Diffusion Cycle of Containerization

Containerization is evocative of a standard diffusion curve concerning four major phases:

• Adoption. In the early 1960s, containerization was yet an unproven technology with a few competing standards in terms of size of latching systems. The services offered were specific (point to point). Still, containerization demonstrated that it was achieving productivity gains since it involved a much more efficient form of transshipment.
• Acceleration. In the early 1970s, containerization finally became a recognized and emerging form of transportation. New services and consequently new networks were being established, which multiplied its productivity, with growing volumes and the beginning of the application of economies of scale, both at the modes and at the terminals. Pendulum services, which would become the standard network configuration for containerized maritime shipping, were being set.
• Peak Growth. By the 1990s, containerization became the dominant support of global trade and of globalization. Its diffusion was massive, particularly in newly industrializing economies such as China. Network development was facing growing complexities, which led to the setting of major intermediate hubs reconciling regional and global shipping networks.
• Maturity. In a phase a maturity, growth is much less related to diffusion but with standard economic cycles and the exploitation of remaining niches, such as the containerization of commodities.

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Copyright © 1998-2012, Dr. Jean-Paul Rodrigue, Dept. of Global Studies & Geography, Hofstra University, New York, USA.
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