Commercial Market for Cargo Operations Aviation Systems Architecture Allen C.Haggerty Massachusetts Institute of Technology March 2, 2004 TOTAL CARGO MARKET GIANT MARKET CONSISTING OF: ? TRUCKING ? RAIL ? SEABORNE ? AIR CARGO AS THE “WORLD GETS SMALLER”, THE GROSS VOLUME OF FREIGHT HAS INCREASED DRAMATICALLY! COMMERCIAL CARGO OPERATIONS . SEA . LAND . AIR . RIVER, LAKES, OCEAN TYPES OF FREIGHT ? SMALL PACKAGE DELIVERY ? “LESS-THAN TRUCKLOAD” FREIGHT ? AIRLINE “BELLY FREIGHT” , e.g. AA, DL, JAL ? PALLETIZED FREIGHT ? CONTAINTERIZED FREIGHT ?BULKCARGO INTERMODAL TRANSPORTATION ALTHOUGH THERE ARE NUMEROUS TYPES OF EQUIPMENT FOR FREIGHT, SOME STANDARDIZATION HAS BEEN ACHIEVED IN: CONTAINERS PALLETS AIR FREIGHT CONTAINERS 8’ X 8’X 20’ CONTAINERS 8’X 8’ X 40’ CONTAINERS CONTAINERSHIPS CAPACITY: UP TO 9000 CONTAINERS SIZE: 950’ LENGTH UP TO 100,000 TONS G.W. EVERGREEN CONTAINERSHIP-TAIWAN MODERN CONTAINER SHIPS ? BEAM GREATER THAN 110 ft. ? CAN’T TRANSIT PANAMA CANAL (TOO WIDE !!) ? CREW OF ONLY 13 ( U.S. Destroyer is 360’, 3200 tons, crew of 360 !!!) ? DIESEL POWERED , 22-23 KNOTS ? AUTOMATED SYSTEMS –low labor costs ? OPTIMIZED FOR EFFICIENCY (reduced ton-mile costs!!) PORT FACILITIES ? HUGE LOGISTICAL INVESTMENT !! AUTOMATION IS KEY; SPEED IN UNLOADING / MINIM- IZATON OF LABOR TO REDUCE COSTS ONE-MAN CONTAINER HANDLING HONG KONG-PEARL RIVER DELTA- CONTAINERPORT MILLIONS OF 20 ft. CONTAINERS PASSING THROUGH IN 2002* ? HONG KONG 25.2* ? LONG BEACH 10.6 ? NEW YORK 3.3 ? OAKLAND 1.6 (PRC’S EXPORTS GREW 22% IN 2002 !!) SOURCE: NY TIMES 1/26/03 EXPLOSIVE GROWTH IN CONTAINER THROUGHPUT LONG BEACH, CA NUMBER & SIZE OF THE U.S. FLAG MERCHANT FLEET WORLD FLEET 28,318 SHIPS U.S. FLEET 454 (2%) CONTAINERSHIPS 90 ROLL-ON / ROLL- OFF SHIPS 60 GENERAL CARGO SHIPS 136 SOURCE:1960-1997 U.S. DEPT. OF TRANSPORTATION, MARITIME ADMINISTRATION, “MERCHANT FLEETS OF THE WORLD”, 2001 MAERSK SHIPPING LINE INTERMODAL CONTAINER Gross Weight :67,200 lbs. Tare : 8220 lbs. Payload : 58,980 lbs. INTERMODAL CONTAINERS ON TRANS-CONTINENTAL RAIL SYSTEM CARGO COMPETITION IS INTENSE! K -LINE EVERGREEN TPL LINE MAERSK SHIPPING DOUBLE-STACKED CONTAINERS ON RAIL (TRAINS MOVE DAY AND NIGHT !!) 8’X8’X20’ CONTAINERS AT FURNITURE FACTORY DEMURRAGE ? AFTER A CONTAINER HAS BEEN DELIVERED TO ITS DESTINATION, THE RECEIPIENT HAS 24 HOURS TO UNLOAD ? “DEMURRAGE” CHARGES START TO ACCUMULATE AFTER 1 DAY ? CONTAINER SHIPPING COMPANIES TRACK THOUSANDS OF CONTAINERS ALL OVER THE WORLD! BARGES-OCEAN, LAKES & RIVER BULK CARGO: COAL, SAND,GRAVEL, ORE, OIL,ETC. AIR FREIGHT TYPES OF CARGO AIRCRAFT ? FREIGHTERS ( e.g. 747 F, MD-11F, new A-380) ? COMBI AIRCRAFT (e.g. ALITALIA MD-11 COMBI CARRIES 200+ PAX AND MAIN DECK CARGO AFT) .CONVERTIBLE FREIGHTERS (e.g.MD-11CF) FREIGHTERS ARE MANUFACTURED NEW (747-400 ERF) OR ARE MODS OF OLDER PAX AIRCRAFT ( MD-10) WORLD ECONOMIC GROWTH AND INTERNATIONAL AIR FREIGHT GROWTH GENERALLY GOOD CORRELATION BETWEEN AIR CARGO AND GDP 757 CARGO HANDLING SYSTEM (SIDE-LOADING PALLETS) EVA 747 FREIGHTER 747 FREIGHTER-NOSE LOADING 747-400 FREIGHTER NEW 747-400ER FREIGHTER: 910,000 lbs. MTOGW ; APPROX. 8000 n.m. RANGE CHINA AIR 747 LOADING CONTAINERS 757 & 767 FREIGHTERS UPS : 767F DHL: 757F A-300 CARGO HANDLING SYSTEM . TIE-DOWN ATTACHMENTS . POWER-DRIVE UNITS . REINFORCED STRUCTURE . LARGE SIDE ACCESS DOOR (LOADING / UNLOADING) . CARGO RESTRAINT SYSTEM EVA MD-11 CARGO FREIGHTER 630,000 lbs.MTOGW, 192,000 lbs.CARGO, 7200nm.Range MD-11 CONVERTIBLE FREIGHTER & COMBI CONVERTIBLE FREIGHTER 24hrs. PAX to Freighter 48 hrs. Freighter to Pax MartinAir-HOLLAND COMBI Alitalia Combi Main Deck Cargo + 219 Passengers MD-11 COCKPIT 6 ACROSS MULTIFUNCTION FLAT PANEL DISPLAYS THIS COCKPIT WAS INSTALLED IN THE DC-10 MOD TO MD-10 FREIGHTER FOR FEDEX DC-8F CARGOLINER PAX AIRCRAFT CONVERTED TO CARGO ;RE- ENGINED WITH TURBO-FANS (UPS FLEET) THE BUSINESS OF AIR CARGO! ? ECONOMICS JUSTIFY HIGH PRIORITY TIME CRITICAL PAYLOADS (ELECTRONICS, FLOWERS, BERRIES) ?URGENTPACKAGES, DATA, PARTS ? AIR CARGO MARKET AIDED BY PRESSURE TO REDUCE INVENTORIES & CYCLE TIME ? SHORTER TIME TO MARKET AIR CARGO CARRIERS ? POLAR AIR CARGO ? ATLAS AIR ? EVERGREEN INTERNATIONAL ? MARTINAIR ? GEMINI AIR CARGO ? AMERIJET INTERNATIONAL ? EMORY AIR FREIGHT ? DHL ? AIRBORNE EXPRESS ? LUFTHANSA CARG0 ?UPS ? FEDEX NUMEROUS FREIGHT FORWARDERS!