Trade is an integral element of the economy of any country. Supply systems are based on the cargo transportation business – transporting products by water, air, and road transport over long distances. The stability of the freight transportation system directly affects the stability of trade and the economy. European and North American freight systems have similarities and differences in technology, modes of transport, and overall organization.
Similarities
One of the main similarities that can be found in the functioning of the European and North American transportation systems is the use of advanced technologies. Technological progress makes the work of specialists easier, and the transportation process is more efficient and faster. Modern ports are equipped with rapid unloading and loading systems and devices for packing cargo. North America and Europe use high-speed trains and refrigeration systems during transportation (Watson et al., 2019). Both regions effectively use sea containers to speed up the transportation of goods along sea routes (Notteboom et al., 2021). Sea freight plays a significant role as it is a fast and proven delivery channel.
The freight transportation systems of North America and Europe are similar in terms of environmental concerns. Freight transport over long distances is associated with high levels of greenhouse gas emissions (Clairotte et al., 2020). In addition, for advanced countries, freight transportation is a significant energy consumer, so the United States and Europe are oriented towards developing and integrating more energy-efficient transport. Concern about the negative impact of transport on climate change is a priority for trade planning in both regions.
Differences
The main difference between North American and European freight transport is the usage of rail transport. Differences arise due to various climates, territorial conditions and priority policies. European rail traffic is more centralized due to strong economic links between the countries. The significant difference arises because infrastructure and trains are privately owned in North America, while European infrastructure is mostly publicly owned (Finger & Montero, 2020). The distances over which goods are transported also differ. Europe can be content with transportation over short distances and organizing trade between closely located countries. North America, in turn, is more involved in world trade, so it is necessary to organize transportation over longer distances.
Globalized Trade
The globalization of trade has become the main course for most advanced countries and regions. Recently, the globalization of trade has been complicated by escalating geopolitical conflicts, rising prices, and disrupted supply chains. Despite a common course in the development of global trade, the courses of North America and Europe diverge significantly. In recent years, the United States has directed its efforts toward strengthening its economic position in the Asian region (UN, 2020). The basis for this is mutually beneficial terms of cooperation and the need to compete with China’s growing influence. This policy influenced trade relations between the US and Europe.
The new trade policy aimed at entering the Asian market encourages Europe to develop new trade routes. The European Union can provide a new market with established transportation channels. On the other hand, Europe is also focused on establishing ties with the United States. The agreement played a unique role in this partnership on the transatlantic and Pacific partnership between Europe and America (UN, 2020). The development of transatlantic cooperation is overseen by the US government and the European Union, and summits are organized to reach an agreement. Most likely, both Europe and North America will follow the path of expanding trade relations and entering new markets.
Global Policy Implications
Predicting the consequences of the chosen road for global politics is quite tricky because of the rapidly changing geopolitical situation. The tension between the US and China is growing due to political factors, so that trade relations development can vary. On the other hand, Europe is striving to get out of the US trade influence and may succeed in the Asian market. The global trade situation is challenged by complicated supply chains and rising shipping costs. In addition, a container crisis, which occurred due to the pandemic, is not ruled out during a new outbreak of COVID-19. In addition, both regions are looking for options for new markets to expand their influence, so in the future, increased attention may be paid to the African continent.
Conclusion
Cargo transportation systems for North America and Europe have significant similarities and differences. Both regions find cargo transportation by the sea the most effective. In addition, the unifying factor is the concern for the environmental friendliness of transportation and the development of energy-efficient means of cargo transport. Both regions use advanced technology to make transportation faster. The essential difference lies in the fact that the European Union is more centralized and less oriented toward foreign trade. However, new global conditions are forcing both regions to focus on new markets. Traditional trade routes between the American and European continents should be preserved. It is possible to establish cooperation between the US and Europe with China and African countries in the future.
References
Clairotte, M., Suarez-Bertoa, R., Zardini, A. A., Giechaskiel, B., Pavlovic, J., Valverde, V., Ciuffo, B. & Astorga, C. (2020). Exhaust emission factors of greenhouse gases (GHGs) from European road vehicles. Environmental Sciences Europe, 32(1), 1-20.
Finger, M., & Montero, J. (Eds.). (2020). Handbook on Railway Regulation: Concepts and Practice. Edward Elgar Publishing.
Notteboom, T., Pallis, T., & Rodrigue, J. P. (2021). Disruptions and resilience in global container shipping and ports: the COVID-19 pandemic versus the 2008–2009 financial crisis. Maritime Economics & Logistics, 23(2), 179-210.
UN. (2020). World Economic Situation and Prospects 2020. United Nations.
Watson, I., Ali, A., & Bayyati, A. (2019). Freight transport using high-speed railways. International Journal of Transport Development and Integration, 3(2), 103-116.