by Dave Akers, IHSA
“Good Judgment comes from experience and a lot of that comes from bad judgment.” — Will Rogers
Here is how the modern shipping business mirrors the Wild West:
1. The “Gold Rush” Boom and Bust Cycles
The Old West was defined by the gold rush with sudden, explosive wealth that created overnight millionaires, followed by devastating busts that left ghost towns behind.
Shipping operates on the exact same frequency. When demand spikes and vessel space is tight (like the 2021 – 2022 pandemic era), carriers experience a “gold strike,” raking in billions of dollars in a matter of months and charging shippers astronomical rates. But when the rush ends and too many ships are built to chase the gold, the market crashes. Fares drop to pennies on the dollar, and shipping lines bleed cash, sometimes resulting in massive bankruptcies (like the collapse of Hanjin Shipping in 2016).
2. The Railroad Barons and Monopolies
In the Old West, whoever controlled the railroads controlled the economy. Tycoons formed cartels, fixed prices, and squeezed independent farmers who had no other way to get their goods to market.
Today, the ocean carriers are the railroad barons. The global shipping market is dominated by a handful of massive companies (like MSC, Maersk, CMA CGM, and COSCO) that have organized themselves into shipping alliances. These alliances operate much like 19th century railroad trusts – sharing vessel space, coordinating schedules, and effectively controlling the main trade arteries of the globe. If a modern business wants to move goods from Asia to Europe, they must pay the toll set by the barons.
3. A Vast, Lawless Frontier (Flags of Convenience)
The frontier was famous for existing beyond the reach of federal law. If you wanted to escape strict rules or taxes, you headed West.
The oceans are the ultimate unregulated frontier. Because international waters belong to no single country, shipping companies exploit a system called “Flags of Convenience.” A ship might be owned by a European company, managed by a Chinese firm, and crewed by Filipino sailors, but it is officially registered in Panama, Liberia, or the Marshall Islands. They do this to bypass the strict labor laws, environmental regulations, and corporate taxes of their home nations. The International Maritime Organization (IMO) tries to keep order, but much like a lone territorial marshal, they have limited power to enforce the rules across a massive, empty expanse.
4. Stagecoach Robbers and Ambush Points
The danger of moving valuable cargo through isolated, hostile territory hasn’t changed, only the scale has. Instead of bandits holding up a Wells Fargo stagecoach in a narrow canyon, modern shipping faces literal piracy at strategic chokepoints.
• The Red Sea & Gulf of Aden: Currently acting as the most dangerous “canyon” on Earth, where ships face hijackings, drone strikes, and missile attacks from Houthi rebels.
• The Strait of Malacca: A narrow passage in Southeast Asia where traditional pirates on speedboats still board vessels under the cover of darkness to rob the crew and steal cargo.
• The Gulf of Guinea: Off the coast of West Africa, where crews face a high risk of kidnapping for ransom.
5. Port Cities as Frontier Boomtowns
Think of the chaotic, bustling frontier towns where cattle drives ended and railroad lines met. Modern mega-ports (like Shanghai, Singapore, Rotterdam, or Los Angeles) are the 21st century equivalents. They are massive, sprawling logistical hubs where the “cowboys” (seafarers) finally hit land after months in isolation, and where the raw goods of the world are traded, inspected, and loaded onto the modern equivalent of wagon trains (semi-trucks and freight trains) to head inland.
6. The Unforgiving Wilderness
Finally, there is the sheer hostility of the environment. Just as pioneers faced blizzards, droughts, and impassable mountains, modern mariners face the raw violence of the ocean. Despite advanced weather routing, ships still battle 50-foot rogue waves, typhoons, and structural failures. When a ship loses power in the middle of the Pacific, they are just as isolated as a broken-down wagon train in the Mojave Desert — help is often days away, and survival depends entirely on the crew’s self-reliance.
Consider this a tongue-in-cheek welcome to our upcoming series! Over the next few weeks, we’ll be diving into the containerized ocean shipping business. We’ll explore everything from the substantial investments involved to the complex daily operations that keep the world moving. While international freight naturally comes with its share of hurdles, like customs rules, geopolitical shifts, port delays, and extra fees, knowledge is power! By understanding the true costs and mechanics of international shipping, you can actively understand and manage your supply chain and transform unpredictable risks into a strong competitive advantage. The more we learn, the smoother we can keep things running. If you would like to subscribe to the IHSA blogs, please send a message to team@shippersassociation.org.
