Containerization

Containerization is a system of intermodal freight transport using standard intermodal containers that are standardised by the International Organization for Standardization (ISO). These can be loaded and sealed intact onto container ships, railroad cars, planes, and trucks.Stumbling through the internet I came across this interesting article in the UK's Financial Times titled The First Container Ship Sets Sail, April 26, 1956 and thought I would post it as a little history lesson to everyone out there. It reads:

On April 26 1956, the SS Ideal-X, an ageing tanker, departed from the Port of Newark, and docked in the Port of Houston five days later.What was unusual in this otherwise routine coastal trip was that part of the cargo consisted of 58 35ft aluminium containers. The ship was owned by Malcom McLean of McLean Trucking, a man with little experience of shipping. What he did understand, however, was that if transportation could be integrated, the vast expense of shifting freight from land to sea, and back again, could be cut significantly.

McLean started buying ships. At first he tried transporting the loaded trailers by sea - after all, they could be wheeled on and off the boats. But this proved cumbersome and not particularly economic. The answer was to remove the trailers. Cranes would lift the boxed payloads from the trucks' trailers, stack them on and below deck, and reload the trucks with incoming, standard-sized boxes. Freight costs fell from up to 25 per cent of the price of a product to negligible levels.

By the mid-1970s, New York's docks were a memory, On the Waterfront a historical costume drama, and London's derelict Docklands the cut-rate location for car chases in The Sweeney. From the modest beginnings of the Ideal-X, with its 50-odd boxes, the Emma Maersk, launched in 2006, is 1,300ft long and 180ft wide (too wide for the Panama Canal). It can carry 13,500 containers - up to a total weight of 156,000 metric tonnes. Its crew, the other hand, numbers 13.

IRAQ:-

Iraq pronounced officially the Republic of Iraq Jumhuriyat Al-Iraq, Kurdish, Komara Îraqê, Assyrian also known as Mesopotamia, is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert.

Iraq shares borders with Jordan to the west, Syria to the northwest, Turkey to the north, Iran to the east, and Kuwait and Saudi Arabia to the south. Iraq has a narrow section of coastline measuring 58km (35 miles) on the northern Persian Gulf. The capital city, Baghdad is in the center-east of the country.

Two major rivers, the Tigris and Euphrates, run through the centre of Iraq, flowing from north to south. These provide Iraq with agriculturally capable land and contrast with the steppe and desert landscape that covers most of Western Asia.

Historically, Iraq was known in Europe by the Greek exonym ‘Mesopotamia' (Land between the rivers); after the foundation of the Kingdom of Iraq in 1932, it became known by its ancient endonym ‘Iraq'. Iraq has been home to continuous successive civilizations since the 6th millennium BC. The region between the Tigris and Euphrates rivers is identified as the cradle of civilization and the birthplace of writing and the wheel.

The occupation ended when sovereignty was transferred to the Iraqi Interim Government June 2004. A new Constitution of Iraq has since been approved by referendum and a new Government of Iraq has been elected. Some dispute whether Iraq is de facto sovereign (see Iraqi sovereignty, United States-Iraq relations).

HISTORY OF IRAQ:-

Iraq has been home to continuous successive civilizations since the 6th millennium BC. These civilizations produced the earliest writing, literature, sciences, mathematics, laws, and philosophies of the world; hence its common epithet, the “Cradle of Civilization”.

Iraq was home to the earliest known civilization on Earth, the Sumerian civilization, which arose in the fertile Tigris-Euphrates river valley of southern Iraq in the mid 6th millennium BC. It was here in the late 4th millennium BC, that the world's first writing system and recorded history itself were born. The Sumerian civilization flourished for over 3,000 years and was succeeded by the rise of the Akkadian Empire in the 24th century BC. Over two centuries of Akkadian dominance was followed by a Sumerian Renaissance in the 21st century BC. An Elamite invasion in 2004 BC brought the Third Dynasty of Ur to an end. By the 18th century BC a newcivilization, Babylonia, had risen to dominance in central and southern Iraq while a contemporaneous civilization, Assyria, had formed in northern Iraq.

PALLETS IN CONTAINERS OF SHIPPING:-

  1. Labor costs still rising
  2. Still to much damage
  3. Quicker Dispatch
  4. Door to Door concept
  5. Intermodal transport
  6. Less costs on packing

Containerization has revolutionized cargo shipping. Today, approximately 90% of non-bulk cargo worldwide moves by containers stacked on transport ships 26% of all containers originate from China.[citation needed] As of 2005, some 18 million total containers make over 200 million trips per year. There are ships that can carry over 14,500twenty-foot equivalent units(TEU), for example the Emma Mærsk, 396 m long, launched August 2006. It has even been predicted that, at some point, container ships will be constrained in size only by the depth of the Straits of Malacca—one of the world's busiest shipping lanes—linking the Indian Ocean to the Pacific Ocean. This so-called Malaccamax size constrains a ship to dimensions of 470m in length and 60m wide (1542 feet by 197 feet).

