Introduction
With each passing year, the world is becoming more and more interconnected. The nations of the globe are developing at a rapid pace, with global trade and economic relationships both sprouting from and facilitating such growth. This process is extremely beneficial to the economy of any country, allowing many companies and organizations to prosper in an open competitive environment. The process, however, has had to face and adapt to a variety of changes in the global environment to effectively fulfill its purpose. One of the opportunities perpetuated by globalization is the growth of global supply chains: networks that can provide either goods or services all around the globe. Due to their wide span and widespread nature, such networks and companies that are involved with them have had to adapt the most.
Concerns of profitability, feasibility, development, and many others come into play. In particular, one can take into consideration questions of security and risk management. With the need to secure profits and ensure proper procedure, concerns about supply chain safety need to be addressed. There are a number of possible avenues to discuss this topic, including the current climate of the world, changes to the transportation systems and security, as well as possible future prospects. This work will attempt to discuss all of the aforementioned topics to provide an informed overview of supply chain risk management.
Changes in Transportation and Air Cargo in the last 20 years
Most cargo transportation is conducted via air travel, as it is the most convenient and quick method of moving goods from one location to another. The use of airplane transportation significantly reduces wait times spent in transit, as well as avoids the need to cross over rough terrain. The previously inaccessible areas are now open to trade and economic relations, a development that would not have been possible without the use of air travel. However, the industry has had to go through some substantial changes in the last two decades, many of which directly impact the process of transportation.
Like any other field, the most substantial impact was made by the historical events of the past, as well as due to the society’s response to them. Most of the changes put in place in aerial cargo transportation have to do with the increased security measures, most of which have come to be as a result of reactionary anti-terrorist policies. The events of 9/11 have changed the way air security is viewed, as well as its role in transportation as a field (Safe skies: How air cargo security evolves to protect passengers and boost the economy 2021).
While the event has most significantly affected the US, the country is considered a trendsetter for the rest of the world, making all other developed countries adopt similar approaches and concerns. With the change in the way air transportation is perceived, the practices of companies that have to utilize it have also changed. The current pandemic can also be considered an important point in air cargo transportation, as it has imposed its own specific restrictions on the process (Thuermer, 2021).
Impact of Increased Security Regulations
As mentioned previously, with the increase in airport and aircraft security measures came other serious changes. The ability of companies or individuals to transport certain types of cargo has been decreased significantly, imposing specific limits on the types of luggage and the kinds of items that can be brought on the plane. The restrictions put in place make it necessary for corporate entities to adjust and change their practices in accordance with the law. Air cargo, in particular, is strictly regulated, prohibiting the transportation of such things as flammable materials, powders, and certain types of liquids (Air freight Guide).
While such regulations are justified with the need to maintain public and government security, the existence of regulations impedes business opportunities and makes it necessary to find alternative modes of transportation. Additionally, security measures put in place to check both the items brought on board and the future passengers are becoming more thorough and elaborate with time.
This means that the time spent on security checks, permits, evaluations, and other preliminary steps is significantly lengthened, leading to issues of timeliness. Alternatively, the security measures introduced can also be considered beneficial to companies and the process of maintaining global supply chains. While the hassle of security is quite big, it also fulfills its purpose of safeguarding both individuals and organizations. The chances of criminal activity, possible dangers, or mistakes during transportation can be significantly reduced with the inclusion of proper security measures.
Motor Carriers in the US
One of the key factors contributing to the growth of the motor carrier industry, as can be surmised from the previous discussion, is the restrictions put on air transportation and the need for more viable transportation pathways. Motor vehicles present a good and quick alternative to flying transport, being able to cover large distances and not being subjected to the same security considerations as planes.
Their use has risen considerably over the recent decades, contributing to the increase in carrier availability and its further popularization as a method of transporting goods. Additionally, motor carriers are effective in covering distances within the nation, which is still a necessity for a global supply chain. Domestic supply and provision are something that should be specifically accounted for and managed. While the use of air transport may be inconvenient, impossible, or more expensive, the utilization of motor carriers offers a viable alternative.
Future of Logistics Management
With the advancement of tech and global relationships, the field of logistics of global supply chains will see a lot of development. The growth can be expected to be both in terms of reach and quality of transportation. Newer markets are being grown and developed each day, with many of the previously third-world countries becoming active parts of the global economy. With this process, new market avenues can be established, allowing supply chains to grow and take root in new places. The growth of the Asian sector is most prominent currently, with China has become a major stakeholder in the world economy.
Another avenue for future growth in the sphere of logistics management is connected with technological advancement. New methods of transportation are becoming available with each subsequent year, and the nations of the world build routes to interact with each other more thoroughly. As exemplified by many ambitious projects, such as Elon Musk’s Las Vegas Tunnel, the processes of transportation are still growing and improving – all in an effort to promote further world interactivity and globalization. Logistic solutions consequently open up to new opportunities.
References
Air freight Guide. Freight Filter. (n.d.). Web.
Safe skies: How air cargo security evolves to protect passengers and boost the economy. Homeland Security Today. (2021). Web.
Thuermer, K. E. (2021). No swift changes for air cargo. Recently Filed RSS. Web.