While some have argued that ICT has been the major technological facilitator of economic
globalization, creating a ‘death of distance’ (Cairncross, 1997) or a ‘flat world’ (Friedman, 2005), this
perspective fails to fully appreciate the role of innovation in transportation, most notably
containerization (Levinson, 2006). It is through the standardization (in the 1970s) and massapplication
(since the late 1980s) of the shipping container that global transportation services could
be offered more cheaply and more reliably, while increasing the flexibility of distribution and delivery
of (semi-) finished goods. It is exactly the combination of both containerization and ICT that allowed
the reduction of shipping costs and the rise in importance of logistics and supply chain management
in the evolving global economy as described above. Despite this, the costs of transportation are still
considered marginal factors of declining importance, by many economists and geographers, in
explaining regional economic development outcomes. I would argue the opposite; it is specifically
differences in access to appropriate shipping infrastructure (such as seaports), logistics expertise and
appropriate government regulations that explains differences in regional development processes
within the global economy. What will become clear is that there is a paradox in global shipping:
economies of scale prevail in transport infrastructure, while economies of scope prevail in logistics.
Yet it is the combination of both that creates competitiveness.