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.