Featuring everything from inspirational keynote speakers to intimate breakout sessions, product demos, and vendor expos, these shows help put attendees at the forefront of the latest industry happenings. (Bonus: mingling with peers and colleagues during the shows is great for business development and career advancement.)

So, mark your calendars and get ready for these key supply chain events in 2024.

TRUCKING/SMALL PACKAGE

TMC 2024 Annual Meeting & Transportation Technology Exhibition

Mar 4-7, New Orleans
tmcannual.trucking.org

Who Should Attend: Trucking fleet professionals, vehicle manufacturers, component suppliers, and other commercial trucking professionals

What to Expect: A technical conference focused on helping attendees maximize fleet performance and efficiency.

Highlights: Task force meetings, new TMC member orientations, study sessions, Trucking Technology Marketplace

Truckload 2024

Mar 23-26, Nashville
tcaconvention.com

Who Should Attend: Truckload professionals

What to Expect: Education and insights on the latest truckload issues and industry best practices, committee meetings, networking functions, and exhibition hall.

Highlights: Executive leadership panels, keynote speech by “Mr. Wonderful” Kevin O’Leary of Shark Tank, Young Trucking Executives discussion

Home Delivery World USA

Jun 5-6, Philadelphia
bit.ly/HomeDelivWorld24

Who Should Attend: Retail logistics and supply chain professionals, autonomous technology companies, delivery services, grocers and manufacturers, warehousing operators, final mile providers

What to Expect: Technologies, strategies, and best practices for the full scope of retail logistics from inventory management and fulfillment to delivery, customer experience, and returns.

Highlights: The Middle Mile, a co-located event dedicated to middle-mile logistics; 300+ exhibitors; speakers from top retailers including Macy’s, Walmart, IKEA, Best Buy, and others

Last Mile Delivery Conference & Expo

Jun 27-28, Las Vegas
lmdconference.com

Who Should Attend: Shippers, e-commerce retailers, transit and fleet operators, 3PLs, professionals from academia and government, and courier, express, and parcel companies

What to Expect: A summit to explore last-mile logistics and the cutting-edge technologies that are disrupting the status quo in warehousing, delivery, and customer service.

Highlights: Hosted buyer meetings, panel discussions, vendor demos

Parcel Forum

Sept 16-18, Dallas
parcelforum.com

Who Should Attend: Shippers, distributors, parcel logistics providers, freight auditors, and other small-package supply chain professionals

What to Expect: Attendees will explore innovations in last-mile delivery, e-commerce logistics, and shipping technologies.

Highlights: Top-rated conference program, peer-to-peer networking, exhibit hall experience with dedicated hours

Accelerate! Conference & Expo by Women in Trucking Association

Nov 10-13, Dallas
bit.ly/AccelerateWIT

Who Should Attend: Motor carriers, 3PLs, manufacturers, retailers, truck-driving schools, financial and insurance providers

What to Expect: “A unique event with a critical mission,” Accelerate! seeks to elevate, empower, and level the playing field for women in all facets of the trucking industry.

Highlights: Six different educational tracks, career-development seminars, featured trucks and trailers, 150+ exhibitors

AIR CARGO

Air Cargo Conference

Feb 11-13, Louisville, KY
aircargoconference.com

Who Should Attend: Shippers, airlines, airport authorities, freight forwarders, expedited providers

What to Expect: Insights on how to navigate today’s complex, global air cargo challenges including cargo theft, global regulations, congestion, and emerging technologies.

Highlights: A keynote speech from Captain Houston Mills, UPS President of Flight Operations & Safety; exhibit hall with 83 booths; women’s networking event

IATA World Sustainability Symposium

Sept 24-25, Miami
bit.ly/IATAWSS24

Who Should Attend: Shippers, airlines, airport authorities, OEMs, ANSPs, solutions providers, policy-makers and regulators, banking/financial institutions

What to Expect: Air cargo sector and government experts exploring ways to successfully execute on the industry’s commitment to decarbonize aviation by 2050.

Highlights: Sessions on how to finance the transition to sustainability, how to comply with sustainability regulations, what to expect next

Air Cargo Forum

Nov 12-14, Miami
bit.ly/AirCargoForum24

Who Should Attend: Shippers, freight forwarders, ground handlers, airports, airlines, manufacturers, solutions providers

What to Expect: Conference sessions covering key air cargo issues including sustainability, education/training, and technology.

