Shipping Containerization, Born at Port Newark, Marks 70 Years

2/5/2026

Ask a hundred people what they believe to be the modern world’s most impactful inventions, and you’ll get a hundred different answers. The lightbulb. The smartphone. Antibiotics. Coffee.

Allow me to propose a completely different answer: The shipping container.

None of those previous answers get very far without the humble shipping container. It’s what you’re wearing. It’s what you’re sitting on. It’s the coffee in your mug and the phone in your pocket. It all spent time in a shipping container.

70 years ago this month, the invention that would come to reshape both the world’s economy and our region’s landscape was put into motion on the shores of Port Newark. It was all thanks to a trucker who was getting impatient.

Malcom McLean, right, and other dignitaries marked the world’s first container ship service on the shores of Port Newark in April 1956. Courtesy of the Containerization and Intermodal Institute.

For centuries, loading a ship meant workers using their hands: hauling individual crates, boxes, bales and barrels from ship to shore and back again. It took days, cost a fortune, and as you might expect, sometimes stuff went missing.

North Carolina truck driver Malcom McLean spent years watching this lumbering dance from his truck cab. He knew things could move faster. His idea seems like common sense now: Instead of hauling everything off of the ship and then putting it into a truck, just place the truck’s trailer onto the ship.

McLean retrofitted a World War II-era oil tanker to carry 58 steel containers, and on April 26, 1956, the SS Ideal-X left Port Newark bound for Houston. The idea quickly caught on, and shipping costs started dropping dramatically. Moving containers with cranes meant much less manpower was needed, and the quick turnaround times at the dock meant ships had more time to make more trips. 

The old way of doing things: hauling crates, boxes, bales and barrels from ship to shore and back again. Courtesy of the Containerization and Intermodal Institute

A television, a pair of sneakers, a piece of furniture, a car part, things that once cost a small fortune to move across an ocean, could suddenly travel thousands of miles for a fraction of the price. Today’s dominant companies, including Walmart and Amazon, owe their entire business strategies to the conveniences the shipping container unlocked.

After the Ideal-X’s maiden voyage, McLean made another, even more fateful move: He decided to give his container patents away for free. That enabled the entire world to operate on standardized equipment and measurements. His unassuming creation on the shores of New Jersey soon rippled across the world.

Malcom McLean watches over his new container operation. Courtesy of the Containerization and Intermodal Institute.

But the container didn’t come without other consequences. The same economics that made it cheaper to manufacture goods overseas contributed to a hollowing-out of American factory towns and industries, and the thousands of longshoremen who once worked the docks saw their numbers shrink dramatically within a generation. The ships and trucks that keep it all moving also carry a significant environmental cost. It’s a challenge we are actively working to address through ongoing investments in cleaner equipment and more sustainable operations, and we’ve committed to reaching net-zero carbon emissions across our facilities, including the seaport, by 2050.

As transformative as the shipping container was for the global economy, it also had a profound impact on the development of this region. For the first half of the 20th century, the coastlines of Manhattan, Brooklyn, Hoboken and Jersey City were filled with miles of piers jutting out from the shoreline, alongside workers who built livings and neighborhoods based on the old hauling-and-carrying methods. New York was put on the map thanks to its water access.

An aerial view of the Ideal-X and its 58 containers. Courtesy of the Containerization and Intermodal Institute

Container operations require a lot of space as boxes get stacked and sorted, space that wasn’t readily available in the densely packed city. As the container caught on, activity at those urban docks slowed down. Shipping’s center of gravity in the region gradually shifted to where more land was available – namely Port Newark, Elizabeth, and Staten Island.

At the Port Authority, it didn’t take long for us to go all-in on containerized shipping. Six years after McLean’s maiden voyage, and just down the shore from where it took place, we opened the Elizabeth Port Authority Marine Terminal in 1962, the world’s first purpose-built container terminal.

Six years after the Ideal-X’s voyage, the Port Authority opened the world’s first purpose-built container terminal, the Elizabeth-Port Authority Marine Terminal. Today, the equivalent of about 145 Ideal-X loads can arrive on a single ship.

58 containers left our port on McLean’s maiden voyage in 1956. Fast forward 70 years, and 4.9 million containers (8.9 million twenty-foot equivalent units, or TEUs, if you want to use the industry’s standard measurement) moved through the port in 2025, enough to make us the East Coast’s busiest port and among the top three busiest in the nation. A normal day might bring 8-10 ships into the port, each carrying the equivalent of around 145 Ideal-X loads.

Meanwhile, the land that containers rendered largely obsolete has since been turned into some of the region’s most cherished public spaces, including Brooklyn Bridge Park, Hudson River Park, and waterfront esplanades spanning Hoboken and Jersey City, along with thousands of new homes and apartments offering scenic views. At the same time, North Jersey took on the highways, warehouses, and logistics infrastructure needed to support the massive container operation growing along Newark Bay.

