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Introduction to The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

In: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

Author

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  • Marc Levinson

Abstract

In April 1956, a refitted oil tanker carried fifty-eight shipping containers from Newark to Houston. From that modest beginning, container shipping developed into a huge industry that made the boom in global trade possible. The Box tells the dramatic story of the container's creation, the decade of struggle before it was widely adopted, and the sweeping economic consequences of the sharp fall in transportation costs that containerization brought about. Published on the fiftieth anniversary of the first container voyage, this is the first comprehensive history of the shipping container. It recounts how the drive and imagination of an iconoclastic entrepreneur, Malcom McLean, turned containerization from an impractical idea into a massive industry that slashed the cost of transporting goods around the world and made the boom in global trade possible. But the container didn't just happen. Its adoption required huge sums of money, both from private investors and from ports that aspired to be on the leading edge of a new technology. It required years of high-stakes bargaining with two of the titans of organized labor, Harry Bridges and Teddy Gleason, as well as delicate negotiations on standards that made it possible for almost any container to travel on any truck or train or ship. Ultimately, it took McLean's success in supplying U.S. forces in Vietnam to persuade the world of the container's potential. Drawing on previously neglected sources, economist Marc Levinson shows how the container transformed economic geography, devastating traditional ports such as New York and London and fueling the growth of previously obscure ones, such as Oakland. By making shipping so cheap that industry could locate factories far from its customers, the container paved the way for Asia to become the world's workshop and brought consumers a previously unimaginable variety of low-cost products from around the globe.

Suggested Citation

  • Marc Levinson, 2008. "Introduction to The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger," Introductory Chapters, in: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, Princeton University Press.
  • Handle: RePEc:pup:chapts:8131-1
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    Citations

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    Cited by:

    1. Jiewei Li & Ruihua Zhu, 2022. "The Impact and Spillover Effects of Chinese Ports on Urban Service Industry under De‐maritimization: A Perspective for Port Economic Geography Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(4), pages 31-59, July.
    2. Gisela Rua, 2014. "Diffusion of Containerization," Finance and Economics Discussion Series 2014-88, Board of Governors of the Federal Reserve System (U.S.).
    3. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2014. "Algorithms and the Changing Frontier," NBER Working Papers 20039, National Bureau of Economic Research, Inc.
    4. Coşar, A. Kerem & Demir, Banu, 2018. "Shipping inside the box: Containerization and trade," Journal of International Economics, Elsevier, vol. 114(C), pages 331-345.
    5. Macve, R.H., 2015. "Fair value vs conservatism? Aspects of the history of accounting, auditing, business and finance from ancient Mesopotamia to modern China," The British Accounting Review, Elsevier, vol. 47(2), pages 124-141.
    6. Brooks, Leah & Gendron-Carrier, Nicolas & Rua, Gisela, 2021. "The local impact of containerization," Journal of Urban Economics, Elsevier, vol. 126(C).
    7. Zhen Chen, 2017. "The Influence of 3D Printing on Global Container Multimodal Transport System," Complexity, Hindawi, vol. 2017, pages 1-19, November.
    8. Zofío, José Luis & Condeço-Melhorado, Ana M. & Maroto-Sánchez, Andrés & Gutiérrez, Javier, 2011. "Decomposing generalized transport costs using index numbers: A geographical analysis of economic and infrastructure fundamentals," Working Papers in Economic Theory 2011/06, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
    9. Strutt, Anna & Turner, James A. & Haack, Robert A. & Olson, Lars, 2013. "Evaluating the impacts of an international phytosanitary standard for wood packaging material: Global and United States trade implications," Forest Policy and Economics, Elsevier, vol. 27(C), pages 54-64.
    10. Boris Vormann, 2015. "Toward an infrastructural critique of urban change: Obsolescence and changing perceptions of New York City's waterfront," City, Taylor & Francis Journals, vol. 19(2-3), pages 356-364, June.
    11. Tocchi, Daniela & Sys, Christa & Papola, Andrea & Tinessa, Fiore & Simonelli, Fulvio & Marzano, Vittorio, 2022. "Hypergraph-based centrality metrics for maritime container service networks: A worldwide application," Journal of Transport Geography, Elsevier, vol. 98(C).
    12. Pascucci, Elisa, 2021. "More logistics, less aid: Humanitarian-business partnerships and sustainability in the refugee camp," World Development, Elsevier, vol. 142(C).
    13. Beckman, Jayson & Jones, carol Adaire & Sands, Ron, 2010. "A Global General Equilibrium Analysis of the Interactions between Biofuel Mandates and Greenhouse Gas Mitigation Policy," Conference papers 332015, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Asturias, Jose, 2020. "Endogenous transportation costs," European Economic Review, Elsevier, vol. 123(C).
    15. Austin Becker & Michele Acciaro & Regina Asariotis & Edgard Cabrera & Laurent Cretegny & Philippe Crist & Miguel Esteban & Andrew Mather & Steve Messner & Susumu Naruse & Adolf Ng & Stefan Rahmstorf &, 2013. "A note on climate change adaptation for seaports: a challenge for global ports, a challenge for global society," Climatic Change, Springer, vol. 120(4), pages 683-695, October.
    16. Joost Hintjens & Edwin van Hassel & Thierry Vanelslander & Eddy Van de Voorde, 2020. "Port Cooperation and Bundling: A Way to Reduce the External Costs of Hinterland Transport," Sustainability, MDPI, vol. 12(23), pages 1-16, November.
    17. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2013. "Algorithms and the Changing Frontier," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy, pages 371-410, National Bureau of Economic Research, Inc.

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