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THE BOX

Marc Levinson

How the Shipping Container Made the World Smaller and the World Economy Bigger

In April 1956, a refitted oil tanker carried fifty-eight shipping containers from Newark to Houston. From that modest beginning, container shipping developed into a huge industry that made the boom in global trade possible. The Box tells the dramatic story of the container's creation, the decade of struggle before it was widely adopted, and the sweeping economic consequences of the sharp fall in transportation costs that containerization brought about.

But the container didn't just happen. Its adoption required huge sums of money, both from private investors and from ports that aspired to be on the leading edge of a new technology. It required years of high-stakes bargaining with two of the titans of organized labor, Harry Bridges and Teddy Gleason, as well as delicate negotiations on standards that made it possible for almost any container to travel on any truck or train or ship. Ultimately, it took McLean's success in supplying U.S. forces in Vietnam to persuade the world of the container's potential.

Drawing on previously neglected sources, economist Marc Levinson shows how the container transformed economic geography, devastating traditional ports such as New York and London and fueling the growth of previously obscure ones, such as Oakland. By making shipping so cheap that industry could locate factories far from its customers, the container paved the way for Asia to become the world's workshop and brought consumers a previously unimaginable variety of low-cost products from around the globe.

Published in hardcover on the fiftieth anniversary of the first container voyage, this is the first comprehensive history of the shipping container. Now with a new chapter, The Box tells the dramatic story of how the drive and imagination of an iconoclastic entrepreneur turned containerization from an impractical idea into a phenomenon that transformed economic geography, slashed transportation costs, and made the boom in global trade possible.

Marc Levinson is an economist in Washington, DC. He was formerly a senior fellow at the Council on Foreign Relations, an economist at a leading investment bank, and finance and economics editor at The Economist.
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Published 2006-04-01 by Princeton University Press

Comments

Like much of today's international cargo, Marc Levinson's The Box arrives 'just in time.'. . . It is a tribute to the box itself that far-off places matter so much to us now: It has eased trade, sped up delivery, lowered prices and widened the offering of goods everywhere. Not bad for something so simple and self-contained.

[A] smart, engaging book. . . . Mr. Levinson makes a persuasive case that the container has been woefully underappreciated. . . . [T]he story he tells is that of a classic disruptive technology: the world worked in one fashion before the container came onto the scene, and in a completely different fashion after it took hold.

The Box is . . . an engrossing read. . . . The book is well-written, with detailed notes and an index. I found it absorbing and informative from the first page.

By artfully weaving together the nuts and bolts of what happened at which port with the grand sweep of economic history, Levinson has produced a marvelous read for anyone who cares about how the interconnected world economy came to be.

This is an ingenious analysis of containerization--a process that, Levinson argues, in fact made globalization possible.

Mr Levinson. . . . makes a strong case that it was McLean's thinking that led to modern-day containerisation. It altered the economics of shipping and with that the flow of world trade. Without the container, there would be no globalization.

Ingenious analysis of the phenomenon of containerism.

This is a smoothly written history of the ocean shipping container. . . . Marc Levinson turns it into a fascinating economic history of the last 50 years that helps us to understand globalization and industrial growth in North America.

Marc Levinson's concern is business history on a grand scale. He tells a moral tale. There are villains ... and there is one larger than life hero: Malcom McLean. . . . Levinson has produced a fascinating exposition of the romance of the steel container. I'll never look at a truck in the same way again. (Howard Davies)

For sheer originality . . . [this book] by Marc Levinson, is hard to beat. The Box explains how the modern era of globalization was made possible, not by politicians agreeing to cut trade tariffs and quotas, but by the humble shipping container.