Transportation, as a part of the sphere of logistics and supply chain management, encompasses a wide range of business acitivities. These activities play a key role in the economic environment of various markets since they are connected with the provision and storage of goods and resources, which ensures the presence of business operations. Emphasizing the transportation industry, both regulation and deregulation can become beneficial for companies since they can provoke the emergence of over-limiting restrictions or excessive flexibility and freedom.
The movement of people, creatures, and products from one area to another is referred to as transportation. Air, land, water, pipeline, and space are considered to be important forms of transportation, and the subject is separated into equipment, vehicles, and activities. Permanent installations such as roads, railroads, airways, canals, and pipelines, as well as facilities such as airports, railway stations, warehouses, trucking platforms, and seaports, constitute transportation infrastructure. Car, ship, train, and aircraft shipments, often referred to as road, marine, rail, and air shipments, are the basic means of transportation in logistics and supply chain management. The transfer of items from one region to another is referred to as transportation in a supply chain. This process starts at the beginning of the supply chain, when supplies arrive at the storage, and proceeds all the way to the end consumer, when the customer’s purchase is delivered right to the destination.
The control of complex structures as per a defined series of requirements and patterns is referred to as regulation. Generally, in government authorities, regulation is related to the provisions of subordinate legislation, which is developed by subject-matter specialists to execute basic law. The process of abolishing or weakening state rules, particularly in the economic domain, is termed as deregulation. It is considered to be the elimination of government economic supervision. What concerns the differences between regulation and deregulation, it is possible to state that in regulation, governments adopt measures to manage certain operations, frequently prohibiting particular economic activity (Malhotra et al., 2019). In contrast, deregulation is the procedure through which authorities remove various constraints and provide companies with additional flexibility.
The system of regulation and control in the transportation and logistics industry is an important aspect of the discussion since the logistics business is necessary to maintain the availability of resources. Regulation procedures, including the transportation sphere, are combined into separate federal documents that describe the structure of processes in detail (Federal Acquisition Regulation System, 2019). Transportation businesses have expanded in significance as a driving force and resource for high-quality growth (Du, 2020). One of the useful factors in regulating the field of transportation is management in the sphere of reducing carbon emissions. Efficient carbon emission management systems are designed to enhance the productivity of logistics circulation and transportation in order to address the issue of excessive carbon emissions in the logistics sector (Du, 2020). Implementing a carbon emission monitoring system for transport companies necessitates the creation of an information exchange platform inside the system, and the enactment of appropriate rules and regulations (Du, 2020). In this case, the impact of regulation procedures on transportation can be estimated as positive since environmental issues, which frequently occur in this field, can be addressed properly with the legal assistance of public authorities.
In addition, regulating the transportation industry, it is possible to define its major influence on community-related problems. Regulations are able to operate with drawbacks on a social level since they are elaborated by officials that have appropriate access. In terms of practical implications, regulative policies can monitor potentially controversial social aspects and provide solutions and strictly written guidelines. What concerns practical benefits of regulation, controlling loading and unloading zones is a viable initiative, and additional parking places could be created to prevent double parking (Oliveira et al., 2018). Considering the example, applying official authority and legal orders, regulations can positively affect the spheres connected to transportation where additional parties can be engaged into disputes.
Deregulation in the industry of logistics and transportation, including supply chain management, encompasses different activities that aim at creating flexibility among business operations. In terms of general economic activities, according to the researchers, with the claim that economic regulation was inadequately enforced, deregulation had minimal influence on community income or service provision (Woudsma, 2019). Therefore, it can be stated that no correlation was found between the deregulation procedures and the community-level social well-being and service delivery. Nevertheless, deregulation of transportation and other industries, and the privatization of national assets, such as transportation providers and infrastructure, are considered as critical determinants of contemporary commerce’s eventual globalization and development (Woudsma, 2019). Consequently, deregulation phenomenon, referring to the sphere of transportation, can be linked to further growth both in the internal sector and outside structures, including positive impact.
Deregulation directly influences the business conditions in the internal logistics markets. Deregulation is intended to improve competition in rail freight transportation and to complement rail freight industry with logistics communities, as per various expansion plans (Sternberg et al., 2020). It can be concluded that deregulation can be identified as the activity that is feasible to spur rivalry in freight transportation and logistics since it ensures the presence of flexibility and increased level of freedom.
What concerns effects that globalization had on regulations, it is possible to note that regulations can become legal tools of limiting the access to globalization processes for internal players. Scholars argue that international policy and internal regulations are influenced by skepticism of globalization and the socially manufactured vulnerability that arises from global interrelations (Cuervo‐Cazurra et al., 2020). Therefore, due to the increase in the development of globalization, national regulation procedures can restrict specific activities and consider the impact of international operations since they are present in the state. Referring to the benefits for customers from regulation or deregulation, in terms of economical operations, individuals benefit from deregulation since taxpayers are no longer responsible for the costs of running regulatory bodies. This implies customers have more disposable income, which means they have more resources to focus on other products. Considering logistics, due to the current competitive climate, which is defined by significant customer expectations, deregulation in the transportation industry is posing new problems for freight providers (Zeybek, 2018). Since customers exhibit high expectations, companies aim at improving service delivey, as a result, creating practical benefits for the end users.
To summarize, the impact of regulation procedures on transportation can be estimated as positive since environmental issues, which frequently occur in this field, can be addressed properly with the legal assistance of public authorities. Applying official authority and legal orders, regulations can positively affect the spheres connected to transportation where additional parties can be engaged into disputes. Deregulation phenomenon, referring to the sphere of transportation, can be linked to further growth both in the internal sector and outside structures, including positive impacts. Deregulation can be identified as the activity that is feasible to spur rivalry in freight transportation and logistics since it ensures the presence of flexibility and increased level of freedom.
References
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Du, L. (2020). Analysis of Decision-Making Behavior of Logistics Enterprises and Consumers Under Carbon Emission Regulation. Advances in Economics, Business and Management Research, 155, 359-363. Web.
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Malhotra, N., Monin, B., & Tomz, M. (2019). Does private regulation preempt public regulation?. American Political Science Review, 113(1), 19-37. Web.
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Woudsma, C. (2019). Freight transportation: The evolving landscape of matters and models.The Practice of Spatial Analysis, 187-201. Web.
Zeybek, H. (2018). Customer segmentation strategy for rail freight market: The case of Turkish State Railways. Research in Transportation Business & Management, 28, 45-53. Web.