The next time you order something online and it shows up two days later, there’s a very long chain of events that made that possible. Follow it back far enough and you end up at Berth 24 in Port Newark. For all that has changed in the 70 years since, we’re still making use of McLean’s simple but revolutionary thought: just put the box on the ship.

💡 For Container Investors

70 years ago, 58 containers left Port Newark. Today: 4.9 million containers move through that same port annually. You're not investing in a commodity — you're invested in the infrastructure that makes world trade possible.

The container collapsed the cost of moving goods across oceans — and that demand only compounds. Every new trade deal, every e-commerce shipment, every new corridor runs through a container. 70 years of relevance and counting.

The world's first purpose-built container terminal opened at Port Newark in 1962. It's now the East Coast's busiest port. Trillions in global infrastructure are built around this one asset. Nothing has replaced it in 70 years.

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Container Shippers Embrace Dual-Fuel Vessels for a Greener Future

November 22, 2024

Container shipping companies, including Maersk, CMA CGM, and COSCO, are investing in dual-fuel vessels to reduce greenhouse gas emissions and comply with global regulations and customer expectations. 

These new ships are designed to operate on both traditional fuels and alternative options like liquefied natural gas (LNG), methanol, hydrogen, and ammonia. This strategy addresses the uncertainty surrounding the most viable green fuel for the future. Shipping contributes approximately 3% of global GHG emissions, necessitating significant investment and clear regulations to achieve decarbonization goals. 

While LNG is currently favored for its cleaner combustion, concerns about methane leaks persist. Companies are also exploring other fuels, such as green methanol and biofuels, and are advocating for global guidelines to support the transition to greener shipping practices

💡 Insights for Container Investors​

Increased Demand for Green Technology: The transition to dual-fuel vessels signals rising demand for alternative fuels and sustainable shipping solutions, presenting opportunities for container investors to focus on companies embracing green innovations.

Regulatory-Driven Growth: As global regulations push for decarbonization, companies investing in dual-fuel vessels are better positioned for compliance, reducing future risks and enhancing long-term profitability, benefiting investors.

Emerging Market Opportunities: The diversification into alternative fuels like LNG, methanol, and hydrogen creates potential growth sectors, allowing investors to align with businesses that innovate within the green shipping ecosystem.

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American port strike comes to an end

October 4, 2024

The American port strike has come to an end after the International Longshoremen’s Association (ILA) reached a tentative agreement with the United States Maritime Alliance (USMX). The deal includes a significant wage increase of around 62%, and the strike is suspended until January 2025 while further negotiations continue. This resolution allows work to resume at affected ports, helping to alleviate potential supply chain disruptions

💡 Insights for Container Investors​

• Improved Port Efficiency: With operations resuming, container congestion will decrease, allowing smoother import/export flow, which can lead to faster turnover for container assets and boost profitability.

• Stabilized Freight Rates: The strike's resolution helps prevent prolonged disruptions, which stabilizes freight rates, protecting container investors from volatile rate spikes that could hurt long-term contracts.

• Renewed Confidence in Supply Chain: The swift resolution of the strike reassures businesses relying on U.S. ports, encouraging more container usage and long-term demand for shipping infrastructure investments.

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Ship queue grows at US ports as dockworker strike enters third day

October 3, 2024

A major dockworker strike, the largest in nearly 50 years, has caused long queues of container ships at U.S. East and Gulf Coast ports. The strike, involving 45,000 workers, began after contract talks between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance broke down. The dispute centres on pay raises and automation concerns.

With 45 ships waiting to unload, disruptions could worsen if no agreement is reached, leading to potential shortages and economic impacts. The Biden administration supports the union, increasing pressure on port employers.

💡 Insights for Container Investors​

• Increased Demand for Container Storage: With delays at ports, containers may be stuck longer on ships, creating opportunities for storage solutions and premium pricing for those offering space.

• Potential Surge in Freight Rates: Prolonged congestion and limited unloading capacity could drive up freight rates, benefiting investors involved in container leasing.

• West Coast Diversion Opportunities: As companies consider rerouting to West Coast ports, investors in container transport services on these routes might see a rise in demand and profits.

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American Port Union Intensifies Anti-Automation Stance Amid Negotiations

October 7, 2024

The International Longshoremen’s Association (ILA) has reinforced its opposition to port automation following a temporary resolution to recent strikes on the US East and Gulf coasts. While a tentative wage agreement has been reached, the union is pushing to ensure protections against the use of automated machinery in future negotiations. This anti-automation stance could hinder efforts to improve US port competitiveness, which lags behind global counterparts in efficiency rankings.

💡 Insights:​

• Limited Port Automation: The union's strong opposition to automation could slow technological upgrades, increasing reliance on manual labor, potentially boosting demand for container handling services and creating investment opportunities in the human resources sector.

• Operational Delays: With fewer automated systems, there could be more bottlenecks, driving up transportation costs, which could lead to higher shipping rates and benefit investors in the logistics and container shipping sectors.

• Competitive Edge: Ports slow to adopt automation may face reduced productivity, allowing more efficient global ports to capture market share, benefiting container investors targeting those regions.

