Recent and Emerging Global Trends in Transportation - Coursework Example

Running Header: RESEARCH PAPER OF NEW TRENDS IMPACTING GLOBAL BUSINESS Recent and Emerging Global Trends in Transportation Name Course Name and Code Instructor’s Name Date Introduction Over numerous centuries, human societies all over the world have created increasingly closer contacts. Currently, the speed of global integration has significantly augmented. Unprecedented modifications in technology, transportation, and communications have offered the procedure novel momentum and made the globe more interdependent than before (McCann, 2008). International corporations produce products in different countries and sell them to consumers across the globe: whilst raw materials, technology and money also move more speedily across national borders (Boltho and Toniolo, 1999). Beside finances and products, cultures and ideas also flow more freely and quickly (McCann, 2008). Therefore, social movements, laws and economies are forming at the global level. All this has been caused and driven by globalization. The term includes a range of political, social, and economic modifications. Academicians have defined globalization as a procedure of integration and interaction amongst individuals, corporations and governments across the globe; a process driven by investment and international trade, and facilitated by information technology (Boltho and Toniolo, 1999). Moreover, the term globalization has been used to refer to the economic order of the universe through the minimization of the international trade barriers which include import quotas, tariffs as well as trade tariffs (McCann, 2008) The term designates the progression by which cultures, regional economies as well as societies have been integrated through transportation, trade and communication. The major aim of globalization is to increase goods, services and material wealth through a worldwide division of labour, which is largely made possible by advances in specialization, competition as well as international relations (McCann, 2008; Boltho and Toniolo, 1999). This paper aims at researching and analyzing the on new trends impacting global business with regards to the recent and emerging global trends in transportation. Recent and emerging global trends in transportation Evidently, the transportation industry is facing and will continue to face global challenges because of globalization, which are anticipated to reshape the transportation priorities as well as the needs. Apparently, the challenges derive from the influences of major trends in globalization for instance new technology, climate change and the changes in the costs of fuel (Boltho and Toniolo, 1999). The environmental and energy industry play a very vital role in the society. This is due to the fact that the competition for natural resources as both economic inputs as well as environmental goods has greatly increased. Another reason is that there has been an increase in the effects of climate change and a potential shift from traditional fossil fuels to alternative sources of power (Boltho and Toniolo, 1999). Clearly, the rise in the costs of the traditional materials for instance the inputs for projects also impacts the ability of the transportation agencies to offer affordable services. This trend can strongly be linked to the regulatory burdens, supply issues as well as increased demand. For instance, it is anticipated that the consumption of energy will continue to rise largely in the transportation industry across the globe. According to studies, technology has advanced tremendously over the last few decades. As stated by Boltho and Toniolo(1999), the future promises more potential changes in the future and especially in the transportation industry. Evidently, nanotechnology has maximized other research gains via its characteristic of being small in nature (Boltho and Toniolo, 1999). The way these advances function on a small scale have a huge impact on the elemental properties of magnetic qualities, colour as well as conductivity. The scholars have revealed in their research that the advancement of technology will have an impact on how transportation agencies design, construct as well as maintain the transportation facilities. In addition, the materials in possession of the data receptors will inform the planners of transportation of the travel demands at all times while combining nanotechnology technologies and Information communication technology seamlessly. Studies indicate that the technology will also improve the environmental performance by ensuring zero emissions from the vehicles, safety as well as accessibility through improved infrastructure. For approximately 200 years of history since the commencement of mechanized transportation, the efficiency, speed, capacity as well as the geographical coverage of the transportation systems has dramatically improved. Orski (2002) indicates that the modes, networks and terminals have been subject to the significant changes that come in the following functional natures: Revolutionary change This functional nature entails completely new technology, which creates new growth opportunities as well as growth opportunities for transportation (Orski, 2002). Besides, the change marks the obsolescence of the existing transport mode. This is due to the reason that the new mode will have substantial capacity, cost and time benefits. Studies have continued to reveal that these kinds of changes are rare but very profound especially because they mostly entail the setting of a whole new network (Orski, 2002). Furthermore, they are hard to predict but in case of occurrence, their impacts are easily assessed. Incremental or evolutionary changes This kind of functional change comprises of the stepwise enhancement