The Box: How the Shipping Container Made the world Smaller and the World Economy Bigger is a great history of the development of the shipping container. While written in 2006, Marc Levinson's work is a good explanation for why world trade has exploded over the last few decades. The cost of shipping has declined significantly and the time it takes to move any goods from one country to another has fallen like a stone. The coordination of shipping from truck, rail and ship has made manufacturing easier in any part of the world. The movement to just in time inventory management and the use of intermediary manufacturing has all been made possible by the use of container shipping. This is the story of true disruptive innovation which has changed the way trade is conducted.Shipping is a system not just a single mode of transport.
Trade cost reduction has changed the world, but the savings have now plateaued. The next wave of increased trade will have to come from governments that want trade to occur. That is why the Doha trade talks are so important and need to be jump-started.
Trade cost reduction has changed the world, but the savings have now plateaued. The next wave of increased trade will have to come from governments that want trade to occur. That is why the Doha trade talks are so important and need to be jump-started.
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