Containers are the main Cargo Transport Units (CTU) in international transportation. They increase efficiency and decrease costs in all stages of the transportation.
Containers used in international transportation must carry standard markings in order to:
easy container and cargo tracking
increase border protection measures and prevent illegal cargo traffic
increase efficiency at port operations etc.
On this post I explain container markings and how to read numbers, symbols and warning plates on a freight container.
Container Identification Number: Container identification numbers are assigned by The Bureau International des Containers, which was founded in 1933 as a neutral, non-profit, international organization whose mission is to promote the safe, secure and sustainable expansion of containerization and intermodal transportation.
Container Identification Number: BIC Code(Owner prefix) + Equipment Identifier + Serial Number + Check Digit
The identification system provides uniform international identification of containers, in documentation and in communication associated with the movement of containers from door to door. It consists of:
The owner prefix (BIC code): three capital letters of the Latin alphabet to indicate the owner or principal operator of the container,
The equipment category identifier: one capital letter as follows:
U for all freight containers,
J for detachable freight container-related equipment,
Z for trailers and chassis,
The serial number: six Arabic numerals, left at owner‘s or operator‘s option,
The check digit: one Arabic numeral providing a means of validating the recording and transmission accuracies of the owner code and serial number.(1)
Size and Type Code: Each container has a standard size and type code assigned by BIC institution. Some examples are given below:
45G1: 40′ High Cube Dry Container
22G1: 20′ Dry Container
42G1: 40′ Dry Container
22R1: 20′ Reefer Container
42R1: 40′ Reefer Container
45R1: 40′ Reefer High Cube Container
Maximum Gross Weight: This is the maximum weight that the container can carry including tare weight.
Tare Weight: Tare weight is the weight of empty container.
Maximum Payload: Maximum amount of weight that the container can carry. This is a calculation based information. Most of the containers can not be loaded to the maximum payload because of the transportation weight limitations. Exporters must consult with their freight forwarders before shipment.
Capacity: Volume capacity of the container.
Height Warning: Is another compulsory transportation safety information.
Manufacturer’s Logo: Shows the manufacturer of the container.
Owner’s Logo: Shows the owner of the container.
Repair Recommendation: A container has to be operated either under an ACEP or a PES (Periodic Examination Scheme) from day 1. The first inspections isn’t required until 5 years, but it must have a scheme in place in order to be operated. Without a valid ACEP sticker or Next Examination Date (under the PES), the container should not be loaded on board a ship.(2)
Side, Top and Front End Markings:
On side, top and fronts ends containers carry only Container Identification Number and Size and Type Code markings.
Containers are the main Cargo Transport Units (CTU) in international transportation. They are used to carry Unit Loads (ULD) safely and securely.
The most widely used Unit Loads in international transportation are pallets.
Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) are two most frequently used pallets in international transportation.
Refrigerated container, also known as reefer container or reefer, is a type of container which is equipped with an electrical appliance (mechanical compressor) for the purposes of cooling or heating the air within the container.
Refrigerated containers are designed for the transport of perishable goods in a temperature-controlled environment (from -35°C to +35°C).
Two main sizes of reefer containers are very popular in international logistics: 20′ reefer container and 40′ high-cube reefer container.
40′ high-cube reefer container has the following internal dimensions: Length: 11599 mm, Width: 2290 mm and Height: 2425 mm.
On this post I will explain how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 40′ high-cube reefer container.
As it is shown on the above figure it is possible to fit 20 pcs of industrial pallets and 23 pcs of euro pallets in to a 40′ reefer high-cube container.
Containers are the main Cargo Transport Units (CTU) in international transportation. They are used to carry Unit Loads (ULD) safely and securely.
The most widely used Unit Loads in international transportation are pallets.
Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) are two most frequently used pallets in international transportation.
Refrigerated container, also known as reefer container or reefer, is a type of container which is equipped with an electrical appliance (mechanical compressor) for the purposes of cooling or heating the air within the container.
