Home Solutions The Containerization of Commodities
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Containerization of commodities entails growth and enlargement of forte market whose volatility is determined by the price of respective goods as well as the demand for those goods and their shipping prices. Containerization creates new opportunities for both the importers and exporters. Containerisation fosters better management in transportation of bulk commodities and ensures proper inventory management. Containerisation has influenced globalization in a wide scale due to facilitating intercontinental trade. It has facilitated global trade of commercial goods at retail level. Before containerization was invented, goods used to be transported in bulk through express shipments and a high level of damages was experienced. Loss of goods through pilferage and theft was another drawback with bulk and express transportation. These drawbacks led to inception of containerization. Through containerization, goods are classified under various categories. This eliminates hurdles that were experienced with transportation of mixed up bulk products (Westlake, 2005).
According to Rodrigue et al (2006), containerization is expanding fast with goods such as wood and wood products being exported in containers. Factors such as trade imbalances are promoting use of containers in goods transportation through provision of empty containers that are deemed to clear the backhaul. Additionally, containerization has proved to be the most cost effective way of transporting commodities as it accommodates intermodal transport systems with a wide market exposure.
Developments in Containerization Dynamics
With the latest developments and massive reliance containerisation, this form of transportation needs to be included in the list of units supply chain. Freight transport is the sole beneficial of containerization characterized by transportation of commodities from the…
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