1. What is containerization and how did the innovative use of containers transform the distribution of goods?
Containerization is a method of distributing goods easily by few type of transportation which are road, rail, air and sea. (Freire& Stren, 2001) The owner of trucking company in US, Malcolm McLean conceived an idea of the development of containers ship in 1956 which the containers are designed to have maximum space efficiency for a uniform size for all the containers.(Sople, 2012)
Containerization is also the consolidation of many goods into a large container that are easier to be transferred between two transportation modes and it are used in multi-modal of transportation system and it can be used repeatedly. Containerization is the standardized containers for storage and transportation for goods within a manufacturing facilities where the advantages of containerization includes minimize product damage, reduced waste as the container are reusable and the increase the inventory accuracy as counting processes become easier by using containerization.(Ferrell& Pride, 2008)
Before the innovative use of containers in transportation for the distribution of goods, the loading and unloading goods for freight by sea using containers was highly labor intensive as the goods or items are in different shapes and sizes where the goods and items have to be lifted manually to place in the holds of ships which are time consuming. Therefore, innovative use of containers was practiced to overcome the drawback. (Levinson, 2006)
Firstly, the innovative use of containers was that labor requirement is reduced. After the development of containerization, only few long shore workers was needed to handle the loading and unloading shipboard cargo and stack containers as the containers was mounted on a wheeled chassis which is pulled like a truck trailer which required only few workers to handle to load and unload cargo which were totally different from the...