Refrigerated containers are designed for the transport of perishable goods in a temperature-controlled environment (from -35°C to +35°C).
Two main sizes of reefer containers are very popular in international logistics: 20′ reefer container and 40′ high-cube reefer container.
20′ reefer container has the following internal dimensions: Length: 5450 mm, Width: 2280 mm and Height: 2159 mm.
On this post I will explain how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 20′ reefer container.
As it is shown on the above figure it is possible to fit 9 pcs of industrial pallets and 10 pcs of euro pallets in to a 20′ reefer container.
Containers are the main Cargo Transport Units (CTU) in international transportation. They are used to carry Unit Loads (ULD) safely and securely.
Unit Loads makes the handling and storage of the goods easier, increases the safety and contributes to a more efficient logistics operations.
The most widely used Unit Loads in international transportation are pallets.
Exporting companies usually packed their goods into cartoon boxes and then place them on to wooden or plastic pallets. Then the cartons, that have been placed on to the pallets, are shrink-wrapped to secure the cargo.
Palletized goods that are shipped in containers increase not only loading and unloading efficiency, but also navigates through the distributions channels with minimum labor costs.
So it is very wise both exporters and importers to use pallets and containers at the same time. But standard containers have one disadvantage.
It is not possible to load maximum number of pallets in to the standard containers, because of a width constraint.
Pallet Dimensions
Euro pallets (1200 mm x 800 mm) and industrial pallets (1200 mm x 1000 mm) are two most frequently used pallets in international transportation.
Standard Dry Container Internal Width
Internal width of a standard containers is around 2352 mm.
It is not possible to load two pallets side-by-side in a standard dry container. ( 1200 mm + 1200 mm = 2400 mm > 2352 mm)
Pallet Wide Containers
Pallet wide containers introduced to eliminate inefficiency in the palletized container shipments.
Pallet wide containers and standard dry containers are actually the same containers except one difference. Pallet wide containers have thinner side panels.
Thinner side panels provide wider inside and this equipment is able to cover 2xEuropallet in wide. (1)
A Pallet Wide Container is manufactured approx 4 inches (10.2 cm) wider than a standard width container to enable the stowage of more pallets in a single tier thus eliminating the unused space that can occur in a standard width container. (2)
Please keep in mind that 40′ and 45′ pallet wide containers mainly available in high-cube format.
20′ Standard Dry Container vs 20′ Dry Pallet Wide Container
On below figure you can find container loading plans for 20′ standard dry container and 20′ dry pallet wide container.
How many euro pallets or industrial pallets fit into a 20ft pallet wide container?
Both containers can be loaded with 10 pcs of industrial pallets ( 1200mm x 1000mm) maximum.
But a 20′ pallet wide container can take 3 more euro pallets (1200mm x 800mm) than a standard 20′ dry container.
Note: Both calculations are based on 1 tier loading without stacking.
40′ Standard Dry Container vs 40′ Dry High-Cube Pallet Wide Container
On below figure you can find container loading plans for 40′ standard dry container and 40′ dry high-cube pallet wide container.
How many euro pallets or industrial pallets fit into a 40′ dry high-cube pallet wide container?
A 40′ high-cube pallet wide container can take more pallets than a 40′ standard container.
In terms of industrial pallets a 40′ high-cube pallet wide container can take 24 pallets, where as a 40′ standard container can only take 21.
In terms of euro pallets a 40′ high-cube pallet wide container can take 30 pallets, where as a 40′ standard container can only take 25.
Note: Both calculations are based on 1 tier loading without stacking.
45′ Dry High Cube Pallet Wide Container
A 45′ dry high-cube pallet wide container has the same width as other pallet wide containers around 2420 mm, but is the longest available container in service around 13624 mm internal length.
How many euro pallets or industrial pallets fit into a 45′ dry high-cube pallet wide container?
