Founders
Episode 61 #61 Malcom McLean: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger
Founders

Episode 61: #61 Malcom McLean: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

Founders

Episode 61

#61 Malcom McLean: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

David Senra is the host of Founders, where he studies history's greatest entrepreneurs. This is what he learned from reading The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger.

What I learned from reading The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger.

---

Subscribe to listen to Founders Premium — Subscribers can listen to Ask Me Anything (AMA) episodes and every bonus episode. 

---

Such was the beginning of a revolution [0:01]

The economic benefits arise not from innovation itself, but from the entrepreneurs who eventually discover ways to put innovations to practical use. [15:30]

the basic idea was around for decades [17:30]

Malcom's early life and first business [23:00]

McLean had an obsessive focus on cutting costs [33:00]

the beginning of Malcom McLean's idea [37:00]

McLean's definition of total commitment [41:00]

McLean's fundamental insight [48:00]

fixing the business by focusing on the customer's real problem [53:40]

the surprising reason containers are standardized [1:00:00]

Daniel K. Ludwig and Malcom McLean [1:07:00]

Malcom McLean sells his business [1:13:00]

Starting another business [1:21:00]

#61 Malcom McLean: The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

Introduction

On April 26, 1956, a crane lifted 58 aluminum truck bodies aboard an aging tanker ship moored in Newark, New Jersey. Five days later, the Ideal X sailed into Houston, where 58 trucks waited to take on the metal boxes and haul them to their destinations, such was the beginning of a revolution. Decades later when enormous trailer trucks rule the highways and trains hauling nothing but stacks of boxes rumble through the night, it is hard to fathom just how much the container has changed the world. In 1956, China was not the world's workshop. It was not routine for shoppers to find Brazilian shoes and Mexican vacuum cleaners in stores in the middle of Kansas.

Japanese families did not eat beef from cattle raised in Wyoming, and French clothing designers did not have their exclusive apparel cut and sewn in Turkey or Vietnam. Before the container, transporting goods was expensive, so expensive that it did not pay to ship many things halfway across the country, much less halfway across the world. What is it about the container that is so important? Surely, not the thing itself, a soulless aluminum or steel box held together with welds and rivets, with a wooden floor and 2 enormous doors at one end, the standard container has all the romance of a tin can. The value of this utilitarian object lies not in what it is, but in how it is used. The container is at the core of a highly automated system for moving goods from anywhere to anywhere with a minimum of cost and complication on the way.

Access the full transcript
Sign in or register to view episode transcripts.

Contact

Get in touch at help@joincollossus.com