Shipping goods in containers is the backbone of global trade, providing a standardized and efficient method for moving cargo over long distances. However, for many businesses, navigating the container shipping process and understanding the associated costs can be overwhelming.
This guide walks you through the key stages of shipping a container, introduces the main transportation modes, and breaks down the significant factors that influence shipping costs. By understanding how container shipping works, you’ll be better prepared to optimize your logistics and manage your shipping budget effectively.
What Is Container Transport?
Shipping containers are standardized, reusable metal boxes designed to transport goods efficiently and securely across multiple modes of transportation—primarily ships, trains, and trucks—without the need to unload and reload cargo at each transfer point. This intermodal capability has revolutionized global trade by dramatically reducing shipping costs and transit times.
- Standardization: Most shipping containers comply with international standards established by the International Organization for Standardization (ISO). These standards ensure uniform dimensions, corner fittings, and structural strength, enabling containers to be easily stacked, loaded, and handled by equipment anywhere in the world. The most common sizes are the 20-foot and 40-foot containers, referred to as TEUs (Twenty-foot Equivalent Units) and FEUs (Forty-foot Equivalent Units).
- Construction: Shipping containers are typically made from weathering steel (often referred to as Corten steel), which is highly durable and resistant to rust, making it ideal for exposure to harsh marine environments. They feature corrugated steel walls for added strength and are equipped with reinforced corner castings for secure stacking and lifting during transport.
- Purpose: The primary function of a shipping container is to unitize cargo—that is, to consolidate large volumes of goods into a single, manageable unit. This minimizes manual handling, reduces the risk of damage or theft, and streamlines the entire logistics process.
- Versatility: Although they are most commonly used in ocean freight, shipping containers are designed for seamless transitions between ships, railcars, and trucks. This makes them a critical component of global supply chains, enabling goods to move efficiently from factory to destination with minimal interruption.
Types of shipping containers
1. Dry Storage Containers
- Description: The most commonly used container type, fully enclosed and weatherproof. They feature solid roofs, sidewalls, and floors.
- Usage: Ideal for transporting dry goods that don’t require temperature control, such as electronics, textiles, furniture, packaged consumer goods, and machinery.
- Sizes: Available in standard 20-foot (TEU) and 40-foot (FEU) lengths.
2. High Cube Containers
- Description: Similar to standard dry containers but one foot taller—typically 9 feet 6 inches in height versus the standard 8 feet 6 inches.
- Usage: Perfect for light, bulky, or tall cargo that needs extra vertical space but doesn’t necessarily meet the weight capacity of a full container. It is commonly used for items such as furniture, plastic products, and specialized machinery.
3. Refrigerated Containers (Reefers)
- Description: Insulated containers equipped with an integrated refrigeration unit to maintain a controlled temperature. They rely on external power sources (such as ship power or generator sets).
- Usage: Essential for transporting perishable and temperature-sensitive items, including fruits, vegetables, dairy, meat, pharmaceuticals, and certain chemicals.
4. Open Top Containers
- Description: Feature a removable tarpaulin or soft roof instead of a fixed steel top, allowing cargo to be loaded vertically.
- Usage: Used for oversized or over-height cargo that cannot be loaded through standard end doors—ideal for heavy equipment, timber, steel bars, or pipes that require crane handling.
5. Flat Rack Containers
- Description: Constructed with strong base platforms and fixed or collapsible end walls, but no side walls or roof.
- Usage: Designed for transporting heavy, oversized, or irregularly shaped cargo like construction equipment, large industrial machinery, vehicles, or coiled cables.
6. Open Side Containers
- Description: Similar to standard dry containers but with full-length doors along one side, in addition to the regular end doors.
- Usage: Offers wider access for loading and unloading, making it easier to handle large or awkward items. It is beneficial when forklifts need side access.
7. Double Door Containers
- Description: Feature doors on both ends, creating a tunnel-like structure for streamlined access.
- Usage: Allows for quick and efficient loading and unloading from either side, making it ideal for long items such as steel rod pipes or when fast turnaround is required at both ends.
8. Tank Containers
- Description: Cylindrical stainless-steel tanks mounted within a standard ISO container frame. Designed to be corrosion-resistant and pressure-stable.
- Usage: Specialized for transporting bulk liquids and gases, including food-grade liquids (e.g., wine, milk), chemicals, oils, and hazardous materials..
Shipping container sizes
Shipping and storage containers come in a variety of sizes. Here are the standard dimensions for 8, 10, 20, and 40-foot units, including their external and internal length, width, and height. When choosing a container for your cargo, always check the internal height, width, and length for maximum space optimisation.
1. 8-foot (2.42m) standard container dimensions
Also known as mini cubes, these are the smallest containers available for shipping. In terms of size, they are comparable to an average garden shed.
