Thursday, May 9, 2013

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

A selection that I found most interesting was when Levinson explained the amount of planning that goes on before the containers are placed on the ship. I figured that technology would play a crucial role is making the process of switching the cargo from land to ship, but I did not consider all of the programming done in advance. Every move made was "choreographed by a computer." I can understand now how computers have helped to make the process efficient and almost instantaneous. I also found it interesting that the most expense part of the process of transporting goods is shifting the cargo from land to ship. The total port cost accounts for approximately 50% of the total expense for transportation.

"The container is at the core of a highly automated system for moving goods from anywhere, to anywhere, with a minimum of cost and complication."

The author sees the development of the shipping container as a major contributor to globalization. The use of containers reduced the cost of shipping and made the process of transportation more efficient. The containers allowed countries to buy products from other countries at a moderate price. The distance ca be great, but the containers allows for products to be refrigerated. Overall, the containers allowed for a safer and more organized way of transporting good.

The transformation of global transportation has many positive and negative effects. The consumers gain a wide variety of products at lower prices. The business that can afford to have products made in other countries gain a larger profit margin. The local business that cannot afford to have products made at lower costs lose business. The consumers who are workers have to deal with competition and risk losing their jobs to laborers willing to work for less. Overall, this transformation of global transportation has allowed many to prosper, but it has also put some individuals livelihood at risk.

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