The Box | Marc Levinson

Summary of: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger
By: Marc Levinson

Introduction

Get ready to embark on a fascinating journey tracing the history and impact of the shipping container. In ‘The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger,’ author Marc Levinson reveals how this seemingly simple innovation revolutionized transportation, transformed global trade, reshaped economies, and redefined the concept of manufacturing and logistics. Through examining the birth of the shipping container and its development, we will see how this complex story intertwines with the labor-intensive maritime world, and the individuals behind the invention and successes in implementing it on a global scale.

The Incredible Impact of Shipping Containers

Shipping containers are not just boxes but the core of a system that has enabled the transportation of goods worldwide at incredibly low prices. The speed with which containers load and unload has drastically reduced transportation costs, making it the go-to solution for practically every company. Containers have transformed the face of manufacturing, enabling small local operations to give way to larger, better-organized global ones, and reducing consumer prices. The container fundamentally altered the scale at which goods are traded. A 25-ton container of coffee can travel 11,000 miles in just 22 days, costing less than a single first-class plane ticket.

Evolution of Ports

Ports have come a long way from being labor-intensive to highly automated. The introduction of containers led to the decrease in demand for traditional dock workers, but it also brought about a culture of resistance to change, theft, and camaraderie among workers. Ports used to be social worlds with entire neighborhoods depending on them for livelihoods. However, the working conditions were dangerous and even deadly, leading to a high injury rate. In the 1950s, the introduction of containers faced multiple problems such as small sizes, inability to stack, and poor usage of space. Despite these issues, containers revolutionized the shipping industry.

The Revolutionary Story of Container Shipping

Learn how Malcolm McLean’s transformative idea challenged the shipping industry’s regulations and revolutionized the transportation of goods.

Malcolm McLean was a successful trucking mogul who challenged the regulated transportation industry in the wake of World War II. He realized that fixed shipping costs were killing competition and set out to find a solution. McLean’s revolutionary idea was to put truck trailers on ships instead of driving them through congested coastal highways. However, that would have contravened regulations, so he left the trucking business and went into shipping.

McLean’s first challenge was to find a solution that wasn’t against the regulations. He realized he needed to come up with a new approach to the industry. He found an aluminum box manufactured by the company Brown Industries and set his sights on transforming cranes into loading machines. The railroads protested against McLean’s plan, but after a ruling from the ICC, the first container transport was ready to launch.

McLean’s genius wasn’t to invent the container, but to bring a radically new idea into the shipping industry. He believed that moving goods was more important than sailing ships. Although packing containers in cells allowed for containers to be unloaded and loaded at the same time, they were not welcome everywhere. When McLean’s company, Pan-Atlantic, started serving Puerto Rico, longshoremen were afraid that the containers were going to put them out of work, leading to huge and costly strikes at the docks of San Juan.

Container shipping was not an immediate success, but McLean’s transformative idea challenged the shipping industry’s regulations and revolutionized the transportation of goods.

The Transformation of New York’s Port

The Port of New York transformed from being a hub for ocean shipments to losing its advantage to New Jersey due to lack of space and poor working conditions. Its inability to quickly adopt new technologies and automated processes led to the loss of jobs and manufacturing plants. The solution instituted was a compromise between the unions and the shipping companies which allowed for modernization to run its course.

The Complexity of Container Standardization

In the late 1950s, the transportation industry was buzzing about containers, but there was no consensus on the ideal shape and size. The US Maritime Administration attempted to establish standards in 1958, but they could only apply to domestic regulations. The market eventually determined that the 20- and 40-foot containers were the ideal sizes, even though other options were available. An international agreement was also reached regarding corner-fitting and locking systems, but the rush to implement them led to multiple failures and changes to the established norms. The result was a compromise-based system that dictated the standards for containerization.

The Obstacles of Containerization

Containerization, despite its clear advantages, faced several challenges before becoming the transport standard it is today. In the past, ship line cartels set fixed shipping prices based on outdated practices, hindering the adoption of containers. Additionally, railroads and trucking companies were reluctant to switch to containers due to regulations and a lack of consensus among operators. Finally, after increased efficiency led to higher demand and competition, containerization took off, and ships specifically designed to handle containers were constructed.

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