Compare and Contrast Essay Example on the Freight Modes in USA and Europe

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Research Finding: By carrying out the investigation of the various freight modes in the United States of America and in Europe, there are various lessons that the society can learn from the successes of the various freight modes. In this manner, countries can learn from each other and borrow lessons that help in the growth and development of the transportation industry in the society. This would also serve to ensure that related players in the field of transportation sector can engage in the identification of the various ways that. The research paper carries out the analysis of the factors that make the freight modes ineffective and helps in creation the solution for the various freight modes. It appears that there are various processes that the freight companies have adopted with the main aim of improving transportation in the society. In this manner, the society looks at a bright future with improved ease of transportation. Such a society would lead to improved development thereby helping to improve the welfare of the society. The research focuses on the comparison of various forms of transport in order to understand the avenues that transportation sectors can use to affect the changes with the view of improving efficiency and effectiveness in transportation. In this manner, the transportation sector is facing a bright future owing to the numerous research processes in the past aiming to develop the sector.

Implementations: The recommendation for the transport sector is to show great concern for the environmental protection in the process of improving the effectiveness and efficiency in the industry. This requires that the players should champion technological development while focusing on the development of sustainable communities.

Logistics management must ensure that the flow of the goods, services and the related information takes place in an efficient and effective way that serves to improve on the productivity of organizations. Also, logistics is entrusted with ensuring that both forward and reverse flow and the storage of goods, services and related information serve to improve service delivery in organizations to improve the welfare of the society and for the betterment of humanity (Awasthi, 2012, p573). Despite the various functions of logistics management, the functions of logistics can be divided into two which are the physical distribution, which is the derived transport segment, and the materials management, which is the induced transport segment.

Generally, logistics management simply means the transfer of goods, services and information from the point of manufacture to the point of use in any part of the world (Nuzzolo, 2014, p240). This ensures that factories identify the needs of the customers and identify the various ways through which they can deliver the goods, services and information according to the needs of the manufacturers. Logistics management has undergone evolution in the recent past and the technological development has simplified operations in the logistics to improve efficiency and effectiveness of logistics companies. In the 1960, logistics management involved a number of functions among them being demand forecasting, purchasing, requirements planning, production planning, manufacturing inventory, packaging, inventory among others. The various duties of the logistics management were then simplified the more by technological development and this resulted to materials management and physical distribution in the 1980s (Ozdamar, 2012, p592).

In the 1990s, logistics management further evolved into logistics with other sub-duties such as information technology, marketing and strategic planning. The evolution of strategic management helps in simplifying the duties of the transportation of goods, services and information form the suppliers to the consumers and this helps in meeting the needs of the consumers (Pienaar, 2012, p280). Finally, logistics management has led to the development of the various sectors of the freight in the society and the modern day logistics management involves the supply chain management and this helps to improve the efficiency and effectiveness of the transportation of goods and services in the society. Although there are two major functions of the logistics management, the two major functions of freight logistics include the physical distribution (PD) and materials management. Physical distribution involves the range of activities that serve to ensure that the goods, services and the related information are transferred from the points of production to the points of sale or consumption (Lindholm, 2012, p134). On the other hand, materials management involves all the activities involved in the production and manufacturing of goods and services in the society.

With the major changes in the patterns of global trade, there is need for the change in the logistics in the society and this call for the countries to change their freight modes in order to conform to the global trade. The global trade in the society influences the success of freight agencies and this leads to the success of various countries in the world (Fahimnia, 2013, p79). The two major components that affects the supply chains of the goods and services in the society are production and consumption. This is because production and consumption are the two main factors that affect the supply and demand relationships of various industries in the world. Besides, production and consumption affect the logistics management which in turn affects trade patterns in the society.

The economic theories also have their effects to the logistics management because they influence the production and the consumption of goods and services in the society. In this light, freight management should be adapted to ensure that it meets the production and consumption patterns of the society (Lindholm, 2012, p129). This would ensure that there is no deficit in the customers need and at the same time there is no surplus of goods and services in the goods and services in the market. Lack of equilibrium in the production of goods and services in the market is considered as a market failure making it the onus of the market to ensure that demand and supply have direct relationships. Before the consideration of the impacts of water transport, it is of essence appreciate the impacts of global trade and the benefits that it causes to the economies of various countries.

One of the benefits of global trade is that it leads to economic efficiency in various countries and this leads to the improvement of social welfare. The economic developments in various countries are due to the global trade and which is greatly influenced by the water transport (Nourbakhsh, 2015, p12). Moreover, the distribution and fragmentation of production in various countries lead to the expansion of trade and this majorly becomes successful due to the water transport. The division and fragmentation of production therefore leads to the lower manufacturing costs and this leads to the growth of economies in the society. Poor transportation system would lead to poor trade between countries in the society and this would require that every country produces what they require in order to satisfy their economic requirements. Such a system would lead to poor economic development since there would be overproduction at the same time lead to underproduction of some goods and services in the society (Speranza, 2012, p51). Such a system would lead to lack of diversity in the production of goods and services leading to poor development of knowledge and innovation.

1.3 Overview of the logistics systems of water transportWater transport involves moving people and goods by the use of boat, ship, sailboat over an ocean, sea, canal, lake or river. Water transport is very instrumental in the promotion of international trade in the society and the growth of economies (Franklin, 2012, p88). Ship transport is the largest freight carries in history and still serves as the largest freight carriers in the modern society. Although the impacts of ship carrier has decreased due to the inception and the recurrent development of the air transport, it still proves as the most effective forms of transport for short trips and pleasure cruises in the international arena. Moreover, ship transport proves to be more famous due to its cheaper prices in comparison to the air transport. Although water transport proves to be cheaper as compared to the air transport, there is fluctuation of the exchange rates (Najafi, 2013, p217). In addition, the CAF charges affect the prices of that lead to the various effects on the prices of the water transport and which in turn affect the affordability and the usage of the form of transportation.

Water transport can be for products to be used for different purposes among them being for commerce use, recreational purposes and for military. Any material can be transported by the use of water transport although it becomes inefficient to use water transport for the goods that require timely delivery. This is because the ship transportation proves to be relatively slower as compared to other the air transport. The water transport has undergone evolution and this majorly started in the 1970s when containerization was introduces in the society (Berger, 2014, p43). Water transport is considered as the oldest form of transport and it uses natural track which makes it a less expensive business venture. This is because it does not require the construction of and the maintenance of any infrastructure only in the cases involving canals. In addition, the cost of operation in the water transport also proves to be relatively lower proving the fact business venture involving water transportation is very profitable.

There are various benefits that water transport has caused to the society and among them is that it carries bulky goods over very large distances in the world. In this light, the water transport helps in bringing societies closer making it indispensable to the foreign trade. There are two kinds of water transport that has been in existence since the inception of water transport, these are the inland water transport and the ocean transport. Inland water transport involves the use of rivers, lakes and canals in the transportation process (Du, 2012, p78). The river transport involves the use of boats and big barrages for the transportation of goods from one place to the other. River transport greatly helped...