Highlights: 15,000+ sq. ft. expo space with 220+ exhibitors, comprehensive networking program including golf tournament, receptions, pre/post event excursions, and after-parties

MARITIME/PORTS

CMA Shipping

Mar 12-14, Stamford, CT
cmashippingevent.com

Who Should Attend: North American maritime professionals

What to Expect: Three days of sessions on key maritime issues, challenges and opportunities, as well as insights on the future of the maritime supply chain from top industry leaders.

Highlights: Networking Gold Card, comprehensive expo hall, Commodore Gala

AAPA 2024 Smart Ports Seminar & Expo

Jul 9-12, Seattle
bit.ly/AAPASmartPorts

Who Should Attend: Maritime professionals, technology providers

What to Expect: A detailed exploration of how smart technology is transforming ports as well as insights on facilities engineering and port security.

Highlights: Port tour, exhibit hall showcasing emerging technologies and solutions providers

Breakbulk Americas

Oct 15-17, Houston
americas.breakbulk.com

Who Should Attend: Logistics and supply chain managers involved in the movement of breakbulk products; specialized service providers

What to Expect: 5,000+ attendees sharing the latest breakbulk and project cargo strategies and exploring emerging industry trends and technologies.

Highlights: More than 280 exhibitors, Women in Breakbulk breakfast, other networking events

AAPA Annual Convention and Expo

Oct 27-30, Boston
bit.ly/AAPAAnnual24

Who Should Attend: Port professionals, terminal operators, service providers, transportation leaders, supply chain partners

What to Expect: Key takeaways on the latest industry trends and innovative solutions impacting the future of American ports.

Highlights: Full slate of sessions, speakers, and exhibit hall; port tour

INTERMODAL/RAIL

IANA Intermodal Expo 2024

Sept 9-11, Long Beach, CA
intermodal.org/intermodalexpo

Who Should Attend: Intermodal professionals from shippers, railroads, motor and ocean carriers, ports, technology suppliers, equipment manufacturers, leasing companies, 3PLs

What to Expect: Intermodal topics to be tackled include terminal design, transloading, driver productivity, sustainability, regulatory risk, and chassis provisioning, among others.

Highlights: 21 hours of educational content, nine hours of exclusive exhibit hours, 10 hours of networking

20th Annual Southwestern Rail Conference

Apr 15-16, Dallas
bit.ly/SWestRail24

Who Should Attend: Public- and private-sector freight and passenger rail professionals

What to Expect: Key inputs and discussions from across the rail sector concerning transportation planning, government affairs, emerging technologies, freight logistics, supply chain management, and sustainability.

Highlights: An expanded program of sessions, key networking opportunities

North American Rail Shippers Annual Meeting

Apr 30-May 2, Chicago
https://bit.ly/RailChicago24

Who Should Attend: Rail shippers, transportation providers

What to Expect: Speaker and panelist lineup consisting of high-profile rail transportation executives and experts from academia and government; ample networking opportunities.

Highlights: Co-located with the Traffic Club of Chicago’s annual golf outing and gala dinner

SUPPLY CHAIN & LOGISTICS

MODEX

Mar 11-14, Atlanta
modexshow.com

Who Should Attend: Manufacturing, supply chain, and transportation professionals

What to Expect: A focus on how to future-proof your supply chain via sessions about emerging technologies and equipment led by practitioners across the supply chain and manufacturing ecosystem.

Highlights: 150+ free education sessions, exhibit hall with 1,000+ providers, networking with 45,000+ attendees, keynote speakers including actor Jeremy Renner and comedian Colin Jost

ISM World 2024

Apr 29-May 1, Las Vegas
bit.ly/ISMWorld24

Who Should Attend: Procurement and supply chain management professionals

What to Expect: More than 2,000 attendees coming together to exchange insights and strategies on top procurement and supply chain issues

Highlights: ExecIn, a conference within the conference for senior leaders; post-event 90-day access to a comprehensive library of all the breakout sessions

WERC 2024 Annual Conference

June 2-5, Dallas
bit.ly/WERC2024

Who Should Attend: Warehousing, distribution, and logistics professionals

What to Expect: Explore new ideas, tools, and techniques with front-line innovators and thought leaders, covering topics ranging from labor and inventory challenges to digital transformation within the industry.

Highlights: Roundtable discussions, peer-to-peer sessions, facility tours, networking events, WERC Sponsor Showcase

CSCMP EDGE 2024

Sept 29-Oct 2, Nashville
cscmpedge.org

Who Should Attend: Logistics, transportation, and supply chain management professionals

What to Expect: Actionable takeaways from 100+ educational sessions spanning the end-to-end supply chain. The event is hosted by The Council of Supply Chain Management Professionals (CSCMP).

