Assignment:
Please discuss how supply and demand drive the transportation industry? In your opinion, how does the transportation industry affect the environment?
Instructions: Your initial post should be at least 250 words. Please post more than 2 reply responses of 100 or more words to your classmates or the instructor. Responses should be a minimum of 100 words and include direct questions.
Part 1
This forum post is about supply and demand economics and how it relates to the transportation models. In recent times the United States has seen an surge in air travel demand during Thanksgiving and Christmas holidays. This year's summer holiday plans for millions of Americans put an increase on airlines to supply more flights and destinations than in the past years. The demand for air travel has increased and the airlines are playing catch up to meet the demand placed on them.
After the horrific tragedy of 2001 and the economic downturn, airlines cut capacity/supply to meet the demands placed on the economics of the time. The recent economic revival of our country and the ability to travel domestically easily for vacation has turned things around for U.S. airlines. The supply of seats in some markets have seen an increase with bigger aircraft or an increase on flights. However, there has been a decrease of flights to Puerto Rico and some Caribbean Islands because of the recent drop of demand for travel in these hurricane effected parts.
Therefore, airlines have shifted the larger capacity of seats to where greater demand has been placed. With the record orders for Airbus and Boeing aircraft from airlines in the U.S. the skies have become even more crowded. This surge in aircraft in the ground and air has created a lot of pollution for our environment. It is imperative to find alternate ways of minimizing our ecological and carbon footprint. Bio fuels used at Alaska and United Airlines have helped the environment minimally but, has proven it can be achieved. As we place demand on airlines to supply seats for our travel, we must be reminded that airlines can control capacity and prices will eventually increase. This principle is a basic economics fundamental, it is a mater of time when the demand will out pace the supply in our country.
Part 2
This topic covers how supply and demand affect the transportation industry. As I have taken more and more classes for this degree, I have had several topics hit on the subject of supply and demand. Simply saying that as demand for supplies rises so does the need for the transportation for these products and supplies. In order for customers or companies to receive the product they are needing, the demand for transportation increases greatly. One idea that jumps out is the holiday time.
During the Holidays, like thanks giving and Christmas, we see a large increase in the amount of boxes and orders being made through the mail. In order for these gifts and everything to get from one destination to another the transportation industry is relied on heavily and greatly increased during this time. Everything from Air Trans, to Ground Trans. All aspects and avenues used for logistics and transportation is increased. We could see a significant increase in trucks on the road during these times as well.
The increase in shipments and demand for good or products means that companies like UPS or FEDEX and the postal service have to meet the demand of shipments. So you could see an increase in work hours, driving times and amount of vehicle on the road, to keep up with the shipments needed.
Now how this affects the environment. By increasing the amount of transportation needed to meet the supply and demand, you are increasing the amount of smog and pollution that is put in the air. You have an increase in fuel consumption as well traffickers on the road at any given point. This adds to the amount of trash as well, the holiday season sees a great increase in trash, and things not being recycled! This is what I see happens during this time, I feel that this was a good example of supply and demand increase and the way that the transportation industry has to respond.