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'Containerization—how can it go wrong?'

1st October 1971, Page 38
1st October 1971
Page 38
Page 38, 1st October 1971 — 'Containerization—how can it go wrong?'
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Which of the following most accurately describes the problem?

THE SUBJECT for the afternoon session of the conference was "Containerization — how can it go wrong?", chaired by Sir Andrew Crichton. He said that the container was the basic need of modern international trade because it was necessary to find an effective means of moving the valuable loads of the world in bulk rather than piecemeal. "If we are too rigid in our use of it," he said, "it will go wrong. We must be flexible, that is to say the provider must be adaptable to the real needs of the user and give him a competitive service."

Sir Andrew said there had to be a phase of reaction in any revolution, and the reaction here led to questions such as: Has containerization spread too fast and too widely? Had it come to soon? Some might ask why it had not come earlier. Was the investment too massive and was it going to cost the user too much and was the urgency of the investment too much in too short a space of time?

After these introductory remarks some critical comments on the use of containers were made by members of the panel.

Mr G. H. A. de Wit, managing director of Kuehne and Nagel Ltd, referred to the container as a "castrated trailer" and suggested that it had very little advantage

over the conventional means of transport—the trailer. A trailer, he said, in quoting

examples of services, could do four trips per month between London and Frankfurt whereas a container might only do one similar journey per month.

After stating at the beginning of his session that he intended to be controversial, Mr de Wit finished in this vein by suggesting that the user should have the container as a garden shed and use a trailer for moving his goods. This comment drew murmurs of support from the delegates.

Mr W. I. Green, sales director of Crane Fruehauf Containers Ltd, pleaded for customers to plan their container requirements ahead and place the orders so that gaps in manufacturers' production plans could be filled.

Mr G. R. Bathe, distribution manager of Beecham, International, said that containerization had been_a revolt on the part of the ship owners, leaving the shippers to foot the bill.

The shipper was not consulted and was faced with a ready-made decision on the way his goods should be sent. The container was found, he said, "where you have large consignments and return loads, but what about exports to markets where the container has not penetrated?"

Mr J. Rees, of Trans Container Express Ltd, questioned whether the vast investment in containers was well spent. He thought that there were many improperly costed container movements and he suggested that a proper return of capital had to be obtained if there was to be further progress — and freight rates should be placed at correct levels.

Mr M. Howard, of Howard Agencies Ltd, said he objected to the wholesale adoption of containerization without reservation, and to the over-generalization of its advantages. He was sorry to see container parks full of depreciating assets in an over-subscribed industry.


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