Compare and contrast the European and North American freight transportation systems, globalized
trade, Policy implications and Future research.
Topic: In 2-3 pages, compare and contrast the European and North American freight
transportation systems, globalized trade, and global policy implications . Lastly, reviewing the
future research, what part do you find interesting and why?
The European Union is primarily made up of twenty-eight countries which are located in Europe and
mostly cooperate on political, environmental and economic matters. These countries have formed the EU
as custom union which formulates policies and rules that establish competition rules that are required for
effective functioning of their own internal market and also policies that govern the union members while
dealing with other non-member countries in the global market. North America is largely dominated by the
US and Canada. The Europeans and Americans cooperate and share common values related to economic,
cultural, social and political ties. These ties are mostly reflected closely on transatlantic relations.
Compare and contrast the European and North American freight and Global Policies 2
To assess and also develop the transatlantic cooperation between the Americas and the European Union,
frequent presidential summits are regularly organized to facilitate mutual agreements on controversial
The establishment and the emerging issues on global production network led to social integration on the
international scene on matters touching on information, communication and transportation innovations
which finally resulted on global expansion of trade and other economic activities. (Hesse & Rodrigue,
Freight transportation especially cross-border freight transportation is considered in the Americas as a
high GHG (Green House Gas) emitting industry. The American system puts a lot of emphasis on
subsidies regulation and regulated emission pricing that controls the GHG transmission from rail and
truck transportation systems.
Protection of the environment is a major concern of the American transport integration. The impact of
transportation on climate change has prompted several studies that have recommended the harmonization
and adoption of renewable energy and other environment protection standards in the transportation
Transportation is currently the second largest consumer of energy in the US while in Canada it’s the
greatest. Transportation energy efficiency is a major concern for the national government as well as for
the national climate change regulatory authorities.
Globalization of the manufacturing industry and logistics in the US has transformed the supply chain
management (SCM) into a more comprehensive and complex framework that have eliminated inventories
and instead integrated supply chain management systems. The expansion of GPN has been largely based
on logistics. (Leinbach & Capineri, 2007)
Compare and contrast the European and North American freight and Global Policies 3
In EU countries, Freight transport logistics is comparable to the North American policies on the
need for improved efficiency on the general transport system through logistics which targets
more environmentally friendly, efficient and safer energy consumption levels. Globalization has
created new challenges for the European Union. The fast growth in the economy has also led to
the growth in the transport system that has also resulted in congestion, pollution, noise and
accidents. Transport is largely dependent on fossil fuels. The EU has established European
loading standards in an effort to mitigate the effects of transportation on the environment and
also to maintain a sustainable mobility.
The climate change has compelled the EU and the North Americans to seek alternative energy
sources for transportation. Biofuels and gas remain the most recommended alternatives currently
feasible as they do not attract any technological conversions. However Biofuels are not far much
better than fossil fuels hence gas is the most recommended of the two alternatives.
In June 2005, the EU – US summit launched the transatlantic economic integration to spur
growth and cooperation in both organizations by maximizing their economic potentials. The
other policies are the OAA (Open Aviation Area) created in 2003 and it seeks to provide legal
basis for transatlantic air services and Galileo that was established in 2004 and its aim is to
regulate the global positioning systems in transportation networks.
Future research is needed on the effect of the threat of terrorism and its impact on the
transportation system both in EU and America. The US and the EU have cooperated before on
controlling the impact of terrorism on international trade but more research is needed on how to
tackle and eradicate the threat posed.
Compare and contrast the European and North American freight and Global Policies 4
The most interesting part of the cooperation is that there is no doubt that the transportation
systems contribute to most of the environment hazards globally and both unions are still having a
dialogue on how to implement the right measures to tackle the effects on climate change.
(FHWA, 2005) The efforts to minimize and reduce the effects on the environment from the
transportation systems are not satisfactory.
FHWA, Office of Freight Management and Operations (2005): Freight Facts and Figures 2005,
p. 9. Washington D.C.: FHWA.
Compare and contrast the European and North American freight and Global Policies 5
Hesse, M. and J-P Rodrigue (2004) “The Transport Geography of Logistics and Freight
Distribution”, Journal of Transport Geography, Vol.12, No. 3, pp. 171-184.
Leinbach, T. R. & Capineri, C. (2007) Globalized freight transport: Intermodality, e-commerce,
logistics and sustainability. Cheltenham, UK: Edward Elgar.