Effects of Transportation Infrastructure on International Trade Logistics

Transportation infrastructure is a significant player in international trade. International trade and logistics can be defined as the transportation of goods and services from one country to another that is done through either import or export (David, 2013). Global logistics involves the coordination of raw materials, mode of transportation, logistics management, packaging, and storing of the product from the source to their destination. Importing goods is essential because some are not available in the local market while exporting creates a wide array of opportunities for exporters. Water transportation is one of the various transport infrastructures that is actively involved in international trade, and it can also be affected by multiple factors including the depth of water which determines the size of vessels accessing ports; air draft, cranes, and port operations. Current transportation systems have significantly contributed to the facilitation of international trade logistics.

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The continuous rising of International trade has created more demand for transportation to get the goods to the consumers (Coates, 2003). Maritime transit depends on the waterways to get their goods across the seas. Water transportation is so much easier than trying to transport goods overland; therefore, it has gained attention over time. International trade also depends on the waterways to get their goods to various destinations. The main elements of maritime transportation are deep waterways and canals; they facilitate movement of containers and cargo by use of ships. Canals and waterways must be large and are fixed with the required size of locks which support boats of varying sizes to enable sailing (Coates, 2003). For this mode of transport to be effective, there should be a concern in continuously upgrading ports and related facilities. The ports can also be facilitated by other means of transportation such as trucks and trains, navigation aid like buoys, seam marks, and lighthouses to ensure that goods reach their destinations. The other essential facilities are warehouse spaces and cranes. The warehouse spaces act as storage for cargo before the goods are dispatched to their required destination. The cranes should be equipped with appropriate berth spaces which can handle large ships and load for efficient trade (Coates, 2003).

Port regulations seem to always be an issue with water cargo (Murphy, Dalenberg & Daley, 1991). About eighty percent of the trade done in the world is transported by ships (Frittelli, 2005); therefore, clearly applicable and fair regulations should be established and implemented to support international trade. The Cargo Preference Act of the United States that at least fifty percent of government goods and cargo in trades supported by the Ex-Im Bank must be transported by ships that display the United States flag (David, 2013). The cargo vessels that fly the American flag are compensated by the government for several million a year given to the vessel owners. The government does this because of the military and not because it costs so much money to run an American ship (David, 2013). In case of a conflict, the government wants to make sure they have enough cargo vessels to move military equipment to the conflict areas (David, 2013). All sorts of ships are made to accommodate what needs to be hauled and the weight they can safely carry. The vessels are built in specific dimensions, all of the locks and canals have the aspects that they can accommodate. The ship also comes in many different shapes and sizes. The Handymax and the Supramax are smaller vessels and can pretty much go into any port because they are small cargo ships. A very Large Ore Carrier transports coal and iron ore and when they dock they need deep water because of the size of the vessel. The Chinamax ships carry the bulk product and its restriction when building them cannot exceed 1180 feet and a width of 213 feet, the draft also could not exceed 79 feet. The Chinamax has to be told if they can dock at specific ports because of the size (Coates, 2003). These requirements by various authorities are necessary for facilitating an active flow of goods from the point of manufacture to their destinations.

Not all ports can anchor every size cargo ship. Port infrastructure is made up of different types of boats and therefore the size of cargo transported in then varies. Small vessels will be able to move limited amounts of cargo and vice versa. Consequently, it is essential to take note of the size of freight among other factors before construction of water vessels (David, 2013). Various countries are currently investing considerable budgets in the improvement of their water transport systems. The ports with deep natural harbors are making bigger and broader ships, but unfortunately, not all ports can handle the larger vessels. The new larger vessels can handle six thousand 42-feet containers which shall be offloaded, then unloaded, and that process will take longer than the smaller ships (David, 2013).