of an already existing transport operations and technology (Orski, 2002). Because of this, there is increased productivity with more capacity, better performance and low costs of the involved terminal or mode. It is apparent that the evolutionary change is easy to extrapolate but difficult to assess the rate of change they bring about (Orski, 2002). With regards to the above named changes in the transportation sector, the following observations were highlighted: Due to the technical and geographical specificities of each of the modes, they were characterized with different technologies as well as varying rates of diffusion and innovation (McCann, 2008). Therefore, a transport innovation can be a competitive or additive force whereby the new technology will expand or the existing mode will become more competitive and thus efficient. However, it can also be a destructive force especially when the new technology marks the obsolescence and the demise of an existing mode often through a paradigm shift (Orski, 2002). Nevertheless, it also happens that the older technology endures these forces due to the fact that it has a wider level of adoption, accumulated capital investment and utilization. Evidently, vesting interests in a mode already in existent especially those owned publicly delays and in some cases prevents an innovation from taking place. Efficient as well as faster transport systems were linked to technological innovation (McCann, 2008). This process suggested a space-time convergence whereby a bigger amount of space could be exchanged for lesser amount of time. As a result, the comparative advantages of space could thus be more efficiently used (McCann, 2008). Technological evolution within the transport industry has been greatly linked to the stages of economic development of the economy of the world. Transportation as well as economic development is consequently interweaved since one can never occur without the other (Audirac, 2002). One of the major challenges in discussing the future trends lies within looking at the future as an extrapolation of the past (Johnson, 2010). Typically, there exists an assumption that the future will entail a technology that is already in existent, and operating a protracted scale that is way beyond what currently possible (Kumar, 1998). This could be perceived as an incremental change bias (Audirac, 2002). The strictures of this kind of an extrapolation usually comprise a high speed, a higher capacity, mass availability as well as a better accessibility, all of which implying similar or lower costs (Audirac, 2002). Therefore, studies reveal that any discussion regarding the future of the transportation industry ought to start with the understanding that much of what is being presented as plausible is unlikely to become a reality, more so if the extrapolation goes several decades into the future (Boltho and Toniolo, 1999). It is apparent that at the beginning of the 20th century it was quite difficult to predict the trend within the transportation sector for instance air transportation as well as the automobile (Kumar, 1998). However, with the substantial technological innovations taking place as well as the better understanding of the laws of physics, it is possible to predict the future trends in this industry. Apparently, ever since the invention of the commercial jet planes, the container and high speed train networks, no remarkable technological change have influenced passenger as well as freight transport systems at least from a paradigm shift perspective (Audirac, 2002). According to studies, the beginning of the 21st century was an eon of truck and car dependency, which is believed to hinder the development of other modes of transportation. This is due to the fact that several of the technical advancements aim at insuring the dominance of oil as a source of energy (Audirac, 2002). It is anticipated that the high-energy prices will initiate the most vital technological transition within the transportation, industry since the introduction of automobile. Due to this reason, there has been increased us of the intelligent transport systems. This is the development of the of a set of information and communication technologies (ICT) to improve the speed, efficiency, safety and reliability of movements, by relying upon complete or partial automation of the vehicle, transhipment and control (McCann, 2008). According to the experts, these systems comprise the improvement of the existing modes of transport or the development of new ones for instance automated high way as well as systems. Besides, it entails the development of new modes and new transhipment systems for example for public transport as well as freight transportation (Kumar, 1998). The main aim of such an initiative is to ensure an efficient use of the already existing infrastructure via the use of information technologies (Kumar, 1998). However, according to McCann (2008), more benefits are yet to be achieved within the transportation industry with better management of the existing vehicles and technology. Apparently, ICT diffusion is largely impacted by the business models of the transport sector it takes place in (Johnson, 2010). Studies indicate that there are a number of modes, which could replace and more likely complement the existing modes especially for passenger transportation (Johnson, 2010). With such a technology being magnetic levitation, it has the advantage of experiencing no friction apart from the air friction. As a result, with the use of its support as well as no moving parts, it is able to attain an operational speed of between 500 and 600 km per hour. This presents a substitute mode for passengers as well as freight land movements within the assortment of 75 to 1,000 km (Johnson, 2010). Magnetic levitation