Demands Being Placed on the Global Transportation Research Paper

demands being placed on the global transportation industry are creating unprecedented requirements for international commerce during a period when peak oil is being approached and the need for more environmentally responsible alternatives has become especially pronounced. The responses to the varied needs of the global transportation industry have included research and development of alternative energy sources as well as innovative supply chain management approaches that make global transportation more efficient and reduce energy requirements in the process. This paper provides a review of the relevant peer-reviewed and scholarly literature to develop a current overview of the global transportation industry and the challenges it faces in the future. A summary of the research and important findings are presented in the paper's conclusion.

Global Transportation Challenges

Introduction

Innovations in telecommunications have contributed to an increase in global transportation needs as international commerce and business-related travel have grown significantly in recent years. At the same time, the need for environmentally sustainable energy alternatives has become especially pronounced as the current global transportation fleet is weaned from its fossil-fuel sources. Complicating matters further is the growing demand for consumer goods and services in emerging economic powerhouses such as China, India, Malaysia and Brazil, further adding to global transportation requirements. In this environment, identifying current challenges to the global transportation industry represents a valuable and timely enterprise, which is discussed further below, followed by a summary of the research and important findings in the conclusion.

Review and Discussion

The need for alternative fuel sources for the global transportation industry has never been greater. In response to this need, a great deal of progress has been made in recent years in researching and developing potential alternatives such as biomass, winds, solar, and hydrogen-based approaches (Nadeau, 2006) as well as in developing innovative supply chain management approaches that improve business logistics by reducing energy requirements and fossil fuel emissions (Coyle, Novack, Gibson & Bardi, 2011). These trends have forced companies competing in the global transportation industry to reevaluate their corporate strategies to take the increasingly globalized marketplace into account. In this regard, Chan and McMillan (2007 report that, "A global view of the link between logistics, transportation, trade, and corporate strategy suggests that global supply chains are now a corporate imperative for strategy making and seriously calls into question corporate strategies based on national or regional perspectives of the firm" (p. 37). The benefits of an efficient global transportation network are multifold, but include what Zey (2001) terms "species coalescence," a synergistic process that is comparable to a rising tide that raises all boats. According to Zey, "Mankind is accelerating species coalescence through the development of a global transportation grid, the universal communications network, and other mechanisms" (2001, p. 28).

Not all authorities, though, agree that the increased trade that is attributable to the global transportation industry is having comparable effects across the board. For instance, Held (2004) emphasizes that, "A report by the United Nations […] found that inequalities between rich and poor within countries, and among countries, are quickly expanding, and that the global trading and finance system is one of the primary causes" (p. 96). Despite these divergent views, Chan and McMillan (2007) also point out that, "Global trade and global logistics are realities" (p. 37), making the need for informed views concerning the challenges faced by the global transportation network all the more salient..

Given its breadth and scope, the efficiency of the current global transportation system is an impressive reality. In this regard, Branch (1999) emphasizes that although mistakes have been made in the past, the global transportation system today is truly a "wonder of the world": "The many components of the transportation system have been created, progressively improved separately, and integrated into a vast network operating successfully around the world. There have been mistakes, missed opportunities, and unnecessary delays, but the record of accomplishment is evident in the operational success of the system" (Branch, 1999, p. 37). The increasing complexity of managing supply chains at the global level, though, has introduced its own unique challenges in recent years as well, including the implementation and administration of electronic tracking systems that are capable of tracking…