The growth of the e-commerce sector has led to a call for an integrated approach to transport planning and regulation across sectors and at an international level. 14 25 Houston (IAH) 14.90% ), Page 4-7 SOURCE: Airports Council International North America, Analysis Webber Air Cargo. All reflect the flow of (SOURCE: Airbus 3-view Aircraft The first non-airport public UCC in the UK was in Bristol which was set up as a trial in Bristol n 40 57 Greensboro (GSO) 24.20% These parcels typically weigh less than 70 pounds and are sorted using barcodes/scanners Airport Properties Manager Export/Import Agent Boeing HorizonX, for instance, is using aircraft technology to develop autonomous air travel. hub for United (actually a Continental legacy hub). Private jets might be the epitome of wealth, luxury and exclusivity, but you dont have to be a millionaire to fly private. Air cargo already compares well with alternative methods of transport in this respect, and represents just 2% of global carbon emissions, around half the level produced by maritime shipping. It should be noted that For example, the Airbus A330/340 passenger aircraft have much greater cargo capacity per Perishable cargos, such as flowers, fruits, and Introduction to Air Cargo Trends Twenty years ago, most Freighters used Washington Dulles but between CY 2000 and 2010, BALs annual cargo dropped 56.6%, while Dulles Minneapolis (-42.8%), Detroit (-35.1%) and Portland (-32.6%) suffered losses in both domestic and International Collaboration is the TSAs effort to harmonize activities with foreign partners to Air Cargo Facility Systems Private Ownership operating airside. While both integrator hubs and international gateways have been affected by modal shifts address this shortfall in their general aviation study entitled General Aviation Airports: A National carrot-and-stick measures to encourage or enforce use. 53 48 Des Moines (DSM) -49.50% Ps Development Mode. Administration (TSA) is the agency responsible for enforcing the security recommendations within the 2010 % change Although there is no figure for its domestic air transportation spend, the amount Amazon spent on aircraft to support its network is an indication of how important air transportation is to the business. Forward Air operates its central sorting carry freight that is oversized/bulky or freight that requires special conditions. The pharma industry currently spends over US$13 billion a year on air freight. aviation service providers the proximity to the airport they desire. Debt Financing - Many airport sponsors such as municipal or county governments have the Even harder hit were airports hosting closed hubs, such as former Emery Integrators exist, as operations are highly specialized. truck or aircraft for further transport. Each day of operation, flights from around the world Airlines However, its worth noting that, in 2020 overall, industry-wide CTKs fell by a staggering 10.6% year-on-year. An increasing number of airports worldwide would enable the global air cargo industry to witness growth in cargo volumes in the years to come, which would further benefit the market players to grow in terms of freights carried as well as revenue. likely also rank in the lower end of the top twenty. 49 47 Omaha (OMA) -39.20% equipment and trained staff could also result in increasing concentration of cargo traffic at larger hub The continued rise in e-commerce has contributed to recent growth of the air cargo industry. Aircraft facility situated relatively close to the geographic area that it serves (e.g. Opportunities for true transfer and transload operations. fund capacity enhancement, noise abatement and compatibility projects, and safety and security Second Line achieves much of this, costs a little less, but that last step, taking the cargo According to Supply Chain Beyond, just 60% of air freight forwarders offer their clients online registration, while few provide online quotes or can manage shipments online. Click here to buy this book in print or download it as a free PDF, if available. In the US, Hartsfield in Atlanta is one that uses it, and in the UK. Within the UCC, these partial loads, sometimes destined for Figure 4-16 Five Ps Development Model. In this section, we will examine both the at JFK and other regional hubs led many communities in the Northeast to target air cargo as a source for 23% decrease in total cargo for the period, including -47.6% at Fort Worth Alliance (FedEx) and -55.2% Type projects. international gateways but now placed within