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!