Containerisation Flashcards
(12 cards)
Q1: What is containerisation?
A: Containerisation is the standardised use of large metal containers (usually 20 or 40 feet long) to transport goods by sea, land, and rail. It revolutionised shipping in the mid-20th century by allowing goods to be moved more efficiently and securely.
Q2: When did containerisation begin?
A: Containerisation began in the 1950s, with major adoption from the 1960s onward. It was pioneered by American businessman Malcom McLean.
Q3: How has containerisation changed global trade?
A: It drastically reduced transport time and cost, making global trade faster, cheaper, and more efficient. It enabled the rise of global value chains and just-in-time production.
Q4: Why is containerisation considered essential to globalisation?
A: It underpins globalisation by enabling mass, efficient movement of goods across long distances, connecting production centres (e.g. China) to consumption markets (e.g. the US or EU).
Q5: What is the role of ports in containerisation?
A: Major ports like Shanghai, Singapore, Rotterdam, and Los Angeles are global hubs for containerised trade. These ports are equipped with cranes, logistics zones, and intermodal connections.
Q6: How did containerisation affect transport costs?
A: It reduced loading costs by over 90%—from about $5.83 per ton in 1956 to under $0.16 per ton with containers.
Q7: How has containerisation contributed to the New International Division of Labour (NIDL)?
A: By lowering transport costs, containerisation made it profitable to relocate manufacturing to low-cost countries (e.g. Bangladesh, Vietnam), reinforcing the core-periphery model of development.
Q8: What are the environmental consequences of containerisation?
A: Container ships are major emitters of CO₂ and pollutants. The largest ships can emit as much sulphur as millions of cars. It also contributes to underwater noise and marine litter from accidents.
Q9: Is containerisation accessible to all countries equally?
A: No. Landlocked and poorly connected countries often lack access to containerised networks, increasing their trade costs and limiting integration into global supply chains.
Q10: How significant is containerisation compared to digital globalisation?
A: While containerisation revolutionised goods trade, digital globalisation (data, services) is now growing faster. However, physical goods trade still dominates global value chains, so containerisation remains vital.
Q11: How did COVID-19 highlight vulnerabilities in containerised trade?
A: It revealed dependencies and fragilities, with port closures in China causing global shipping delays. Freight rates tripled between 2020–2021, highlighting how crucial containerisation is to global stability.
Q12: Could emerging technologies replace containerisation?
A: Technologies like 3D printing may localise some production, but for now, containerisation remains essential due to the scale and cost-efficiency of bulk global shipping.
