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?



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.

Discussion Forum

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