White Paper: Answering the Top Five Doubts About Collapsible Containers
The idea of a collapsible shipping container has been around for several years. There have been various designs, folding techniques, collapsing speeds, container sizes, and methods of collapsing, but none has gained widespread usage in the shipping industry.
As with any new technology or innovation, there is skepticism around collapsible containers, especially given some of the weaknesses of previous iterations. GenFlat is aware of the doubts (see Figure 2 below) that still exist and has answered those doubts by producing the gold standard of collapsible containers - a solid, efficient, cost-effective container that addresses each of the major concerns.
This paper addresses the top five doubts about collapsible containers generally and highlights specifically what GenFlat has done to resolve them.
Concern #1 – Durability
Concern: A collapsible container is more fragile and has a shorter estimated lifespan than a standard container.
Shipping containers endure rough treatment as they are shipped across oceans and/or land by rail or truck.
Containers need to be durable in order to withstand the rigors ofmultimodal transportation. Standard containers are fairlyuniform and built strong enough to handle most of the abusethey experience. Because collapsible containers have components that allow them to fold, there are questions about whether they can hold up as well as standard containers.
GenFlat collapsible containers (“GenFlats”) are built from mildsteel and Corten, giving them a strength and rigidity that exceeds industry standards. GenFlat combines the standard container materials with its reinforced structure and high-strength heavy steel hinges and latching mechanisms.
Another important durability factor is that GenFlats are builtwith separate side panels which are interchangeable. Each panel has additional reinforcement at the hinge locations,making it structurally sound by itself and less susceptible to damage.
GenFlat Containers: Making Container Shipping More Sustainable
In the event that a GenFlat panel is damaged, it can be repaired at minimal cost and disruption using a replacement panel. If the side panel of a standard container is pierced or otherwise damaged, the container is likely unusable for marine transport.
GenFlats have not been in operation for 10-15 years, so there is no real-world data to show the lifespan. However, in addition to solid engineering and manufacturing, GenFlat containers have been tested by completing more than fifty collapsing/expanding cycles.
If a GenFlat container makes four Asia/U.S. round voyages that container will complete 48 cycles, which means GenFlats have been tests represent 12+ years of collapsing and expanding.
GenFlats are more durable, versatile, and repairable than standard containers and other collapsible containers. The collapsing method with durable steel hinges allows weight to be evenly distributed, making it the most durable container collapsing method. GenFlat also provides an industry competitive warranty on all containers.
Concern #2 – Operational Challenges
Concern: Using collapsible containers will disrupt our operations and cause delays. The use of collapsible containers does necessitate additional steps compared with the standard container shipping process. All collapsible containers require some specialized equipment and/or processes to expand and collapse, which can cause disruptions.
The question is whether the benefits that come with slight disruptions outweigh the use of standard containers. Not all collapsible containers are equal. GenFlats expand and collapse in under 80 seconds, compared with up to ten minutes with other collapsible containers.
If a GenFlat makes four transpacific round voyages per year it is expanded and collapsed for only 640 seconds, or roughly ten minutes annually per container.
Some collapsible containers require massive infrastructure and space to expand and collapse, while others are inefficiently expanded and collapsed using forklifts and tiedowns. Both processes cause significant operational disruption that may make use of those containers prohibitive.
GenFlats utilize an Actuator, which attaches to any container handling equipment and efficiently collapses and expands containers with only a slight delay in operations.
The Actuator is placed, maintained, and owned by GenFlat so there is no additional equipment investment necessary for the customer and the efficiency is unmatched. The Actuator can be stored with minimal space.
GenFlats are the world’s most efficient collapsible container. While some operational adjustments are necessary, the benefits of GenFlats will far outweigh those adjustments for nearly all customers.
Concern #3 – Cost
Concern: Collapsible containers cost up to 3x the cost of a standard container?
This is a valid concern. Collapsible containers are typically two to three times the cost of a standard container. The question is whether the use of a collapsible container can reduce costs to such a degree that the cost savings outweigh the increased cost.
For some companies, the economics won’t add up, but GenFlat believes that most potential customers will recoup the cost of GenFlats within two years of use.
The characteristics that suggest the greatest likelihood of cost savings are: 1) a closedloop trade route with container lifting equipment on each end; 2) high repositioning costs; 3) significant trade imbalance; and 4) container storage constraints.
At GenFlat, we have developed a cost-savings algorithm to estimate the savings they are likely to achieve by using GenFlats. Below is a real-world example:
At an annual savings rate of $14,400 per container, the increased cost of GenFlats is recouped within two years and the savings for the average life of the container (12 years) is $172,800.
In addition to cost savings from reduced repositioning moves, GenFlats can also provide revenue-generating opportunities. For instance, if a customer ships fully laden containers from point A to point B and then ships mostly empty containers, bundled GenFlats allow them to ship more empties back to point A, or to ship the same number of empties back while also freeing up space to ship other items (bulk goods, equipment, etc.) back to point A.
Even with all of the cost-saving and revenue-generating benefits, GenFlat understands that customers will want to reduce the risks of adopting new innovation as much as possible.
In addition to offering outright purchases, GenFlat offers favorable lease terms and, under the proper circumstances, financing through the costsavings realized by use of its containers.
Concern #4 – Increased Weight
Concern: The additional weight of collapsible containers will cause problems.
Because there are additional components and parts, collapsible containers typically weigh more than standard containers. GenFlats weigh approximately 29% more than a standard forty-foot container.
While the weight of a GenFlat bundle is more than four empty standard containers, it is still well within a reasonable amount to be shipped back to the point of origin. Ships carrying nearly all empty containers aren’t typically concerned about weight, compared to when they are full of laden containers.
In addition, ships tend to produce better speed and consumption (within reason) when the trim of the vessel is lower in the water. The slight additional weight of GenFlats stacked close to the deck of the ship lowers the center of gravity and can potentially make the shape more stable and efficient.
Concern #5 - Maintenance
Concern: Collapsible containers require more maintenance, which costs us time and money.
All shipping containers require maintenance (i.e. cleaning, greasing, etc.). Collapsible containers may require some additional maintenance, but with GenFlats the difference is negligible. In addition, when GenFlats are collapsed many of the container components are better protected from the elements than standard containers.
GENFLATS REQUIRE THE FOLLOWING OCCASIONAL MAINTENANCE:
Lubricating hinges
Checking gaskets and seals
Keeping folding areas and latching points free of debris
Maintenance items and schedules are included in the GenFlat operating manual and GenFlat provides a generous warranty against manufacturing defects. GenFlats are manufactured by the largest and most reputable container manufacturer in the world (CIMC) and are built to last.
Conclusion
There are still lingering concerns about collapsible containers that have slowed widespread adoption.
GenFlat has spent years designing and manufacturing the gold standard for collapsible containers, which addresses all of the most common concerns while also maximizing the benefits of collapsible containers. GenFlats are the most efficient, durable, and cost-effective collapsible containers in the world.
Read More: Quality Control and Cost Control are Key Successful Supply Chains
