Changing landscape of air cargo.

April 10, 2006 by SwizStick  
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Must read article from Aviation Now regarding the air cargo industry within the U.S. Citing the airlines’ strategy of reigning in costs as well as ever increasing fuel surcharges, the article describes the decline in cargo handled at small and midsize airports around the country as most airlines focus on large regional hubs. However, the situation may be improving as the smaller players market their cargo handling capabilities aggressively to carriers:

This shaky situation for cargo may be improving, analysts say, as the U.S. economy seems to be strengthening. Some airports are taking no chances and have adopted aggressive tactics to attract and retain airline tenants. Among the more successful are Dallas/Fort Worth International Airport and BAA-managed Indianapolis International Airport.
Less airspace congestion, reduced fees and direct transportation connections to geographical regions can make inland ports attractive to air carriers. Package express operators established the inland trend by locating U.S. hubs at points central to the population base: FedEx at Memphis (Tenn.) International Airport, UPS at Louisville (Ky.) International Airport and DHL, formerly at the Cincinnati/Northern Kentucky International Airport, now in nearby Wilmington, Ohio, at DHL Air Park. As these companies added capabilities in logistics services, powering even more shipments, hub airports have grown exponentially.
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An airport not far from Las Vegas and less than 30 mi. from Phoenix’s Sky Harbor is trying hard to become an inland hub. Williams Gateway Airport even uses the slogan, “Built for Freight.” And, it surely qualifies under that definition.
The former Williams AFB offers three 10,000-ft. runways, and 12L/30R is scheduled to be extended to 12,500 ft. A cargo facility is ready for occupancy. A new passenger terminal is open and is welcoming Vision Airlines of Las Vegas, the first tenant, which was scheduled to start Dornier 328 service to Las Vegas Apr. 6. Nearby is a 7-acre cargo ramp.
Williams has been fighting “an uphill battle” to attract tenants, says marketing director John Barry. Since its conversion to civilian use in 1994, the airport has focused on facilities and infrastructure development. Barry says Delta Air Lines was close to starting service in 2001, but 9/11 intervened and many expansion plans have been curtailed. The proximity of Sky Harbor airport doesn’t help Williams’s cause.
Charter cargo aircraft routinely operate into the airport, some carrying military helicopters due for refurbishing at a nearby shop. But no carrier except Vision has committed to scheduled service. Barry says forecast growth and development in the Valley of the Sun–Williams is in the East Valley–will spur growth at the airport eventually. Right now, the airport stands in the middle of freight forwarders, air carriers and local manufacturers, each waiting for the other to make a move, says Barry. He is hoping his efforts with local industry groups will lead to a commitment.
Another one-time military base, Rickenbacker International, the all-cargo port for Columbus, Ohio, is preparing for more growth. Operated by the Columbus Regional Airport Authority, which runs Port Columbus and Bolton Field, Rickenbacker recorded 15% growth in freight in 2005, year over year, from 215.9 million to 248.9 million lb. AirNet Systems Inc., an on-demand charter carrier, moved its headquarters from nearby Grove City to Rickenbacker and relocated its operation from Port Columbus, nearly quadrupling cargo landings at Rickenbacker between 2004 and 2005, from 2,979 to 11,674.

Read the whole thing, very interesting. While the article briefly mentions it, I believe one of the biggest reasons for the decline in air cargo is the reduction in wide body aircraft being flown domestically. Wide body options for domestic cargo to a variety of major airports within the U.S. offered shippers flexible solutions for their air cargo needs. The massive reduction in wide body aircraft severely limits the size and amount of cargo that can be sent on a domestic passenger flight. One only needs to call their transportation provider to inquire about moving any air cargo that weighs more than 250lb a piece domestically to quickly find their options severely limited. This, in conjunction with the rise of dedicated airfreight truckers who can move airfreight at a fraction of the cost of standard air cargo, provided you can accept longer transit times, has severely impacted domestic air cargo.

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