It encourages the transportation of illegal goods
The contents of the products are mostly concealed. It is possible to carry drugs, weapons or any other weapons without being caught. Thus it has highly encouraged the transportation of illegal products globally.
The freight and logistics industry faces a significant problem in identifying illegal products in its transportation. It is possible that they face legal lawsuits if the government sues them for the encouragement of transportation for illegal products or failure to identify such products.
Additionally, containers are highly associated with the trafficking of prostitutes and children. It is a problem that the logistics and freight industry face with their vessels. It is costly to verify the contents of each container and ensure they are no illegal substances being transported in it.
The possibility of theft of goods
In every hour a vessel is lost. Despite, the vessels helping to drop the rate of theft of goods it still faces the problem of theft. A tank can be lost which is worth a thousand dollars for the items in it.
The logistics and freight industry may be forced to compensate the customers for their products as they are legally responsible for the goods. A container is often packed with many goods, and the loss of just one container leads to massive losses in the industry especially where they cannot explain how the products disappeared.
Loss of jobs for many employees
Though it is advantageous to the freight and logistics industry as it significantly cut down its cost of wages. However, many employees were displaced from their occupations by the adoption of containerization and the use of modern equipment to handle goods.
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The employees who lost their jobs demanded compensation and benefits from the company. Compensation of fired employees added a significant cost to the industry as they were legally bound to compensate their former employees for firing them.
Failure of people to claim their goods faster
Though most governments accord a specific period for the products to be collected before they are auctioned, the period is long and leads to congestion in the port. Most freight and logistics industries have eliminated the use of warehouses to store goods as containers act as safe storage thus delayed by consumers to collect their goods lead to inefficiency in the sector.
Lengthy procedure in claiming of products
The freight and logistics industry uses containers to ensure the transportation of goods is efficient. However, once the vessels reach their destination, the process of obtaining a specific product is the length.
One container carries some products for different clients. Once the client claims their product, it will take time to manually sort out the many products and identify a specific product. It is a significant impact of using overseas shipping containers to store goods for many clients.
Significant losses in the logistics and freight industry
The risk of making heavy losses accompanies the vessels. Losses mainly occur due to the loss of goods and damage to client’s products. The sector in most cases has to compensate for the value of assets lost or damaged. If one container is lost, it will lead to the loss of a massive number of products that are quite expensive.
The costs of compensation and the high costs of running and maintaining prices make the industry vulnerable to high losses.
What is the future of the use of overseas shipping containers in the logistics and freight industries?
It is impossible to predict the future. However, the future is quite promising. The containers will still be used to store goods while in the transportation process, and storage process through the industry aims to make the process better and more revolutionized than it is now.
The rate of theft of the containers is alarming and transportation of illegal products through concealed containers. Despite, the company adopting modern technology in the tracking of vessels and goods it still faces theft.
The use of overseas shipping containers has positively changed the logistics and freight industry despite the few challenges. Since world war II, the storage of goods evolved, and containers replaced the break-bulk process of shipping.
The containers made transportation of goods faster, safer and less costly. Additionally, it was easy to manage the movement of goods through a central point thus minimizing the loss of products and their accessibility by unauthorized persons. Many industries have benefited from evolution, but the logistics and freight industry enjoyed the significant benefits. It was able to become active and made lots of profits. Many trade companies relied more on the sector for transportation making the industry to create more returns.
Employment of skilled personnel drifted the industry to a significant change that made its management efficient and reliable. Though overseas containers are costly to maintain and needs experienced staff, the impacts are diverse and primarily benefit the industry.
It is correct to conclude how overseas shipping containers used for storage changed the logistics and freight industry positively. It has also promoted the reliance of many sectors on the logistics and freight industries helping it to increase its returns. Additionally, the containers are adopted globally making it easier for the industry to move goods from one country to another and from another vessel to another.…