Port security is significant in ensuring that the goods that are moving in and out of the port are legally acceptable according to the international regulations of trade. A security case with the United States port authority raised concerns about their vulnerability to attacks hence it has changed their security approach (Donahaue, 2011). After the attacks, the government has ensured that keeping the country safe is its top priority. The government joined forces with the FBI and many other departments to ensure the safety of American ports. Containers may be used for smuggling weapons of mass destruction, weapons and other items that can harm the United States. It is estimated that if a major port is shut down because of security reasons, such terrorist act can cause the economy about 60 billion US dollars (Bier, and Haphuriwat, 2011). The containers are inspected for gamma or any neutron radiation every time they enter the port. While the vessels are in transit or at the port, security becomes a more severe activity hence they are always monitored. The Merchant Shipping Act of 2003 that gives the authorities more rights to go onto ships and inspect them should be revised and made more appropriate and inclusive of the current situations. For instance, the addition of security to the waterways through patrol boats, training security personnel to patrol the ports, and underwater devices to detect a threat has contributed to relieving the tension among the trades who feared of a possible attack (Donahaue, 2011). Similar measures should be imitated by sister countries to restore confidence to traders hence improved international trade logistics.

The use of international standard sized container boxes eases the movement of cargo between different ports (Lstiburek, 2014). Large container boxes are efficient ways to transport material on a ship rather than the use of small packaging which may render difficulties during loading and offloading. The containers can be offloaded to the warehouses and trucks with ease. It is more efficient to load and unload containers than to load and unload goods that are transported in pieces. When a crane offloads a container, it could pick another and load it onto the ship without waiting for the particular container to be emptied. Containers can be loaded and unloaded at a quicker rate that saves on human resources, the customer saved shipping cost, and the vessels take a shorter time at the port. Intermodal freight containers or shipping containers come with a twist lock on the corners of the boxes so they can be locked into each other (Lstiburek, 2014). The amount of cargo loaded onto a ship is dependent on its size and the recommended height in which the loaded containers can rise. The adherence to the international recommendations on the sizes of containers and ships will facilitate efficient international trade.

Container transportation can also cost a shipping organization a lot of money for various reasons. They include; documentation issues with the containers, blunders in traditions administrative consistency and security consistency. Therefore, legitimacy should be restored on the port's operations. There could be instances whereby other individuals might be booking and invoicing mistakes, robbery and load misfortunes, strikes and transport clogs, theft, and militant psychological assaults (Chang, Xu & Song, 2015). All of these issues can cause a delay not only in transit but also while getting loaded and unloaded hence causing delays in going through the customs. Such occurrence can cost the vessel a lot of money and also delay the arrival of goods on transit thus affecting the ability to compete on the international market.

Piracy is another current problem limiting trade. Theft has caused transport vessels to change course and get directed to a different destination (Chang, Xu, & Song, 2015). Greece's latest bill in will allow cargo vessels to be secured by having armed security personnel for all ships traveling on international waters. Each ship will be allowed six armed guards to protect the ship from pirates. If such policies are not implemented, the pirates would take over the cargo and want ransom money to have the vessel returned. If something is not done to protect the ships from the pirates, the owners will no longer transport goods; hence, the trade will be affected (Chang, Xu, & Song, 2015).

For international logistics to occur specific procedures must be observed. They include documentation, packaging, labeling and insurance requirements needed based on the type of goods and lastly transportation. Third-party logistics companies are established to facilitate the stated procedures and deliver the products to consumers on time regardless of location. The companies coordinate with the transportation agencies to complete the deal. Due to the increase in demand for goods that were previously regarded exclusive to some geographical regions has necessitated international trade and logistics whereby water transport plays a significant role. This fact has enabled the global logistics and business to facilitate outsourcing.

Specialization and division of labor at the ports will enable countries to countries to embrace international trade and logistics due to the ability to meet international standards and benefit from trade. Information technology is a crucial integral that serves to allow a flow of between countries with ease. Improvements in IT will also help in transmission of information between manufacturers and customers, therefore, increasing the customer base for water transport. Specialized software has been developed to aid the loading and offloading processes to boost efficiency. Facilitation of international trade creates employment opportunities, decreased manufacturing cost among other benefits and should be embraced through offering support to its pillars such as water transport. Globalization has also promoted this sector by making it possible for manufacturers to relocate to different places across the globe for convenience with factors of production in mind among other facilitating factors.

Conclusion

In conclusion, seaports are among the significant contributors to international trade. Various players are involved in ensuring that they are secure efficient and adhering to the international recommendations and standards. Security of America is expensive but it has value for money hence promoting extensive trade as transportation by ocean plays a huge part in transporting goods internationally (Bier & Haphuriwat, 2011). Many factors affect transport vessels and cargo carriers such as the price of oil, items not being declar...