The Legacy of Malcom P. McLean
In the mid-20th century, the shipping industry relied on inefficient manual labor and cargo handling practices. With other innovations in other industries taking hold, the maritime sector was primarily stuck in the past.
Then came Malcom P. McLean, an American businessman born to a North Carolina farming family, whose revolutionary innovation not only helped forge his path to success but completely reshaped global commerce.
The Beginning
Known as the father of containerization, McLean invented what we know as containerized cargo – an independent container placed in a truck bed on wheels, removable from the truck, and stackable on barges for more efficient transportation. McLean’s invention has changed how freight is transported forever.
In 1934, McLean started a small trucking company transporting farm supplies and goods to assist his family during the Great Depression. A small venture to help get by in times of hardship soon became a successful business.
By 1940, the company had expanded to 30 trucks, and a decade later, McLean Trucking had grown to a company worth $12 million with over 1,700 trucks. At the time, it was the largest trucking firm in the southeast and the fifth largest in the country.
However, seven railroads accused him of violating the Interstate Commerce Act, stating that he needed the Interstate Commerce Commission’s approval to own two or more carriers with a common interest, so McLean sold his business.
The Revolution
In 1955, he bought two oil tankers and secured a bank loan to purchase docking, shipbuilding, and repair facilities worth $42 million. He would invent container shipping, refit the ships, and design trailers to stack below or on decks.
He then purchased the Pan-Atlantic Steamship Company and renamed it Sea-Land Industries – this way, trucks could transport goods to ports with his containers.
By 1956, McLean was ready to send his first ship with his new containers abroad. His ship, Ideal X, departed Port Newark in New Jersey with 58 containers destined for the Port of Houston in Texas.
Others in the industry were so impressed by McLean’s invention because cargo shipped faster and cheaper.
What would typically take over a week, loading and unloading cargo now took a matter of days, which lowered labor costs and overall shipping costs for businesses.
The Port Authority of New York decided to develop a new container port in Elizabeth, NJ, solidifying cargo shipping as a primary method in the industry.
McLean’s invention was beneficial during the Vietnam War, helping to transport essentials at a quicker rate. This eventually expanded trade into Asia and increased trade between the U.S. and China.
However, the Vietnam War called for the standardization of container sizes. Thus, TEU, or the twenty-foot equivalent unit, was born and is still the standard today.
The Legacy
By the end of the 20th century, container shipping was transporting 90% of the world’s trade cargo, and it still is today. McLean’s invention of container shipping revolutionized the transportation and logistics industry and propelled it into the future.
Container shipping makes transporting goods, whether across the country or the world, a faster and safer method.
Nearly every imported consumer good owes its lower price to McLean’s container revolution. Malcom McLean passed away in 2001, but his impact still stands strong.
Thanks to McLean and his vision for change and efficiency, the global supply chain is as powerful as it is today.
