Shipping Container Myths: Separating Fact from Fiction (2024)

FAQs

What is the problem with container shipping? ›

The container shipping industry is intricately interlinked with global supply chains, making it highly susceptible to disruption. Also, it included challenges in the container shipping industry. Natural disasters, geopolitical tensions, or unexpected pandemics can severely affect goods movement.

The intermodal shipping container was invented back in 1956 by an American entrepreneur Malcom McLean and has since revolutionized shipping industry and global trade. For years Malcolm wondered how he could get his trucking company's entire cargo loaded onto a shipping vessel as quickly and efficiently as possible.

This transportation process, called intermodalism, allowed products to be shipped around the world quickly, cheaply, and efficiently by using cargo containers that more easily fit on trucks, trains, and ships. The arrival of containers and intermodalism revolutionized the shipping industry.

Shipping containers are not just for transporting goods anymore. They are becoming increasingly popular as a versatile and cost-effective solution for a variety of purposes, including home storage, office spaces, playrooms, garden sheds, workshops, garages, guest bedrooms, teenage retreats and more.

Ever-Growing Container Shortage

The shortage of shipping containers, a problem that surfaced after the pandemic, is expected to persist in 2024. The shortage began when manufacturers closed their factories during the pandemic causing containers to be held at ports and storage facilities.

Global emergencies, such as pandemics and natural disasters, dramatically affect shipping timelines. For example, during the COVID-19 pandemic, shipping industries faced severe delays due to lockdowns and restrictions. Ports operated at lower capacities, which slowed down the loading and unloading of goods.

Nearly all of the shipping containers in existence are owned either by a shipping line or by a container leasing company. A small percentage of shipping containers are owned by the shipper. The owner of any given shipping container is dictated on the side of the container.

According to a World Shipping Council (WSC) report, up to 1,382 shipping containers are lost at sea each year. The figure is based on three year averages calculated over a 12-year period – which represents 80% of the global vessel container capacity.

1. MSC Irina Class: 24,346 TEU. The Irina Class is currently the largest class of container ships in the world. Led by the flagship MSC Irina, there are four ships currently being operated by MSC between Europe and East Asia, with two more under construction by China's Yangzijiang Shipbuilding Group.

Once the container has served its intended life and no longer useful, it may be melted down and recycled or used for scrap metal.

What was used before shipping containers? ›

Trade before the container

Since the dawn of commerce, people have been using boxes, sacks, barrels and containers of varying sizes to transport goods over long distances. Phoenicians in 1600 B.C. Egypt ferried wood, fabrics and glass to Arabia in sacks via camel-driven caravans.

1. Port of Shanghai: 49 million TEU. The Port of Shanghai is the busiest port in the world in terms of cargo tonnage. The port is located at the mouth of the Yangtze River and covers an area of 3,619km².

Seasonal demand

Holiday periods and major events can create an imbalance in the usual flow of worldwide containers, leading to delays and container shipping shortages. Seasonal periods are often a time of higher shipping demand and volumes too, which can also lead to container shipping shortages.

Containers require less system resources than traditional or hardware virtual machine environments because they don't include operating system images. Applications running in containers can be deployed easily to multiple different operating systems and hardware platforms.

Training, system integration, and potential technical glitches pose challenges. Volatility in fuel prices can significantly impact the operational costs of shipping companies. Sudden spikes in fuel prices can lead to increased shipping costs, affecting the overall economics of supply chain operations.

The problem with shipping

Shipping emits 1,000 Mt CO2 per year, which is 3% of global CO2 emissions. According to the International Maritime Organisation, shipping emissions are set to increase by up to 50% by mid-century if stringent measures are not taken. Shipping also contributes to poor air quality.