M = metre; Cf = cubic foot; Lbs = pound; Kg = kilogram; m3 = cubic metre
| Container Type | External Dimensions (Length × Height × Width) | Internal Dimensions (Length × Height × Width) | Door Opening (Width × Height) | Cubic Capacity | Cargo Weight |
|---|---|---|---|---|---|
| 8-foot standard container | 2.44 m × 2.26 m × 2.26 m 8′ × 7’6″ × 7′ | 2.29 m × 2.06 m × 2.11 m 7’6″ × 6’9″ × 6’11” | 2.10 m × 1.95 m 6’11” × 6’5″ | 9.95 m³ 351 cf | 6,000 kg 13,227 lbs |
2. 10-foot (3.05m) standard container dimensions
These containers are not commonly used in commercial shipping but can be used for shipping overland. A 10-foot container can be used for secure cargo storage or for moving goods on trucks.
| Container Type | External Dimensions (Length x Height x Width) | Internal Dimensions (Length x Height x Width) | Door Opening (Width x Height) | Cubic Capacity | Cargo Weight | Tare Weight |
|---|---|---|---|---|---|---|
| 10-foot standard container | 2.99 m x 2.59 m x 2.44 m 10′ x 8′ 6″ x 8′ | 2.84 m x 2.39 m x 2.35 m 9′ 4″ x 7′ 10″ x 7′ 9″ | 2.34 m x 2.28 m 7′ 9″ x 7′ 6″ | 15.95 m³ 563 cf | 10,000 kg 22,046 lbs | 1,000 kg 2,204 lbs |
3. 20-foot standard container
| Container type | External Dimensions (Length × Height × Width) | Internal Dimensions (Length × Height × Width) | Door Opening (Width × Height) | Cubic Capacity | Cargo Weight | Tare Weight |
|---|---|---|---|---|---|---|
| 20ft container | 6.058 m × 2.591 m × 2.438 m 19′ 10.5″ × 8′ 6″ × 8′ 0″ | 5.867 m × 2.350 m × 2.330 m 19′ 3″ × 7′ 8.5″ × 7′ 7.73″ | 2.330 m × 2.260 m 7′ 7″ × 7′ 5″ | 33.2 m³ 1,172 cu ft | 30,480 kg 67,200 lbs | 2,000 kg 4,409 lbs |
A 20-foot standard container, also referred to as the twenty-foot equivalent unit (TEU), can roughly hold the contents of a three-bedroom house, including things like a sofa, bed, TV, refrigerator, storage boxes, etc. These are easily stackable and relatively cheaper to ship. A 20-foot container can fit 10-11 pallets.
4. 40-foot standard container
| Container Type | External Dimensions (L × H × W) | Internal Dimensions (L × H × W) | Door Opening (W × H) | Cubic Capacity | Cargo Weight | Tare Weight |
|---|---|---|---|---|---|---|
| 40-foot container | 12.192 m × 2.591 m × 2.438 m 40′ 0″ × 8′ 6″ × 8′ 0″ | 11.998 m × 2.350 m × 2.330 m 39′ 4.375″ × 7′ 8.5″ × 7′ 7.73″ | 2.330 m × 2.590 m 7′ 7″ × 7′ 5″ | 66 m³ | 30,480 kg 67,200 lbs | 3,740 kg 8,250 lbs |
| 40ft high cube container | 12.192 m × 2.896 m × 2.438 m 40′ 0″ × 9′ 6″ × 8′ 0″ | 11.998 m × 2.655 m × 2.330 m 39′ 4.375″ × 8′ 8.5″ × 7′ 7.73″ | 2.330 m × 2.590 m 7′ 7″ × 8′ 6″ | 76 m³ | 30,480 kg 67,200 lbs | 4,150 kg 9,150 lbs |
One of the most commonly used containers in ocean freight, 40-foot containers are mainly used for voluminous cargo like cotton, furniture, paper scrap, clothes, etc. A high cube 40-foot container, which can be up to 2.7 metres or 8.1 feet tall, is used for goods that need extra height. A 40-foot standard container can fit about 20-24 pallets.
How is freight shipped in containers?
Freight shipping using containers is based on the principle of intermodal transportation. In this system, containers are transferred between different modes of transport (such as ships, trains, and trucks) without ever unloading the cargo inside. This approach forms the foundation of efficient global logistics.
Here are the main modes of transport used in container shipping, along with their key advantages and disadvantages:
Sea Freight
Sea freight is the most commonly used method for international container shipping, involving large cargo ships that transport goods across oceans.
Advantages:
- Cost-Effective: It’s the most economical choice for shipping large volumes or heavy goods, especially over long distances.
- High Capacity: Container ships can handle enormous quantities of cargo, making sea freight ideal for bulk shipments and global trade.
- Extensive Global Reach: Sea routes connect nearly every major port in the world, supporting widespread international commerce.
