They are many similarities which occur between the freight transport in North America and Europe. But perhaps the differences arise on four main fronts: organization, market focus, distance, and ownership. First is the organization, that as much as in Europe there is a separation of operation and infrastructure primarily for accounting purposes, in America, it is based on regions or markets (Mangan & Lalwani, 2016). Here they are private companies coupled with the concession of businesses that are integrated vertically. The second focus is that the European markets are passenger oriented which contrast with the American market which focuses on the freight. The third aspect was ownership of the freight which in the case of North America it's privately owned different from Europe where it's mostly public only except for freight terminals and equipment which are increasingly being privatized. Lastly, include the distances in which the freight gets transported in Europe where it’s short to medium range whereby in North America it’s medium to long distance.
The comparison comes in their governance and regulatory frameworks where there are convergence and divergence between the two economies. First is liberalization or lowering the modal and the intermodal entry barriers. Privatization, as noted above, has taken significant grounds in the two economies (Harris et al, 2015). The difference is the implementation of policies which is substantially visible. American, for instance, prefer the paradigm shift, whereby after the policies are enacted, the changes that follow are profound and sudden. In Europe, the approach involves an incremental policy development process where it engages players in the market making a consensus.
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On globalization, due to the magnitude of its jurisdiction, there is a large volume which is counted as international trades which in North America this would instead be counted as interregional movements. But in Europe, it’s easier to identify the Short Sea Shipping services due to the concerns of the global trade which allows for various actors to get involved. The same networks cannot be established in North America.
The other aspect is labor and supply chain, in both economies supply chain management, is undergoing massive redesigning to accommodate different products and customer services (Baldwin & Lopez, 2015). The value chain is a representation of the distinct economic procedure in Europe and America but where the main difference occurs involves additional of functions which take place alongside supply chain.
On the development of global policies, they are many agreements that have been discussed on the reduction of distance and cost of communication which has been significant interest in making comprehensive strategies. The trade cost is determined by duration and time and affected by factors such as insurance, cost of transport, and international exchange rates among other which include storage, interest, and depreciation. The future trends show different projection within the two markets. First, it’s the fact that there will be a projection in the rail and road freight processes.
The research from Sustainable Mobility Project shows an increase in activity till 2050. What’s also evident is the rationalization of the multinationals in which they determine the number of service providers who work for them (Harris et al, 2015). The approach together with the intra-regional trade has led to increased demand for the logistic services. Perhaps the last trend is that the current and the future rails and roads are involved much lesser than maritime logistics especially in the movement of the merchandise within economic blocs. The trend is going to get a boost by the increase in international trade.
References
Baldwin, R., & Lopez ‐ Gonzalez, J. (2015). Supply ‐ chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy , 38 (11), 1682-1721.
Harris, I., Wang, Y., & Wang, H. (2015). ICT in multimodal transport and technological trends: Unleashing potential for the future. International Journal of Production Economics , 159 , 88-103.
Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management . John Wiley & Sons.