A 45′ dry high-cube pallet wide container can take 26 industrial pallets and 33 euro pallets.
Dry containers, also known as general purpose containers, are by far the most common type of containers used in international sea transportation.
Almost every consumer goods that does not require a special transportation temperature can be carried out with dry containers.
Dry containers are mainly available in two sizes: 20 feet (20′) dry containers and 40 feet (40′) dry containers.
40′ dry containers are also divided into two forms: 40′ Standard Dry Containers and 40′ High-Cube Dry Containers.
On this post you can find the main differences between these two container types.
40′ Standard Dry Container vs 40′ High-Cube Dry Container
External dimensions of a 40′ standard dry container is 40′ length, 8′ width and 8’6″ height. Whereas external dimensions of a 40′ high-cube dry container is 40′ length, 8′ width and 9’6″ height.
The main difference between 40′ standard dry container and 40′ high-cube dry container is the height. 40′ high-cube container is 1′ higher than 40′ standard container in terms of external dimensions.
This external height difference also differentiates the internal height and volume of these two containers.
It is possible to load more goods into a 40′ standard high-cube container if the goods do not pass the allowed payload limit. Because the payload limit of a 40′ standard high-cube container is slightly less than a 40′ standard dry container.
You can find detailed comparison between these two containers on above figure.
Standardization is one of the key elements of our modern civilization. By standardization we increase productivity, decrease costs and improve quality of the goods and services.
Standardization changed almost every sector more or less, but it has an huge impact to the international transportation by means of containerization.
The pattern of cargo reception and shipment has dramatically changed with the use of the freight container.
The use of containers, which started more than 50 years ago, in intercontinental traffic is now available in most seaports worldwide.
In the 1960’s, many seaports either had inadequate container facility or none at all. Consequently, export shipments often relied on conventional (break-bulk) vessels.
The cargoes were placed alongside a vessel for hoisting on board. The stevedores (longshoremen) were often employed to carry cargoes on and off the vessel.
The loading and unloading of vessels consumed too much time, which caused dockside bottlenecks and delayed shipments. With the increased use of containers, the congestion was decentralized.
The problem of congestion was transferred from the docks or piers to the container freight stations or terminals. (1)
Classification of Freight Containers:
Containers are available in configurations to take almost every kind of cargo and mode of transportation (ocean, air, road, and rail). (2)
Dry Containers:
A dry container is a type of freight container, totally enclosed and weatherproof, with a rigid roof, rigid side walls, and floor, having at least one of its end walls equipped with doors and intended to be suitable for the transport of cargo of the greatest possible variety.
This is by far the most common type of container. It is suitable for the carriage of most types of “Dry” goods, including those packed in boxes, cartons, cases, bags, bales, pallets, drums etc. (3)
Dry container are available with standard height and high cube formations. The internal height of standard dry containers are 2395 mm (7′ 10 1/4″) whereas the internal height of high cube containers are 2700 mm (8′ 10 1/4″)
Dry Container Dimensions: 20′ Dry Container, 40′ Dry Container, 40′ Dry High Cube and 45′ Dry High Cube dimensions.
On this post you can find the differences between a 40′ Standard Dry Container and a 40′ High-Cube Dry Container in terms of external dimensions, internal dimensions and allowed payloads.
Pallet wide containers introduced to eliminate inefficiency in the palletized container shipments. It is possible to load two or three pallets side by side to these containers.
On this post I am explaining how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 20′ standard dry container.
On this post I will explain how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 40′ standard dry container.
On this post I will explain how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 40′ high-cube dry container.
Refrigerated Containers (Reefer Containers):
A refrigerated container is a type of container which is equipped with an electrical appliance (mechanical compressor) for the purposes of cooling or heating the air within the container.
Refrigerated containers designed for the transport of perishable goods in a temperature-controlled environment (from -35°C to +35°C). (4)
What kind of goods should be shipped with reefer containers?
