NAFTA's effects on maritime shipping and freight transportation alternatives

NAFTA -- Maritime Policy

Maritime Shipping within the NAFTA Trading Partners

Alternatives to Waterways

Maritime Environmental Issues

NAFTA: The Effects on Shipping

Since the inception of the North American Free Trade Agreement (NAFTA) in 1993 there have been notable changes in the movement of goods from the trilateral trading block formed by the United States, Canada and Mexico. This agreement represents the largest trade block in the world by some economic measures and has consequently increased the strain on the infrastructure of the three countries. New ideas are under consideration for how to best alleviate the increasing amount of congestion on the infrastructure that the trade agreement has caused.

In Europe nearly ninety percent of all external freight trade is seaborne and also accounts for nearly forty percent of the EU's intra-continental trade mechanisms (Kallas, 2009). However, the Americas have yet to establish such utilization of maritime highways. One report states that the United States only moves about two percent (1.4 billion tons) of its domestic freight through the countries waterways (Solomon, 2009).

This paper will examine the inequalities of maritime uses by various counties and consider whether or not investment in this transportation method will be able to facilitate goods between the triad of trading partners operating under the agreements of NAFTA. Considerations will include environmental factors, alternative transportation methods, as well as governmental planning agencies. This exploratory investigation aims to discover all of the advantages and disadvantages associated with short sea shipping.

Maritime Shipping within the NAFTA Trading Partners

A research paper published in 2005 provides valuable insights as to why the seas have not received as much attention as the rail, road, and air during the course of the NAFTA transactions (Brooks, 2005). This paper states that from the United States perspective going into the NAFTA agreement, maritime routes were never a consideration. Furthermore, it has never been considered, fully investigated or understood by the trading partners. It was assumed that the potential of this delivery method would be marginalized by the slower delivery transit time.

Maritime Environmental Issues

There are many environmental concerns associated with the world's fleet of ships; however by comparison this method has many advantages over the alternatives. Maritime transit is generally considered the lowest cost and lowest pollutant emitting source of all available alternatives. However the sheer number of vessels in transit at any one time is still large enough to warrant concern among the environmentally conscious.

One extremely recent development offers new insight of the future of the environmental concerns associated with maritime travel. The International Maritime Organization (IMO), a UN body that regulates world shipping, will be deciding on whether or not to reduce sulfur levels in the emissions produced by ships (Pearce, 2010). Sulfur plays a very ironic role in today's stage of environmental concerns.

On one hand, it is one of the contaminants produced by sulfates contribute to global warming. One the other hand, sulfur levels actually protect the environment in a roundabout way. Sulfate particles actually hover in the atmosphere an act to provide a layer of shade to the earth's surface. Therefore, the sulfates have a net effect that actually acts to cool the planet. If the IMO does act to reduce the amount of sulfates in the atmosphere it could potentially cause inadvertent effects on global warming.

Another issue regarding maritime delivery that cannot be avoided is the invasive species issue. When a ship travels it can carry unwanted species in two different manners. The first is that a ship can carry foreign species in its ballast. This ballast water is then released upon porting at its destination in order to balance the ship as the cargo is unloaded. Species of aquatic creators are consequently stored and released into habitats in which they are not naturally found. The newly introduced species can act to upset the environmental balance in that region.

The second manner of transportation that a sea going vessel offers to species is called biofouling. Biofouling occurs when a species of any aquatic species basically hitches a ride to a new destination on the exterior of a ship's hull. It has been speculated that each method of transportation is equally as potentially deadly to the native species. When the alien species reaches the new environment it has the potential of surpassing the native population and reproducing in devastating numbers.

Though this issue may appear at first glance to be trivial by some, however it is estimated that this problem accounts for over one hundred and twenty billion dollars a year in damages (Fernandez, 2009). The implications of the extent of this issue are still being researched, but the figures are outstanding. If the figures are representative of reality then it is a major defeat for the potential benefits associated with the increase in short shore shipping; especially when the congestion of NAFTA trades is considered.

Conclusion

In this paper there have been many issues discussed in regards to maritime shipping capabilities of offset some of the congestion associated with the increased trade volumes due to NAFTA. The United States, Canada, and Mexico only have four choices which they can ship goods; rail, air, road, or ship. Of all of the options, the sea stands the most potential as it has not been sufficiently explored by any of the NAFTA members. At the same time, new research findings involving invasive species may create an environment in which the total benefit to society of maritime shipping is actually negative. However, if developments in technology can somehow work to prohibit foreign species from entering native lands, then it is possible that sea borne shipping routes may greatly loosen the load of the overworked infrastructure that provides the bulk of the transportation of the NAFTA trading triad.