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Gulf Coast Ports See Sharp Rise in Container Volumes for August

September 30, 2024

Gulf Coast ports, including Houston and New Orleans, reported a surge in container volumes in August 2024. Port Houston saw a 20% year-over-year increase, handling 367,653 TEUs, while the Port of New Orleans recorded a 36% rise in container movements. This growth comes despite concerns about potential labour strikes, and is driven by exports of petrochemical products and manufactured goods. Meanwhile, the Port of Corpus Christi saw a modest 1% increase in overall cargo, with crude oil exports up 2% year over year.

💡 Insights:​

• Increased Shipping Demand: The surge in container volumes at Gulf Coast ports reflects strong trade activity, benefiting container investors by driving up demand for shipping services and container leasing.

• Strategic Growth Area: Gulf Coast ports' growth, particularly in exporting petrochemicals and manufactured goods, highlights investment opportunities in logistics and port infrastructure.

• Potential for Higher Revenues: With increased throughput, ports like Houston and New Orleans may generate higher revenues, offering potential returns for investors in port-related stocks or infrastructure funds.

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Why Globalisation Continues to Thrive in a Changing World

September 19, 2024

Globalisation is still thriving, driven by digital connectivity, resilient global supply chains, and increased economic interdependence. Technological advancements, such as e-commerce and remote work, have strengthened global ties. Despite political tensions, trade remains strong, especially between major economies like the US and China.

Additionally, cultural exchange and migration contribute to a globalised society, while global corporations and collective responses to challenges like climate change and pandemics further underline the ongoing relevance of globalisation.

💡 Insights for Container Investors​

• Continued Trade Growth: Despite global tensions, trade between key economies like the US and China remains strong, driving demand for container shipping.

• Digital Connectivity Boost: E-commerce and remote work fuel international shipments, increasing the need for container transport to support global supply chains.

• Resilience Amid Challenges: Globalisation’s persistence through crises like pandemics and climate change highlights opportunities for container investors to benefit from stable, long-term demand.

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Russian Oil Price Cap Under Scrutiny as Prices Drop

September 16, 2024

The Russian oil price cap, introduced by the EU, G7, and Australia in 2022, is under scrutiny as oil prices, especially for Russian Urals, near the $60 per barrel cap.

If prices exceed this limit, Western shipowners may return to transporting Russian oil, which could benefit the mainstream tanker market and marginalize older, poorly maintained vessels in the “dark fleet.”

This shift is expected to reduce environmental risks from these less regulated ships.

💡 Insights for Container Investors​

- Increased Demand for Tankers: If Western shipowners re-enter the market, it could create higher demand for container vessels, driving up their value.

- Improved Market Conditions: A reduction in the use of "dark fleet" vessels could improve market standards, benefiting more compliant and efficient container investors.

- Reduced Environmental Risks: With fewer unregulated vessels, there may be fewer environmental and operational risks, leading to better long-term sustainability for container investments.

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China Unveils Record-Breaking 27,500 TEU Dual-Fuel Boxship Design at SMM

September 6, 2024

China State Shipbuilding Corporation (CSSC) unveiled a groundbreaking design for a 27,500 TEU LNG dual-fuel containership at the SMM exhibition in Hamburg.

This design, larger by 3,000 TEU than the current biggest ships, marks a new milestone in container shipping. While the trend in recent orders focuses on more flexible, smaller ships, this new design targets the Asia-Europe routes, offering greater capacity. The SMM event, focusing on maritime energy transitions and digital transformation, attracted over 2,000 international exhibitors.

📌 Insights for Container Investors

- The debut of a 27,500 TEU containership design signals the potential for greater capacity on key trade routes, offering investors opportunities tied to higher shipment volumes.

- LNG dual-fuel technology in this design aligns with global sustainability trends, attracting investors interested in green shipping innovations.

- As larger ships reduce per-unit shipping costs, investors can benefit from improved margins for container shipping companies operating these mega vessels, particularly on high-traffic Asia-Europe routes.

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Container Shipping Profits Surge Amid Record Volumes and Rising Freight Rates

September 3, 2024

The global container shipping industry saw profits soar to over $10 billion in Q2 2024, driven by record shipping volumes and rising freight rates. Major carriers like Maersk and Cosco benefited from tight capacity caused by Red Sea disruptions. Container volumes hit an all-time high of 46.4 million units, surpassing the previous 2021 record.

U.S. demand remains strong as retailers stock up, anticipating potential tariffs and strikes. While profits have rebounded, they remain below pandemic-era peaks.

📌 Insights for Container Investors

- Rising shipping volumes and higher freight rates are boosting profits for container carriers, presenting strong growth opportunities for investors.

- Global supply chain disruptions have tightened capacity, driving increased demand and improving the profitability outlook for key industry players.

- Investors can capitalize on sustained U.S. demand, as retailers continue to stock up, anticipating potential market shifts, which could further elevate shipping rates and company earnings.

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