Generally foodstuff and some pharmaceuticals are transported via reefer containers.
Fresh Vegetables and Fruits: Lychees, grapes, grapefruits, mango, avocados, bananas, kiwi, apples, stone fruits etc.
Frozen Vegetables and Fruits: IQF frozen vegetables and fruits such as IQF ocras, IQF artichokes, IQF spinach, IQF green peas, IQF Strawberry, IQF Figs, IQF Apricots etc.
On this post I will explain how many Euro pallets (1200 mm x 800 mm) and Industrial Pallets (1200 mm x 1000 mm) fit in to a 40′ high-cube reefer container.
Hardtop Containers:
Hardtop container shares common features with standard dry container, except that it has a removable steel roof.
The walls of hard-top containers are generally made of corrugated steel. The floor is made of wood.
Removable steel roof of some hardtop containers has points for accommodating forklift trucks, allowing the roof to be lifted by forklift. The roof weighs approx. 450 kg. In addition, the door header may be swing out. (6)
Hardtop Container Dimensions: 20′ Hardtop Container, 40′ Hardtop Container and 40′ Hardtop High Cube Container dimensions.
Open-Top Containers:
Open-top container is a type of a freight container which has no rigid roof, but has a flexible and movable or removable cover.
Such containers may have movable or removable top end transverse members above their end doors.
Open-top containers are primarily used to carry heavy and/or bulky finished products, which handling and loading can only be performed with a crane or a rolling bridge.
Tiltable half-height open top containers are specially designed to carry bulk minerals.
Flatrack containers consist of a floor structure with a high loading capacity composed of a steel frame and a softwood floor and two end walls, which may either be fixed or collapsible.(7)
The end walls are stable enough to allow cargo securing means to be attached and several flatracks to be stacked on top of one another.
Flatracks are available in 20′ and 40′ sizes.
The flat racks with collapsible ends also permit the transportation of over length cargo.
Flatrack Container Dimensions: 20′ Open Top Container, 40′ Open Top Container and
40′ Open Top High Cube Container dimensions.
Platforms consist solely of a reinforced floor structure with extremely high loading capacity; they have no side or end walls. (8)
Platform containers are ideally suited to oversized, heavy load and awkward project cargoes which cannot be transported in other container types such as high cube or open top containers. (9)
Platform containers can be lashed together to create a larger platform for oversized and heavy loads which exceed the standard platform container specifications.
Platform containers are available in 20ft and 40ft sizes.
Bulk containers have three loading hatches in the roof, each of a diameter of approx. 455 mm (1 3/4′).
On the door side, there are two discharge hatches, which are sometimes equipped with short discharge tubes for guiding the bulk cargo.
Alternatively, two unloading hatches may be mounted in the doorways, for emptying the containers.
Such containers may also be used for general cargo. Lashing rings are mounted in the top side rails for securing the cargo. Some bulk containers are equipped with forklift pockets, which allow handling by forklift trucks. (10)
Applicant means the party on whose request the credit is issued. Applicant is the importer in a typical international commercial letter of credit.
Issuing bank means the bank that issues a credit at the request of an applicant or on its own behalf.
Generally issuing banks issue letters of credit with the request of the importers and mentioning their names in the letters of credit under Field 50: Applicant of MT 700 Swift Messages.
But in some situations issuing banks issue letters of credit on their behalf. Please keep in mind that this is totally alright according to the letters of credit rules.
Below you can find some situations under which you can see the issuing bank as an applicant.
Letters of Credit Issued from Islamic Banks
According to the modern economic theories an interest rate is the cost of borrowing money, however Islam prohibits interest rates.
Which means that Islamic Banks in some Arab and Asian countries can not buy or sell money based on interest rates. Instead they buy and resell the goods to the importers to finance import letters of credit transactions.
This type of Islamic Trade Finance is known as Murabaha Financing.
