AIn April 1956, a converted oil tanker called the Ideal X left the port of Newark, New Jersey, bound for Houston. On its deck were fifty-eight large metal boxes. The voyage attracted little attention at the time, yet it is now often described as the beginning of a revolution in world trade. The man behind it, a trucking entrepreneur named Malcolm McLean, had grasped a simple idea: goods could be moved far more efficiently if they were packed once, at the factory, and not unpacked again until they reached their destination.
BBefore containers, most cargo was handled as “break-bulk”: sacks, barrels, crates and bundles of every size, loaded and unloaded piece by piece. A single ship could carry many thousands of separate items, each of which had to be counted, lifted and stowed. A cargo ship might spend almost as long in port as it did at sea, while teams of dockworkers carried goods between the quay and the hold. The process was slow, labour-intensive and costly, and theft and damage were common. For many goods, loading and unloading made up a large share of the total cost of shipping, so that distance mattered less than the number of times cargo had to be handled.
CThe container did not succeed immediately. Ports, railways and trucking firms had invested heavily in the old methods, and dockworkers' unions, fearing for their members' jobs, resisted the change. Equally serious was the absence of common standards. Early shipping companies used boxes of different sizes and with different fittings, which meant that a container belonging to one company could not easily be carried by another's ships or lifted by its cranes. It was only in the late 1960s, after lengthy negotiations, that international standards for container dimensions and corner fittings began to be widely adopted.
DOnce standardisation was achieved, the effects were dramatic. Specialised ships carrying thousands of containers could be loaded and unloaded in a fraction of the time previously required, and the same box could move from ship to train to truck without its contents being touched. The cost of moving goods across oceans fell sharply. Ports that had once needed hundreds of workers to unload a single vessel could now do the job with a small crew operating giant cranes. Manufacturers no longer needed to be located near their customers, and supply chains began to stretch across continents, with components made in one country, assembled in a second and sold in a third.
EThe benefits were not evenly shared. Container ships required deep water, large areas of flat land for storing boxes, and good road and rail connections, which many historic city-centre docks could not provide. In cities such as London and New York, traditional docks declined as new container terminals were built elsewhere, and employment in port work fell steeply. Neighbourhoods that had depended on the waterfront for generations experienced long periods of economic decline. Some of these areas have since been redeveloped as housing, offices and leisure districts, but the change took decades.
FEconomists still debate how much of the growth in world trade since the 1960s should be attributed to the container, as opposed to falling tariffs and other developments. What is less disputed is that the humble metal box changed not only how goods travel but where they are made. In that sense, its influence extends well beyond the docks: much of the modern global economy has been shaped by a technology that most consumers never think about.