Highlights: Supply Chain Exchange featuring demonstrations, equipment, systems, and technologies; pre-conference Academic Research Symposium; 15 Continuing Education Units

For shippers and logistics providers, the challenge of maximizing air cargo capacity—whether for soft goods or for furniture, electronics, and other heavy items moved by air—is not as easily solved. And at the height of the pandemic, the challenge was more complex still.

One year ago, airfreight capacity was just beginning its return to its pre-pandemic norms after more than two years during which demand for air cargo space was far greater than what was available.

Fast forward to today. Air cargo capacity exceeded pre-pandemic levels in the second quarter of 2023 for the first time in three years, according to the International Air Transport Association (IATA). (Air cargo capacity is measured by available cargo tonne-kilometers, commonly referred to as ACTKs. A tonne is a metric unit of mass equivalent to 1,000 kilograms or 2,200 pounds.)

The global air cargo industry registered 20.7 billion cargo tonne-kilometers in July 2023, extending its steady improvement since February, according to an IATA Air Cargo Market Analysis issued earlier this year. ACTKs, meanwhile, stood at 49.1 billion in July, an increase of more than 11% compared to the 2022 level and a better than 3% increase over the same month in 2019.

The restoration of passenger belly-hold capacity drove the strong annual expansion of ACTKs.

“In response to weak air cargo demand, airlines added less dedicated cargo capacity in June,” IATA reported in its Air Transport Chartbook for Q2 2023. However, ACTKs through the end of the quarter already surpassed levels for the same period in 2022 by nearly 10%.

“The air industry is still in a state of correction,” notes Debra Capko, president of Pegasus Freight Services, a Houston-based freight forwarding and logistics provider.

“Although freighters were scarce in 2020 due to the high volume of personal protective equipment such as gloves and face masks being shipped, the rest of the market was not strong globally,” Capko says. “We saw improvement in 2021 and 2022 was busy for everyone.”

At the height of the pandemic, “preighters” helped with the volume of shipments, Capko says. A preighter—also known as cargo in cabin—is an aircraft originally intended to carry passengers, but which is operated temporarily as a cargo aircraft by loading freight in the passenger cabin.

Airlines Fight Contraction and Then Experience Growth

Notwithstanding such solutions and improvements, airlines in both North America and Europe experienced a challenging start to the second quarter of 2023 with an annual contraction in international cargo capacity.

But the situation soon rebounded, IATA says. The ups and downs of cargo space on the Europe-North America trade lane, created traffic fluctuations by the airlines.

With global trade contracting year-over-year in 2023’s second quarter, air cargo demand followed suit.

“Notably, the gap between the growth in global goods trade and air cargo demand narrowed in Q2 to the lowest level since January 2022,” according to IATA. “However, this gap indicates that air cargo is still more affected by the slowdown in global trade than container cargo.”

Has passenger traffic affected air cargo capacity? “We have seen sufficient capacity for current volume levels,” says Andreas Von Pohl, senior vice president, airfreight, for DHL Global Forwarding Americas, which specializes in international shipping and courier services.

Belly capacity has continued to improve and travel demand remains high. “Capacity remains sufficient on the majority of trade lanes with no significant backlogs apart from some Asia and Intra Asia countries outbound,” Von Pohl says. “So even though we have capacity, we still face volume issues.”

Is it possible that the industry created too much capacity?

“The industry always adjusts to the new market realities,” Von Pohl says. “As we currently experience low demand with ample capacity, the industry will adjust their networks to deal with that reality.

“It will take some time, but underutilized infrastructure and assets will not continue to be available if the market does not show improvement,” he adds.

Effects on Booking and Rates

The outlook for air cargo capacity has improved since the pandemic-related crunch. Ongoing geopolitical events and inflationary pressures, however, remain concerns.

Amid the fluctuations in air cargo capacity, freight forwarders have found creative solutions to avoid potential problems with booking.

“We had not experienced significant issues with booking cargo on passenger flights although we have had to book more than normal on a priority basis,” says Capko. “We have had to be creative with moving cargo on freighters from various gateways to accommodate large shipments.”

DHL, meanwhile, has developed new technology to help streamline the booking process.

“Booking is a critical area in the airfreight process,” Von Pohl says. “It’s a key part of the customer experience and many players in the market have targeted ways of making it more efficient while also ensuring that it remains dynamic and responsive to changes in the market.”