According to the Murabaha Financing the issuing bank and the importer signs a sales contract.
According to this sales contract the issuing declares the importer as its agent and the importer agrees to pay the goods from the issuing bank on higher amount than the original contract amount that was determined between the importer and the exporter previously.
The issuing bank requests all shipping documents to be under its name, at the same time appointing the importer as its agent, which means all formalities outside of the letter of credit will be made by the importer as an agent of the issuing bank.
Later on, when the issuing bank receives the documents complying the terms and conditions of the letter of credit:
Pay proceeds to beneficiary.
Endorse and release documents to the real buyer against Murabaha Financing.
Issuing Bank Open a Letter of Credit for Its Own Procurement
It is also possible that the issuing bank is procuring goods for its own consumption (IT equipment, furniture, etc), it may well designate itself as the applicant under its own Letter of credit.
Letter of Credit Issued under a Leasing Agreement:
It is also possible that the issuing bank is a part of an international leasing operation.
The actual buyer may be using “leasing” as the financial instrument for purchasing the equipment, machinery or other assets where the bank is lessor (owner) and the end-buyer (the actual buyer) is the lessee (user) in this method.
References:
UCP 600, Uniform Customs and Practice for Documentary Credits
Shipper means a person that enters into a contract of carriage with a carrier. Shipper also known as consignor.
In most cases shipper is the exporter.
What are the Roles and Responsibilities of the Shipper?
Shipper prepares the goods for sea carriage, makes sure that the goods are packed in seaworthy manner, loads the goods into containers if needed and send them to the carrier’s warehouse or terminals located at the port of loading.
All details regarding the shipment are given to the carrier by the shipper via Shipping Instructions.
Carriers can issue bills of lading with the data they have received from the shippers.
Under a cash against documents payment a Greek olive oil exporter makes a shipment to an importer located in Australia.
The importer agrees to pay the contract amount in full against presentation of documents.
The goods have been shipped under CFR trade terms and shipment takes place between Thessaloniki Port, Greece and Melbourne Port, Australia.
As freight will be paid by the seller the freight notation that is mentioned on the bill of lading is Freight Prepaid.
The bill of lading consigned to order of the importer’s bank in Australia, which is ANZ (The Australia and New Zealand Banking Group Limited). The bill of lading is issued in negotiable form.
After production stage, shipper gets freight quotations from several container lines and freight forwarding companies in Greece, books the container and prepares the Shipping Instructions document.
Carrier states description of goods, number and kind of packages, consignee field, notify party field, shipping marks and remaining details as per shipper’s instructions.
Export formalities also are handled by the shipper.
Points of Consideration When Filling Out Shipper Field:
Shipper enters into a contract of carriage with the carrier.
Shipper informs almost all of the details stated on the bill of lading to the carrier. Any mistake at this stage may create painful problems.
Bill of lading is a transport document covering the carriage of goods by sea.
Consignee means a person entitled to take delivery of the goods under a contract of carriage indicated on a bill of lading.
Shipper means a person that enters into a contract of carriage with a carrier. Shipper also known as consignor.
On today’s post I explain the main differences between the consignee and shipper fields of bills of lading.
Differences Between Consignee and Shipper
Seller versus Buyer:
Usually consignor is the exporter and consignee is the importer in any shipping document used in international trade. Bill of lading is not an exception.
Position Against Goods:
Consignor hands out the goods to the carrier at the port of loading. Consignee takes delivery of the goods from the carrier at the port of discharge.
Title of Goods:
Consignee field determines how title of goods will be delivered from the shipper to the consignee.
Consignee field determines if the bill of lading issued in straight, negotiable or bearer format.
Shipper determines how consignee field is completed by giving necessary instructions to the carrier.
It is possible to load more goods into a 40′ standard high-cube container if the goods do not pass the allowed payload limit. Because the payload limit of a 40′ standard high-cube container is slightly less than a 40′ standard dry container.
