Freight containers are standardized shipping containers. They have to be constructed to certain minimum standards of sturdiness to withstand the rigors of long ocean voyages and transfer from one mode of transport to another.
Specialized trucks, railcars and handling equipment have been designed to accommodate these standard sized containers. The containers fit neatly into these vehicles (as well ships' cargo holds) and the handling equipment can easily transfer the containers from trucks to railcars to ships and in the reverse direction. The freight containers themselves might have forklift pockets that facilitate forklift handling.
Standardized freight containers enhanced the speed and efficiency of cargo movement, and expanded world trade. The easy and quick transshipment of the containers from one mode of transport to another - inter-modal transport - is the main factor that makes the efficiency possible. The multi-modal transport facility also enables carrying goods across terrains like water, rail track, road and air to get from origin to destination without any disruption. Material handling conveyors are typically shipped in "cellular" container ships, so called because the ships' cargo area is segmented into standard cells to accommodate containers, resembling a honeycomb. The cargo capacity of ships is expressed in TEUs, or twenty-foot equivalent units.
Mechanical handling system is designed in a vandal proof manner. They also typically incorporate sturdy locking in the form of one double door that is secured by four locking bars extending to the whole height of the container. The locking bars have additional lockable handles that can be secured by padlocks and sealed. Packing and locking the whole container at the shipper's premises and thereafter opening it only at the consignee's premises can further increase security. Any required customs inspection and certification are done at the shipper's and consignee's premises. Considering the security, container-based shipments incur less expense for insurance against theft, pilferage and damage.
Logistics automation helps when cartons can come in different odd sizes, and the internal dimensions of containers are less than the outer dimensions. Hence dividingthe outer volume of the containers into the carton volumes will not give a correct idea of the number of cartons the container can carry. That leaves a lot wasted space. So you change the arrangement. Cartons are arranged lengthwise across the width of the container.
Logistics automation helps when cartons can come in different odd sizes, and the internal dimensions of containers are less than the outer dimensions. Hence dividingthe outer volume of the containers into the carton volumes will not give a correct idea of the number of cartons the container can carry. That leaves a lot wasted space. So you change the arrangement. Cartons are arranged lengthwise across the width of the container.
With the economy on the mend, a lot of people in the material handling conveyors industry are expecting good times without having to make any changes in the way they do business. Unfortunately, that means the continuation of one particular practice that played a major role in getting the economy in trouble a few years back. In the material handling industry, this discredited business model is still very much in evidence. Too many companies have played the merger game, getting themselves involved in markets that they know nothing about. Too many have played the numbers game, moving money from one pocket to another to make themselves look good for one more quarter, totally forgetting about long-range planning.
But let's look at the downside. Without profits, you have no money to invest in research and development, capital expenditures, etc. Your growth is all on paper, and will disappear as soon as you run out of money to buy jobs with. With minimal profit margins, you have neither the money nor the inclination to service the sale after it is made. The result is an unhappy customer, and that is never good news for the long term prospects of your company.
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