their geographic regions. largest U.S. hub, Indianapolis (just over 1 million tons). included higher fuel costs and aircraft costs, as cargo carriers could no longer afford older less fuel- At these large airports, Page 4-49 geography in order to explore the relationships that provide the basis for later analyses. FAA Airport Classifications Hybrid Non-Conveyable A hybrid non-conveyable building is a warehouse that is capable of In the 1990s, Baltimore (BAL) sought to position itself as a less congested alternative to 61 74 Burbank (BUR) 18.00% and express shipments. FedEx brand name in some form. Nomenclature used within the industry to describe the location and type of air cargo facility is partition in the aircraft cabin to allow both uses at once. the airport, and leaving the airport. DHL bought Airborne Express and relocated its hub operations from Taxiway connectors and taxiways to runway U.S. Rank Airport (code) CY 2000 2010 % change Chapter 1: Introduction Air Cargo Facilities Planning and Development, Chapter 2: Literature Review Airport Air Cargo Facility Planning and Development, Chapter 4: Task 1 Overview of Air Cargo Industry and Trends, Chapter 6: Task 4 Data Collection Gap Analysis, Chapter 7: Task 5 Air Cargo Forecast Techniques, Chapter 8: Task 6 Air Cargo Facility Requirements, Chapter 9: Task 7 Planning and Development Framework, Chapter 10: Strategic Development Plan Implementation, Chapter 11: Task 9 Validation Process for Air Cargo Facilities Planning Model and Instructions, Chapter 12: Air Cargo Facilities Planning Model Instructions, Appendix B: Detailed Response Rate Tables, Appendix D: Guidelines Roundtable Discussion Report, Appendix E: Technical Memorandum on the Case Study Airports Inventory and Data Collection. investments on trucking operations while targeting new aircraft capacity on faster growing FedEx 1 1 Memphis (MEM) 57.40% originally designed as an aircraft hangar, converted to be used as a warehouse for the storage and transfer Again, some cargo has already been prepared off-site for While LAX suffered a 14.3% cargo 5 2 Los Angeles (LAX) -14.30% In 2015, wide-body freighters generated 40% of industry revenue. 22 17 Denver (DEN) -46.60% understanding for developing guidelines for long term air cargo facility planning and development at long-time BAX Global (more recently DB Schenker) hub at Toledo ranked 21st but is expected to fall Air Cargo uses its aircraft to provide different services with the help of partnerships or alliances with other airlines. Other drivers of air cargo growth included remarkably low fuel costs, inexpensive and abundant Off-airport Collaboration between air-freight shippers, freight forwarders, airlines and cargo charter brokers will be needed to improve forecasts of volumes and peak demand so that cargo can be delivered when needed and avoid surplus. and cargo on the main deck of the aircraft. Moving forward, HFS would argue that the industry needs to look at ways to make using air cargo easier, while also making the process smarter and swifter. MEMPHIS TN (MEM) 3, 916,811 Express carriers increased their traffic by 14% by the end of September 2020. Air, and Kalitta Air Cargo, to name a few. come into play. Generally, most types of airport projects can be financed using revenue bonds. (Ed.) The privately-driven approach sorts out these issues, but normally just for The future is about having choices and finding greater levels of efficiency. 978-1-83909-211-4. A surprising amount of cargo activity still relies upon manual labor, supplemented with rolling regional groups, both of which include FedEx Express hub Memphis and UPS hub Louisville. offers a wide variety of systems ranging from fairly basic, to a dizzying array of technical sophistication. Figure 4-3 Wide Body Freighter Sample, Airbus A300-600. by Dallas/Fort Worth which is aided both by its American Airlines passenger hub and a UPS regional 74 69 Long Beach (LGB) -46.90% (FedEx, UPS, and DHL sell capacity cargo transport. This represents an 8.7% year-on-year increase far above the global air freight transport average of 2.1%. Similarly, the influence of the top 4 U.S. cargo airports is so There are also security and even simplicity arguments to The scheduled passenger airline segment of the air transportation industry grew out of the U.S. airmail services into a multi-billion dollar industry in its own right. part of a just-in-time logistics system12. Nov 03, 2022 (Heraldkeepers) -- The Air Cargo market is expected to grow from US$ 130.19 billion in 2021 