European and North American Freight Systems | Free Essay Example

European and North American Freight Systems

Words: 919
Topic: Business & Economics


Trade is essential to any nation and country to grow and develop. It is so vital that without it, all the world’s economies would grind to an unceremonious halt. There are no other places in the world where all this could be more practical than the United States of America or the North America and in Europe. These economies are virtually driven by the trade of commodities and services (Anton Silberglitt and Schneider 2001). An essential element of commerce is transport and in the case we are analyzing the freight trade on continents; North America and Europe. To comprehend this, we need to understand the meaning of cargo business. The freight business is the transport of trade goods through air, water, road and rail over long distances and in a trade with other countries. Freight transport can, in essence, be a tool used by many businesses and countries to achieve economic stability and thus the importance cannot get understated (Embree and Gluck 2015).

Comparison and contrasting factors between the European and North American freight systems

European and the North American freight systems contrast and compare different ways in terms of technology, infrastructure, modes and the terminals in use. First, in both systems the use of shipping containers and containerization, in general, plays a significant role in the transportation of commodities (Embree and Gluck 2015).

Another similarity is the adoption of technology to make work easier, faster and thus more efficient. It can be visible in the storage facilities such as refrigeration during transport, transport mechanisms such as fast trains to save time. They need to have a modern harbor for loading and offloading system that can pack and unpack cargo with utmost efficiency (Anton Silberglitt and Schneider 2001).

Transportation systems

The main contrast is in the infrastructure. Due to the difference in geography and climates there are infrastructure differences between these two continents. A key difference is how logistical tactics take place over their respective territories. In 1996, Anton Silberglitt and Schneider (2001) established considerable variations in intermodal rail networks and terminals between Europe and North America.

Globalized trade and global policy implications

Moreover, the contrast between these two continents outlines itself through the globalization of trade and the global policy implications of these two continents. The United States has over the last few years geared its foreign trade policy towards strengthening its political and economic position in Asia in a very dramatic way (Constantinescu Mattoo Ruta 2015). It is in a bid to create a much stronger and more secure economic position over the Asia and curb the growing Chinese influence and assertiveness both in politics and global economic practice. In this policy, the United States seeks to create new jobs and increase its industrial output, therefore re-balancing its external trade deficits and bolstering its position in the global trade index. It has had effects on the United States relations with Europe (Embree and Gluck 2015).

The preferred policies towards China at the expense of the European Union have had some effects on the European trade policies also. First, it has opened the option of trade relations with China (Embree and Gluck 2015). It has consequently created a dilemma for China, and this is the part I find most interesting and as follow. On one hand, China could join the new ties with Europe at the expense of its Asian dominance or maintain its dominance in Asia at the cost of a lucrative deal with the European Union.

The European Union would provide a new and wider market. The European Union is keen to maintain ties with the United States, especially after the signing of the Transatlantic and Pacific trade and investment partnership with the United States (Anton Silberglitt and Schneider 2001). On the other hand, it is keen to try new Asian markets too and also Africa.

Review the future research

Finally, there is need to understand the interesting points in future research on transport logistics global trade and global policy. Looking to the future of commerce amongst countries and continents, one can see the emergence of ‘plurilateral’ trade relations. It can be best exemplified by the United States adoption of both the transpacific partnership (TPP) and the trans-Atlantic commerce and Investment Company (Constantinescu Mattoo and Ruta 2015).

This is the trade relation between the North America and Asia and North America and Europe respectively. Analysts have both applauded and criticized this form of trade relations in equal measure, but looking at the global trends in trade it is the most preferred way forward. The emerging pattern in the world trades and policies are inspired by, global geographical changes in weather which have consequently led to changes in the supply of raw materials. There have also occurred innovative new prospects in terms of markets and the need for a local presence in trade (Embree and Gluck 2015).

Interesting part

Finally, there is projected global growth to become more concentrated. These factors I indeed find very interesting. They have significantly influenced the making policy process and especially decision-making on the future of trade amongst countries and continents (Embree and Gluck 2015).


In conclusion, the transport sector as a factor that enhances trade is crucial and most especially freight transport and logistics as it fosters international trade. Global trade and policy can have tremendous implications for the future of transportation. As new policies and partnerships are formed, they change the political and economic landscapes across the globe, creating new effects on the future of trade and commerce.


Anton, P., Silberglitt, R., and Schneider, J. (2001). The Global Technology Revolution. Santa Monica: RAND.

Constantinescu, C., Mattoo, A., and Ruta, M. (2015). The Global Trade Slowdown. Washington: International Monetary Fund.

Embree, A., and Gluck, C. (2015). Asia in Western and World History. Hoboken: Taylor and Francis.