Essay Example on Freight Transportation Evolves

Freight transportation has evolved worldwide with the emergence of new technology and improved infrastructure. Movement of goods is now shaping towards a seamless movement from port to port, the train, and the roads from one destination to another (Rioux & Fontaine-Skronski, 2015). There is automation in the ports, and the trucks and trains have increased efficiency in freight transportation. Nonetheless, policies such as regulation and deregulation have also played a role in shaping the freight industry. Europe and North America both have their own rules when it comes to freight transport such that they set the taxes and pass laws that determine how freight movement is conducted (Villarreal & Ferguson, 2017). Freight transport generates considerable revenue to the two regions in the context of trade. The freight transportation systems in North America and Europe share some comparisons dictated by globalized trade and the policy implications.

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Europe and North America differ in the role their governments play as much as the private sector in their markets. The freight rail services in Europe are controlled by their respective governments while the private sector owns the freight rail services in North America (Villarreal & Ferguson, 2017). France and Germany have the majority share of influence in the EU market owing to their economic size. On the other hand, the US has the greatest influence in the overall direction of the freight industry in North America. There are three countries in North America compared to the 15 nations in the EU (Mortimer & Islam, 2014). Policy decisions made in the EU are much more stringent as opposed to those in North America where the US has the most influence.

Globalized trade has increased the demand for freight transport since there is movement of shipments. The demand in the freight industry has strained the workload at the ports of entry and exit (Rioux & Fontaine-Skronski, 2015). In addition, the increased traffic of goods puts a strain on the traders that have to cover the costs of moving from one country to the other. Europe and North America both recognized the effects of global trade and their respective benefits to the economy. Subsequently, they formed trade unions with policies that would encourage trade exploits. For example, North America has NAFTA while Europe has the European Union. These trade unions help to improve trade by setting up policies for the existence of open borders. It is such that the two regions recognized the importance of cutting down costs in the form of taxes that were levied while crossing border points (Villarreal & Ferguson, 2017). Goods can move freely from Mexico to Canada via the US as a result of the NAFTA. Likewise, the European Union benefits the free movement of freight throughout the 15 partner nations.

Considerable differences in freight transportation between North America and Europe is in the mode of transport. Europe is more dependent on roads while North America prefers the use of railways (Mortimer & Islam, 2014). Railways as a mode of transport are more efficient compared to the roads. It is because the railways can carry more shipments, use less labor, and move uninhibited. In the roads, there is traffic, road accidents, less movement of freight, and more fuel consumption compared to the railways. Europe's utilization of trains is centered for passenger use compared to America where road and train use is an inverse. It is cited that government control in Europe's transport industry is responsible for the use of trains to ferry passengers than freight (Rioux & Fontaine-Skronski, 2015). It is because the government to show its positive impact on its citizens by prioritizing their movement. Privatization in the transport industry in America, however, has put business over citizen concerns. This has, in turn, made freight transportation more efficient in North America compared to Europe.

Future research shows that there are various trends that will affect the freight transport industry. There will be improved infrastructure, intermodal transport, and reduced crime (Rioux & Fontaine-Skronski, 2015). The most interesting is the intermodal transportation where goods will be able to move seamlessly between continents via ship, road, air, and railway. The future will have more international trade than today. The concerns will be on the transit time, reliability and cost. Shipping by sea is projected to be faster. It will reduce the reliance on air freight where there have been concerns about emissions of carbon-2-oxide. Environmental protection is focused to control policies in the future freight transportation systems (Villarreal & Ferguson, 2017). Coupled with increased business transactions, there will be a demand for faster and safer transport modes. It will be interesting to see new technologies that will help facilitate the process.

The European and North American freight transaction systems, globalized trade and global policy implications are controlled by the respective trade unions. The European Union has ensured open borders between the member states such that there are reduced tariffs and minimal delays at border crossings. NAFTA in North America has also afforded the continent the same benefits. However, nations that are not members of either trade unions face steep costs in taxes that discourage international trade. Future policies would look into ways to expand trade benefits to other countries in the world that the countries in the unions will trade with certainly.

References

Mortimer, P., & Islam, D. (2014). A comparison of North American and European railway systems - a critique and riposte. Springer Publishing.

Rioux, M., & Fontaine-Skronski, K. (2015). Global governance facing structural changes: New institutional trajectories for digital and transnational capitalism. New York, NY: Palgrave Macmillan.

Villarreal, A., & Ferguson, I. (2017). The North American Free Trade Agreement (NAFTA). Congressional Research Service, 7-5700.