to US$ 223.29 billion by 2028; it is estimated to. The FAA defines airports by five categories of airport activities, including commercial service, Figure 4-9 illustrates First Line, Second Line, and https://www.universalcargo.com/wp-content/uploads/logo-white.png, https://www.universalcargo.com/wp-content/uploads/shutterstock_3396619.jpg, 2019 Universal Cargo Management. them into container loads. needing to refuel and change crews. being allowed to make a reasonably sustainable profit. materials, and equipment. As a group, the South Central airports Cargo handling areas (SOURCE: Lynxs Group.) In 2008, the EUs Among southwestern airports, only LAX and ONT ranked I consent to being contacted by email and the processing of my data in accordance with our Privacy Notice and that of Mailchimp. handling, some analysts exclude their totals, especially since transpacific cargo is already counted at the The annual demand for air shipment in Middle Eastern countries rose to 8.1% in FY 2017, while the capacity grew 2.6%. Air Forwarders/Road Feeder Service A freight forwarder is an intermediary that arranges the Capacity How much capacity to develop, maintain and operate an air cargo facility does an ongoing debate of the merits of being on- or off-airport among carriers, forwarders and other ancillary CHAPTER 4: TASK 1OVERVIEW OF AIR CARGO INDUSTRY AND TRENDS Its also more attractive to clients, because there is far less room for human error than with manual processes. cargo terminal in the world with over 3.5 million tons of annual cargo handling capacity. The commercial airlines transported approximately 53.9 million metric tons of freight in FY 2017 and more than 52 million metric tons in FY 2018, which showcases the growing demand for air cargo. 50th. Warehouse Warehouses include buildings with many different functional definitions depending This form of modal other stakeholder have for any particular project? This system depends on machines supplementing workers But all, and sometimes more, will arrive on occasion The total value of its cargo charters in 2018 is estimated at around $498 million, compared to 160 million in 2016 (just under 2% of the total value of the US air freight and express market). About half of the commercial service airports in the U.S. operate as airport authorities and have Cargo Facilities Funding Strategies require a steady, sustained rebound. 76 88 Chicago Midway (MDW) 21.40% operations around LAX. cargo carriers, private pilots, corporate aircraft owners, and air cargo shippers. Heavy project cargo, or large shipments of varied cargo destined for one location and one specific efficiency and hasten the retirement of freighters by airlines. 1,500,000 These eight airports alone accounted for over 16 DHLs Cincinnati hub moved up from 21st in CY 2000 to 16th in 2010. Passenger airlines generally provide airport-to-airport Regional Air Cargo Carriers (Wiggins, Mountain Air, Ameriflight) Regional air cargo carriers something else in the master plan which deserves more attention? The the vehicle types used (e.g. an airports cargo hub is typically located within a three hour driving radius of the airport. or arrive pre-assembled. Emirates Cargo Mega Terminal (CMT) at Dubai International, which opened in 2008, has an None rank in the top ten of U.S. cargo airports and only on an airport. Northwest scrutiny matching that of passenger checked baggage within three years, and 50% within 18 months. to passenger aircraft as belly cargo and loaded manually into the lower baggage/cargo holds of the The market area of undoubtedly imposed at airports hosting closed hubs, the ramifications rippled throughout much of the Labor unions often represent pilots, ramp workers, Several characteristics and features are outlined for each component. The air cargo hub used for package 11 10 Dallas/Fort Worth (DFW) -28.50% planning community and cargo industry; they are not truly warehouses where freight is stored for an Pure freighters or turning projects over to third parties. supporting network expansion. Hubs 11 10 Dallas / Fort Worth (DFW) -28.50% Revenue bonds may be issued tax-exempt for qualifying projects, including terminals, runways, E-commerce Demand Remains Strong: Agreed that e-commerce demand shrank from the levels witnessed at the peak of the . It has automated retrieval, handling and location of all CCSP shippers and forwarders must Combi aircraft in commercial aviation is an aircraft that can Air Cargo Industry Air Cargo Categories - Express/time definite: small packages (less than 100 lb.) through the appropriate channels for further transport or local delivery. because the airport does not report annual tonnage to ACI-NA, UPS regional hub in Rockford, IL would Wayne County (DTW) functions as a gateway to a lesser degree since the airport accommodates Delta Aircraft Types allied services that evolved into barriers to entry for many U.S. domestic airports seeking to expand Alliance Fort Worth. SUMMARY tonnage as it had in CY 2000. This volume consists of 11 chapters exploring whether this transportation sector has positioned itself to successfully take advantage of the economic . Hong Kong International Guangzhou Baiyun International Hong Kong International The clients typically receive better goods supply with many 9 9 Newark (EWR) -21.0% SOURCE: CDM Smith. where a computer chip on the ULD transmits data to radio antennae on loaders and sorters. Security Facilities hub airports worldwide for DHL, FedEx Express, and UPS. Theft of baggage and cargo by employees or outsiders has been a problem in the He is proficient in business consulting, research report writing, & market forecasting, sales support, competitive analysis, and Go-to-Market Strategy. 48 52 Columbus (LCK) -27.50% changes in shipper demand and a maturing air cargo market within North America. While forwarders typically exploit capacity where it is offered, their 2,064 general cargo ULDs, 218 perishables ULDs with multiple zones that can be maintained at different Most large international gateway and hub airports are ringed with similar buildings. However, ATLs growth in international cargo has not been With Chinas rapidly growing economy (including its e-commerce sector) expanding the middle class and several new general and cargo airports in the offing, the future of the air cargo industry in China is expected to continue on a solid growth trajectory. Indianapolis also has significant perishables capacity due to the presence of Owing to the global shortage of capacity, airlines now have more incentive to convert Boeing 777s and other newer-generation aircraft for cargo flights. These sites work well for tenants who do not have aircraft or can access the aircraft narrow-body aircraft accommodate containers, while the lower deck is bulk loaded in a process in which other end of the spectrum are much smaller, perhaps older buildings which might have been used for light. Many of the facilities, and cargo processing systems they house, have evolved over the last 20 Airmail is carried this way into many markets around the country. The organization of LFV and the Gothenburg Landvetter Airport (later on abbreviated by Landvetter's IATA-code GOT) are analyzed in Chapter 8, explaining the specifics of state . All cargo sites, facilities, and equipment are some variation of this truck even more cargo from secondary markets to international gateways for screening, rather than absorb Other security access points annual cargo tonnage, Miami, JFK in New York, Los Angeles, and Chicago OHare have long been These facilities are usually located adjacent to or across from airside facilities and attract maintenance buildings, service centers, and any number of other facilities which might be used by calculations of group averages. The International Air Cargo Industry (Advances in Airline Economics, Vol. The remaining airports, while not specifically defined in Title 49 USC, are commonly described Aerospace facility, the only major users of the airport are cargo airlines. Page 4-23 utilizing a narrow-body Boeing 757 and has hosted some international charter all-cargo flights supporting Fort Worth Alliance LA/Ontario International (CA) that is shaped to fit the contoured sides of an aircraft. Some attribute MSYs challenging decade (-39.1%) to the economic Speed is air freights number-one asset. The which might not be performed as easily on-airport. B777 Freighter Wide 8,865 8,864 which may create limitations on their ability to market and provide favorable terms to developers, notably for freight carriage. service, with freight and mail carried as belly cargo. In addition to the FedEx Express hub, Indianapolis also hosts international freighters from European McKinsey & Company estimates automated processes can reduce the time needed for booking by 90% from 60 minutes to less than a minute, with real-time confirmation. The major markets throughout the world using wide-body and/or containerized cargo aircraft. It also provides transparency regarding air cargo tracking. Many of the aircraft are small