One way DHL has addressed the challenge is with the myDHLi tool, which significantly simplifies booking for customers while providing 360-degree visibility and full control over shipments. “This is augmented by the strong relationships DHL has established with carriers and by their efforts to digitize and simplify the quotation and booking process,” Von Pohl says. Rates have fluctuated along with capacity. “Outbound rates from the United States dropped in 2020, and then increased in 2021,” says Capko. “I believe the market will return to normal during either the second half of 2024 or 2025.”

In the meantime, it has been a turbulent trip for logistics professionals.

“Due to the explosion of airfreight in 2022, rates skyrocketed. Now in 2023 the rates for most markets have crashed,” Capko says. “This is due to the supply chain shutting down through COVID. When countries started to open up again, it was not everyone across the board at the same time.

“Reopening was very difficult for both air and ocean carriers and the industry as a whole,” she adds. “Ocean carriers had to drastically alter their schedules with blank sailings and stranded cargo at transshipment points all over the world. When exporters could not get their product to their customers, they had to turn to air freight.”

For now, there seems to be relative calm. “With current low demand and sufficient capacity available, shippers are able to take advantage of aggressive rates in the current market,” Von Pohl says.

“However, we should not forget the lessons learned during the pandemic,” he adds. “Shippers may want to hedge their bets by leaving some of their cargo on dedicated flight operations/networks.

“If world supply chains become challenged again, at least you want to have a seat at the table to assure continuity, reliability, and stability for your goods and services,” Von Pohl notes.

As always, it remains vital to keep track of rates as they change. To help shippers keep abreast of rates in real time, IATA offers TACT Air Cargo Solutions, which allows users to search for current rates, rules, and regulations, air cargo schedules, and other air cargo compliance information.

The tool assists shippers and freight forwarders with vital up-to-date operational and compliance information for air cargo shipments. It removes the need for subscribers to connect with individual airlines, handling agents, or airport operators.

More than 70,000 cargo professionals, including airlines, freight forwarders, airports, ground handling agents, and customs authorities, use TACT daily, IATA says.

Process and Protocols

Along with coping with the exigencies of expanding and contracting air cargo space since the advent of the pandemic, air cargo professionals also have faced the need to respond to changes in safety and security protocols affecting air freight on both domestic and international routes.

“Pegasus is an indirect air carrier (IAC) governed by TSA regulations,” says Capko. “The TSA has been making changes to the industry’s security program over the past several years as part of their continuing process to ensure safety for all. These changes affect the air carriers, IACs, and their authorized representatives in the supply chain.”

For DHL, these changes in process and protocol have meant devising methods to meet increasingly stringent requirements.

“We have seen progressively stronger safety and security regulations in response to risks in the supply chain, as well as the deployment of new technologies that have enhanced security and safety in the sector,” Von Pohl says.

“DHL always seeks to be proactive and to continuously enhance our initiatives in both areas,” he adds. “This is supported by the strong working relationship we have with the authorities in areas such as certification.”

Staying Positive

Despite continuing challenges, the outlook for air cargo capacity and air transportation in general is positive. IATA characterizes the state of the business cycle as being in a “relative sweet spot,” with record employment offsetting the negative impacts of higher prices.

While acknowledging that cargo revenue will likely ease further from its pandemic-related high, reflecting a decline in both cargo tonne-kilometer volumes and a significant unwinding of cargo rates, IATA’s recent Quarterly Air Transport Chartbook reflects a positive picture for airlines.

“Cargo revenue is likely to still be around 40% higher than in 2019 and will account for around 20% of total airline revenue,” the report says.

That seems to indicate that airfreight shippers are looking beyond the horizon, seeing the trends, and focusing on the bright spots. Yet caution remains key in the overall air cargo market.

“Due to geopolitical events and ongoing inflationary pressure, we do not expect volume to recover in the short term,” says Von Pohl. “However, the market will continue to be volatile in some theaters of operations.”

6 Ways to Cut Airfreight Costs

Saving money on air shipments is not only about finding the lowest rate, says Debra Capko, president of Houston-based Pegasus Freight Services. She offers the following tips to minimize airfreight expenses:

1. Find an experienced and qualified freight forwarder who is licensed by the Federal Maritime Commission, is a TSA-certified independent air carrier, as well as an IATA agent, and is bonded—preferably through a referral from another company or an individual you work with in your industry.

2. Consolidate all orders going to the same destination and consignee into a single shipment.

3. Provide accurate information to your freight forwarder regarding commodity, weight, dimensional weights, your customer’s requirements, and other details.

