Running Head: GLOBAL TRANSPORTATION EXECUTION

Course title: Course name: Global Transportation Execution Name: Student ID:

GLOBAL TRANSPORTATION EXECUTION: Table of contents Introduction.3 Importance of global transport execution4 Global transport execution minimizes risk while moving freight globally.5 Surface transport as an element of global transportation execution6 Ocean transport as an element of global transportation execution..6 International air transport as an element of global transportation execution...7

The role of the government in safe and secure global transportation execution..8 Conclusion9 References11

GLOBAL TRANSPORTATION EXECUTION: Global Transportation Execution Introduction

Globally, shipments involve long distances, different modes of transports and numerous border crossing. The modes of transport, risk of disruptions, damage delay and other issues may be the reason for global transportation execution. Flawless transportation execution overcomes these potential challenges by moving products quickly and safely across borders. Global transportation execution may become more pivotal to countries worldwide, whatever they are small or big, developed or developing since international trade expansion may open up wealth opportunities for numerous businesses because they may be able to have their operations extended international levels (Goessl 2009). Consequently, when cargo is being moved internationally, moves form direct exporter to importer may be used for cross-border movement that is short-distance through rail or trucks. On the other hand, indirect moves may be through air or ocean for movements of intercontinental cargo. Global transport execution goes with the development of the globalization of services and manufacturing. At the same time, it has become a central factor which constrains and has an effect on the further developing of international services and manufacturing. The development of transport has significantly improved the international trade environment, which can facilitate the provision of a range of conditions to increase more global services and manufacturing around the world (Hibbert, 1997). The rapid growth of globalization of services and manufacturing are deeply linked with the developing transport. Globalization of services and manufacturing by international trade encourages the international transport. The transport is an essential way which spreads an expansion of local services and manufacturing across national borders in worldwide (FEI, 2006). From this idea can be seen, the transport is an necessary part of international trade

GLOBAL TRANSPORTATION EXECUTION: activities, and it provides for global trade. Therefore, the transport is subsisted with the

international trade together. If there has no transport in the world, which signifies there will be no international movement of services and manufacturing occurrence in the worldwide as well. The further growth of international services and manufacturing may be needed for more transports supports, and if the pace of developing transport can not be reserved up with the pace of the growth of international services and manufacturing, which will greatly hold back the further growth of international trade, therefore, the requirement of proper global transport execution (Hibbert, 1997). Importance of global transport execution Initially, transport is the primary circumstance for raw materials and resources way in and exchanging, which facilitates countries to create up their scarce resources for making more services and manufacturing. According to H-O (Heckscher-Ohlin) theory, it demonstrates that countries differ in their relative aspect endowments. It means that use the countrys comparatively scarce factors more intensive use of that country exports products, in trade for imports of products that use the countrys relatively scarce factors more intensively (Pugel, 2007). For instance, Japan has limited natural resources and materials in its land, so it critically depends on a high requirement of transporting resources from other countries throughout international trade, if not, it can not satisfy its manufacturings needs. The Intermodal transportation for global supply chain may be extremely vital in current economies. Flexibility and price may be the bottom-line driver for intermodal transportation and in times of high fuel prices, speed of delivery is vital. Intermodal transportation may be a cheaper way to transport goods where the prices may rarely fluctuate. There may be a possibility of efficiency through intermodal transportation. Intermodal freights may require transloading or containerization,

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where a majority of may be moved into containers due to handling speed, service availability and enhanced safety. Coyle suggested that intermodalisim refers to the joint use of two or more modes of transportation; either containers on containers ships or on moving highway trailers (Coyle et al. 2003). This helps in moving shipment to places and improves cost efficiency and accessibility of the global transport. Global transport execution minimizes risk while moving freight globally Global transportation may subject some damage risks in freight, and it may be critical that products are protected when being packed into shipping containers. Furthermore, global transport execution may impact transport to be more flexible, fast and safety. Due to the development of international trade competitions, more services and manufacturing have been changed their local locations, which are from expensive labor resources countries to cheaper labor force countries. Simultaneously, it has changed transport distance and demand as well. More and more western companies transfer their manufactories from local place to many Asian countries for lower cost and higher production, and transport these productions to sell back. Because it is a good method that let companies create more fierce competitions in the world market through global manufacturing and transporting. Therefore, demand of transport has been increased by global trade, and cost of transport will be decreased by developing transport technology and management. Moreover, more quantities of global services and manufacturing will increase more different kinds of transporting demands to let it develop from single function to multifunction, which include store, move, and distribution. The global transport system, as a facilitator or enabling factor of international trade, will continue to play important roles and will grow in importance as more manufacturing and merchandising firms become involved in

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overseas sourcing and marketing. Such as new delivery system, communication system, internet and advanced container have innovated. Surface transport as an element of global transportation execution Surface transportation may be the dominant type of transportation globally. The most common types of surface transportation combine the wheel with fuel-powered or electric engines to move freight efficiently and quickly. Moving freight across adjacent land borders may be the primary domain of the rail and trucks. Despite these intra-continental trucks that may be high, the industry may be hampered by domestic regulations and rules that impede international freight flows. The rail activities focus on intermodal containers and bulk raw materials movement. Ocean transport as an element of global transportation execution Ocean carriers may have a massive role in the global transport, having to move 98 percent volume of intercontinental containerized trade and 60 percent of the trade value. In the ocean transport customers have a choice of charter service or liner service, depending on the customers needs. This maritime transportation has a wide variety ships that may carry an endless product types in array. The development of bulk and containerized maritime transportation has been strongly influenced by technology. Economies of scale have been achieved through the construction of larger ships and this in turn has affected the optimum shipment size, vessel routings and port selection. While this process is mostly over for bulk transport, it continues unabated for containerized shipping with the introduction of larger ships. Port selection is especially relevant because of the strong link between ports and industrial activity, but particularly between the port and its hinterland. However, technology and vessel design are by no means the only factors at work to influence the patterns of the world maritime shipping; government policy, commercial buying practices and physical constraints such as water depth in

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ports also play a key role. Until recently the individual elements of the transport chain, while functionally related, were operated in a largely disparate way. In the bulk trades, as in maritime transport in general, there is now a realization that the integration of supply chains requires a high level of organizational interdependence. Maritime transportation and inland transportation must increasingly be seen as functionally integrated. In bulk as in containerized trades the reduction of inventory and storage costs by just-in-time (JIT) shipments and door-to-door services are increasing in significance. Freight transportation becomes focused on providing the most extensive services possible within expected cost and reliability parameters. In such a context of flexible maritime networks, such as pendulum services and economies of scale, ports are hard pressed to act as efficient nodes in global logistical chains. Their responses have involved establishing better hinterland connections and in many cases private terminal operators have stepped in to directly manage the facilities. The global port and maritime landscape is thus adapting to new environment reflecting economic, technological and political changes. International air transport as an element of global transportation execution Air travel may have revolutionized global transportation by reducing dramatically, the time required to travel great distances. Transportation across oceans or nations might take months or weeks; however, freight may be transported in hours. Air cargo transportation may be a specialized mode and small form of freight transportation in terms of tonnage. Nonetheless, it may be a critical mode for high-value freight time-sensitive transports. More than 35 percent of the good value of traded goods internationally, and international air cargo above all moves on air freighters helping importers and exporters move international freight efficiently and quickly.