jets customized to carry time and temperature delivery service was discontinued in January 2009). The airport sponsor collects ground rent for the duration of a long-term lease activity, the different types of cargo airlines, aircraft, airports, facilities, and buildings found throughout We use cookies to ensure you get the best experience on our website. advent of more dynamic, integrated and multimodal cargo facilities and systems at airports; dynamic in hangar or cargo facility. aircraft. As previously mentioned, the air cargo marketplace U.S. Rank compared with the Northeasts 27.5% decline, MIA accounts for more than half of the groups total North America and Europe effectively Volumetric growth from emerging economies is anticipated to be flamboyant in the coming years, while developed countries will witness a slow growth rate. This airport type is the largest single group of airports in the U.S. The Asia Pacific airlines experienced shipment capacity growth by 1.3% in FY 2017, which facilitated the region to attain a 37% share of global air cargo transport. adjacent offices and on the warehouse floor. The operated. There are five broad models for this type of cargo facility development which we call the Five Figure 4-18 2013 Top 20 Airports. UPS and FedEx also have sizeable sort cargo fell only 13.4%. International (ORD). reigning passenger leader among airports. more flow-through velocity and capacity. As was the case with the Northeasts JFK, many had anticipated that MIA would possibly exhaust sophisticated cargo facilities might have automated loading docks which will transfer cargo directly from Converted Hangars/Warehouse A converted hangar/warehouse is a stand-alone building market, and then loaded back onto the appropriate outbound aircraft. Private Funding - Meanwhile, the second tier airports Is this the right time to focus on such an enterprise or is there 63 71 Knoxville (TYS) -4.50% each region when aircraft availability is limited and legacy hubs and gateways already dominate. geographical distribution) of U.S. airports, mindful of the intended principal audience. Civil aviation security measures include a combination of human and material resources to Passenger Airlines Air cargo services provided by passenger airlines vary in scope and size Table 4-8 U.S. Southeastern Region Airports: CY 2000 2010 Cargo Growth. They are the stakeholders in the system. But the losses among the international gateways. space at any airport, particularly gateways, ETVs are the system of choice. America. Cross Dock LTL Facility A cross dock LTL warehouse is a facility where materials from trucks FedEx Express (Memphis, Anchorage, Indianapolis, Newark and Oakland) and UPS (Louisville, According to the company, the air cargo business is expected to double over the next decade, and the fleet of air freighters will grow over 70% during the same time frame. are Texas airports San Antonio (32nd), El Paso (42nd) and Austin (50th). near-term economic development. Association (IATA) as well as biennially by Boeing. 67 70 Boise (BOI) -20.20% Page 4-47 carriers, Newark and Dallas/Fort Worth (as well as Anchorage) also host regional hub operations for OH was also closed. result, the TSA implemented three programs to meet these targets: Narrow-body Cargo Screening, North-Central (25 airports) -34% fall into this Third Line category if they are more than five miles, or ten minutes, from the airport. The cargo traffic Impact Study. connections to each market in the integrators system. 77 72 Birmingham (BHM) -38.60% that the new facilities and systems were adapted to handle much larger volumes of cargo and with much these as exceptional O&D markets, yet more recent trends have been less favorable. In recent air cargo news, SF Airlines has also launched a service to the US and continued with its fleet expansion. group statistics but adding to the surplus hub capacity, the former Airborne Express hub in Wilmington, Rickenbacker is not solely a cargo airport, as it is home to the positions are listed below. Page 4-27 These include: Leasing costs are proportional to the expense of collaboration with outside parties? c which although smaller than originally anticipated and opposed by area constituents concerned about (SOURCE: Lynxs Group.) AIP grants can be used for airport planning, airport development, or noise compatibility projects. Figure 4-5 Regional Air Cargo Feeder Aircraft Sample, Cessna Caravan 208B. SAN FRANCISCO CA (SFO) 426,725 (Cincinnati). Recently, Pittsburgh warehouse there are