4. Obtain approval from the consignee and/or their forwarder that documentation is correct for their customs clearance.

Andreas Von Pohl, senior vice president, airfreight, for DHL Global Forwarding Americas, additionally suggests:

5. Leverage multi-modal services. Multi-modal transport contracts involve two or more means of transport through one contract with carriers such as DHL.

6. Make good forecasts. While recognizing that the need for urgent shipments sometimes occurs, a quality forecast program can support cost reductions.

When dealing with an air capacity shortage, effective inventory management becomes crucial to minimize the damage of potential delays in transportation. Close collaboration with suppliers and customers, as well as implementing advanced real-time data, can help optimize inventory levels and minimize the impact of this event.

Diversifying supplier bases and exploring multiple transport modes can also help reduce reliance on a single mode of transport, therefore reducing the impacts when one mode experiences unexpected events like a materials shortage.

Implementing enhanced visibility across the supply chain through real-time data and dynamic lead times becomes imperative during a shortage. Real-time shipment tracking and monitoring can help businesses proactively identify potential disruptions and take necessary actions.

To mitigate disruptions from an aircraft engine shortage, focus on preventative measures like putting in place high-quality supply chain visibility, collaborative partnerships, and agile inventory management to keep the supply chain moving.

–Bart De Muynck, Chief Industry Officer, project44

Air freight spot rates dropped 41% versus April 2022 as a 7% rise in cargo capacity resulted in lower load factors and a 14th consecutive month of falling volumes year-over-year. CLIVE’s dynamic load factor—which measures global volume and weight perspectives of cargo flown and available capacity—dropped 5% versus 2022 to 57% in April, continuing a more than year-long decline.

Summer capacity had its traditionally significant impact on the air cargo market from Europe to North America, with capacity up 26% in comparison to March 2023. Data showed a 10% decrease in load factor across the North Atlantic to 57% in April, compared to the 67% level recorded to major North American airports in March.

It remains uncertain whether a rise in demand will come in Q4, as the industry anticipates.

That’s not quite the case. The commitment and dedication of the companies that operate and support Alaska’s supply chains enable many residents of the 49th state to lead lives remarkably similar to those in the rest of North America—albeit, often more bundled up.

“You’d think that wouldn’t be possible, but it is,” says Art Dahlin, vice president and Alaska general manager with TOTE Maritime Alaska.

“The reliability of the Alaska supply chain, even in extreme conditions, makes it possible for Alaskans to get the goods and services enjoyed by the lower 48 communities,” says Michael Johnson, president of Span Alaska.

At the same time, “Alaska remains the closest thing to a frontier still left in North America,” Johnson says. “Even if you live in a metropolitan area, such as Anchorage or Fairbanks, you can still be steps away from the wilderness.”

Spanning about 586,400 square miles, Alaska is one-fifth the size of the lower 48 states combined, giving its approximately 734,000 residents plenty of room.

Center of the World

The state also boasts more than 33,900 miles of shoreline, including more than 6,000 miles of coastline. Alaska borders two oceans: the North Pacific and the Arctic. It’s also home to the tallest mountain in North America, Mt. Denali, and can claim 94 lakes whose surface area tops 10 square miles. “It’s a unique place,” Johnson adds.

While Alaska’s size, weather, and limited infrastructure present real challenges, the state also offers several logistical advantages. One is its location. When you look at a flat-earth map, Alaska appears “at the top and out of the way,” says Darren Prokop, Ph.D., professor of logistics at the University of Alaska Anchorage. “But look at Alaska on a globe and suddenly it is at the center of the world.”

The city of Anchorage, for example, is within 9.5 hours flying time to 90% of the industrialized world. “No city in the lower 48 can say that,” he adds.

About 80% of air freight flying from Asia and destined for mainland United States is contained in air cargo freighters that lay over and refuel at Ted Stevens Anchorage International Airport.

Its location has also helped make Ted Stevens Anchorage International Airport a busy trans-shipment point, says Alex McKallor, chief operating officer with Lynden. The airport is equidistant between New York and Tokyo, and is the second busiest airport in the United States, based on landed weight of cargo aircraft.

“Alaska’s location offers a real opportunity for the state to develop as a global transportation and logistics hub,” Dahlin says. The Anchorage Pacific Air-to-Sea Service (ANC PASS) is one example of this potential.

ANC PASS consists of an air charter flight from Asia to Anchorage, transloading in Anchorage to an ocean vessel, and then using ocean transportation to move to Seattle/Tacoma. It then shifts to truck for delivery to the final destination.