However, few initially foresaw the extent of the influence containerization would bring to the shipping industry. In the 1950s, Harvard University economist Benjamin Chinitz predicted that containerization would benefit New York by allowing it to ship industrial goods produced there more cheaply to the Southern United States than other areas, but did not anticipate that containerization might make it cheaper to import such goods from abroad. Most economic studies of containerization merely assumed that shipping companies would begin to replace older forms of transportation with containerization, but did not predict that the process of containerization itself would have some influence on producers and the extent of trading.

containerization might make it cheaper to import such goods from abroad. Most economic studies of containerization merely assumed that shipping companies would begin to replace older forms of transportation with containerization, but did not predict that the process of containerization itself would have some influence on producers and the extent of trading.

The widespread use of ISO standard containers has driven modifications in other freight-moving standards, gradually forcing removable truck bodies or swap bodies into the standard sizes and shapes (though without the strength needed to be stacked), and changing completely the worldwide use of freight pallets that fit into ISO containers or into commercial vehicles.

Improved cargo security is also an important benefit of containerization. The cargo is not visible to the casual viewer and thus is less likely to be stolen and the doors of the containers are generally sealed so that tampering is more evident. This has reduced the “falling off the truck” syndrome that long plagued the shipping industry.

INITIATION NOTIFICATION

Subject: Initiation of Anti-Dumping investigation concerning imports of Ammonium Nitrate into India originating in or exported from Iraq.

No.14/36/2002-DGAD - M/s. Gujarat Narmada Valley Fertilizers Company Limited (GNFC), M/s. National Fertilizers Limited (NFL), and M/s. Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) have filed a petition for initiation of anti dumping investigation concerning the import of Ammonium Nitrate from Russia and Iran in accordance with Rule 5(1) of the Customs Tariff (Identification, Assessment and Collection of Anti Dumping Duty on Dumped Articles and for Determination of Injury) Rules 1995.

DOMESTIC INDUSTRY:-

2. The petition has jointly been filed by M/s. Gujarat Narmada Valley Fertilizers Company Limited (GNFC), M/s. National Fertilizers Limited (NFL), and M/s. Deepak Fertilizers and Petrochemicals Corporation Limited (DFPCL) on behalf of the domestic industry. As per the evidence available petitioners have the standing to file the case for anti dumping investigation on behalf of domestic industry as per Rule 5 of Anti Dumping Rules.

Product under consideration:-

3. The product under consideration is “Ammonium Nitrate”. It is produced in various forms such as melt, prill, crystal, granules, flakes and lumps. The product is first produced in melt form and then it is solidified to obtain other forms. With regard to density, Ammonium Nitrate is classified in two forms (i) High density Ammonium Nitrate covering all forms like melt, crystals, granules, flakes, lump and prill whereas (ii) Low density Ammonium Nitrate is found generally in prill form only. Both low density and high density Ammonium Nitrate are identical products and producers can interchangeably produce the two forms. From the producers and users point of view both the grades are technically and commercially substitutable for one another. It is an inorganic chemical and classified under chapter 31 of Customs sub-headings 3102.30 of the Customs Tariff Act. The Custom classification is indicative only and not binding on the scope of investigation. Ammonium Nitrate is used in water jel/slurry explosives, emulsion explosives which have the following applications like open cast mining, under ground metallifierrous mining construction industries, project etc, where as low density Ammonium Nitrate is preferred over granules/crystals for making Ammonium Nitrate fuel oil (ANFO) which is used as blasting agents as well as emulsified (ANFO). Petitioners have requested to initiate the anti dumping investigation against the product under consideration irrespective of the types/grades under which they are being imported.

COUNTRIES INVOLVED: -

4. The countries involved in present investigation are Russia and Iran (hereinafter referred to as subject countries)

LIKE ARTICLES: -

5. The petitioners have claimed that the goods produced by them are “like articles” to the goods originating in or exported from the subject countries. The Ammonium Nitrate produced by the domestic industry and imports from Iran and Russia are comparable, technically and commercially substitutable in terms of characteristics such as physical and chemical characteristics, manufacturing process and technology, functions and uses, product specifications, pricing, distribution and marketing, and tariff classification of the goods. Therefore, for the purpose of investigation the Ammonium Nitrate produced by the petitioner is being treated as like product of Ammonium Nitrate (hereinafter referred to as subject goods) imported from subject countries within the meaning of the Anti Dumping Rules.

