Why Aren't Trucks Carrying Shipping Containers More Often?

Often, the conversation surrounding global trade and freight transportation centers around maritime shipping and the ubiquitous shipping containers used to transport goods. Statistics like 90% of global trade being maritime at times confuse the issue, particularly when considering road transport. In reality, while a vast majority of goods do indeed travel long distances by sea, the journey within a country is predominantly by road using trucks. This article will explore why shipping containers are less commonly seen on the roads and the intricate balance between different modes of transportation.

Understanding the Global Trade Scenario

The popular statistic of 90% maritime trade likely refers to the proportion of long-distance global shipments that cross oceans. However, in a diverse and large country like the United States (US) or Europe, the situation is much different. Here, the major portion of goods movement is domestic, originating from one domestic point and destined for another.

While some goods may enter the country via ocean containers, once they reach the port or first warehouse, they often do not remain in these containers. Instead, they are often unloaded and split to be transported by standard trucks through the logistics chain. This means that you might not see a whole lot of shipping containers on the roads as the final leg of the journey from the port to the final destination might be by truck.

Transport Dynamics within a Country

In countries like the US and Europe, the logistics of transporting goods involves a combination of different modes, including ships, ferries, trains, and trucks. For instance, in Europe, many water-based shipments are ferries that carry normal trucks from one port to another. This further underscores the fact that shipping containers, once offloaded, commonly transition to standard truck transportation for the last leg of the journey.

Ocean carriers are highly efficient in their operations and prefer to have their containers returned to them in good condition as quickly as possible. Consequently, they often quote rates that incentivize final deliveries and unloading of the containers near ports. This practice reduces the number of containers seen far from the ports, making them less visible on the open roads. Additionally, the size constraints and efficiency of logistics ensure that shipping containers are only seen when they must be manually loaded or unloaded, usually at warehouses and logistic centers.

Common Practices and Logistics Considerations

A closer look at the European scene reveals that many 18-wheelers do indeed pull shipping containers, though often these containers are on ferries that transport them between ports. The logistics of containerized transportation is also influenced by the size standards of the transportation vehicles. Shipping containers, being 40 feet long, are typically designed to fit within the constraints of the standard 50 to 52-foot trailers used by trucks. This efficient packing arrangement ensures that the contents are easily manageable as they are broken up to be delivered to different buyers at the warehouse.

Another practical aspect is the strategic placement of shipping containers at ports. At a warehouse close to a port, the contents of each container are often broken down and distributed to various buyers. This process ensures that the goods are efficiently distributed to different destinations, aligning with the efficient use of logistics and transportation resources.

Conclusion

While the proportion of global trade that relies on shipping containers is high, the transition to road transportation is managed through various logistical strategies. The visibility of shipping containers on trucks is less common because of the efficient re-transformation and distribution of goods within a country. The use of shipping containers is more pronounced at ports and logistics centers, which explains their limited presence on the road beyond these points. Understanding these dynamics helps shed light on why we don't see as many shipping containers traveling overland as one might anticipate.