Shortening Transit Times

This multimodal route shortens transportation time, curtails costs for traditional container lines, and avoids the West Coast port congestion that has recently hampered many shippers.

For example, transit time for shipments traveling from Shanghai over the ocean and truck typically ranges from 25 to 29 days. With ANC PASS, that drops to seven to 19 days.

And while the melting of Arctic ice prompts environmental concerns, it may benefit shippers, as sea routes will stay navigable for longer periods. Shipments currently heading from Japan to Rotterdam, Netherlands, go through the Suez Canal, for transit time of about 30 days. Shifting these shipments to the Northern Sea Route along the northern coast of Russia could cut transit time to about 18 days, the World Economic Forum estimates.

“This potentially positions Alaska to be a bigger player in the global supply chain,” Dahlin says.

This is far from a done deal, WEF notes. Eight countries—Canada, Denmark (through its administration of Greenland), Finland, Iceland, Norway, Russia, Sweden, and the United States—lay claim to land that lies within the Arctic Circle.

Surmounting Multiple Challenges

Along with the opportunities Alaska presents come real challenges. Top among them, particularly for companies shipping retail and manufactured items, are distance, expense, and the weather.

Meeting the challenges of shipping to or through Alaska requires thorough planning, equipment built to withstand harsh weather, a commitment to reliability, and an ability to improvise.

“They’re unique challenges, but they’re not insurmountable,” Dahlin says. “You have to understand them.”

More than 90% of retail goods sold in Alaska are shipped in from the lower 48 states, Prokop says. The extra shipping distance boosts the costs of many items.

On top of this is the challenge of empty backhauls. Container loads of retail items shipped from the Port of Tacoma and unloaded in Alaska will typically be empty on the return trip. “This means that consignors in Alaska have to pay all of the transport costs incurred on the roundtrip,” Prokop adds.

Given Alaska’s vast coastline, marine transport has become the “go-to” solution for moving goods into and out of Alaska, McKallor says. Barges serve most of the state, including the many small communities scattered throughout.

As in many other areas, labor is a challenge in Alaska. A lack of drivers, mariners, pilots, mechanics, and equipment operators often boosts costs beyond the rate of inflation, McKallor says.

“Shortages of qualified CDL drivers are, and will continue to be, extremely impactful to our business,” says Christen Van Treeck, vice president with Carlile Logistics. Along with an aging workforce and attrition, some drivers are leaving the state for other opportunities and a lower cost of living elsewhere.

Companies are adapting, however. Carlile has been creative in its recruiting efforts, reaching out to potential candidates not only from within the state, but nationally, says Van Treeck. Once drivers are on board, they are trained to navigate the landscape of Alaska safely, she adds.

The University of Alaska Anchorage’s undergraduate and graduate supply chain management programs also are a great resource. “They were designed not only to teach the fundamentals, but also to help students understand the unique landscape and challenges facing Alaska,” Van Treeck says.

Relying On MultiModal Transportation

As vast as Alaska is, its land connection to the outside world depends primarily on a single two-lane road, McKallor says. The Alaskan Rail System is connected to the broader North American rail system only by barge, and it goes only as far north as Fairbanks.

Because of the limited road and rail infrastructure, “with a few exceptions, you need to think of Alaska as a bunch of islands,” McKallor says. So few places are connected by roads or bridges that almost all shipments require multimodal transportation.

Within Alaska, only roughly 20% of communities are accessible by the road system. “Any time you move freight, whether by truck, rail, or air, you run the risk of delays due to mechanical issues and weather or terrain challenges,” says Van Treeck.

What’s more, much of the freight that comes into the state is shipped “just in time,” so delays can throw off entire supply chains. “Having limited modes of transportation, compounded with weather challenges, can be highly impactful,” she adds.

The weather also impacts the timing and landed cost of shipments into Alaska. Alaskan shoppers typically can tell from bare shelves at retail stores when a vessel has been delayed by a storm. “It does not happen often; but when it does, it is noticeable,” Prokop says.

Planning for Contingencies

Alaska also is home to 70 potentially active volcanoes, and every year, more than 5,000 earthquakes rock the state. “Shippers and carriers have to plan for contingencies in case the weather or topography—or both—decide not to cooperate,” Prokop says.

These challenges make Alaska the world’s most challenging logistical laboratory outside of war zones, Prokop says. “If you can manage logistics in Alaska successfully you can do so anywhere else in the world,” he says.

Through their commitment, the following companies meet this test day in and day out.

