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Intermodal Transportation
Intermodal transportation in Europe and the United States has experienced tremendous growth and expansion over the years. One of the major factors that have impacted the growth of intermodal transportation is regulation/deregulation of the industry. The regulation and deregulation of intermodal transportation in Europe and the United States started in the late 19th Century at a time when the industry had relatively no competition from other transportation modes. The regulation and deregulation of the industry can be traced back to 1887 when the Interstate Commerce Commission was established as a regulatory board to handle various issues relating to intermodal transportation (Slack, n.d.). Since then, regulation and deregulation has had both positive and negative impacts on the growth and/or continued growth of intermodal transportation in Europe and the United States.
Impact of Regulation/Deregulation on Intermodal Transportation
As previously indicated, the regulation/deregulation of intermodal transportation has had positive and negative impacts on the growth and continued growth of this sector. Given its positive impacts, deregulation is a good example of how policy changes significantly affect the structure and economic health of an industry (Slack, n.d.).
Positive Impacts of Deregulation
One of the positive impacts of deregulation on the growth and continued growth of intermodal transportation is enhancing competition....
Deregulation of intermodal transportation has played a crucial role in enhancing competition in pricing and enhancing the competitive of certain transportation sectors. According to the Bureau of Transportation Statistics (n.d.), deregulation of the motor carrier, rail, aviation, and maritime shipping industries in the past few decades has contributed to the emergence of new competitors. The deregulation has also promoted the development of an environment that is characterized by innovative, affordable, and efficient transportation services. This has in turn increased the numbers of passengers and volumes of freight, which enhances the growth of intermodal transportation (Bureau of Transportation Statistics, n.d.). For instance, in the United States, policy changes in transportation and logistics, especially changes in the policy framework of the trucking industry, enhanced the competitiveness of this industry vis-à-vis other modes of transportation. Through deregulation with the 1980 Motor Carrier Act, the trucking industry in the United States experienced the emergence of new trucking companies, which was an indicator of the increased competition in this sector. As new companies emerge and competition intensified, the trucking industry experienced tremendous growth.
Secondly, deregulation contributed to a reduction of operating costs in intermodal transportation, which played a crucial role in the growth and continued growth of the industry. For example, operation costs in…
References
Association of American Railroads. (2017, June 4). How Deregulation Saved the Freight Rail Industry. The Washington Post. Retrieved October 10, 2017, from http://www.washingtonpost.com/sf/brand-connect/wp/enterprise/how-deregulation-saved-the-freight-rail-industry/
Bureau of Transportation Statistics. (n.d.). Chapter 2: Growth, Deregulation, and Intermodalism. Retrieved from U.S. Department of Transportation website: https://www.rita.dot.gov/bts/sites/rita.dot.gov.bts/files/publications/the_changing_face_of_transportation/html/chapter_02.html
Henstra et al. (1999, October). Deregulation and Transport in an Enlarged European Union. Retrieved October 10, 2017, from http://www.europarl.europa.eu/stoa/webdav/shared/3_activities/transport/regulatory/europe/ipts_en.pdf
Slack, B. (n.d.). Rail Deregulation in the United States. Retrieved from Hofstra University website: https://people.hofstra.edu/geotrans/eng/ch9en/appl9en/ch9a1en.html
Operations Management Positive and Negative Influences of Legislation and Regulation on Intermodal Transportation Intermodal transportation is seen where goods, or people, travel across different forms or modes of transport. There are many influences on this type of transportation; the development of containers increased the demand for intermodal transportation, and technology that support longer supply chain has also increase demand. Another influence on the industry has been legislation and regulation, which has had
Intermodal Transportation Traditionally, the transport system was un-integrated and highly segmented, with each mode seeking to exploit its safety, reliability, service and cost advantages to the best of its ability so as to increase revenue and retain business. Each mode viewed the other as a competitor and, hence, treated it with some level of mistrust and suspicion. Public policy accentuated the situation further by frequently barring "companies from owning firms in
D.). Having the most profound impact on containerization and cargo-handling operations were the number of huge containerships that came online in the mid-1990s. In order to replace wasteful ships, meet shippers' demands, and maximize loads, larger, faster and more efficient containerships began to be introduced. The largest, dubbed super containers or post-Panamax vessels were engineered to carry 4,000 to 5,000 20-foot equivalent units (TEUs), rather than the most prevalent generation capacity
Regulation and Deregulation Prior to the 19th century, most people would have voiced their support for the "concept of laissez-faire, a doctrine opposing government interference in the economy, except in" the maintenance of law and order (U.S. Department of State, 2014). The turn of the 19th century, however, saw attitudes begin to change, and labor movements as well as small entrepreneurs asking the government to intervene, following the apparent failure of