Disadvantages of container shipping
Containerization is a mode of transport whereby a large amount of commodities are packed into standard containers for Transportation Although containerization has many benefits as a mode of transport, it also has its own disadvantages. In this article we will discuss some of the drawbacks of containerization as a mode of transport.
- Requirement of space The container requires a large amount of space for packing. This is because the containers are large and may not be properly get adjusted to create more space. When we have many containers, there is need for creation of more space which may require time and money. This is a disadvantage to ports because they are only required to expand space on behalf of large shipping companies.
- Huge amount of resources Container handling facilities require a huge amount of capital to acquire them. Facilities like enormous cranes that handle containers are expensive. Currently, these facilities are undergoing a lot of technological changes that also require a huge amount of capital.
- Stacking The complicated nature of arranging containers is a demerit of this means of transport and incurs both extended time and costs for those operating them. These resources may not be readily available and may constrain the operators to get them.
- Repositioning Containers are moved when they are full or when not. In whichever the case, the same amount of space is required to pack the container. The differences in production at the international level require that the containers are repositioned over long distances.
- Theft and losses Sometimes some containers containing high value commodities are lost when they are on transit. This is means that though containerization is one of the most secure modes of transport, there is the possibility of theft of commodities when they are on transport. This may require the owners of such containers to incur some additional insurance charges to cater for the risk especially when items of great value are involved.
- Emergence of illegal trade Containerization is subject to be used by illegal traders who might use this mode for illegal activities like drug trafficking, terrorism and illegal immigrations.
- More cargo on ships raises insurance charges for the shipping companies This cost may be transferred to the final consumer of commodities.
- Slow steaming There is slow in transhipment of goods due to slow steaming. This requires that there is constant tracking of the containers when they are on transit to know exactly where they are. This is an added cost to the companies concerned.
- Customers have become more demanding They want to know where their goods are and when they will receive them.
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