Carlile Transportation: ‘When the Road Ends, We Keep Going’

For more than four decades, Carlile has been dedicated to connecting Alaska with the rest of the world, Van Treeck says. Through its strategically placed terminal locations across Alaska, as well as the lower 48 states and Canada, Carlile can provide tailored logistics solutions, both big and small.

“Safety, reliability, and dedication are paramount to servicing our customers,” Van Treeck says.

For companies that are shipping freight to Alaska, Carlile’s team of experienced professionals can call on their knowledge of the terrain, the climate, and the relevant regulations. With its expertise and equipment, Carlile can ensure its customers’ items are delivered safely and on time.

“We work with a variety of retail, construction, mining, commercial fishing, resource development, and grocery purveyors, and can ship anything from a one-pound box to an oversized or over-dimensional heavy-haul module,” Van Treeck says. Carlile also offers one of the widest varieties of trailers and equipment in Alaska.

Proven Expertise

The company’s shipping experts are trained to safely move hazardous materials, bulk fuels, munitions, and other hazardous loads to, from, and through Alaska. They are skilled at maintaining temperature controls when moving dry and refrigerated goods between Alaska, Canada, and the lower 48 states.

In addition to providing complete logistics solutions for Alaska’s supply chains, Carlile leverages a mix of ocean, air, and road transportation to move products for Alaska’s consumers and businesses.

As many consumers in Alaska know, some retailers don’t ship to the state. Carlile’s MyConnect addresses this challenge. Alaskans can have purchases shipped from retailers in the mainland United States to Carlile’s terminal in Tacoma, Washington. From there, their packages are forwarded to a Carlile package pick-up terminal in Alaska, where consumers can claim them. This capability also allows shippers operating outside the state access to the Alaskan market.

In addition to its supply chain work, Carlile boasts a long history of helping community organizations by volunteering and offering in-kind transportation and donations. Employees are often seen at events supporting the American Heart Association, American Cancer Society, Covenant House, and other non-profit organizations.

For more than 20 years, Carlile has been providing hoodies to every student at its partner school, Mountain View Elementary, ensuring the children can stay warm during Alaska’s colder months. High-visibility colors help keep them safe as they walk to and from school in the dark winter months.

When it comes to Alaskan logistics, Carlile’s expertise, experience, and rugged equipment allow it to deliver seamless, reliable solutions, so shippers can be confident their cargo will arrive on time, intact, and on budget. For more than 40 years, Carlile and its employees have remained true to its mission: “When the road ends, we keep going.”

Lynden: Doing Tough Things in Tough Places

Lynden’s experience in Alaska goes back almost 70 years. In the early 1950s, few thought delivery trucks could safely drive the Alaska-Canada (Alcan) Highway, which runs from Victoria, British Columbia past Juneau.

But in 1954, the first Lynden Transfer Kenworth left Seattle with a load of fresh meat, headed for Alaska. Two drivers made the four-day trip and safely delivered the shipment. With that trip, Alaskans gained access to fresh produce, meat, and other foods.

Embarking on deliveries to Alaska “requires expertise in multimodal transportation and the ability to take complexity out of the process for customers, and offer seamless door-to-door service,” says Lynden’s Alex McKallor. “We listen to customers and then craft solutions to address their challenges.”

Leveraging Transportation Modes

Moving shipments to Alaska typically requires leveraging three or four transportation modes. Lynden coordinates much of this behind the scenes, so customers can focus on the rest of their business, confident their shipments will get where they need to.
Lynden offers shippers several routing options, including air, marine, and highway, for both less-than-truckload (LTL) and truckload.

“We offer options so you can pay for the speed you need,” McKallor says. For instance, road trips over the Alcan highway tend to go faster than shipments that move by boat, but are also more expensive. An integrated technology platform offers door-to-door visibility in real time.

Lynden’s customer base ranges from small businesses to some of the largest retail, energy, and other companies around. “It runs the gamut,” McKallor says. No matter the size or industry, Lynden uses its expertise and equipment to ensure shipments arrive on time and intact.

In early 2023, Lynden coordinated a multimodal effort to move a critical engine part that was needed to support oil drilling operations near Prudhoe Bay.

To start, a Lynden Hercules cargo plane flew the crated engine from Bethel, Alaska, to Anchorage, a trip of about 400 miles. A driver then “hotshot” the part by truck about 900 miles over the often-treacherous Dalton Highway to Point Oliktok, about 50 miles west of Prudhoe Bay. From there, a hovercraft delivered the part to its final destination.

