How the container transportation mode revolution overturned traditional concept

Reporter Xu Hua

The modern container transportation industry was started half a century ago, just as its birth represented the spirit of innovation and reform, “change” has become the eternal theme during its 50 years history of development. The size of the ship is challenging the limits of “large”, the transportation mode is continually upgrading, and in the market competition, the ups and downs of enterprises are inevitable. No matter the market is on the summit or in the deep, container transportation is always seeking good method to break through in the course of changes.

■ Seeking change in the eternity

In April, 1956, Malcom McLean (the predecessor of Maersk Sealand) loaded 58 containers of 33ft on the converted T-2 tanker M/V Ideal X and shipped them from Newwark to Houston.This new transportation mode overturned completely the traditional general cargo transportation mode. Because the cargo was organized and the loading process was simplifi ed, cost was greatly reduced and effi ciency was greatly increased. Soon, the advantage of container transportation in transporting large scale of cargo was evident and outstanding for having successfully transported military materials during the Vietnam War.

■ Unstoppable large scale

Encouraged by the economic effect of ships’ becoming large scale, container ships are becoming increasingly large and this trend is unstoppable. At the same time, container shipping lines are gradually becoming large scale in the course of fierce competition and consolidation.

In the 21stcentury and amid doubts, containers are more and more courageous to become large, from emergence of the 10,000TEU to the 18,000TEU containership.Changes that happened in the last ten years far exceeded that in the past 50 years.

The fast development of large containerships benefit from scale effect. Experts believe that according to the normal development period, after the emergence of 10,000-12,000TEU containerships in the year of 2010,15,000TEU containerships will come on the scene in the year of 2020. However, the order of 18,000TEU containership came in the year of 2011, ten years ahead of expectation. Reasons for this are that shipbuilding,material and techniques have developed and are mature enough to provide prerequisites for the design and construction of such large container ships, and the increasingly developed manufacture industry requires rapid collection and dispatch of commodities. The formation of container transportation hub changed the logistics. Dealing with global climate change has also become the promotion force.

Debates about the gradual minimization of scale economy of large ships is still going on, and the major obstacle for ships becoming large scale is still the limit posed by the single engine propulsion system and the scale being inefficient caused by inability of posts and docks to deal with large scale ships in an effi cient manner. Of particular concern is the compensation capacity of underwriters. It is estimated that the compensation claims could reach 3 billion dollars in case a severe accident happens to a very large containership,which is enough to paralyze an international insurance company.

■ The forth revolution

So far, container shipping industry has experienced three significant stages. With the expansion of the Panama Canal, the container shipping industry is marching towards the forth significant stage, or “the forth revolution” as called by many industrial experts.The adoption of giant ships, the development of global shipping network as well as construction of super ports will become the signifi cant marks of this stage.

With the expansion of Panama Canal, the forth revolution of container transportation has become a hot topic. But no matter what mode the container transportation selects in the future, or several modes co-exist, container transportation mode will never stop its steps of changes.