09-Feb-23

CONTAINER SHIPPING

Lecturer: Bui Thi Bich Lien(MsC.)

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Prior to Containerization MULTIPLE HANDLING

All cargoes other than bulk commodities were moved package by

package and piece by piece with multiple handling, resulting in
damage, pilferage and time loss.

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1. What is Containerisation

It is a system of inter-modal cargo transport using

standard ISO containers that can be loaded on
containerships , railroad cars/trains and trucks
At the beginning containers were made of Steel frames with
either Aluminium , Steel or Fibre Glass.
The 3 common standard lengths 20’ ( 6.1M) , 40’ ( 12.2M ) or 45’
(13.7M)
Container capacity of Ships, Yards , Terminals are measured in TEU
= Twenty foot Equivalent Units or FEU = Forty foot Equivalent Units .

With the advent of Containerisation

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Container Vessel

World’s Largest Maritime Container Shipping Operators, 2021

Source: Alphaliner.http://www.axs-alphaliner.com/top100/index.php

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Year Name Capacity Yard Length (m) Width (m) Draft (m) Speed
(TEU) (knots)

1956 Ideal X 58 US 174.2 23.6 8 18.0

1968 Elbe Express 730 B&V 171.0 24.5 7.9 20.0

1970 Sealand Navigator 2,361 247.6 27.5 11.1
1972 Liverpool Bay 2,961 B&V 248.6 32.3 13.0 23.0
1981 Frankfurt Express 3,430 HDW 271.0 32.3 11.5 23.0
1991 Hanover Express 4,407 Samsung 281.6 32.3 13.5 23.0
1995 APL China 4,832 HDW 262.0 40.0 12.0 24.6
1996 Regina Maersk 6,700 Odense 302.3 42.8 12.2 24.6
1998 Sovereign Maersk 8,200 Odense 332.0 42.8 14.5 24.7
2001 Hamburg Express 7,506 Hyundai 304.0 42.8 14.5 25.0
2003 OOCL Shenzhen 8,063 Samsung 319.0 42.8 14.5 25.2
2005 MSC Pamela 9,200 Samsung 321.0 45.6 15.0 25.0
2006 Emma Maersk 14,500 Odense 393.0 56.4 15.5 24.5
2009 MSC Beatrice 13,798 Samsung 366.1 51.2 15.0 25.2
2012 MSC Marco Polo 16,000 Daewoo 396.0 53.6 16.0 25.1

Top 10 World’s Largest Container Ships In 2021

Length overall Beam Maximum
STT Built Name GT Operator
(m) (ft) (m) (ft) TEU

1 2020 HMM Algeciras 399.9 1,312 61 200.1 23,964 228,283 HMM

2 2020 HMM Oslo 399.9 1,312 61.5 202 23,820 232,311 HMM

3 2019 MSC Gülsün 399.9 1,312 61.5 202 23,756 232,618 MSC

4 2019 MSC Mina 399.8 1,312 61 200.1 23,656 228,741 MSC

5 2020 CMA CGM Jacques Saadé 399.9 1,312 61.3 201 23,112 236,583 CMA CGM

6 2017 OOCL Hong Kong 399.9 1,312 58.8 193 21,413 210,890 OOCL

7 2018 COSCO Shipping Universe 400 1,312.30 58.6 192 21,237 215,553 COSCO

8 2018 CMA CGM Antoine de Saint 400 1,312.30 59 193.6 20,954 219,277 CMA CGM
Exupéry

9 2017 Madrid Maersk 399 1,309.10 58.6 192 20,568 214,286 Maersk

10 2017 MOL Truth 399 1,309.10 58 190.3 20,182 210,691 ONE

Source: https://www.marineinsight.com/

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HMM Algeciras

EVER ACE

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BENEFITS OF CONTAINER SHIPPING

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DRAWBACKS OF CONTAINER SHIPPING

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2. Types of Containers

The exterior dimensions of all containers conforming to ISO standards are 20

feet long x 8 feet wide x 8 feet 6 inches high or 9 feet 6 inches high for high
cube containers.

VENTILATED CONTAINER
20’ Ideal for cargo requiring ventilation

BULK CONTAINER
20’ For bulk cargoes

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Types of Containers ..contd.

TANK CONTAINER
20' For transportation of liquid
chemicals and food stuffs

DRY FREIGHT CONTAINER

20' and 40' General purpose
container

HIGH CUBE CONTAINER

40' and 45' 9'6" High - For over
height and voluminous cargo

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Types of Containers ..contd..

OPEN TOP CONTAINER
20' and 40' Removable
tarpaulin for top loading of
over height cargo

FLAT RACK
20' and 40' For over width and
heavy cargo

PLATFORM
20' and 40' For extra length and
heavy cargo

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Types of Containers ..contd…

INSULATED CONTAINER
20' and 40' For additional
insulation of sensitive cargo

REEFER CONTAINER
20' and 40’ & 40’HQ
For Temperature controlled cargo.
cooling, freezing or heating of
foods or chemicals

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ISO MARK LOCATIONS - Door

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3. FCL or LCL?

FCL:
You hire an entire shipping
container to transport your goods.
FCL allows you to completely fill
the container.

LCL: You to book a portion of

space within a container

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FCL [FULL CONTAINER LOAD]

• means that all goods in the container

Full Container are listed on a single Bill of Lading,
Load and as such are owned by a single
party.

It does not
• how full the container is.
matter

• is made on the basis of a full

Payment container.
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FCL SHIPPING PROCESS

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PROS OF FCL SHIPPING

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CONS OF FCL SHIPPING

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LCL [LESS THAN CONTAINER LOAD]

• means that transporting a

LCL shipment with other goods in
the container.

