What is Meant by Containerization?

What is Meant by Containerization?

What is Meant by ContainerizationContainerization is the practice of carrying goods in containers of uniform shape and size for shipping. Almost anything can be stored in a container, but they are particularly useful for the transport of manufactured goods. It is a method of distribution of goods using containers. The use of containers has, indeed, facilitated carriage of goods. Exporters need not go to the seaport for export of goods. Instead, the goods can be sent to Inland Container Depot/Container Freight Station for sending goods to the destination.

The enactment of Multi Modal Transportation of Goods Act, 1993 has enabled the transportation of goods, using containers for export of cargo. The goods are loaded in containers at the exporters place and are brought to Inland Containers Depot (ICD) by rail or road. Alternatively, goods are loaded in containers at Inland Containers Depot, after customs clearance of goods. Packing of the cargo can be done in the exporters place or at ICD. Exporters are issued Multi Modal Transportation Document, which serves all the purposes like a traditional Bill of Lading. The customs clearance is provided at ICD, which saves lot of time and costs.

Since 1950s, containers have revolutionized sea-borne trade, and now carry around 90% of all manufactured goods shipped by sea. The transporters in developed countries have started making use of containerization, early. Now, developing countries too are taking a greater advantage in using containers for transportation of goods. Different countries are giving logistic support, giving the necessary boost to improve the required infrastructure to containerization, for encouraging export industry.

Containers are the facilitators of inter modal transportation, i.e. movement of goods from one mode to another without the necessity of unloading and reloading. Gradually, cargoes that are used to be shipped in break-bulk started getting increasingly containerized and containerization has soon become a global phenomenon.

Process of Containerization

The process of containerization involves:

• Packing containers at the place of production rather than at the quayside;

• Moving containers to the port by lorry or rail and

• Using quayside cranes to lift the containers onto and off the ship.

The traditional teams of stevedores and porters have become redundant, and large quantities of goods can he shifted far more quickly than before. With fewer workers to b-e paid and less time spent in the ports, containerization means huge savings for the shipping firms. To make containerisation pay, new ships are designed. They are built to carry the maximum number of containers. Their internal layout has allowed easy removal of containers by crane.

GST Tax returns filing – Who, How and When? 

How is time of supply accounted under GST Tax Calculation 

Valuation of GST under special cases 

Valuation of GST Taxable supply 

When to pay GST for supply of services? 

When to pay GST? 

GST on short supplied goods and services by nature 

Goods and services exempted to pay GST 

Who has to pay GST?

GST Composition Levy 

Cancellation of registration of GST

All about registration of GST in India, FAQ

Cancellation of GST Registration in India, FAQ

Can a person without GST registration claim ITC?

Why separate Registration of GST in each state in India, for each business.

Latest date to file GST registration in India

Procedures to obtain GST registration for non-resident taxable person

Is digital signature option available under registration of GST in India?

Advantages of GST registration in India

Who has to obtain GST registration in India?

What is VACIS exam in US import customs clearance

When can an exporter release bill of lading from shipping company?

When does exporter get EP copy of shipping bill after customs clearance

Procedure for Central Excise Clearance Under Claim of Rebate

Customs procedures for Costa Rica Export

Registration required to export from Costa Rica

Import Customs processes in Costa Rica

Import Registration and import Licence procedures in Costa Rica

How to export from Bolivia?

How to Import to Bolivia?

How to import to India from Bolivia? 

 

Click here to know GST rate on Goods and Services

GST Exemption list of goods and services

Find HSN number or Service tariff code for GST

GST registration guidelines

Indian GST Laws

How to export your goods?

 


Comments


Chaitanya Kamath : I am Chaitanya S Rao from Bangalore. I had been through your article in howtoexport.com and it was a overwhelming article. On the same note I would like to meet you as I am interested in talking about setting up my firm for imports & exports. As a young entrepreneur I would like to get some guidance from you on my mission.

hellen: Good day, hope everthing is goes well with you. we are a professional manufacturer of industry gas Tank containers. including: Cryogenic Tank For Industry Gas Microbulk Solutions-AJT Welded Insulated Liquid Cylinder for Industrial Gas and LNG our products were certified by GB or ASME. If you have interesting in our products, pls contact us,we will provide our catalog for your reference.

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers