Assignment:
Containerization vs. Intermodalism
What is the difference between containerization and intermodalism? Explain in detail and provide sources to support your discussion.
Regulation and deregulation positive and negative impacts to the intermodal transportation in EU and United States
As the global economy continues soaring, businesses seek to develop better ways to integrate the distribution, product sourcing, and production. Regulations and deregulations of the intermodal transport has been a topic of contention eyeing the positive and negative impact to the economic development of governments. There are positive and negative impacts of deregulations and regulations.
Transportation modes continue to grow since the technological advances keep every industry on toes. Distinctive effects are noticed when regulation and deregulation of the intermodal freight transport both in the US and Europe. Both the regions try to promote the economic growth of the nations through the development of policies in the transportation industry with the use of regulations and deregulations.
The regulation includes the set of rules set by the administration to control different aspects of the businesses. Therefore, the set of rules makes the business structure limited in some areas while improving on some. The EU Transport Industry has been deregulated during the precedent 30 years, through programs that enhance competition among incumbents mainly by plummeting the entry precincts and by opening the markets for non-state owned companies. The empirical evidence on how the companies are impacted by deregulation show positive impacts on the system-wide level. The information suggests the further use of the deregulation tactics will continue to support the growth in the transportation industry.
Regulations involved in the international road transport between the EU member states faced regulatory measures which were later relaxed in the 80s and 90s. There were lengthy controls at the border up until 1990 when they were eliminated. This saw the transit of goods rising with better returns as lead time in the inventories reduced. Carriers also face constraints since the restrictions on cross-trade transport and a complete prohibition on cabotage. Cross-trade involves road transport performed by vehicles registered in a third country. This kind of trade was only permitted under community quotas. The availability of such quotas increased making it easy for cross trade transportation in the EU to be less stringent (Talley, 2004).
Regulations in the two regions make time-consuming border controls which is bad for business. it makes the carriers to make detours adding to inefficient hail and perhaps refuse certain hauls. On the other hand, deregulation is a remedy to these stringent demerits of regulations. When the regions deregulate the transportation needs increase the incentives of companies making sure they source and sell more across borders, therefore, increasing the international trade. This is the positive side of deregulations. Deregulation has seen to it that more competitors emerge in the market.
The deregulations have promoted environments that are characterized by affordable, efficient and innovative transport services. Regulations restricts different transport sectors in US and EU. The notable negative side of deregulation is the differentials in wages since there is competition. While regulation makes sure, there is a constant mark in the reimbursements deregulation provides the liberty to dictate the prices (Fageda, & Sansano, 2018).
As noted regulation and deregulations have both the positive and negative impacts to the growth of the transport industry. Regulation reduces the pace of growth while creating stringent measures that de-motivate efficiency, innovation among others. Consequently, deregulation comes in as a platform to create more flexibility in the intermodal transport through creation of competition and other forms of efficient growth avenues in the transit business.
References
Talley, W. (2004). Wage Differentials of Intermodal Transportation Carriers and Ports: Deregulation Versus Regulation.
Agamez-Arias, A. D. M., & Moyano-Fuentes, J. (2017). Intermodal transport in freight distribution: a literature review. Transport Reviews, 37(6), 782-807.
Fageda, X., & Sansano, S. (2018). Factors influencing prices and frequencies in the interurban bus market: Evidence from Europe. Transportation Research Part A: Policy and Practice, 111, 266-276.
The above passage has been posted in the course forums already but the student responded to this post and there must be 100 words replied back the student and instructor please:
While "[d]eregulation has seen to it that more competitors emerge in the market" hold true "[r]egulations restricts different transport sectors in US and EU" as "regulation makes sure, there is a constant mark in the reimbursements deregulation provides the liberty to dictate the prices (Fageda, & Sansano, 2018)" depends on what is intended to be achieved. In that, the responsibility of transportation is to create both time utility and place utility does not necessarily guarantee products will be delivered at precisely the right time to the desired location at the anticipated and agreed upon price.
However, regulation can be good if it encourages competition and allows the negotiation of prices to dictate market costs but not when it creates a monopoly such as government-owned ports, terminals, and transportation infrastructures that controls profitable growth.