advances from the existing technology of high-speed train networks that are limited 300 km speed per hour. Generally, magnetic levitation is the first central innovation in railway transportation ever since the industrial revolution (Kumar, 1998). Studies reveal that the first commercial magnetic levitation system commenced in 2003. It has an operational speed of approximately 440 km per hour. According to studies, alternative fuels could be used. This entails the use of existing modes but with modified fuels, technology or engine. For example, the hybrid vehicles comprises of the use of two motor technologies, which include the electric motor and the internal combustion. In simple terms, breaking is used to recharge a battery, which then is then used to power the electric motor (Johnson, 2010). According to some scholars, gasoline is seen as the best fuel choice. However, according to some other experts diesel is the fuel with the highest potential as it can be made from organic fuel and coal. It is evident that the hybrid engines have been seen as a transitional technology that copes with escalating energy prices. As revealed, this presents a huge reliance of bio fuels as an additive to petroleum (Kumar, 1998). However an evaluation of their impacts on the production of food must be done. In addition, fuel cells are also part of the energy transition. Apparently, this involves an electric generator, which uses the catalytic conversion of oxygen and hydrogen. The researchers indicate that the electricity produced can be used for a number of purposes including supplying an electric motor (Johnson, 2010). The contemporary technological predictions do not present fuel cells of high output. They indicate that they are only applicable to light vehicles such as cars, or small power systems (Kumar, 1998). Nonetheless, fuel cells usually indicate low environmental impact alternative to generate energy and fuel cell cars are expected to reach mass production by 2015 (Zimmerman, 2009). More challenges in the use of fuel cells include the storage of hydrogen fuels in vehicles and establishing a distribution channel to deliver to the consumer. It is clear from past studies that prospecting the future trends within the transport industry is very hazardous as technology is known as a factor that historically brought about paradigm shifts and there is no doubt it would create the same problem again with unforeseen impacts (Kumar, 1998). The contemporary history indicates that few cases reveal that revolutionary transport technology is an outcome of public endeavour (Zimmerman, 2009). Nevertheless, the public sector plays an important role especially as transport innovations became complex. This initiated a concerted approach in management, infrastructure as well as regulation. For example, the 20th century massive diffusion of the automobile was linked to the regulations regarding operations such as emissions as well as speed and public investments in road infrastructures (Zimmerman, 2009). According to Kumar (1998), as vehicle production dominantly became private, road infrastructures were seen as a public good and they were delivered as such (Zimmerman, 2009). Similarly, the same processes were experienced in the maritime transportation, public transit, rail, telecommunications and air transportation. It is anticipated that there will be a rise in the complexity of transport systems especially the intermodalism. Evidently, future transportation is experiencing growing concerns that are with no doubt linked to the environment, energy, security as well as safety. The experts project that they are going to be advanced to accommodate additional demands for mobility or to offer alternatives to existing demand (Zimmerman, 2009). However, there lies a challenge in the balance between public policy and market forces. This is due to the fact that they both have a role to play within the transition. Generally, transportation is a derived demand. Therefore, it is for this reason that the core feature of the future transportation relates largely to the economic activity level as well as the extent that this level will be pertained to specific passengers as well as freight volumes (Johnson, 2010). This is yet to be seen and whether the transportation system will continue being globalized or regionalized. Globalization in that it will assumes growing accessibility, affordable energy prices as well as a lasting openness to trade. Clearly, the exploitation of the comparative advantages continues, resulting to a complex framework of trade as well as transportation systems(Orski, 2002). In addition the active networks of regional transportation are superposed a number of transnational relations. Regionalization in that it will assume high energy prices as well as a commercial environment which is prone to protectionism, and which will convey extra friction to long distance interactions (Levinson, 2008). Evidently, the exploitation of comparative advantages is usually performed on a more regional foundation. This kind of environment does not limit international trade. However, it is susceptible to the establishment of effective regional transport systems (Orski, 2002). A central feature of the transport industry is that they should offer increased flexibility as well as adaptability to the changing market circumstances as a result of globalization, some of which are unforeseen, while still fulfilling to an range of environmental, safety and security regulations (Hoekman et al, 2010). However, this can never be effectively planned as the governments of most nations are usually poor planners as well as slow in understanding the technological changes. As a result, this limits through the regulations and preferences to certain modes or technologies. For