international commerce

Global shipping: What it costs

May 16, 2012: 6:41 AM ET

Thanks to automation and economies of scale, global goods are getting cheaper to ship.

By Anne VanderMey; graphics, Nicholas Rapp

FORTUNE -- Next year the Danish shipping giant Maersk will launch the largest container ship in the world, the 1,312-foot EEE class. Though only a few feet longer than today's biggest ships, it is designed to hold 18,000 containers, some 2,500 more than the largest vessels today can hold. As ships have gotten bigger, economies of scale have improved, and the cost of shipping has dropped dramatically over the past few decades. It costs only $1.50 to move a DVD player from China to the U.S. Oil, grain, and iron ore are more expensive because ships make the return trip empty. The route counts too. Carriers charge for the risk incurred by passing through piracy hotspots such as the Gulf of Aden between Somalia and Yemen. Transport costs for Africa are the highest in the world, while costs in developed nations are the lowest, thanks to automated ports (soon to feature robotic stevedores) that cut labor costs and increase efficiency.

For more on the future of shipping, click on the links below

Intro
What it costs
A booming network
A bigger, better box
Ports go high-tech

This story is from the May 21, 2012 issue of Fortune.

  • The future of global shipping

    Almost 90% of all goods traded across borders travel by sea.  Here's a look at how they get from point A to point B and everywhere in between.

    By Anne VanderMey; graphics, Nicholas Rapp

    FORTUNE -- Not since 1956, when a North Carolina truck driver named Malcom McLean created a standard-size container for cargo, has global shipping seen such radical change. Carriers are bigger than ever, ports are becoming automated, and MORE

    May 16, 2012 6:40 AM ET
  • Shipping containers: A bigger, better box

    The basic unit of global trade is being updated for high-tech commerce.

    By Anne VanderMey; graphics, Nicholas Rapp

    It's not simply a steel box. Globally, shipping containers carried some 1.5 billion tons of goods last year across the ocean, and some 17 million flow in and out of all ports annually. The container, like everything in the industry, is bigger than before -- generally double its original size (see illustration). It's MORE

    May 16, 2012 6:39 AM ET
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