Dealing with globalisation at the regional and local level: the case of contemporary containerization

This paper considers the challenges that ocean container companies face in developing global operations in the ocean and land realms. The recent horizontal and vertical integration of the ocean carriers and the subsequent formation of global networks have taken place for the transport of goods at sea. Conformity in operations is to be expected in the globalisation process; however, there is less conformity of operations on land. The cooperation strategies at sea appear to break down when the goods reach the port. Each shipping company has its own network of agents and agreements with shippers, freight forwarders or land transportation companies to handle goods on land. Each also has varying logistics provision abilities. Moreover, the land areas vary according to simple geography, economic development, transport infrastructure and institutional constraints. Of these differences, we suggest that institutional constraints create the greatest challenge to the ocean carriers adopting a universal land strategy to service their customers. The paper focuses on three major areas for containerisation—East Asia, Northwest Europe and North America—and draws on interviews conducted with shipping industry executives in Norfolk (Va.), Rotterdam, Le Havre, Hong Kong and Singapore. The paper ends with a look at the land operations of Maersk Sealand as an example of a company with varying capabilities and strategies for the landward transport of containers.