The Virtual Container Yard: Identifying the Persuasive Factors in Container Interchange

The virtual container yard is an effective solution to the container inventory imbalance problem which is a global issue. It causes substantial cost to carriers, which inadvertently adds to the prices of consumer goods. The virtual container yard is rooted in the fundamentals of container interchange between carriers. If carriers opt to interchange their excess containers with those who are deficit, a substantial part of the empty reposition cost could be eliminated. Unlike in other types of ships, cargo cannot be directly loaded to a container ship. Slots and containers are supplementary components; thus, without containers, a carrier cannot ship cargo if the containers are not available and vice versa. Few decades ago, carriers recognized slot (the unit of space in a container ship) interchange as a viable solution for the imbalance of shipping space. Carriers interchange slots among them and it also increases the advantage of scale of economies in container shipping. Some of these service agreements between mega carriers have provisions to interchange containers too. However, the interchange mechanism is still not popular among carriers for containers. This is the paradox that prevails in the liner shipping industry. At present, carriers reposition their excess empty containers to areas where they are in demand. This research applied factor analysis statistical method. The paper reveals that five major components may influence the virtual container yard namely organisation, practice and culture, legal and environment, international nature, and marketing. There are 12 variables that may impact the virtual container yard, and these are explained in the paper.

PIL Theory

The curvature space-time by the presence of material, this deformation must present a pattern of deformation, not random. Space is uniform, elastic and any modification that occurs in one part, causes a change in another. This deformation exists, must be a constant value and is independent of the observer, and relates the amount of matter, the force caused by the curvature of space and surface space. This unit of space is defined in this study as PIL and represents a constant area of space, deformable in the direction and sense of the center of mass of the body. The PIL is curved and connected to the center of mass of the Earth, to get to that point, through all matter, thus forming part of any place between particles at atomic and subatomic levels. At these levels the space between each particle is flat, unlike the macro where the space curves.