Thursday, May 8, 2014

"The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" by Marc Levinson

One particular discussion in this reading that I found remarkable was the amount of thought and organization that lies behind the way that containers are placed on the ship.  I never really thought about how much thought should be put into organization based on the types of items within each container.  Levinson explains, "they have ensured that the refrigerated containers are placed in bays with electrical hookups, and that containers with hazardous contents are apart from containers that could increase the risk of explosion," (page 6).  It is remarkable how a computer system is able to process all the information that is needed to organize the containers correctly.  Such a fast and efficient process can only be attributed to the huge advances in technology.

Levinson sees the development of the shipping container as essential to globalization.  Containers save time and lower the cost of shipping around the world.  The efficiency of the way that containers are organized and shipped saves lots of time.  Containers have allowed countries to feel much more comfortable with making purchases from another country if a good is at a more reasonable price than within their own country.  The distance between countries is no longer an issue due to the low cost and quick process.

On page 3, Levinson points out that consumers win due to the fact that there are "infinitely more choices thanks to the global trade the container has stimulated".  A loss from the transformation of global transportation is that the consumers who are workers are part of the competition of employers who seek the cheapest labor.  Producers of small and local goods are at a loss by the end of the twentieth century.  When consumers are given more choices worldwide, local goods do not seem as appealing.  On the other hand, large, multinational manufacturers win in containerization because their business is able to expand internationally.

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