Ocean shipping containers more the overwhelming majority of manufactured goods around the world, thus making international shipping and logistics an industry that underpins the global economy.
Origins of Shipping and Logistics
International shipping and logistics dates back to the 3rd century BCE, which was when merchants realized that sending products by ocean was far less expensive and much quicker than sending goods by land. Originally, freight was loaded onto ships in sacks, barrels and wooden crates. Dock workers squeezed goods on decks or into tight spaces below. Ships would often spend more time in port than sailing, and not much changed until the mid-1950’s.
Ocean Containers
It was in the 1950’s that the concept of the standard ocean containers was born. American truck driver Malcolm McLean stacked 58 metal boxes on a ship going from New Jersey to Houston. This concept was revolutionary. These containers protected the goods, but also made it easier for truck beds and freight trains to move them without repackaging.
In 1966, the industry saw the first transatlantic ocean container service, and in 1968 one of the first modern container ships hit the water, carrying 752 containers, each 20’ in length, a standard still in use today. This type of standardization allowed for massive volumes, which cut transportation costs by as much as 75%. This led to the emergence of the global shipping behemoths like Maersk, CMA CGM, COSCO, and others.
The 1980’s and Beyond
By the early 1980’s, some 90% of manufactured goods were being transported by ocean container. These industry innovations allowed for globalization, with goods being moved all around the world making stops at dozens of ports along the way.
The expansion of the Panama and Suez canals allowed for even larger ships to cross in greater numbers.
Today, many container ships are as long as the Empire State Building is tall, and many can move more than 20,000 containers each. The growth of refrigerated shipping now allows for the transport of fresh produce, food, and flowers that once could only be moved by plane.
The Future of Shipping and Logistics
While plans have been in the works to launch crew-less ocean vessels that run on batteries and driverless trucks, the industry has seen little progress in this regard thus far. It’s still far too soon to tell where the industry is headed with regard to automation as complete automation would involve synchronization of a vast network of ports, terminals, warehouses, and trucking services. However, it’s important to remember that technological advances are exponential, not linear.