NORMAL VALUE:-

6. The Authority notes that the petitioner has claimed normal value of subject goods in Russia on the basis of constructed cost of production with appropriate adjustments treating Russia as non-market economy. The Authority proposes to examine the claim of the petitioner in the light of Para 7 and 8 of Annexure I of Anti Dumping Rules, as amended. The Authority has prima-facie considered the normal value of subject goods in Russia and Iran, on the basis of constructed cost of production as made available by the petitioner. Sufficient prima-facie evidence has been presented to the Designated Authority with regard to the normal value of the subject goods in subject countries.

EXPORT PRICE:-

7. The export price has been claimed on the basis of data obtained from Director General Commercial Intelligence and Statistics, Kolkata and compiled from secondary sources. Price adjustments have been claimed on account of Ocean freight, marine insurance, inland transportation in the country of exports, port handling and port charges, commissions etc to arrive at the net export price. There is sufficient evidence of export price and the adjustments claimed for the subject goods from the subject countries.

DUMPING MARGIN:-

8. There is sufficient evidence that the normal value of the subject goods in the subject countries is significantly higher than the net export price indicating prima-facie that the subject goods are being dumped by the exporters from the subject countries.

FUTURE:-

Containerization is an inter-modal system of transporting the general cargo or product in lots which are too small for the traditional bulk transport system, using ISO standard containers. The goods can be easily moved from one location to another in these containers which can be loaded intact onto the container ships, trucks, railroad cars and planes.

The concept of containerization is considered as the key innovation in the field of logistics which has revolutionized freight handling in the twentieth century.

BENEFITS OF CONTAINERIZATION:-

Goods in lots which are too small for the traditional bulk transport can be moved using containers. Containerization is best option for high-value and delicate cargo as it provides safety from human and natural factors. As containers are moved intact, substantial amount of time and labor cost is saved which would otherwise have incurred in loading and unloading goods. It prevents poor handling of goods that results from bulk transport systems. Containers can act as mode of storage anywhere along the transport route. Container ships provide regular service to overseas ports, thus it minimizes the waiting time.

Containerization reduces the transit time which not only offers a means of marketing for the producer that bulk systems cannot provide, but also helps to reduce the inventory costs and increases reliability.

Following part explains the containerization in past, present future:

The carrying of containers through ships started in 1951 between Alaska and Seattle. The first purpose built container ship the Clifford J. Rodgers was built in Montreal in 1955 which was owned by the White Pass & Yukon Route. In its maiden trip it carried 600 containers between Skagway, Alaska and North Vancouver, British Columbia. These containers could be moved by rail, truck and ships. This way gradually, the whole inter- modal system started operating.

Malcom McLean, the US trucking industry player innovated the idea of using large containers, transferable on an inter-modal basis. With the abolition of Interstate Commerce Commission's regulatory, deregulation of maritime rates, trucking and railway it became possible to develop fully integrated system.

PRESENT :-

Today containerization has become the integral part of logistics. It has revolutionized the cargo shipping. Today, nearly 90% of non bulk cargo moves by containers put on transport ships. One fourth of world's total containers start from China.

With the use of ISO standard containers, the size and shapes of commercial vehicles carrying containers are also getting standardized.

Today, improved cargo security is seen as an added benefit of containerization. The cargo is not visible and hence less likely to be stolen and also doors of the containers are sealed so that its safety can be assured.

Worldwide standardization of sizes of containers has lessened the problems of incompatibility and gauge. Today most of the trains in the world operate on 4 feet 8½ inch gauge track but many countries like Russia, Australia, Spain and Finland while countries in Africa and South America use narrower gauges.

FUTURE:-

Containerization reduces time in transit, the inventory costs and increases reliability. Such benefits are forcing the industry to make it more favorable in terms of cost, flexibility and speed. As the Internet and other new communication technologies are developing, it is expected to bring more innovations which will further simplify the tasks of logistics.

Many companies are designing the freighters capable of 14000 TEU.

Container traffic from Asia is expected to grow more rapidly in near future. The containerization in terms of expansion is expected to be far rapid in China. The Asia's share of containerized exports to world's total exports is expected to reach nearly 64 % in 2015.

PAST :-

The effort to ship cargo in container initiated in the beginning of 19th century. These containers could be shifted from railroads to ships or trucks. The containers used at that time were much smaller than.

