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Globalization makes many seemingly disparate processes an inextricably linked mechanism. For example, international currency differences become dependent on the US dollar, which unifies regional variations to facilitate global trade. Freight transportation systems depend on globalization to adapt delivery to the dynamic needs of customers from an international perspective. The North American and European models vary primarily by geography, in which distribution centers and transport hubs are located at different distances from the endpoint. Besides, the globalization process forced to rethink the primary type of cargo transportation, namely rail. The North American system is more tailored for private investment, which provides a significant boost to addressing economic and environmental demands. Thus, globalization has a positive effect on the freight transportation systems of the regions, since the leading providers adapt their services to new policy requirements and dynamic consumer needs.
The concept of creating and optimizing a freight transport system in North America and Europe points to the demand of customers, who are the main driving force in the industry. Any delivery structure functions to transfer goods to the client, while cultural and geographical markers generate profit. North America is a region of three countries with significant areas and, accordingly, distances for transportation. On the other hand, Europe is a more compact and culturally diversified region with a shorter nominal path length. Both areas have a developed railway system, which is the primary mode of transportation. The critical distinction is that the North American railroad is mostly privately owned and regulated accordingly, while the European one is publicly held. Funding and optimization exposure varies between regions, as the US freight system is independent of the passenger system. Consequently, freight transportation efficiency is increased by lowering the price and increasing the flexibility of the routes to create new tracks.
Globalization processes stimulate the development of the efficiency of cargo transportation. The fact is that customers are demanding more high-grade service at a lower price. Consequently, suppliers must seek new ways to satisfy clients through collaboration between different shipping methods and logistics practices. Besides, states are also able to adapt systems to meet modern policy requirements. The North American model is mostly proprietary, although regulatory agencies issue criteria for suppliers. One of these is the Crescent Corridor Intermodal Freight Program, which promotes intermodal transport and global cooperation (Sugawara, 2017). A similar model is available in Europe, where regulatory authorities are promoting cross-country cooperation to speed up the supply chain. This approach allows one to reduce the price due to the rational use of technology and enhanced logistics. Globalization changes have also affected the transportation sector by adapting distribution centers to places of demand. For example, building a large warehouse near a metropolis is a smart solution to speed up local delivery and avoid multi-stage collaboration with contractors. Thus, the freight system is susceptible to globalization and fierce competition and adapts to the buyer’s dynamic requirements.
Freight transport models transform regardless of location and current regulatory policies. The North American and European systems are radically diverse due to the forms of ownership and the structure of cargo distribution, but their changes are similar in the context of adaptation to the buyer. Also, globalization opens up prospects for intermodal cooperation, in which freight transport is the result of complex logistics planning. The collaboration of several suppliers is becoming a regular process, which is also regulated by governing authorities. Thus, the freight transport system becomes more and more dependent on private companies and their innovations for the overall movement towards improved efficiency and flexibility.
References
Sugawara, J. (2017). Port and hinterland network: A case study of the Crescent Corridor intermodal freight program in the US.Transportation Research Procedia, 25, 916-927. Web.
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