New York Conference Tries To Solve "The Path Of The Container Hurricane"

Is containerization the answer to the spiraling costs of ocean transportation, and what problems do ship owners and shippers face in the rapid changeover to containers?

The pros and cons to these questions were discussed in detail at the Ninth Annual Conference on Containerization sponsored by The Containerization Institute, Inc., held recently in New York City.

The theme of the conference was "The Path of the Container Hurricane—1969." The conference program was set by Dr. John J. McMullen, president, United States Lines, who served as program chairman; Richard Craw, assistant to the president, Grace Line, who served as assistant chairman, and Glenn Mather, The Containerization Institute, who served as coordinator.

The two-day conference consisted of three panel discussions—"Is Containerization the Total Panacea?"; "Conferences and Containerization, Can This Marriage Last?" and "The Defoliation of the Paperwork Jungle."

The conference theme was set by Arthur C. Novacek, president of Grace Line and president of The Containerization Institute, in his introductory remarks. He commented that "The participants in this conference comprise one of the most knowledgeable groups on the subject yet to be assembled" and should be able to pinpoint problems and answers which will be useful to the world community.

John J. McMullen, president of United States Lines, spoke at the first-day luncheon on the overall subject of containerization. Mr. McMullen traced briefly the history and development of the present-day containerization system. He noted that shipowners "experimented with palletization and small unit loads, but these halfway measures simply wasted time and solved nothing. Only the container and a ship designed for large volume and quick cargo handling could provide economies sufficient to satisfy the shipper and successfully help trade, as well as provide a profitable business for the owner."

Mr. McMullen called for a "truly integrated transportation system" which might find the trucking firms better suited to operating the container transport than the steamship operator.

In closing he stated "the new role of the owner will become more and more that of the financial manager investing in newer, faster and larger equipment to maintain profitability. Obviously, this can only lead to a concentration of through international transport systems in fewer companies possessing the resources of finance and management necessary to implement these changes."

During the first panel discussion, Edward E. Bridges, transportation analyst for Moller Steamship Company, expressed the opinion that "neither containerization nor palletization by themselves are panaceas." The reasoning behind this feeling was that while U.S.-Europe and U.S.-Japan routes may be ideal for containerization, steamships travel all over the world and most countries are not physically setup to handle containers.

Mr. Bridges did feel that changes are coming because of transportation economics. "It is apparent that almost all steamship companies have at last either partially or fully," noted the panelist, "exposed their own operations to the harsh light of transportation economics, resulting in the inescapable conclusion that break-bulk operation must go. Whether it be palletization, containerization, or some other 'tool' not yet dreamed up, their economic survival demands automation of some kind."

Another panelist, Joseph G. Barkan, executive vice-president of Prudential Lines, described the lighter-aboard-ship concept which Prudential will be using. He stated that his firm is not anti-container and is anxious to carry them, but "what we do question is the magnitude and the economic feasibility of keeping an expensive container vessel operating in a limited market. This is precisely one of the reasons why Prudential has developed the LASH system." He supported this statement with cost figures for break-bulk, container, and LASH operations.

Carl G. Moberg, export manager for Westinghouse Electric International Co., took the shippers viewpoint on this panel. He pointed out that most shippers were not consulted on containerization and that "containers are not the total panacea." He felt that the present-day container-size standards are wrong and also questioned how an exporter will ship equipment that cannot be put in containers, when containerships have driven the break-bulk ship out of service.

This first panel was moderated by M. S. Pennington, chief, Office of Maritime Promotion, Maritime Administration. Panelists other than those mentioned previously were: Donald L. Loftus, assistant vice-president, intermodal services, Western Pacific Railroad; James B. Rose, European manager, container operations, U.S. Lines, and Frank M. Winterholler, vice-president, Bell Lines, Inc.

The second panel discussion, covering conferences, was moderated by George H. Hearn, commissioner, Federal Maritime Commission. The panelists were: Capt. George Legnos, manager of Farrell Lines containerization development program; M. J. Kelly, vice-president, Moore-McCormack Lines; Henry V. Kantzer, president, Puerto Rican Forwarding Company, and A. E. Bowen, president, Consolidated Forwarders Intermodel Container Corporation.

The third panel, discussing paperwork, was moderated by Robert Blackwell, Department of Transportation. The panelists were: Arthur Bardenhagen, vice-president, Irving Trust Company; Arthur E. Baylis, national director, National Committee on International Trade Documentation; Robert L. Dausend, director, industry and regulatory affairs, Sea-Land Service Inc.; C. Haxthausen, manager, cargo services, Pan American Airways, and Robert E. Traut, transport section, Resources and Transport Division, United Nations.