May 21, 2019

IT'S IMPOSSIBLE TO OVERSTATE DEFLATION:

Heroes of Progress, Pt. 17: Malcom McLean (Alexander C. R. Hammond, 5/03/19,  @HumanProgress) 

Our 17th Hero of Progress is Malcom McLean, an American truck driver and, later, businessman who developed the modern intermodal shipping container. McLean's development of standardized shipping containers significantly reduced the cost of transporting cargo across the world. Lower shipping costs significantly boosted international trade which, in turn, helped to lift hundreds of millions of people out of poverty. McLean's "containerization" remains a vital pillar of our interconnected global economy today.

Before McLean developed the standardized shipping container, nearly all the world's cargo was transported in a diverse assortment of barrels, boxes, bags, crates and drums. A typical ship in the pre-container era contained as many as 200,000 individual pieces of cargo that were loaded onto the ship by hand. The time it took to load and unload the cargo often equaled the time that the ship needed to sail between ports. That inefficiency contributed to keeping the cost of shipping very high. This is where McLean enters our story. [...]

In 1956, hand-loading cargo onto a ship in a U.S. port cost $5.86 per ton ($55.58 in today's money). By 2006, shipping containers reduced that price to just 16 cents per ton ($0.21 in today's money). HumanProgress' Board Member Matt Ridley has noted that "the development of containerization in the 1950s made the loading and unloading of ships roughly twenty-times as fast and thereby dramatically lowered the cost of trade."



Posted by at May 21, 2019 12:02 AM

  

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