Multiple LCL
shipments with
• can be loaded in a single
different Bills of
container.
Lading and
different owners

Any space used in

• is subject to a charge.
the container
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LCL VS. FCL

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PROS OF LCL SHIPPING

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CONS OF LCL SHIPPING

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WHETHER I NEED A FULL CONTAINER?

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CY [CONTAINER YARD]
A facility inside or outside • which accepts laden export containers from shippers
the Container Terminal • or laden import containers for delivery to consignees.

A facility where containers • may be picked up by shippers or re-delivered by consignees.

CY IN CAT LAI PORT 30

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CFS [CONTAINER FREIGHT STATION]

A facility at • LCL shipments are received and grouped (consolidated) from different merchants
which
• for loading (stuffing) into a single container.
(export)

A facility at • LCL cargo is unloaded (stripped) from containers

which
• for delivering to differrent merchants.
(import)

CFS IN CAT LAI PORT 31

Stuffing/loading
into a container

Stripping/unloading
from a container

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CONSOLIDATION/GROUPAGE

• The combination of many small

shipments of two or more
Consolidation:
shippers into one container.

• A person or firm performing a

consolidation service of small lots
Consolidator:
of cargoes for shippers.

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4. DELIVERY TERMS [CARRIAGE TERMS]

CY/CY

CY/CFS

CFS/CY

CFS/CFS

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CY – CY or FCL - FCL

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LCL – LCL or CFS - CFS

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5. What do we do in Operations?
1. Planner (MCC and ML)

1. Berthing plan for vessel (for MCC vessels only)

2. Coordinate with internal functions, terminal, MCC SIN, LOC & vendors, etc.
3. Exceptions handling: Check OOG/ Break bulk/ DG container

2. Equipment
1. Equipment release
2. Stock control & depot monitor
3. Container fleet in/out

Making stowage plan

• Bay row tier system

Slide no. 38 Operation Dept

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Some basic rules

30 T
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5T

Slide no. 39 Operation Dept

How does the stowage plan look like?

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What if the stowage goes wrong?

Slide no. 41 Operation Dept

One Apus:
30 – 11 – 2021

Vietsun Integrity
18 – 10 - 2019

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VERIFIED GROSS MASS (VGM)

What rules? A condition for Why? To ensure correct

loading a packed container stowage and stacking and
onto a ship. enforced by avoid collapse of container
SOLAS - IMO. stacks or loss overboard.

Who provides the verified

How? The SOLAS regulation
gross mass? The shipper is
allows for two methods to
responsible for providing
verify the gross mass of
VGM before a prescribed
packed containers.
VGM cut-off time.

What will happen if the

Who is the shipper? May be
verified gross mass is not
a manufacturer, ship agent,
provided? Denied loading
freight forwarder, etc.
onto a ship.
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HOW CAN THE GROSS MASS BE VERIFIED?

METHOD 1

METHOD 2

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HOW CAN THE GROSS MASS BE VERIFIED?

Method 1. Method 2:

Weighing all the cargo

Weighing the packed and contents of the
container using container
calibrated and
certified equipment.
and adding those
weights to the
container’s tare
weight indicated on
the door end of the
container. 45

CUT-OFF TIME/CLOSING TIME

The latest time a container may be

delivered to a terminal

for loading to a scheduled train or ship.

Cargo refused shipment because it

arrived after the closing date is 'shut-
out.'

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6. Liner tariff
STT Yếu tố chi phí Giải thích
1 BOF Basic ocean freight
2 BAF Bunker Adjustment Factor
3 CAF Currency Adjustment factor
4 THC Terminal handling charge
5 Docs fee Documents fee
6 Transport add
7 PSS, PCS Peak season surcharge, Port congestion
surcharge
8 Other freight Canal surcharge, War risk surcharge,
charges special cargo surcharge, heavy weight
charge, storage charge...
9 Freight abatement Discount on freight

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Bunker Adjustment Factor (BAF)

"Bunkers" is the generic name given to fuels and lubricants that
provide energy to power ships. The cost of bunker oil fluctuates
continually and with comparatively little warning.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1,250.00 per 20 Ft container
+ BAF 5.2%

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Currency Adjustment Factor (CAF)

The currency adjustment factor is a mechanism for taking into account
fluctuations in exchange rates, these fluctuations occur when expenses
are paid in one currency and monies earned in another by a shipping
company. The currency adjustment factor is a mechanism for taking
into account these exchange rate fluctuations. It is always expressed
as a percentage of the basic freight and is subject to regular review.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1,250.00 per 20 Ft container
+ CAF 6.3%

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War Surcharge
The outbreak of hostilities between nations can have a
serious effect upon carriers servicing international trade even
though they may sail under a neutral flag. Carriers sailing
within the vicinity of a war zone may impose a war
surcharge on freight to compensate for the higher risks
involved and the higher levels of insurance premium, which
they may be obliged to pay.

Example:
Freight rate: Port Elizabeth to Singapore
Freight rate: US Dollar: 1,250.00 per 20 Ft container
+ WAR 5%

LCL (Less Than Container Load)

Information of cargo for transport:

• Commodity: Personal effect;
• Volume: 5 CBM; Weight: 900.00 KGS; Carton: 20 CTNS;
• Port of load: HOCHIMINH, VIETNAM;
• Port of discharge: Los Angles, USA ;
Calculate the freight for the cargo above:
BOF: 15$/CBM; AMS: 5$/shipt; PSS: 5$/shipt;
THC: 4$/CBM;
CFS: 3$/CBM; Bill fee: 25$/doc;
Trucking charge: 5$/CBM;
Fumigation fee: 12$/CBM;
Packing charge: 10$/CBM;
Custom clearance fee: 25$/shipt;

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Q&A

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