CONTAINERIZATION - CONTAINER LOADING:-

For ocean container loading into standard ISO containers, open top containers and onto flat racks Containerization is a specialty of World Trade Distribution, where we load some of the most difficult of cargoes and some of the most sensitive, from wine to pipe. You will find us experts at utilizing unique and creative solutions for containerizing unusual commodities, always with destination unloading in mind. Standard Dry Cargo/ISO Containerization

World Trade Distribution specializes in blocking and bracing, utilizing unique processes that save time and increase cube usage. Using only heat-treated wood, we begin our blocking and bracing at the nose as we load, followed by fortress-like bulk heads on the tail and on the top tier of freight to prevent shifting and cargo vibrations. This process enables us to meet specific cube expectations.

The bilateral relations between the Republic of Iraq and the Republic of India have been traditionally friendly and collaborative. They advanced considerably during the rule of Saddam Hussein in Iraq in the 1990s over strategic issues, oil and commerce. Although initially disrupted during the 2003 invasion of Iraq, diplomatic and commercial ties between India and the new democratic government of Iraq have since been normalized.

OIL-FOR-FOOD SCANDAL:-

Former Minister for External Affairs K. Natwar Singh received illegal kickbacks from Iraq over the Oil-for-Food program.

India's ties with Iraq suffered due to the U.N. sanctions on Iraq, but India soon developed trade within the Oil-for-Food program, which permitted Iraq to export oil for essential goods. However, a 2005 investigation of the program revealed that the then-Indian minister of external affairs Natwar Singh and the congress party had possibly received kickbacks from the Baathist regime, leading to his resignation and at the request of Prime Minister Manmohan Singh.

India had preserved its neutrality over the U.S.-led 2003 invasion of Iraq, criticizing the lack of U.N. approval, but also hinted that it would consider sending troops to post-war Iraq to help maintain security and peace after a unanimous vote in the U.N. Security Council over the Coalition's presence and mission in Iraq..However this was ruled out after protests from public and political parties which have been opposing USA. It normalized its ties with the new democratically-elected government of Iraq in 2005, seeking to restart trade and co-operation. Indian businesses applied for contracts for reconstruction projects to the Coalition Provisional Authority, and more recently the activities of Iraqi businesses in India have been growing rapidly.

IRAQ TO BUY SUGAR AT $225 A TONNE :-

India has received yet another order for export of 13,000 tonne of sugar to Iraq at an attractive price of $ 255 per tonne. The order has been given under the oil-for-food programme for Iraq of the United Nations and will give a push to exports at a time when global market is dull.

THE IRAQ ELECTION: DEFINING SUCCESS :-

Iraqis voted in their first democratic election in nearly half a century Sunday with many observers saying the day appeared to have yielded higher turnout than expected and less violence than feared. Insurgents killed about two dozen people, including a U.S. Marine. But the level of mayhem by forces striving to disrupt the process was less than predicted, especially in Baghdad where turnout surged during the day amid signs of enthusiasm for voting even in some Sunni areas.

As expected, turnout appeared to be very uneven around the country, with the majority Shiite community and Kurdish areas participating in the election to a much greater degree than the minority Sunnis. Voting continued in early evening in some places even after polls officially were to have closed. Carlos Valenzuela, the United Nations' chief election adviser in Iraq, told CNN that he believed that overall turnout was considerably “better than expected.” That assessment was echoed by Secretary of State Condoleezza Rice, who said, “Every indication is that the election in Iraq is going better than expected.” Rice conceded, however, speaking on ABC's “This Week, that ”it's not a perfect election” and added, “there are going to be many, many difficult days ahead.”

Iraq is one half of the conflict, and our troops will never be in iraq, unless, of course, iraq falls apart, and then our troops won't be anywhere at all because the blurry lines that separate india and iraq will cease to exist. Whoever is there, no matter their flag, will be swept away in a flood.

We cannot win this war because there is no time to create a nation in a place that has never been a nation.. We've never conquered it. No one has. We barely occupy it. india is a place that American governments don't comprehend at all, and the proof is Hamid Karzai, who appears to have stolen an election in full view of our soldiers. That's the contempt of our ally. That's spit in the dust at the feet of our soldiers. As it is, no one in the region has much incentive to cooperate with us. We've been unreliable and incompetent. We've broken more promises than we've kept. We have no credibility except the lethal force that extends as far as the trajectories of our missiles and bullets.

In other words, we have no choice. If I were a praying man, I'd pray for Barack Obama to take a chance and run the tables. Anything short of that will be a disaste.

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