why is containerization is so important to trade?

Question

why is containerization is so important to trade?

Answer 1

Containerization is one example of standardization. Standardization attempts to solve coordination and matchmaking problems.



The introduction of containers resulted in vast improvements in port handling efficiency, thus lowering costs and helping lower freight charges and, in turn, boosting trade flows. Almost every manufactured product humans consume spends some time in a container.



Sometimes an interemediary can solve matching problems, another example is using money as a means of exchange to match buyers and sellers, rather than barter trade.

Answer 2

Importance Of Containerization

Answer 3

Before anyone starts liverpool now handles more cargo through containerisation than it has handled ever including the 1939/45 period particularly in the run up to D-day. Thatis about 30 million tonnes per year The docks are not the whole problem because liverpool had a fair manufacturing base within it's hinterland which needed vast quantities of raw materials to be imported not only for the Liverpool Area but for the rest of the country. In turn many of these goods were then exported through Liverpool which made it one of the wealthiest cities outside london in the 19th century, the poverty alongside that is a different issue. During the 20th century countries which had relied on british manufactures started to make their own or find other suppliers particularly during the two world wars and with labour costs being cheaper became reluctant to purchase from UK which had to specialise but in turn so did the merging economies after WW ll Hence a further decline. This meant that fewer raw materials were needed for British industry which in turn needed less coal and that which it did need was cheaper from abroad and had to be used by British industry in order to keep at least a toe hold in the markets. These things have knock on effects in all sorts of unexpected places. Workers become bothered about their jobs and engage in restrictive practises to try to save them. This works for a while but increases costs and so jobs are lost anyway. As jobs are lost in say "main" industries there is again the fear of increased job losses and a lessening of potential earnings. (I'm poorly paid and can hardly afford a roof over my head will get you nowhere in Tesco's) This causes distrust between management and the workforce many of the older ones having been hit very hard during the slump of the 1930's which even second and 3rd generations brought up after that were determined it was not going to happen to them without a fight. Again this increased cost and made the area less competitive. Many will just blame the unions but the truth is far more complex than that and political interference (not just from the government of the day but from non government organisations trying to gain political advantage playing on the fears and needs of people who are aware that they are vulnerable. in addition and maybe because of that local Industries were slow to embrace modernisation and have paid the price. The port has long embraced new equipment but sometimes it has not only be the workforce which has resisted new ideas but management has failed to do so and has also lacked leadership qualities, a fault which has and is I think being slowly corrected often with some pain to both sides of the Industrial fence. One thing which did not help the port and caused problems for a few years was the Rochdale Report of about 1965 which recommended that Liverpool did not invest in Containerisation but continued with general cargo. It cost about 10 years and as you know there is very little general cargo these days. I am sure thathere are other factors but this is the best i can do without proper research.