Impact of Containerization

By
Wikipedia article on Containerization

Containerization is a system of intermodal cargo transport using standard ISO containers (also known as isotainers) that can be loaded on container ships, railroad cars, and trucks.

Containerization is an important element of the logistics revolution that changed freight handling in the 20th century. Malcolm McLean claimed to have invented the shipping container in the 1930s in New Jersey. Then a truck owner-operator, McLean explained that while sitting at a dock waiting for cotton bales to be unloaded from his truck then reloaded onto a ship, he realized that the truck itself (with some minor modifications) could be transferred much more efficiently. Years later, McLean founded Sea-Land Corporation, and his first container ship left Port Newark for Texas on April 26, 1956, carrying 58 trailers.

Containerization revolutionized cargo shipping. Today, approximately 90% of cargo moves by containers stacked on transport ships. As of 2005 some 18 million containers make over 200 million trips per year.

This led to a worldwide reordering of shipping ports. Ports that didn't adopt (New York and San Francisco) lost out, while those that embraced the technology (Singapore and Seattle) prospered.

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