Top 50 Cargo Airlines

More news on the air cargo front as Air Cargo World publishes their list of the top 50 cargo airlines in the world based on millions of freight ton kilometers. Click here for the full list that includes brief descriptions and analysis of the airlines involved. Who are the top 10?

1. FedEx Express
2. UPS
3. Korean Air
4. Lufthansa
5. Singapore Airlines
6. Cathay Pacific
7. China Airlines
8. Atlas Air
9. Air France
10. EVA Air

The Global Supply Chain System

About Retail Industry links to a very handy, easy-to-understand interactive global supply chain flowchart developed by the Retail Industry Leaders Association that explains the various security measures that are available throughout the system. You can see the flowchart here.

This is a handy flowchart for anyone who wants to understand the basics of the global supply chain and how products are transported into the U.S. while also pointing out the security measures that are in place at each stage of transportation.

Air Cargo capacity between China and U.S. to increase…

….as the U.S. Department of Transportation grants a total of 12 more freighter flights to existing cargo carriers FedEx, Northwest, and Polar Air Cargo:

DOT said 15 more all-cargo flight frequencies for U.S.-China routes become available on March 27, 2007, but until 2008 the bilateral accord between the countries limits such allocations to the U.S. carriers that already operate in those lanes.

Currently, FedEx is approved to operate 26 U.S.-China flights weekly, UPS 21, and Northwest and Polar 12 each. All but UPS sought new frequencies.

And because the three airlines that sought new flights asked for four each, or a total of 12, “we are able to grant the applicants all of the frequencies for which they have applied,” DOT said.

Good news for those U.S. importers who source from China, although it will be interesting to see how the airlines route their freighters as the rates going to China are much, much lower as far more cargo is coming in then going out.

Railroads claim congestion shouldn’t be a problem despite record shipping volumes

The railroads are staying positive – so far – in the midst of this year’s peak season shipping period while sticking with their projections for the rest of the year.

The railroad industry had its busiest week in history for intermodal freight — goods that are in trailers or shipping containers — when it moved 251,000 trailers and containers the last week of July, Association of American Railroads spokesman Tom White said.

“And if history tells us anything, it will get busier as we get into October,” he said. “We’re definitely seeing an increase but things are moving through fine. It may not come without any problems, but there aren’t any choke points or log jams or anything like that.”

As it has for the last few years, the Surface Transportation Board in late June requested that railroads detail their plans for the peak shipping season.

The STB began requesting the information after the industry encountered congestion problems in 2003, brought about by factors that included inaccurate freight volume estimates.

The STB resolves railroad rate and service disputes and reviews proposed railroad mergers.

Executives from Union Pacific Corp., Burlington Northern Santa Fe Corp., CSX Corp., Norfolk Southern Corp. and others told the STB in mid-July that they expect freight volume to remain strong for the remainder of the year and that congestion shouldn’t be an issue.

So far, so good, it seems. While there will always be problems here and there concerning rail freight, peak season or not, I hope that they are right in assuming that congestion will not be a problem this year. However, in light of the fact that they are expecting to handle record volumes throughout the year, not to mention that they had their busiest intermodal week ever during the last week of July, it remains to be seen whether congestion will rear its ugly head in the future. Future capacity and equipment constraints as demand continues to grow will only exacerbate the potential problem.

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