example, if a new technology competes with a nationalized transport system, most likely the government will intervene to avoid its emergence with regulations. Current history designates that it was when deregulation took place that the most noteworthy changes as well as innovation resulted for transportation (Kumar, 1998). A major salient example is the Staggers Act in American rail transportation, which was linked with substantial productivity improvements and new investments (Orski, 2002). It is apparent that the future transport will be a consequence of the private initiative with the market being the final judge of the true potential of a new transport technology (Hoekman et al, 2010). As evidenced by the economic history, the market will always seek to adopt the best transportation available. Apparently, most transport systems have been replaced since they have become obsolete with more efficient ones on the basis of the prevailing conditions for instance energy and labour. This is a behaviour that is predicted to last in the setting of transportation system that will reflect the level of scarcity of resources space, energy, and time and space (Levinson, 2008). According to past research, the deepening financial crisis as well as the tight credit conditions has resulted to a significant economic reversal especially in the ECE region. As indicated by information gotten from the statistical sources as well as industry associations, freight transportation greatly declined within this region(Levinson, 2008). Apparently, road freight and rail traffic suffered intense double-digit declines in the last quarter of the year 2008 as well as the first quarter of the year 2009. Furthermore, layoffs as well as bankruptcies grew at a very high level in the highly competitive transport industry, which is designated by a number of small operators. In addition, employment within the concentrated rail sector declined at a much slower rate. Nevertheless, in the beginning of 2009, a majority of the rail freight operators resulted to layoffs. In contrast, the passenger sector experienced less dramatic developments. While there was reduced passenger car traffic in a various ECE countries in 2008, the rail passenger traffic) increased over the same time period within the European Union by 4.1 per cent and United by 6.8 per cent respectively (Levinson, 2008). As a result of the global economic crisis, commodity prices for instance oil prices deflated. Typically, the rising fuel costs have had manifold consequences on the logistic chain, which includes increased use of intermodal transport as well as changes within stock management (Orski, 2002). According to research, an effective alternative have not been found yet to diesel for road transport and other modes of transport offer limited substitution possibilities (Levinson,2008). Trucking have an added advantage to in terms of speed as well as flexibility. On the other hand, trains as well as inland waterways are not sufficient enough to offer door-to-door delivery. However, they could play a vital role in the long distance transport especially if the intermodal shift as a result of the escalating fuel prices was to persist. It is apparent that the car industry is creating vehicles that use which can use alternative sources of power. Audirac (2002) indicated that this could lessen dependence on the fossil fuels as well as improve air quality, particularly within the urban areas. The hybrid passenger vehicles, steady with improvements in fuel efficiency and air quality, are being presented in the established markets. Whereas hybrid engines have confirmed their efficiency in vehicles to a given size, technological innovation has offered cleaner diesel engines for larger vehicles (Proost and Dender, 2011). Generally, diesel vehicles attain approximately 30 % better fuel economy as compared to the gasoline-powered cars. The new unit of diesel engines that were introduced in 2006 emitted lesser particulates as compared to the previous models (Proostand Dender, 2011). The prospects are that new clean technologies for instance hydrogen as well as fuel cell vehicles would not result to reduced CO2 and pollutants emissions (Proost and Dender, 2011). Conclusion In conclusion, the expected protracted recession within the large economies have significant effects within the transport industry. The growth of the transport industry will decline greatly. Evidently, the freight traffic will be highly influenced by the reduction in merchandize trade. Clearly, the passenger traffic will see shifts to the public transport technologies, providing that they are available. In addition, the manufacturing sector of the automotive will be impacted by declining business and consumer demands for the motor vehicles. It is apparent that transport infrastructure investment could be accelerated by governments that decide to stimulate aggregate demand. Moreover, increased fuel prices ought to enhance the substitution of long distance transport ranging from the road to rail to inland waterways when the substitutes of diesel are found. Generally, transportation is a derived demand. Therefore, it is for this reason that the core feature of the future transportation relates largely to the economic activity level as well as the extent that this level will be pertained to specific passengers as well as freight volumes. References Audirac, I. (2002). Information Technology and Urban Form. Journal of Planning Literature, vol. 17, pp. 212 - 226. Boltho, A., and Toniolo, G. (1999). The assessment: the twentieth century – achievements, failures, lessons. Oxford Review of Economic Policy, vol. 15, no. 4, pp. 1-17. Hoekman, S. K., Gertler, A. W., Broch, A. Robbins, C., & Natarajan, M. (2010). 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