quote of the day

What will we do in a globalised world? All human beings are equal, so they have the same right to have the same lifestyle-the same social security, jobs, and education.

Joschka Fischer

Air Transport: An Introduction :)

assalamualaikum readers :)

In my previous post, i had wrote about the water transport which is Maritime Shipping. As the continuity, i would now write about another various type of transport that is Air Transportation. Lets find out what is Air Transport is actually about and its relationship with the globalisation.

Air transport is a major industry in its own right and it also provides important inputs into wider economic, political and social processes. The demand for its services, as with most transport, is a derived one that is driven by the needs and desires to attain some other, final objective. Air transport can facilitate, for example, the economic development of a region or of a particular industry such as tourism, but there has to be a latent demand for the goods and services offered by a region or by an industry. Lack of air transport, as with any other input into the economic system, can stymie efficient growth, but equally inappropriateness or excesses in supply are wasteful.

Economies, and the interactions between them, are in a continual state of flux. This dynamism has implications for industries such as air transport. But there are also feedback loops, because developments in air transport can shape the form and the speed at which globalisation and related processes take place. In effect, while the demand for air transport is a derived demand, the institutional context in which air transport services are delivered have knock-on effects on the economic system. These feedback loops may entail direct economic, political and social effects that, for example, accompany enhanced trade and personal mobility, but they may also be indirect, as for example through the impacts of air transport on the environment.

The analysis here focuses on one small sector, international commercial aviation, and on only one direction of causality, the implications of globalisation for this sector. Some related considerations are embraced where particularly important. For example, there is an increasing blurring of international and domestic air transport as airlines form alliances and invest in each other to form global networks. Indeed, the domestic and international air transport market within the European Union (EU) is de facto one market. Also, not all feedback loops are ignored, particularly when changes in air transport facilitate global trends that then, in turn, feed back on the air transport industries; migration of labour is one example of this.

p/s: thanks for reading guys :)

quote of the day

Assalamualaikum readers :)

We have views on social issues that may seem to some that we are hard-line Tories. However our economics policies and our opposition to the process called globalisation could be considered by some to place us on the far-left of conventional politics.

-Steve Blake-

International Maritime Shipping: The Impact of Globalisation on Activity Levels(PART II)

assalamualaikum readers :)

Lets read the continuity from my previous post. Hope all of you will like it.

Mode share in freight transport can be measured in several ways, but a common metric is in terms of the work done in cargo tonne-kilometres (tkm). The European Union and the United States have similar mode shares for trucking, about 40% to 45% of total freight transport work (Environmental Protection Agency, 2005a; European Commission et al., 2006b). However, it is important to note that European waterborne freight (inland river and shortsea combined) is second in mode share, moving about 40% to 44% of the cargo tkm in recent years (European Commission et al., 2006a; European Commission et al.,2006b). In the United States, rail freight tkm is slightly greater than road freight. Moreover, these statistics ignore seaborne trade which accounts for about 40 000 giga-tkm (one Gtkm= 109 tkm) of cargo movement among all trading nations from distances outside the domains from which national statistics are reported. Figure 3.2 summarises mode share comparisons in the US for 2005.

Figure 3.2. Comparison of demand and carbon emissions by freight-mode share

for the US

Note: Units are on a log scale.

Source: Bureau of Transportation Statistics (2007); Energy Information Administration (2007).

(sorry if the picture is not clear)

International Maritime Shipping: The Impact of Globalisation on Activity Levels

Assalamualaikum readers :)

Now i would like to share with all of you about globalisation and the maritime transport. Enjoy reading.

Ocean shipping as (A) a substitute and (B) a complement

to other freight modes

Mode choice (especially for containerised cargo movement) involves balancing tradeoffs to facilitate trade among global corporations and nations. Competing factors are e.g. time, cost and reliability of delivery. Low-cost modes may be less preferred than faster modes if the cargo is very time-sensitive; however, slower, low-cost modes often carry much more cargo and, with proper planning, these modes can reliably deliver large quantities to meet just-in-time inventory needs. Analogous to a relay race, all modes are needed to deliver containerised cargo from the starting line to the finish line.

p/s: I have to go to the faculty now. I will continue this topic in my next post. See you soon readers :)

Transport and Globalisation (i)

Assalamualaikum readers :)

My post for today is about an introduction of explores the effects of globalisation on airlines, not just on the demand side – where the scale, nature and geography of demand in global markets has led to significant shifts – but also on the supply side, where government policies (e.g. regarding safety, security and the environment) require international co-ordination.

Air transport is a major industry in its own right and it also provides important inputs into wider economic, political and social processes. The demand for its services, as with most transport, is a derived one that is driven by the needs and desires to attain some other, final objective. Air transport can facilitate, for example, the economic development of a region or of a particular industry such as tourism, but there has to be a latent demand for the goods and services offered by a region or by an industry. Lack of air transport, as with any other input into the economic system, can stymie efficient growth, but equally inappropriateness or excesses in supply are wasteful.

Economies, and the interactions between them, are in a continual state of flux. This
dynamism has implications for industries such as air transport. But there are also feedback
loops, because developments in air transport can shape the form and the speed at which
globalisation and related processes take place. In effect, while the demand for air transport is a derived demand, the institutional context in which air transport services are delivered have knock-on effects on the economic system. These feedback loops may entail direct economic, political and social effects that, for example, accompany enhanced trade and personal mobility, but they may also be indirect, as for example through the impacts of air transport on the environment.

The analysis here focuses on one small sector, international commercial aviation, and on only one direction of causality, the implications of globalisation for this sector. Some related considerations are embraced where particularly important. For example, there is an increasing blurring of international and domestic air transport as airlines form alliances and invest in each other to form global networks. Indeed, the domestic and international air transport market within the European Union (EU) is de facto one market. Also, not all feedback loops are ignored, particularly when changes in air transport facilitate global trends that then, in turn, feed back on the air transport industries; migration of labour is one example of this.