Convergence in terms of technology, infrastructure, modes, and terminals has had an impact on the global freight distribution system. North American and European transportation systems are two major markets with specific characteristics, most notably a developed import function and strong freight distribution systems that connect them to global trade flows. However, they have considerable differences in terms of how logistical tactics are implemented across their regions.
The infrastructure is the main difference between the European and North American freight transportation systems. Infrastructure contracts exist between these two continents due to variances in geography and climate. Between Europe and North America, according to Rodrigue and Notteboom (2010), there are significant differences in intermodal rail networks and terminals. Terminals are the physical infrastructures through which functional regionalism is shaped, whereas gateways constitute the essential structure of the maritime–land interface. With the establishment of inland ports and distribution services, port regionalization highlights the formation of new relationships between port terminals and their hinterlands. Regional variables such as density, economic function, but also the physical performance of terminal facilities, the capacity, and forms of inland connections determine how to port terminals create their relationships with the hinterland. The way logistical strategies of European and North American transportation systems are carried out over their various areas is a significant difference.
Coastal locations (East and West coasts) in North America have a high concentration of economic activities, with large resources and manufacturing hinterlands. For all of the two great maritime faces, the East and West coasts, gateways tend to be the primary markets (Rodrigue & Notteboom, 2010). Commercial reasons shaped the placement of North American gateways and corridors from the start, and they have remained relatively constant over time but with an ongoing trend of traffic concentration. In Europe, there is a proliferation of terminals in new ports to accommodate the EU’s expansion and to take advantage of improved hinterland accessibility (Rodrigue & Notteboom, 2010). The new eastern entryway to Constantza in the Black Sea is an example. This necessitates the establishment of new distribution systems, such as inland barges and short-sea shipping, to supplement and replace trucking, which currently holds the majority of the market.
Furthermore, the distinction between the transportation systems of Europe and North America is reflected in the globalization of trade and the ramifications of global policy for these two continents. Over the last few years, the United States has dramatically shifted its foreign trade policy to bolster its political and economic position in Asia (Marcotullio & Lee, 2003). It might be considered a strategy for establishing a stronger and more stable economic position in Asia. This way, the US intends to create new employment and raise industrial output through the policy (Rodrigue & Notteboom, 2010). Thus, they can rebalance their external trade imbalances and strengthen their position in the global trade index.
The United States’ preference for policies that benefit China at the expense of the European Union has had an impact on European trade policies as well. First, it has made trade links with China a possibility (Rodrigue & Notteboom, 2010). On the one hand, China may join the new European ties at the expense of its Asian dominance, or it could keep its Asian dominance at the expense of a profitable contract with the European Union. The European Union would have an opportunity to get into a new and more expansive market. The European Union is eager to maintain connections with the United States, particularly with the signing of the Transatlantic Trade (Rodrigue & Notteboom, 2010). On the other hand, Europe is open to exploring new Asian and African markets.
Finally, future studies on transportation logistics, global trade, and global policy will require an understanding of the following points. The growth of plurilateral trade links can be seen in the future of trade across countries and continents. The United States’ approval of both the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Commerce and Investment Company (TACIC) may serve as evidence for this. The trading relationship between North America and Asia, as well as between North America and Europe, demonstrates the tendency of the market to follow globalization patterns. Analysts concluded that such a globalization trend has both advantages and disadvantages (Young, 2016). Global geographical changes in weather, which have resulted in changes in the availability of raw resources, have inspired the emerging pattern in international trade and policies. There have also been innovative new market opportunities as well as the requirement for a local presence in commerce.
To summarize, the transportation industry, particularly freight transport and logistics, is critical in enhancing trade and fostering international trade. Globalization and growth into new markets, containerization, and developments in information technology all impact and drive the evolution of gateway logistics. Global commerce and policy can have a huge impact on the transportation industry’s future, including the situation of the American and European transportation systems. As new policies and partnerships emerge, they alter the political and economic landscapes around the world, with new implications for trade and commerce.
References
Marcotullio, P. J., & Lee, Y. S. F. (2003). Urban environmental transitions and urban transportation systems: A comparison of the North American and Asian experiences. International Development Planning Review, 25(4), 325-354.
Rodrigue, J. P., & Notteboom, T. (2010). Comparative North American and European gateway logistics: the regionalism of freight distribution. Journal of Transport Geography, 18(4), 497-507.
Young, A. R. (2016). Not your parents’ trade politics: The Transatlantic Trade and Investment Partnership negotiations. Review of International Political Economy, 23(3), 345-378.