much as 40 percent faster than UPS’s
standard LCL product while priced
at a 40-percent discount to a comparable air movement. Somewhat ironically, the service piggybacks on
UPS’s airfreight network for moving
heavier consignments.
Traditional ocean services can’t
compete with air to ship stuff like
high-value or emergency ship-
ments. However, another round of
vicious price-cutting that has driv-
en ocean container rates to lows not
seen in 18 months could draw the
interest of air shippers willing to
reposition at least part of their sup-
Always on Guard
COLLISION SENTRY TM
The collision warning system that
creates a safer work
environment in
industrial buildings
where forklift traffic
and pedestrian
traffic intersect.
ply chains to emphasize reliability and
cost over speed.
In North America, the lure of lower
energy prices has prompted producers in
Asia and Europe to consider relocating
their manufacturing nearer the end customer as a way to shorten time-to-mar-ket and reduce fuel costs. Asian companies once focused on selling into the U.S.
and Europe are turning inward to support the growing consumption needs of
their own middle class. Tougher global
security measures require companies to
provide more data to government
authorities earlier in the shipping cycle
than ever. This injects friction into the
air system and compromises its most
valuable asset. None of these developments augur favorably for the long-distance, fast-cycle distribution strategy
that air freight supported so effectively in
the 1980s and 1990s.
Easy to install.
Self-powered.
Compact.
Highly visible.
Reliable.
Sentry Protection Products
216.228.3200 • 888.265.8660
info@sentrypro.com • www.sentrypro.com
Scan to learn
more or go to
our website.
WEAK DEMAND
These factors have taken their toll on airfreight demand. According to IATA data,
global tonnage has grown by just 1. 4 million tons since 2010. IATA forecasts tonnage growth of only 1. 5 percent in 2013,
with yields falling by 2 percent and revenues of $62 billion, down $4 billion
from 2010.
Des Vertannes, head of global cargo for
IATA, told a conference in late June that
“new processes and technology” are needed if air is to remain relevant. Vertannes’
comments underscore the fact that
progress has been agonizingly slow. In
1997, IATA launched “Cargo 2000” to
standardize processes guiding the implementation of full shipment visibility from
purchase order to final delivery. Cargo
2000’s supporters said it created industrywide standards to measure service and
performance, and that it continues to
make progress. Others say that, 13 years
on, the program is nowhere near attaining
its lofty goal of end-to-end transparency.
In 2006, IATA began an industrywide
initiative called “e-freight” to replace
paper with the electronic exchange of data
and messages. If successful, the program
would cut cycle times by 24 hours and
eliminate 7,800 tons of paper documents
each year. The supply chain would benefit
