The creation of the cargo container improved distribution most notably because of the introduction of standardization. Prior to the advent of the metal cargo container, freight that was to be shipped by ocean was brought to the dock in whatever packaging the shipper desired. Loading was done mostly by hand and was very labor intensive. Cargo was stored in the hold of the ship and stacked as well as possible.

With the introduction of the cargo container of uniform dimensions, the shipper could load their goods into the container and deliver it to the dock. The shipping company knew exactly the size of the container and thereby was able to design specific material-handling equipment to load the containers. Standardization allows for much quicker loading and unloading, which reduces the number of laborers needed and thereby cost. Ships can also be loaded and unloaded more quickly, which means quicker turn-around time, more shipments per time period, and increased revenue. With uniform shapes and sizes, the ship itself can be filled much more efficiently, allowing ships to carry more cargo. Container can also now be locked and secured, reducing the opportunity for theft of cargo, which leads to a reduced need for insurance and therefore the overall cost for shipping.