Track: Transportation

Abstract

Purpose: This study investigates the commercial viability of foldable containers from a carrier’s perspective.

Methodology: A cost-benefit and sensitivity analysis is conducted for operating regular and foldable containers over their respective lifespans.

Findings: Results suggest that the case for foldable containers is compelling and savings of over 50% are viable, even after taking into account the higher upfront purchase cost, higher maintenance costs and lower expected lifespans of foldable containers. If used in inland intermodal operations, savings of over 60% can be achieved.

Research limitations: The benefits that can be realized from foldable containers are contingent on their ability to withstand the rigors of ocean voyages. This study also does not address benefits related to time-savings, such as during the stowing, stacking and ship berthing activities.

Practical implications: Should foldable containers prove feasible operationally, they have the potential to emerge as a truly disruptive innovation in the container shipping industry in the coming decades.

Originality: While savings of up to 75% from foldable containers is widely mentioned, the complete cost trade-offs have often been neglected in the extant literature. This paper shows that 50% to 60% net savings is much more realistic.