How to Start a Container Shipping Company

A container ship is one that transports cargoes, goods, and materials from one port station to another. It is called a container ship because it carries truck-size loads in “intermodal containers”.

An intermodal container is a large shipping container built to contain goods and materials for easy transportation from one location to another.

The use of intermodal containers isn’t restricted to container ships alone; they are also used across different modes of transportation. It is necessary to mention that these containers are used because of their efficiency and level of security in transporting materials and products from one location to another.

Today, approximately 90% of cargoes are transported through container ships. This means that investing in a container shipping company has a high chance of yielding huge profits.

Also, container ships are one of the largest seaborne vessels alongside competitors like crude-oil tankers and bulk carriers. There’s a huge potential of getting customers from different countries across the globe.

Characteristics of Container Ships

a) Size variation

Container ships vary in sizes and structures. There are 7 major categories of container ships; small feeder, feeder, feedermax, panamax, post-panamax, new-panamax, and ultra-large. The sizes of these ships are defined by the number of lock chambers that can be accommodated. Feeders are the smallest ships that operate between smaller ports.

b) Cargo cranes

A distinguishing feature of container ships is whether they have cargo cranes or not. The ones with cargo cranes are called geared and the ones without are called gearless or ungeared. Geared ships differ from gearless in that they are more expensive, have a higher cost of maintenance, and generally incur more expenses to run.

c) Cargo hold

The main component of container ships is the structure of its cargo hold that aids efficiency and speed in loading and unloading of materials to and from a container ship. The opening of a container ship is rounded by a raised steel structure known as hatch coaming.

A hatch coaming is a hatch cover that helps to secure the openings of a container ship from the main deck. This structure guides the container ship into a well-defined row during the process of loading and offloading materials and goods.

How to Start a Container Shipping Company

Investing in the shipping sector is a lucrative business for aspiring entrepreneurs. One reason is, it has the potential to generate huge profits since companies across the world always require the transportation of many goods from one place to another.

To be successful in the business, here are some steps to follow:

1. Create an effective business plan

2. Survey your competition

3. Get certified

4. Decide which product to provide

5. Establish contacts and network

1. Create an effective business plan

A wise man once said: “Whoever fails to plan has planned to fail”. The bedrock of any business is to have a business plan, which is very essential to the development of the business itself.

Clearly state your goals, either you want investors or business partners. Ensure that you make an accurate financial prediction and forecast to avoid unforeseen challenges.

Also, make plans on obtaining shipping contracts or letters of intent to get long-term contracts with a few companies to raise capital for containers and equipment.

2. Survey your competition

Part of setting up your container shipping business is to research your competitors. It is important because it helps to have an idea of what the market requires, what gap to bridge to be ahead of your competitors, and what their strengths and weaknesses are. Figure out how to brand yourself to stand out from other companies.

3. Get certified

Before you decide to start transporting items, materials, and goods from one place to another, you must get necessary certifications, licenses, and insurance coverage. Due to the nature of the shipping business, there might be instances of damage or loss of goods.

Make sure your business is registered with the appropriate body, hire a reasonable number of professionals for a start, purchase containers, equipment, and have a warehouse ready to handle your storage.

Ensure that you install the latest tracking devices to serve your customers the best and nothing less.

Familiarize yourself with the International Commercial Terms (Incoterms). These are predefined commercial terms and conditions that relate to international commercial law and are published by the International Chamber of Commerce.

4. Decide which product to provide

As you think of starting a company, you should carefully select what product or service you want to focus on. For a start, some products to consider are

● Perishable products like foodstuff

● Dangerous products like chemicals

● Hazardous products like gas cylinders

As a start-up, you can't handle the shipment of all these commodities together; start small and watch it expand gradually.

5. Establish contacts and networks

You have decided to start up your business to solve a particular problem (shipping of goods). As a start-up, it is important to connect with a network where potential customers are.

Learning how to market and reach out to people who need your service is just as important as the service itself. Without clients, your company cannot achieve its aim.

One of the best ways to begin is by giving mouthwatering offers to your first set of clients. This could be in form of a discount on products or shipment fees. Or you can offer to get a courier to deliver their goods to their doorsteps free of charge.

Conclusion

Establishing a shipping company is a great form of investment, given that a large number of exportations and importations are routed through the sea. This is because transportation by sea is the best for moving bulky goods from one place to another. Besides, it is cheaper compared to other forms of transportation like air.

With a proper plan, orientation, and network, you can become successful in running a container shipping company.