Thursday, May 8, 2014

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

1)  I found the quote " 'It is better to assume that moving goods is essentially costless than to assume that moving goods is an important component of the production process.' Before the container, such a statement was unimaginable" quite interesting.  This quote really demonstrates to potency of the shipping container to bring the world together.

2) The author states that the shipping containers contributed to globalization by greatly reducing the time and money spent transporting and transferring goods around the world.  The containers make large scale shipments easy and fast, and support a wide variety of goods.  They also reduce terminal costs by allowing containers to be moved between modes of transportation quickly and easily without unpacking and repacking the supplies.

3)  Smaller businesses who do not have the manufacturing capacity to ship internationally are the largest losers in the shipping container revolution.  Specialty shops which only produce small quantities have no opportunity to fill a shipping container, and thus do not gain from cheap mass shipments.  Large companies that can fill large orders to all corners of the globe benefit the most.  Consumers also gain because prices are driven down since manufacturers can take advantage of the cheapest production costs without sacrificing much for additional transportation costs.  Workers lose for the same reason, since jobs can be shifted away from the demand.

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