Question

What is the connection between containerization and economic globalization?

Answer 1

Containerisation is a standardized transport system which carries goods using an increasing size of steel container. Such containers can be easily transferred to lorries or trains between various modes of transport–container ships. It makes it cheaper and more efficient to transport and exchange goods.

The humble container may look like a very simple production factor, but it is credited with radically improving trade efficiency, allowing a significant boost in economic growth and efficiency. Goods would be exported in a mixture of bags and boxes prior to the use of containers. This meant that it took longer to load and unload, and it was hard work. Before repacking for onward transportation, a large workforce was required to unload and sort the goods upon arrival.

The widespread use of containers has helped to reduce the cost of trade significantly.
It was possible to streamline the unloading of goods–less labor was needed, significantly increasing the productivity of labor. In 1965 dock labour could move just 1.7 tons an hour on a cargo ship; in an hour they could load 30 tons five years later (1970). The increased productivity of labour, which could also paralyze commerce, reduced the power of organized labor on the ship line. The principle of the container. If you increase a shape's surface area, the volume will increase at a rate greater than proportional. If you double the surface area, you can quadruple the amount of goods that can be transported. The new containers allowed this idea to be abused because they were larger than previous small boxes.

Containerisation has encouraged globalization, such as internet growth and the introduction of long-haul flights. Globalization has led to job shifts between cities, regions and countries. It also lowered consumers ' prices and allowed a much wider variety of goods to be sold to many markets. In addition to economies, globalization has affected the environment, politics, and culture. In these developments, the shipping container, a simple device developed to speed up the loading / unloading of goods, has played an important role.