Fascinating opinion piece on The Economist explaining how the humble shipping container, "a simple metal box" has "been more important for globalisation than freer trade."
Containerisation is a testament to the power of process innovation. In the 1950s the worlds ports still did business much as they had for centuries. When ships moored, hordes of longshoremen unloaded break bulk cargo crammed into the hold. They then squeezed outbound cargo in as efficiently as possible in a game of maritime Tetris. The process was expensive and slow; most ships spent much more time tied up than plying the seas. And theft was rampant: a dock worker was said to earn $20 a day and all the Scotch you could carry home.
Containerisation changed everything. It was the brainchild of Malcom McLean, an American trucking magnate. He reckoned that big savings could be had by packing goods in uniform containers that could easily be moved between lorry and ship. When he tallied the costs from the inaugural journey of his first prototype container ship in 1956, he found that they came in at just $0.16 per tonne to load compared with $5.83 per tonne for loose cargo on a standard ship. Containerisation quickly conquered the world: between 1966 and 1983 the share of countries with container ports rose from about 1% to nearly 90%, coinciding with a take-off in global trade (see chart).
|"At some point, Zuckerberg will push too hard, and users will ragequit for good."|
|The Most Reasonable Explanation for the Disappearance of Malaysia Airlines Flight 370|
|"That's not where the kids hang out." The Beginning of the End for Facebook|
|Elephants Don't Have Rearview Mirrors|
|Tunisians Read WikiLeaks and Lose Their Shit|
|How to Avoid Jury Duty|
|On Building Your Own Trebuchet|
|Das Berliner Buchstabenmuseum|
|Why, Typewriters Are Alive and Well, Thank you|
|The (Very Scary) People of Public Transit|
|Really Boring Books (You Have to Read Anyway): Dead Aid, Dambisa Moyo.|
|Bird Shit Advertising|
|Really boring books (You have to read anyway): Silmarillion|
|Really boring books (You have to read anyway): Communist Manifesto|
|Fall is Coming|