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School

American Military University *

*We aren’t endorsed by this school

Course

501

Subject

Geography

Date

Jan 9, 2024

Type

txt

Pages

2

Uploaded by jeffstone4life

Hi everyone in class! Whoa, we're halfway through the course. Numerous variables affect transportation costs, and each one has a big impact on how much it costs to move people or products from one place to another. The intricacy of these elements highlights the difficulties that both individuals and enterprises have while attempting to control and maximize transportation expenses. The three main variables that affect transportation costs—fuel prices, the caliber of the infrastructure, and regulatory compliance—will be examined and analyzed in this talk. The most important element influencing the cost of transportation is undoubtedly gasoline prices. Vehicle operating costs are immediately and directly impacted by fuel prices, especially when it comes to oil. A major factor affecting the total cost of transportation is the fluctuation of fuel costs, which might result from changes in the world's oil markets. Transportation expenses have increased due in part to higher fuel prices, which raise the cost of running vehicles such as trucks, ships, aircraft, and other forms of transportation. Because fuel price fluctuations may have a domino impact on a number of industries and the economy as a whole, it is imperative that companies and transportation planners keep an eye on them and adjust as necessary (Hummel, 2014). Second, a major factor in influencing transportation costs is the caliber of the transportation infrastructure. Roads, bridges, ports, and railroads are examples of infrastructure that is effective and well-maintained and helps to facilitate quicker and more seamless transit while also lowering maintenance and delay costs. On the other hand, antiquated or insufficient infrastructure can cause traffic jams, delays, and more wear and tear on cars, all of which raise the cost of transportation. According to Banister and Berechman (2001), companies and consumers may experience cost savings in transportation by investing in updating and expanding transportation infrastructure, which can also improve efficiency and cut down on trip times. Thirdly, a big influence on how much transportation expenses are is regulatory compliance. Standards and regulations are imposed on the transportation industry by governments and international organizations to guarantee fair competition, environmental sustainability, and safety. Although these rules have valuable goals, the transportation sector may incur higher expenses as a result of them. Operating costs may increase as a result of the need to make more expenditures in technology, training, and monitoring in order to comply with safety standards, pollution controls, and other regulatory requirements. Businesses must comprehend and follow these rules to prevent penalties, legal problems, and interruptions that might drive up transportation expenses (Dablanc, 2017). A real-world example is seen in New York City, where tight regulatory compliance necessitates ongoing investment, the quality of infrastructure affects reliability, and fuel prices have an impact on buses and subways. Millions of commuters each day are impacted by these dynamics, which also influence the operational costs of the city's enormous public transportation system. In summary, the cost of transportation is significantly influenced by three interrelated factors: the price of fuel, the caliber of the infrastructure, and regulatory compliance. To maximize efficiency and save expenses, transportation- related businesses and individuals need to closely monitor and control these elements. Mitigating the influence of these variables on transportation expenditures requires adopting tactics such as campaigning for improved infrastructure, maintaining compliance with laws, and adapting to swings in fuel prices. Stakeholders can help create a more economical and effective transportation system that promotes sustainability and economic progress by tackling these issues carefully.
References: Banister, D., & Berechman, J. (2001). Transport investment and the promotion of economic growth. Journal of Transport Geography, 9(3), 209-218. Dablanc, L. (2017). Freight transport. In M. Hall (Ed.), Handbook on Transport and Development (pp. 187-204). Edward Elgar Publishing. Hummel, P. (2014). The impact of fuel costs on public transport. European Transport Research Review, 6(3), 265-275.
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