Geography Reference
In-Depth Information
Containerization
As suggested in the discussion of labor costs, a company, such as an American athletic shoe manufac-
turer, may operate a factory in a foreign country in order to take advantage of low-cost labor. But if
the finished shoes are not accessible to the American market — that is, if they cannot then be shipped
to the United States cheaply and efficiently — then the whole purpose of manufacturing the product
overseas is rendered pointless.
Figure 15-7 illustrates
containerization,
the shipping of goods in large metallic containers that can be
loaded and off-loaded from ships directly onto tractor-trailer trucks for onward transportation to the
final destination. This technology has revolutionized maritime trade by
Reducing loading and unloading time of ships from days to hours
Facilitating prompt delivery of goods
Reducing pilferage and breakage that occurred when goods were loaded and unloaded bit
by bit from ship's holds
Figure 15-7:
A
container ship
unloads at port.
Special port facilities are required for the loading and unloading of containers. For that athletic shoe
manufacturer, therefore, finding a country that offers cheap labor may not be enough. It may also
have to have a containerization port facility to make foreign manufacturing sufficiently profitable.
