Container men meet their customers
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ICHA's BIRMINGHAM CONFERENCE DESCRIBED BY JOHN DARKER, Ammo
ACONFERENCE at Birmingham last week on the theme: "The Container —what's in it for the user" left many questions unanswered. It was the first time that spokesmen representing the two British container consortia had faced a large audience—more than 400 attended— of potential users.
The most that can be said of the conference was that it narrowed the area of contention; many more such conferences will be necessary in the next year or two before all the obscurities are removed.
It was organized by the UK national committee of ICHC A (International Cargo Handling Co-ordination Association), and the main speakers were: Mr. A. J. Butterwick, Overseas Containers Ltd., Mr. A. J. Macintosh, Associated Container Transportation Ltd., Mr. N. Godfrey, HM Customs and Excise and Mr. J. M. Featheston, Thomas Meadows and Co. Ltd.
Mr. Butte rwick said •he would not comment on reported ditTerences between OCL and ACT. It could be assumed that a joint service to Australia would operate from early 1969.
He stressed that the operational economies would prevent the constant escalation of shipping costs. Although no reductions in rates could. be promised OCL hoped existing rates could be held for at least three years. Shippers could expect throughout charges to be no more than present costs.
The nine ships on order for OCL and ACT, said Mr. Butterwick, could carry the cargo now carried by between 45 and 50 conventional ships.
He quoted figures published by the Port of London Authority showing that 63 per cent of cargo arrived at London docks in consignments of under 2 tons and 36 per cent in under lOcwt lots. Consolidation of small lots into full container loads would have to be organized, largely at the jointly operated inland container bases now under construction.
Speed has value
Mr. Macintosh said the joint container service to Australia would enable shippers to send goods from Birmingham to Alice Springs in Australia in from 31 to 38 days. The transit now took from 35 to 100 days.
Speed was worth something, he felt, for at an average value of £500 per ton a container could well carry goods worth £6,500 or more. Substantial savings in interest on capital costs of cargo in transit were possible. ACT hoped that shippers would provide advance details so that shipping documents could be prepared within 48 hours of their handing over the goods. Senders of small lots would have to give prior notice with a full advice of the contents to enable suitable cargo to be packed in a particular container. This was to avoid the risk of obnoxious cargo contaminating other goods.
ACT believed it should accept responsibility for goods for the whole time they were in its possession. Discussions were proceeding with insurers and others concerned to this end.
Mr. Martin Bates, Cunard Line Ltd., said Cunard intended to use on a large scale "cheap intermodal flats" to reduce its investment in containers. It also intended to introduce some 8ft . 6in. high 40ft containers. It did not lightly break the 8ft X 8ft standard but the 8ft 6in. dimension provided 10 per cent increase in volume and was desired by some users on both sides of the Atlantic.
'Nuisance to pack'
Mr. G. W. Parsons (Cadbury Bros. Ltd.) said his experience of full load container movements was satisfactory although Cadbury had not saved much on the packing side. In fact containers "were almost a nuisance to pack". The main advantage of containerization was to the shipping companies and he thought that shippers should beware of high pressure salesmanship. The economies in quicker ship turn-round should be reflected in lower rates—it was not sufficient to promise merely to maintain existing rate levels.
Mr. R. P. Fawkner-Corbett (S. H. Lock and Co. Ltd.) said the Australian port unions would not yet allow groupage consignments to leave ports. What was being done on this crucial matter?
Mr. Butterwick said all exports so far had been in full container loads; he agreed the labour problem in Australia was acute but both consortia were discussing the issues with the unions.
Mr. K. D. Macalister (The Motor Packing Co. Ltd.) asked what could be done with 35ft chassis frames? The small components could well go in containers but the frames were a problem.
Mr. Butterwick said 40ft containers were on order—road regulations here and in Australia did not yet permit the movement of 4011 containers but this problem was being resolved in the UK and he hoped it soon would be in Australia.
Mr. G. T. &ward (Dunlop Co. Ltd.) said conventional ships could be diverted to other ports. If container ships were diverted who would be responsible for the extra costs involved? Mr. Macintosh said it was hoped shippers would be covered against all such risks.
Mr. R. A. King, British Timken Ltd., was concerned that conventional ship frequencies would be cut if containerization caught on. What if the Tilbury dockers were on strike? His firm's products were so heavy that most of the space in a container would be wasted and additional packing would be necessary, incurring' higher costs.
Mr. Butterwick said half-sized containers with dimensions 20ft x 8ft x 4ft would be available. Problems such as Mr. King's would be discussed individually.
Mr. J. Fielding, Electric Power Storage Ltd., said he was concerned at a recent statement of Sir Andrew Crichton that shippers would be expected to sign loyalty agreements for container services. All the indications suggested that similar products could travel at different rates so that small shippers or those sending low value products would suffer a double injustice.
Mr. Macintosh said that Cunard had said nothing about loyalty agreements. If container ships were not patronized conventional ships would continue to operate existing services.
Rates cut
Mr. M. A. Thompson (Fred Olsen Ltd.) said he was glad he was neither a shipper nor receiver. Both were impelled to alter their system. The alternative—the unit load ship—had enabled his firm to cut rates. Olsen had converted eight ships on the North Pacific service for from £45,000 to £80,000 each. Palletized loads arriving on lorries could be loaded in 20 minutes.
Mr. Stanley Turner (Port of London Authority) said many delays to road vehicles were due to shippers sending in goods on the closing date. He feared the same pattern would be repeated at groupage depots.
The average export cargo was only 25cwt so that the rest of the container capacity—perhaps another 12 tons for a standard 2011 container—had to be built up. The stowage of cargo in containers, Mr. Turner felt, presented all the hazards of cargo stowage on ships. Were the container consortia happy to accept containers stowed by amateurs?
The Americans, said Mr. Turner, were very concerned at the effect of badly stowed and under-stowed containers.
Mr. Butterwick said many problems obviously had yet to be solved. OCL thought that 50 per cent of exports would be in full loads and 80 per cent of imports. Savings in handling costs would be less with groupage, indeed some senders might save nothing.