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Seaports play a crucial role in the supply chain operations, facilitating movement across borders. Container throughput is an essential indicator of economic growth and helps to ensure the volume of goods that pass through the seaports. Considering the scope of efficient decision-making, forecasting techniques have been used to predict the port throughput. These key metrics inform us how many containers pass through ports at a particular time. For instance, a high number shows high efficiency with few obstacles and container pile-ups.
Ultimately, this blog will discuss valuable insights through throughput analysis for policymakers, industry stakeholders, and port authorities working to improve seaport operations’ efficiency in this evolving landscape.
What is container throughput?
Container throughput is a metric in twenty-foot equivalent units for container handling activity. It can easily be used to evaluate the activity level of a container yard or port. These activities are analyzed regardless of the different types of container handling, whether transhipments, inbound, outbound, empty, or full containers. It is a simple measure of the number of containers moved and passed, irrespective of size and direction.
The ports with high container throughput rates are mostly seen as global trade hubs. Adding to this, there are three primary throughput ways to measure ports’ operational effectiveness:
- TEUs (Twenty-foot equivalent units): Twenty-foot equivalent units are standardized measures used to number cargo and port capacity. These metrics allow container volumes to be distributed across intermodal freight shipping loans and different ports. Therefore, this provides a clear and consistent way to evaluate the total cargo volume.
- Berth productivity: This is typically measured as the number of TEUs handled per hour. These particular metrics help evaluate how efficiently ports can utilize your berths. The high berth and port productivity rates show that the ports can accommodate more vessels and handle larger cargo volumes, which is crucial for global trade.
- Container moves per hour: This metric provides insights into the operational efficiency of labor and equipment. You can further break down the moves into particular types, such as truck and crane moves. However, more moves represent more effective operations, which is essential for minimizing turnaround vessel times and optimizing berth utilization.
Importance of throughput analysis
Container throughput is crucial for global trade as it gives insights into the dynamics of the international market and the economy’s overall conditions. You can understand the importance of container throughput analysis through the following key points:
- To gain economic insights: The throughput rate provides insights into the global market’s economic conditions. A high throughput rate signifies a robust economy with many trade activities and a high demand for consumer and intermodal freight. Moreover, the lower rates represent weak economies that cannot carry significant trade.
- Supply chain visibility: This rate offers supply chain visibility by providing insights into supply chain trends and assisting in tracing traffic patterns. Thus, supply chain managers can easily recognize trade patterns and react accordingly.
- Port effectiveness: The throughput data can provide a deep analysis of efficient port operations that can easily handle large cargo volumes. This also helps make them a strategic trade hub for global trade routes.
- Informed decision-making: Access to cargo throughput data helps companies make smarter decisions related to sourcing, product distribution, and manufacturing. In general, you can make informed decisions regarding supply chain operations.
- Forecasting disruptions: Businesses can easily predict potential supply chain disruptions based on the data given by the throughput trends. Finally, you can easily predict the demands of the supply chains and react accordingly.
- Production management: Companies can easily use this port throughput information to manage production levels effectively. Basically, insights into the arrival and exit of container rates help manage inventories accordingly.
Challenges in throughput management of the containers
Maintaining the container throughput rate is essential for the logistics and shipping industry as it ensures that your trade and GDP flourish. Here are the challenges involved in managing the container port throughput rate:
- Infrastructural limitations and port congestion: The infrastructural limitations and port congestion are the two fundamental challenges while managing the constant and balanced throughput rate. The aging infrastructure can’t align with the smart technologies, decreasing speed and hindering automated operations. A high quantity of container traffic leads to port congestion. Altogether, this decreases the storage container movements through the ports.
- Labor problems and workforce management: The skilled positions lack labor, which can cause shipment delays and decreased throughput. Managing the workforce covering the temporary and contract workers is challenging for shipping and intermodal logistics companies. Consequently, efficient coordination and communication are essential for smooth functioning.
- Technological adjustments: Some types of ports resist accepting technological advancements because of the cost of implementing these techniques. This creates hindrances to the implementation of more efficient systems. Adding to this, integrating new technologies with existing technologies is quite challenging for companies. With more digitization, the systems become more prone to cyber threats in maritime logistics.
- Environmental concerns and sustainability: The seaport operations must comply with environmental regulations set by international organizations that focus on reducing emissions and their ecological impacts. Switching to sustainable fuels can be pretty challenging for startup businesses as it requires a good amount of initial costs.
How do we calculate throughput?
Calculating the container throughput rate is critical for evaluating the effectiveness and port performance of a seaport or container terminal. Here’s a detailed explanation of the throughput rate:
- Defining the exact time period: Determine the time frame for which you want to calculate the throughput. Depending on the detail level required, this can be daily, weekly, monthly, or annually.
- Consolidate the container movement data: Collect the information on the containers handled during the defined period. Always remember that 1 TEU is equal to 1 TEU (twenty-foot equivalent unit), and 40-foot containers equals 2 TEUs.
- Calculate total TEUs: You must convert the total number of containers into TEUs if needed.
- Calculate throughput: Use the formula to calculate the throughput rate, i.e., Total TEUs/time period.
- Consider additional metrics: To calculate berth productivity, you must use the following formula: Total TEUs/ (Number of births *time period in hours).
Future trends in throughput analysis
The container throughput analysis is crucial for the shipping and logistics industry. Many shipping container trends for analysis can contribute to increased efficiency and profitability in the industry. Here are the future trends in the throughput analysis:
- The potential of deep machine learning: Harnessing most of deep learning’s potential is one of the growing trends. It shows promise in forecasting for retail, cargo insurance, and finance.
- Use of LSTM networks: LSTM (Long-Short-Term Memory) enhances RNNs (Recurrent Neural Networks) by improving their ability to learn from historical data.
- Use RNNs for sequential data: You can efficiently utilize the (RNNs), Recurrent Neural Networks, which perform well in natural language processing and speed recognition.
Container throughput is a metric used to measure the number of exits and arrivals of containers in the ports over a specific period. Analyzing this rate provides deep insights into the shipping and logistics industry that can help you make informed decisions. By examining the container movement in the seaports, you can easily evaluate the amount of trade undertaken by a particular region. Conduct a thorough analysis of seaport operations and make decisions accordingly.
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