In present scenario, the volumes of transported goods which are globally traded are focused mainly in the sea amongst the Europe and North America destinations and Far East origin locations. One of the most crucial destinations for the purpose of delivery from North America and Europe is Far East. In international trade theory, transportation costs are central theme. For instance, in trade growth if the late 19th century, the decline in the transport cost was given a central role. Transportation cost creates certain barriers which are as large as that from tariffs, in the year 1994, according to Yi was 4.5 percent. US import weighted cost of transportation according to Hummels was 3.9% in the year 1994. Transportation has typically been studied much less than other sectors even though they are considered very important. Lack of good data is one of the major reasons for this neglect. In the global trade development, there are a few elaborations which point on the importance of transportation.
It was observed by Kopp that there is huge agreement that an important determinant of today’s globalization is the fall in the long-distance transport and communication costs. It has been believed for a long time that for the quantity and structure of the global trade the trade costs were of little importance. But, the significance of transportation and the cost associated with them has been acknowledged now. Complementary organizational and technological changes were triggered due to the introduction of containerization which revolutionized the global freight transport. Econometrics approximations on the impacts of containerization on business appear to be lost even though there are several claims regarding the importance of containerization in motivating international trade (Evans and Harrigan, 2005).