Import and Export Companies in the UK and USA - Coursework Example

Essay, Business Import and Export Companies in the UK and USA of the School: Introduction There exist several disparities between export and import companies found in the UK as compared to those located in the USA. The costs and benefits of such companies between the two countries differ too. It is evident that the UK and USA export and import companies differ in how they are structured and operate. Their regulatory framework, logistics network, and operations decisions are not the same. In general containerization is the same since the global trade in containerization is seamless and linked. The maritime import and export companies have established networks that serve the world market and not only in their countries of origin and, in this case, the UK and the USA. In terms of cost and benefits, the analysis of the UK and US import and export companies show several differences. A measure of the benefits of in terms of lower cost, better service and the volume of freight they can transport differs between the two countries. The aim of the import and export companies is always to reduce the transit time and also advance the reliability of the schedule or route they use. To remain active, the ways in which import and export companies reorganize its logistics in the two countries differ (Feenstra & Romalis 2002). A fundamental difference is in the registration of the export and import countries. In the UK the export and import companies are not licensed but instead from a freight association. They are concerned with the consignors’ goods and commodities consolidation into full loads. They offer packaging services. On the other hand, export and import companies from the USA must undergo registration. They handle the delivery of cargo under a bill of lading of their own. So in general the entry of new import and export companies in the UK is more open compared to the USA the companies must fulfil several requirements. Import and export companies in the USA must adhere to the set registration rules for them to get a practicing license. Corridors, Gateways and Hinterlands differences The various gateways interface enable the import and export companies to access the extensive global transport network. What makes these interfaces differ are the policies, accessibility level and the hinterlands economic activity. In the US, the economic activities in its west and east coasts have a high concentration level. It has made the transport corridors and a gateway in the US to be concentrated with traffic hence a lot of time is consumed and wasted. It negatively impacts the import and export companies in the US since they are made to wait for long hours thus resulting in the increase in their operational costs. However in the UK, its coastline is not a burst of activities, hence traffic in their ports of destination is seamless. The import and export companies benefit be saving on the time spent in the shipment of cargo hence save on their general operational costs. Another cause for the traffic is also because the US import and export companies are forced to utilize the small gateways. It hurts them because they will have limited chances of fully participating in the global network of shipping. The export and import companies, on the other hand, get the opportunity to access the international network of the major shipping markets (Feenstra & Romalis 2002). The US and the UK also differ in their freight flows functional division. The companies in the US have a higher degree of specialization compared to those in the UK since their gateways are more advanced. In contrast, the UK import and export companies use a gateway that is typically at a lower level than their US counterparts. The geography of the US coastline is what has contributed to elevated and specialized gateways since it has many secondary routes to South America and Africa. On the other hand, the geographical location of the UK ports and coastline has a limiting effect on their import and export companies. The import and export companies will handle a higher volume of containers because of the larger number of volumes of vessels due to the US port geographical location. Thus the US import and export companies have the benefit of higher demand for their services in comparison with those import and export companies found in the UK. For a while now, the US import and export companies have dominated the international shipping market because they enjoy many benefits and advantages. The benefits are as a result of a higher operational efficiency, high density of economic activities in the hinterland and scale advantages. The UK import and export companies enjoy less of these benefits (Feenstra & Romalis 2002). Import and export companies’ terminals and port regionalism Apart from the gateways, Import and export companies find the maritime terminals and land interfaces quite fundamental. The Port regionalization in which the import and export companies also operate have an impact on the costs incur and benefits they will have. The physical performance of the port terminal facilities, its inland connection modes, and its capacity influence how the import and export companies. In the US, there are many upcoming and ports available. Besides, there have been investments in the rail and road infrastructure in the hinterland from the port terminals. It has led to an efficient inland transport network that can handle double stacking of containers in transit. The import and export companies in the US thus enjoy the benefit of having to transport large amounts of cargo at a time, hence saving costs too. Besides too, inland intermodal large scale terminals have been set up in the US. It has benefited the US import and export companies who are now in pole position to serve more important market regions (Das 2004). In contrast, there is less multiplication of new terminals in the UK. Hence, the UK import and export companies are unable to expand their operations wide enough since they cannot enjoy the benefit of an enhanced accessibility of its port terminals. The companies instead have to incur an extra cost of setting up new delivery gateways and practices to bridge the existing gap. Besides, the rail terminals in the UK and road infrastructure limit the practice of double stacking of containerized cargo. The restriction of double cargo stacking denies the import and export companies in the UK from achieving the economies of scale. It would have otherwise benefited the companies by enabling them save on costs of handling cargo on an individual basis instead of as a large package. The difference in the governance and regulatory framework in the US and the UK The regulatory framework governing the import and export companies the UK are more or less similar to the ones the USA companies are being subjected to. They include liberalization, privatization activities and entry of intermodal activities. The difference between the US and UK regulatory framework is on the basis of how the regulation policies are being implemented. These policies have an impact on the cost incurred and benefit realized by the import and export companies in the countries mentioned above. The approach of the regulation of the imports and exports by the US takes effect after new policies are being enacted. The changes may be profound and sudden thus negatively affecting the import and export companies in the US who need not be involved. In contrast, the approach in the UK is friendlier since the interest of the major players who are importers and exporters are analyzed. It in effect benefits the import and export companies since their interests are being first considered. The case is, however, different with the US import and export companies who may be subject to strict and adverse regulations and governance (Publications 2008). Conclusion The export and import market has been continuously evolving. The evolution has both made import and export companies enjoy benefits and the same time incur costs in their operation. Many these companies have had their operations influenced by globalization, new markets expansion, and information technology advancement. On the other hand, they face the need to satisfy continually their clients hence the urge for them to push for more reliability and flexibility in their operations. As a result, these companies face a complex pressure to meet their needs. They thus respond by creating fresh value added facilities and services. However, they are continually faced with the reality of the distribution systems and terminals in their area of location. In particular, cultural and political characteristics has an effect on the freight distribution activities by the US and UK import and export companies. It has become appropriate to assess and compare the difference in how import and export companies operate in various regions. The US and the UK will for a long time remain different in terms of the way its import and export companies are run. The variance has an impact on the cost and benefits of these import and export companies since they will always diverge. Further research into the effects of the region in which the import and export companies operate is essential. The performances of the various import and export companies need to be measured and analyzed. It will provide a basis for benchmarking. References Das, D. (2004). Regionalism in global trade. Cheltenham, UK: Edward Elgar. Feenstra, R., & Romalis, J. (2002). U.S. imports, exports and tariff data, 1989-2001. Cambridge, Mass.: National Bureau of Economic Research. Publications, U. (2008). Global export-import procedures and contacts handbook. Washington, DC: International Business Pub. Read More