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The role of the government in safe and secure global transportation execution This part of global transportation execution the focus on government regulation of freight transportation from safety regulation to economic deregulation. Importers and exporters have to comply with a large variety of regulations and programs by the government aimed at security, transportation safety, and environmental impact reduction. An excellent example may be the Australian federal government that began to regulate the railroad industry in 1887 with the enactment of the Interstate Commerce Act. The federal action was a response to concerns that unfettered competition was bankrupting some railroads while unregulated pricing was permitting others to charge monopoly prices. In the early 1900s, Congress gave the Interstate Commerce Commission broad powers to control entry and exit in the industry, oversee services, assign routes, and set shipping rates. In the 1930s, Congress established similar regulatory regimes for the emerging motor carrier and air carrier industries. Economic regulation stabilized the freight transportation industry, but at the cost of dampening competition and sapping long-term profitability (Muller, 1999). By the 1970s, bankruptcies in the rail industry; high prices in the motor carrier, airline, and ocean carrier industries; and inefficient services across all modes plagued the industry. One hundred years after the Interstate Commerce Act, the federal government reversed its policies and began deregulating to revitalize the industry and improve productivity (Muller, 1999). Economic deregulation was a success. Today, the freight transportation industry is viable, competitive, and profitable. Productivity has increased, and the industry is reorganizing to compete in global markets. But the trends suggest that the gains in productivity achieved through economic deregulation have been largely realized. There are relatively few opportunities remaining to increase the productivity of freight transportation through economic deregulation.

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Deregulation triggered a massive restructuring of the transportation industry that may create new regulatory challenges (Muller, 1999). The industry is still working its way through a period of intense market-driven mergers as carriers search for economies of scale and scope that will allow them to compete and survive in the larger national, North American, and global markets. The broad characteristics of the new business models parallel the transformations taking place in the automobile, banking, and telecommunications industries. The new business models are likely to be consolidated (through another round of mergers), international, asset-based, and information driven. Economic regulation stabilized the transportation industry, but at the cost of dampening competition and the long-term viability of the industry. By the 1970s, bankruptcies, high prices, and inefficient services plagued the freight sector. The federal government began deregulating to revitalize the industry and improve productivity. Deregulation was successful. Today, the freight transportation industry is viable, competitive, and profitable. Productivity has increased, and the industry is reorganizing to compete in North American and global markets. But the trends suggest that economic deregulation will yield diminishing returns in the future. Government and industry must look beyond deregulation to maintain and improve productivity while ensuring equity and public safety in the coming decades. Conclusion Potentially, global transport execution may be a pivotal factor that has been developed to a higher level. There many types of transportation tools have been invented by people to encourage more quantities of transporting for global manufacturing and services. Such as, it is from horse wagons to plane transporting, and from land to sea and sky. Additionally, the speed and quality of transporting have been enhanced with new technology as well (Muller, 1999). In

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short, the growth of international trade and the globalization of production have put enormous pressures on the international transport system for support of the growing demands of needs. Without considerable technical improvements, international transport could not have provided sufficient support for the rapid growth of international trade transport services would never be provided at such low costs. Thus transport is impacting on global trade, and global services and manufacturing has also impacted on transport as well. The global transportation execution implements regulation or deregulation strategy, it may still have cons and pros to influence transport industry. Additionally, the process of regulation and deregulation has come full circle. The days of legislation designed to alter marketdriven outcomes are over, as are the days when frequent injuries and generous levels of air, water, and noise pollution are accepted as "the cost of doing business." A shift away from regulation of industry toward regulation of impacts is underway, there is less focus on economic regulation, and more focus on safety and environmental regulation. Airports and Seaports may be critical links in the supply chain globally, having to provide infrastructure, in form of equipment and labor to unload, load and transfer freight amid carriers. When these cargos reach their country of destination, it ought to receive government approval. Hence, a requirement of global transportation execution might help in transportation to enhance control and safety of cargo.

GLOBAL TRANSPORTATION EXECUTION: References

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Coyle J., Novack R., Gibson B., & Bardi E. (2003). Transportation: A Supply Chain Perspective. South-Western Cengage learning. Nelson Education, Ltd. Canada. FEI, J. (2006). International Transport System, Australian Maritime College, Australia, no.2. Hibbert, E. (1997). International Business: Strategy and Operations. MACMILLAN Business, London, (1):23-31. Muller, G. (1999). Intermodal Freight Transportation. IANA, (4): 42-45, 314, 389,398. Pugel, A. (2007). International Economics. McGraw-Hill Irwin, New York, America, no.13.p.62. Terrier, A. (2004). China: The Dragon Awakens. Retrieved from, http://www.inboundlogistics.com/articles/features/1004_feature04.shtml