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"Air Freight" that Never Leaves the Ground
20 Oct 08
A relatively new player has evolved over the past decade, responding to trends in service requirements, fuel costs, and security to provide an attractive option for many shippers.
Expedited motor carriers, who are truckers devoted to maximum speed and optimum transit times, are offering time-definite, over-the-road services that are being utilized in increasing volumes by air freight forwarders. Airlines are also becoming daily customers.The shifting of shipments to trucks has had a bit of help along the way. Shippers are finding that forces such as increased security regulations that make it more difficult to ship certain freight on airlines, along with rising fuel costs that impact air operators more dramatically, are pushing freight that in the past may have been on a plane into an over-the-road trailer instead. For example, a team-driver truck (two drivers alternating driving time in keeping with Federal Motor Carrier Safety Administration regulations) can make a 2,000 mile journey in less than three days. It also is becoming more beneficial to move a large shipment from Atlanta, for example, destined for Buenos Aires, via truck to the Miami air freight hub for the final air leg to South America. This obviously makes the truck an integral part of this air cargo shipping model. The practice of using truck for substitute air on two- or three-day routes is not new. Almost Air© Corp. operated from Minneapolis/St. Paul to Chicago and New York City airports in the 1980s. Today, this service has become even more prevalent as trucks become more efficient and fuel costs rise. When fuel prices escalate, modes shift from air to truck to intermodal to rail, and perhaps even to barge should costs climb to levels found unimaginable. These "fast trucks" comply completely with speed limits. Their efficiency evolves from condensing the transit time through optimum driver utilization and refined ground-handling efficiency at both origin and destination. For each shipment; schedules are extremely well monitored. Two of the better expedited trucking firms serving the air freight business use totally different operational models. They are Tennessee-based Forward Air, and the Air Forwarding division of Virginia-based Estes Express, the sixth largest less-than-truck load (LTL) carrier in the United States. Forward Air operates its own local facilities in most cities and flows freight through its own company-controlled network of over-the-road drivers. Forward Air uses team drivers when necessary and operates on a clock-like schedule. International and domestic air freight forwarders tender their freight to forward air terminals via their own trucks and also may use third parties for pick-up and/or deliveries. While others have attempted to mimic their operation, Forward Air still holds the premier position in this truly niche transportation, airport-to-airport road market. Estes' hybrid model, which has been growing around 35% per year for the past few years, blends air freight through its 6,000 next-day and 9,800 two-day destinations. Shipments can be delivered next day up to 1,000 miles and second-day delivery to destinations up to 2,000 miles. Estes' model provides for shipments to never leave the Estes Air Freight system. It is important that air freight users work closely with their air forwarders and integrators that may come into play with both domestic and international shipments. Not just because of the use of expedited truckers for a portion of an "air freight" shipment movement, but rather because this shift is another alternative to domestic airline air cargo freight service. Additionally, if a shipper has a large volume of air freight shipments, attractive rates, as compared to full air service, may be negotiated. Equally important is the shipper's location. Major air port hubs are vital to make this process most effective and to provide the best service availability and consistency. Atlanta, Chicago, Los Angeles, and JFK airports come to mind. Airlines are reducing number of flights, thereby reducing cargo space. Aircraft size is shifting due to the efficiency of regional jets. International shippers especially need access to an airport with larger lift capacity on more international flights. Research into local air freight operations can help a shipper control, and perhaps even reduce, transport costs with no sacrifice in service level. By Charles Clowdis, Jr.
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