Freight Transport Vs Freight Transportation

892 Words 4 Pages
Freight transportation plays a major role in the movement of merchandise and services. In Northern America and Europe, freight transportation systems have been around for many years. According to National Cooperative Freight Research Program (2011), “freight transportation allows companies to (1) specialize in producing the products for which they are best suited and (2) trade with other companies to obtain products that can be made more efficiently by others” (p. 10). The system can be described as a process comparable to supply and demand. The supply is encompassed by infrastructures and carriers. National Cooperative Freight Research Program (2011), explains freight infrastructures as airports, marine ports, pipelines, railroads, …show more content…
CIFTS (2007) list North American modes of transportation are air, highway, rail, pipelines, and water (p. 2). CEC (2010) explicated truck transportation is the most commonly used mode for domestic movements (p.2). Whereas maritime leads international trading (CEC, 2010, p. 3). In both systems goods are moved either by one mode or a combination (CIFTS, 2007, p. 2). The European Union utilize air, highways, rail, pipeline, maritime and inland waterways (Eurostat, 2016, p. 1). Likewise, road transportation ranked first above all other modes, while rail and inland waterways movements came in second and third (Eurostat, 2016, …show more content…
First, NAFTA is an agreement that sets the regulations for how the trio partners will trade and invest (NAFTA, 2012, p. 1). EEAS (n.d.) clarifies the EU negotiates trade agreements which are signed by the union, and not individual nations (p. 1). This gives the 28 states one voice in the global trading system, along with one currency, the Euro. (EEAS, n.d., p.1). All three North American partner each use a different currency which can create challenges.

North American and European both have free trade agreements. Ferguson and Villarreal (2015) explained NAFTA removes tariff, non-tariff barriers, and investment barriers (p.7). In addition, NAFTA grant rights against discriminatory treatment, unfair investments, and cross-border sales (Ferguson & Villarreal, 2015, p. 7). European Commission (2014) points out the EU provides some of the same tariff barriers and policies to protect the European countries too. With proper management of the policies set forth, growth of trade creates monetary growth and jobs (p. 1).

There are unique similarities and dissimilarities which has facilitated the success of North American and European freight transportation systems, global trading, and policy

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