Disadvantages:
- Slow Transit Times: Compared to air or rail, sea freight is significantly slower, with transit times that can take several weeks or even months. It’s not ideal for time-sensitive shipments.
- Limited Flexibility: Fixed shipping schedules and routes provide less flexibility compared to road transport.
- Port Dependency: Shipments rely on well-equipped port infrastructure and are susceptible to delays caused by port congestion, customs processing, and adverse weather conditions.
- Potential for Damage: Although containers are designed to be durable, extended exposure to sea conditions and rough handling at ports can pose risks, especially if goods aren’t adequately secured.
Road Freight
Road freight, commonly referred to as trucking, is the primary mode of transport for short to medium distances. It also plays a crucial role in the “first and last mile” of intermodal shipping.
Advantages:
- High Flexibility and Accessibility: Trucks offer door-to-door service and can reach nearly any location with road access. Routes and schedules are easily adjustable to meet changing needs.
- Faster for Short and Medium Distances: For domestic or regional deliveries, trucking is generally quicker than sea or rail transport.
- Cost-Effective for Short Hauls: Especially for less-than-truckload (LTL) shipments, road freight is a budget-friendly option for local and regional distribution.
- Ideal for Just-In-Time (JIT) Deliveries: Enables precise delivery scheduling, which is critical for supply chains that rely on JIT inventory management.
Disadvantages:
- Capacity Constraints: Trucks have size and weight limitations. Transporting oversized or hefty cargo often requires special permits or equipment.
- Traffic and Congestion Risks: Road transport is vulnerable to delays caused by traffic congestion, accidents, roadwork, or weather disruptions.
- Fuel Price Volatility: Operating costs are sensitive to fluctuations in fuel prices, which can impact overall freight rates.
Rail Freight
Rail freight is an efficient solution for transporting large volumes of goods over long inland distances and is often integrated into broader intermodal logistics networks.
Advantages:
- Cost-Effective for Long Distances: Rail is typically more economical than road transport for moving heavy, bulky cargo over long continental routes.
- High Capacity: Trains can transport a significant number of containers in a single trip, making them ideal for bulk shipments and benefiting from economies of scale.
- Fuel Efficient and Eco-Friendly: Rail offers greater fuel efficiency and a lower environmental impact per ton-mile compared to trucking.
- Reliable: Less susceptible to traffic congestion and weather-related disruptions that often affect road transport.
Disadvantages:
- Limited Network Coverage: Rail transport relies on existing infrastructure; however, not all locations have direct rail access, often necessitating the use of trucks for the first and last mile.
- Lower Flexibility: Trains operate on fixed routes and schedules, offering less flexibility than road freight.
- Potential Delays at Intermodal Terminals: Transfers between rail and other modes of transportation at terminals or yards can sometimes cause delays.
- Slower than Road or Air: While faster than ocean freight, rail can be slower than road transport for short distances and much slower than air for time-sensitive shipments.
How much does container shipping cost?
Several factors influence the cost of both Full Container Load (FCL) and Less Than Container Load (LCL) shipping. While transportation distance plays a key role, other variables—such as fuel prices, shipping routes, and container size—also significantly impact overall costs.
It’s important to note that container shipping rates can fluctuate frequently due to changing market conditions. When estimating shipping costs, here are some key factors you should take into account:
- Distance and Shipping Route: The farther your cargo needs to travel, the more you’ll generally pay, especially on less frequently used or complex trade routes. However, even popular lanes can see price spikes during peak seasons or periods of high demand.
- Cargo Characteristics: The type and size of the container—such as 20-foot, 40-foot, refrigerated (reefer), or open-top—along with the nature of your cargo (e.g., hazardous materials or oversized goods) directly affect pricing. For less-than-container-load (LCL) shipments, rates are typically based on weight or volume.
- Mode of Transport: Ocean freight is typically the most economical option for international shipping. However, inland transportation by truck or rail (to and from ports) adds to the total cost. Air freight, while much faster, is considerably more expensive and usually reserved for urgent or high-value shipments.
- Fuel Prices: Fuel costs fluctuate regularly, and carriers pass these changes on to shippers through surcharges, such as the Bunker Adjustment Factor. These fuel-related fees can vary significantly and add a sizable amount to the total shipping bill.
- Market Dynamics: When shipping demand exceeds capacity—such as during peak seasons, strikes, or port congestion—rates rise. Conversely, when demand is low or capacity increases, prices may drop.
- Additional Fees and Surcharges: Beyond the base freight rate, shippers often face various accessorial charges, including terminal handling fees, customs duties, documentation costs, and potential penalties for delays (like detention and demurrage). These extras can add up quickly if not carefully managed.
- Insurance: While optional, cargo insurance is highly recommended. The cost depends on the value and type of goods, as well as the route taken. Insurance adds an extra layer of financial protection against potential loss or damage during transit.
