This article has argued that functional and geographical integration are the main forces
behind the embeddedness of GPNs, with transportation being a key factor in maintaining and
improving the functional and geographical requirements of supply chains. It has also been
argued that functional and geographical integration are forces of uncertainty in supply
chains, implying that the spatial fragmentation of production, distribution and consumption
places acute pressures on freight distribution to maintain its operations. This perspective
mainly stems from the habit and expectation that only one trend is possible in logistics and
freight distribution, which is continuous and often incremental improvements related to costs
and time components.
In the current context of transnational production and consumption, not to forget the
long term trend of rising energy prices, is freight distribution being challenged in its
premises? Are the substantial logistical advantages that have so far ensued with globalization
and supply chain management simply a temporary process? Considering that freight
distribution is mainly a physical system of flows requiring large amounts of energy and
management, it is surprising to observe that considerations pertaining to the fragility and
uncertainly of freight distribution have been fairly neglected. What appears certain is that
globalization and global production networks will face very serious challenges in the coming
years. This may lead to substantial adjustments in the logistics industry as it gets “chocked”
by higher costs, particularly since the whole system is based on cheap oil. Concomitantly,
several elements and functions of GPNs will need to adapt to this new environment. Has the
current freight distribution system sowed the seeds of its own end, or is it flexible and
adaptable enough, as it should be, to cope with a possible energy transition?