Who would have guessed that the container business, as we know it today, had a hard time to start up? A business which is so busy, we rely on so much and is used by every person on this planet, even if they are not aware of it, was struggling to convince the logistic industry of the time and cost saving method of this revolutionary approach. All the goods we buy, lease or borrow somehow all come out of containers and be it the parts or ingredients they are made of.
The man who had a very hard time to root his business in the global logistics industry could not convince the logistics industry that this approach is more profitable or that it even adds value to the world of logistics. Malcom Mc Lean had a very difficult time to find partners or a company that would try his new method: shipping marine freight, rail freight or truck freight using metal containers. The majority did not believe in this efficient and logic solution and to transport freight safely from port to port and then to the final destination without sorting and reloading the goods in crates into trucks, on trains or planes disturbed their traditional way of doing business. They rather switched to larger slingloads, palletization and mechanical conveyor belts.
The logistics industry just did not see the benefit of one container being faster unloaded from a ship then 1001 crates or pallets and that a container does not require being opened in transit between shipper and consignee, seemed to be a strange idea. The transfer itself being intermodal, among trucks, ships and railroad cars seemed unreal. Additionally there were not many ports equipped with cranes that could unload the containers from the ships, this would have been a new investment and ships would have been reconstructed also the union was fighting the container shipping because it was endangering their bread and butter.
It was not until the U.S. Army was suffering delays during the Vietnam war in the 1960's due to long unloading times that Malcom McLean really could take off. Being able to service the U.S. Army more efficiently and much faster than anyone of his competitors could and also reducing servicing and docking fees and unloading costs was the final break through.
McLean was pushing hard for a standardization in the container shipping industry. He offered standardized container designs that were awarded patent protection and making his patents available by issuing a royalty-free lease to the Industrial Organization for Standardization (ISO).
One man can indeed have an enormous impact when we see what McLean finally had achieved and influenced. Port and ship productivity was increased due to the use of large containers holding the goods and synchronically it reduced the cost to import goods. He made possible that the industry could build factories in Asia or other continents and producing their goods cheaper, which offered consumers a previously unknown variety of products from around the world for better pricing.
Constantly improving and streamlining the way modern logistics is handled and by offering now electronic Warehouse Management and the Tracing of cargo makes the work more efficient and saves tons of time. Door-to-door sea freight transportation is reliably and cost efficiently handled due to strong global networks. As any industry the logistic industry had to adapt to new processes and methods and by doing so is greatly benefiting from it. |
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