll discuss the efficient role of containers in modern supply chain management in detail.
Historical Context of Containers and Their Evolution
The concept of containers was introduced to the world in the 20th century by a truck entrepreneur named Malcolm McLean. He developed the first intermodal shipping container in 1956 which was a simple metal box and can be easily transferred between ships, trains and trucks without loading and unloading.
But now, shipping containers are more advanced and built in different sizes and materials to cater your specific needs. Considering your logistics and transportation needs you can choose containers of any size and easily deliver goods from one place to another.
Types of Shipping Containers
Shipping containers are built in various sizes by manufacturers considering the shipping or transportation needs of different businesses. If we talk about the common types, they include containers of 20ft, 40ft, and high cube containers. Undoubtedly, each has its own set of features, benefits and uses.
20ft Shipping Containers
They are widely used containers with a height of 2.59 meters, width of 2.44 meters and length of 6.1 meters. For smaller shipment needs, these containers are considered ideal. In fact, they are easy to handle – it’s another reason behind their extensive use.
Core advantages of 20ft shipping containers include:
- Flexible: They are quite suitable for different transportation modes. i.e., trains, trucks, ships, etc. Undoubtedly, they are a perfect choice for businesses with average logistics concerns locally or internationally.
- Affordable: They are an affordable solution compared to the larger containers. Their price depends upon the condition, material and age of manufacturing.
- Easy to handle: There’s no need to get into any complexity while loading and unloading these containers because of their easy-to-handle size.
40ft Shipping Containers
They are double in length of 20ft containers, approximately 12.2 meters in length. They are most commonly used for international trade because of their larger capacity to load bulkier items.
Core advantages of 40ft shipping containers include:
- Bulk Capacity: These containers offer tons of space for extensive loading of bulkier items.
- Global Shipping: They are mostly used for international shipping across countries and even continents because of their wide size, efficiency and cost-effectiveness.
- Cost-effective: They are found to be cost-effective because you can transport large volumes of goods at once without any repacking or unloading until it reaches the destination.
High Cube Shipping Containers
As shown by name, they are similar in length and width to the 40ft containers but offer additional height. On average, they are 2.89 meters tall – more cubic capacity and a suitable choice for transporting taller goods.
Core advantages of High Cube shipping containers include:
- Enough Storage: They offer more storage capacity and don’t increase the container’s footprint.
- Taller: They offer some additional height compared to the 20ft or 40ft containers, so you can easily transport goods with considerable height via these containers.
- Versatile: They are versatile and the right choice for loading both lightweight and bulky items.
Containers Role in Supply Chain Management
In this era, shipping containers have greatly impacted the supply chain management. Before their introduction, it was a lengthy and tough procedure to deliver goods from one place to another, but now it’s smooth, efficient and cost-effective. In fact, it promotes global trade and has streamlined logistics processes – dozens of benefits for businesses.
Greater Efficiency
Containers have simplified the loading and unloading methods to support different modes of transport. They can be moved simply from trucks to ships and from ships to train without unpacking. This helps you save repacking costs and reduces the risk of damage.
Cost Effectiveness
Shipping containers are cost-effective in many ways. They are made up of strong metals promoting higher durability and reducing the risk of theft or damage. You don’t need to unload items again before they reach the final destination. In this way, you save repacking, reloading and labour costs.
Promotes International Trade
Shipping containers are effectively promoting global trade and making it easier to transfer goods across long distances at reasonable costs. They ensure smooth items flow between countries and even continents. In fact, they have enabled the Just-in-time (JIT) inventory management approach, reducing any need for large inventories.
Technology Upgrade in Shipping Industry
The collaboration of the shipping industry with modern technologies also supports great efficiency, visibility and security in supply chain management. With the help of IoT and other software, containers can be easily tracked and monitored during shipment ensuring no theft attacks.
IoT Collaboration in Shipping and Smart Containers
Smart containers have sensors and technologies for communications to deliver real-time data. Meanwhile, such containers can measure the environmental effect on cargo and the integration of IoT allows sensors to transmit all the data to parent systems. This is how real-time tracking is possible throughout the cargo journey.
Real-Time Monitoring and Tracking
As we’ve mentioned above, smart containers support real-time tracking and monitoring with the integration of IoT. Let’s discuss the benefits logistics providers or shippers avail with this:
Environmental Monitoring:
With real-time tracking, shippers can monitor environmental conditions inside the containers and ensure whether goods are under optimal conditions. In case of any negative situation, they can make immediate decisions and prevent goods from any damage.
100% Transparency:
From manufacturers to the end customers, tracking ensures complete transparency and builds trust and authority. Apart from this, it can also help you confirm whether the container is on the right path without any suspicious access.
Full-proof Security:
Logistics providers can monitor the location of containers at any spot and enable alerts when any unauthorised access is detected. This reduces the risk of theft and damage and ensures the smooth delivery of containers to their destination.
Increased Efficiency:
There’s great support for efficiency like shippers can optimise their shipping routes, make planning before selecting routes and delivering containers, and avoid delays to minimise disruptions.
Economic and Environmental Benefits of Shipping Containers
Shipping containers also comes with significant economic and environmental benefits. They offer sustainability, cost-effectiveness, and long-term value. All of this adds value to better supply chain management.
Sustainability
There are a lot of ways containers promote sustainability. Firstly, they are made up of strong metals, so can be used for a longer period and even repurposed at the end of shipping journey. Usually, shipping containers for sale are going to be recycled and directly support the economy because resources are not wasted but reused. As they enhance efficiency during goods transport, you also avoid higher fuel consumption.
Economic Benefits
Shipping containers offer dozens of economic benefits. Firstly, they are cost saving, protect your goods from any damage or theft, prevent unauthorised access and reduce losses. It directly leads to economic scale. On the other side, their different manufacturing sizes also make them accessible for all types of businesses for their logistics purposes.
Cost-effectiveness
Cost of shipping container depends upon various factors such as the size, features, conditions and type. Typically, a 20ft new container costs between $1,200 and $4,500. In contrast, a new container of 40ft ranges from $1,300 to $5,500. High cube containers are slightly more expensive because they offer some additional height.
The Bottom Line
We discussed the effective role of shipping containers in modern supply chain management and found how they support global trading, transportation efficiency, and reducing costs. From the historical evolution of containers to the various types and sizes today, we see how each plays a vital role in supply chain management.
You can also find the collaboration of technological advancements such as IoT and smart containers supporting real-time tracking, monitoring, security, and offering significant environmental and economic benefits.
Author Bio
James A, Vice President Of Business Development, ContainersX LLC
James A is the Vice President of Business Development at ContainersX LLC. He specialises in driving strategic growth and expanding market presence. With a strong background in the shipping container industry, James focuses on innovative solutions to meet evolving business needs.
Top Reasons to choose IoSCM to advance the capabilities of your ports, shipping or logistics team:
- Unrivalled support from the first phone call.
- Flexible courses in ports and shipping management.
- Industry-leading courses for the shipping industry.
- Outstanding learning for the ports sector.
Call 0800 1422 522 today to find out more.