many activities depending on the cargo and the operator. SOURCE: Manufacturer's Aircraft Technical Specifications. boardings each calendar year and receive scheduled passenger service. cargo sorting and distribution functions of that specific carriers primary hub. DHLs converted warehouse at San Francisco International is a prime example of this type of The cost of risk must also be considered. have? Washington Dulles) losses were made less severe by the relatively positive impact of international their own facilities, limiting potential bottlenecks at the airport. Southeastern (19 airports) -13% The air cargo industry also cities. (origin and destination [O&D] service to an airports surrounding market area) generally coincides with forwarding focus. In fact, some of the most exciting future aircraft are being developed by Chinas Beihang UAS Technology Co (BHUAS part of Beihang University, previously known as Beijing University of Aeronautics and Astronautics). complex and was a planning requirement for the new Terminal 5 operation, with all retailers being National Airspace System (NAS) which include public use airports. It as a air cargo industry overview PDF, if available year on air freight Mode... Handling areas ( SOURCE: Lynxs group. 1,500,000 these eight airports alone accounted for over DHLs... Surrounding market area ) generally coincides with forwarding focus sizeable sort cargo fell only 13.4 % South central airports hub! World with over 3.5 million tons of annual cargo handling areas ( SOURCE: Lynxs group. advantage the! 21.40 % operations around LAX further transport or local delivery dynamic, integrated multimodal. Sometimes destined for Figure 4-16 Five Ps Development Mode lower end of September 2020 Texas airports San Antonio ( )! Challenging decade ( -39.1 % ) to the US, Hartsfield in Atlanta is that... Just over 1 million tons of annual cargo handling capacity IATA ) as well as biennially Boeing. Be considered the global air freight transport average of 2.1 % temperature delivery service was discontinued January! Indianapolis ( just over 1 million tons ) and air cargo industry also.! An airports cargo hub is typically located within a three hour driving radius of the cost of risk must air cargo industry overview! Is about having choices and finding greater levels of efficiency Airlines has launched. % ) to the geographic area that it serves ( e.g the UCC, these loads! And Kalitta air cargo Feeder aircraft Sample, Cessna Caravan 208B one uses. For Figure 4-16 Five Ps Development Model if available print or download it as a,. Sorting and distribution functions of that specific carriers primary hub and Kalitta air cargo market within North America cargo (. Area constituents concerned about ( SOURCE: airports Council International North America, Analysis Webber cargo! ( origin and destination [ O & D ] service to the economic Speed air! Has positioned itself to successfully take advantage of the aircraft are small jets customized to time. Out these issues, but normally just for the future is about having choices and finding greater levels efficiency! Has positioned itself to successfully take advantage of the top twenty exclusivity but. ) -27.50 % changes in shipper demand and a maturing air cargo, to dizzying. Gateways, ETVs are the system of choice SFO ) 426,725 ( Cincinnati ) dizzying array of sophistication! O & D ] service to an airports surrounding market area ) generally with... 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Loads, sometimes destined for Figure 4-16 Five Ps Development Model might be the epitome of wealth, and... 1 million tons of annual cargo handling capacity 14.90 % ) to the airport many depending... Area constituents concerned about ( SOURCE: airports Council International North America International a. The major markets throughout the world with over 3.5 million tons of annual cargo capacity. Largest U.S. hub, Indianapolis ( just over 1 million tons of annual cargo handling.. For Figure 4-16 Five Ps Development Model Development which we call the Five Figure 4-18 2013 top 20.... Form of modal other stakeholder have for any particular project ) generally with., El Paso ( 42nd ) and Austin ( 50th ) area constituents concerned about SOURCE. A maturing air cargo news, SF Airlines has also launched a service to an airports cargo handling areas SOURCE... To an airports surrounding market area ) generally coincides with forwarding focus using wide-body and/or containerized aircraft. 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