Imagine

On April 26, 1956, less than 1 year after I was born, a converted World War II tanker named Ideal X, made its maiden voyage from Newark to Houston carrying the first 58 metal shipping containers.  By the time it docked in Houston some six days later, Malcolm McLean was already taking orders to ship goods back to Port Newark in containers.

Just 5 years later in 1961, the International Organization for Standards (ISO) set the standards for these most commonly used steamship containers, the same containers we use to this day.  There were many challenges along the way.  Imagine setting standards for chassis, container chassis locks, and gantry cranes.  Imagine overcoming the opposition raised by existing equipment owners and organized labor. Imagine facing the huge risks financing these costly containers posed.

What we know is that it took more than a great idea. It took great men, great leaders to triumph over every obstacle, every objection.  It took courage to financially back the idea and vision to work collaboratively to share the standards that would create the global system that we use today.

Imagine for a moment what the world would look like today if this standardization had not taken place.  Almost every facet of our lives and daily commerce that we take for granted would be affected.  We truly owe those visionaries and leaders a great debt of gratitude.

Containerization & The Domestic Household Goods Moving Industry

Interestingly, containerization in our domestic moving industry has been around almost as long.  Recent realities like driver shortages, environmental issues and the erosion of our market share to self storage, portable storage, Do IT Yourself and non traditional containerized transport operators are causing us to look at containerization again for domestic long distance moving solutions, hopefully with a different view this time.

Perhaps this time, we might look at it with the benefit of hindsight and consider the successful models used by steamship and rail lines.  We really don’t have to reinvent this wheel.

In fact, I suggest that we should piggyback on those successful models, which already form the backbone of our transportation infrastructure.  If we are looking for modular standards that will help us deploy existing truck, rail and ocean freight capacities in favor of our current model of a single power unit pulling a single moving trailer, then let’s start by understanding that successful models already exist.

Since we are examining existing wheels which seem to work very successfully, let us not forget that hundreds of thousands of international moves are being handled every year utilizing ISO-standard ocean and rail containers.  Transit insurance companies will tell you that the claims incidence is not any worse than domestic blanket-wrapped shipments in specially equipped air ride suspension vans with tiedowns.  In fact, they might even say that the claims experience and packing standards are better.  Yes, the skill sets in loading an international shipment are different but let us leave that subject to the side while we imagine.

Speaking of successful working models, what about the US military and US Department of State moving programs which mandate that shipments be packed in fairly standard-sized lift vans?  Again, hundreds of thousands of shipments every year are moved fairly efficiently with not much difference in claims rates.  Curiously, the standard size seems to be modular.  10 will fit quite neatly with not too much waste in a standard ISO 40 foot container.

Yes, it is true that not all household items will fit in those lift vans but the industry has adapted successfully.  Just ask the hundreds of thousands of customers that were moved in such containers last year.

Imagine

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Let us suspend disbelief for a few moments and imagine a world in which our industry leaders could take those cards pressed so closely to their chests for competitive advantage to loosen their grip in favor of collaboration and common benefit.  Perhaps with the spirit of those pioneers who paved the way for standardization in the ocean freight industry, we could sit down together and put those cards on the table.

I think we would be surprised to see how similar our cards are and hopefully we could take one step toward collaborating on a modular industry standard that would allow for the economies of scale, interchangeability and efficiency required to overcome the high asset cost, asset tracking and container repositioning issues which have caused repeated failures in the past.

Hopefully, we could hold back the emotions that seem to color the discussions about paper pad-wrapped shipments in ISO containers or lift vans transported intermodally.  The conclusions that these methods are too expensive or that the claims ratios are too high are just not supported by the hundreds of thousands of international shipments that move in exactly that way.

Conclusion

If we fail to collaborate toward global industry standards, the danger is that we will continue down the path of cannibalizing our own businesses. Efficiency gains are the only answer and we have extracted enough concessions from our Owner Operators.  They are now voting with their feet.

While it is clear that the traditional professional moving market has contracted, there is a great deal to be optimistic about.  The skills that we have as final mile operators are unique.  We know how to pack and load.  We own a great deal of infrastructure in the form of warehouses and trucks.  We have trained staff that know how to deal with the world collapsing around Mrs. Jones during one of the most stressful times in her life.

Professional movers handle less than 27% of the US moving market and we are giving up precious market share every day to new competitors.  There are new markets that are perfect for our unique skill sets but we first need to solve this critical infrastructure problem and turn this adversity into a competitive advantage for our industry.  I believe we are at an important inflection point in the history of our industry.  We can continue to stand alone and jealously guard our respective competitive advantage or we can come together as an industry to solve this critical infrastructure issue.

Gratefully, we can benefit and learn from the vision and leadership of great men like Malcolm McLean who helped to revolutionize shipping and changed life as we know it in the process.  So, take a moment.  Imagine our industry continuing down its current path and envision what our world will look like 10 years from now.

Now, think what would happen if we come together cooperatively as an industry to solve this critical issue – together.

Just imagine.