The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger – Marc Levinson
I’ve
been writing an article on shipping containers as homes (condensed
version: not worth the trouble), and as part of my research I read this
book. I admit to having a thing for books about subjects that are almost
invisible (salt, pencils, etc.) and I suppose shipping containers are
one of those items that has become so ubiquitous as to be given little
to no thought any more.
Various
efforts had been tried to containerize goods over the years. Shipping
had always been an incredibly expensive and time consuming endeavour.
The effort to move towards a system of containerization was a tale of
starts and stops, successes and setbacks. The system is a juggernaut
now, but its implementation was held up by powerful longshoremen unions,
the difficulty of determining a definitive size, centralized government
control of (ship, train, truck) shipping, the difficulty in handling
the containers in ports, fitting them on trains and trucks, etc.
Despite
all the hiccups, from the very get go the cost of shipping goods via a
container saved such a large ratio of money (both in terms of labour
savings, time savings, but also in goods that weren’t being damaged or
pilfered) that the writing was on the wall for traditional shipping
methods.
In
due course, and after much wrangling, sizes were decided on, cranes
were standardized, trucks and trains were built to integrate with the
containers, ships went from WW2 liberty ships to custom built ships
specifically built for containers. Whole new ports were built to handle
the ships (London and New York declined, sleepy fishing villages like
Felixstowe and Port Elizabeth boomed). Entire economies shifted due to
the possibilities containerization opened up. Manufacturing went into
precipitous decline in Europe and North America and sky rocketed
throughout Asia. A whole segment of the labour market (longshoremen/dock
workers) essentially disappeared in a short period of time. With very
sophisticated tracking software ever tighter schedules could be adhered
to. In time even transcontinental canals will be enlarged to accommodate
ever larger container ships. Containers are a perfect example of a disruptive technology.
It is a bit of a dry read, but I got a lot out of it. A history of
both business and technology, and of something that I suspect many never
give a lot of thought to. If you enjoy stories about entrepreneurs, the
story of Malcolm McLean is a classic. From a lad driving a truck, to one
of the richest men in the world, he was largely (some would say
exclusively) responsible for revolutionizing the shipping industry as we
know it.