Odd Lots Why the Cost of Shipping Goods From China Is Suddenly Soaring
Jan 18, 2021
In this insightful discussion, economist and historian Marc Levinson sheds light on the ongoing global shipping crisis that intensified since the pandemic. He reveals how shipping costs from China have skyrocketed, quadrupling on some routes due to rising demand. Levinson also explores the intricate dynamics of shipping contracts, the dominance of major alliances in the industry, and the inefficiencies brought about by larger vessels. Plus, he discusses the humanitarian concerns affecting crew members caught in this turmoil.
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Origin of "The Box"
- Marc Levinson's interest in trade, not shipping, led him to write "The Box."
- He wanted to explore how transport costs and reliability impacted trade, a factor often overlooked by economists.
Containers and Globalization
- Standardized containers revolutionized globalization by enabling long-distance value chains.
- Shipping intermediate goods became feasible, transforming global trade.
Containerization History
- Container standardization required significant investment and time, evolving from the 18th century.
- Malcolm McLean's system approach in 1956, linking ships, rail, and trucks, was key.