“Our theme is doing tough things in tough places,” McKallor says. “It’s hard work and a lot of companies shy away from it. But we do it safely day in and day out.”

Span Alaska: Customers First

Span Alaska ships more than 400 million pounds of freight annually to Alaska. With its customer-first culture, Span Alaska strives to be the best freight transportation solution for the often-challenging Alaskan terrain, says President Michael Johnson. It serves all points in the state, moving more LCL (less-than-containerload) freight than any other carrier in the state.

“Our goal is to be a customer-focused and quality-driven provider that is an incredibly reliable part of the supply chain,” says Johnson.

The company launched in 1978, and through the decades grew into one of the largest freight companies serving Alaska. In August 2016, Matson Logistics acquired Span Alaska. “Because of Span Alaska’s significant volume, we can direct load into all our service centers, even the smaller locations,” Johnson says.

“The dedicated, direct loading of containers from Tacoma to each service center in Alaska ensures minimal cargo rehandling, reduced transit times, and security seal integrity from origin to destination,” he adds.

Making Strategic Moves

Span Alaska’s business continues to evolve and grow. Management has made strategic acquisitions of logistics companies that are similarly committed to Alaska and added chill/freeze capabilities. Span Alaska also offers KFF (keep from freezing) options, typically from late September through mid-April.

Its new, 88-door Anchorage Service Center opened in 2019, and it is expanding its footprint in Fairbanks with a larger, state-of-the-art service center scheduled to open in summer 2023.

Along with its 93-door consolidation center in Auburn, Washington, Span Alaska operates service centers in Anchorage, Fairbanks, Kenai, Kodiak, and Wasilla. Shipments from the lower 48 move via containership from Tacoma via twice-weekly, non-stop service to Anchorage, and then final delivery via road and rail throughout Alaska. Vessels also call on Kodiak and Dutch Harbor each week.

Span Alaska also offers barge services to and from Southeast Alaska, as well as Central and Western Alaska. While a longer transit, it’s a cost-effective option for breakbulk, oversize shipments, and containers of all sizes: 20, 40, 45, and 53 feet.

The company also offers southbound shipping from Dutch Harbor, Kodiak, and Anchorage to the Port of Tacoma once weekly. For shippers whose packages need to move past Tacoma, Span Alaska can transport them via truck or rail to any location across the lower 48 states and Canada.

While most Span Alaska shipments travel via a combination of ocean and road, the company also leverages air transport, often when time is critical. It also turns to rail service, typically when transporting shipments that are heavier and difficult to move over the road. “No matter what, we get our customers’ freight where it needs to go,” Johnson says.

Because of its expertise, Span Alaska can offer customers a streamlined, user-friendly experience. “It’s seamless from the time you give us a shipment until it’s delivered,” Johnson says. “And that’s both the physical movement of the shipment and virtual monitoring, providing instant tracking and all of the documentation that accompanies every move.”

Along with its equipment and technology, Span Alaska’s employees are critical to the company’s ongoing, reliable ability to move shipments in Alaska’s often punishing terrain and extreme weather.

“All of us take pride in solving challenges and being part of the supply chain that enables life in Alaska to be very much like it is anywhere else,” Johnson says. “It’s purposeful work.”

TOTE Maritime Alaska: Focused on the Customer Experience

A quality customer experience is one of TOTE Maritime Alaska’s core values, says Art Dahlin, vice president and Alaska general manager. TOTE’s ships move about one-third of goods heading to Alaska’s Rail Belt Region, which runs approximately from Seward up to Fairbanks. The vessels have been built to meet “ice class” specifications, and their four engines and two propellers, among other features, allow them to efficiently move cargo where it needs to go.

“These ships were built to serve the people and communities of Alaska, reliably and efficiently no matter the circumstances,” says Dahlin.

Even as TOTE leverages the experience it has gained over its nearly five decades of working in Alaska, management continues to innovate. TOTE is in the final phases of converting its fleet to run on liquefied natural gas (LNG).

“It is an historic project,” Dahlin says. “Once complete, our entire fleet will run on LNG.”

TOTE is also investing in its customer portal, working with customers to refine it and make sure it’s adding the value they want. “We’re engaged in a process of continuous improvement,” Dahlin says.

With decades of experience in Alaska, TOTE can call on its expertise to guide its twice-weekly service between Tacoma, Washington and Anchorage. Transit times and port turn times are industry-leading, with drivers often moving through the gate and returning to the road in less than 20 minutes.

TOTE also can adeptly handle military moves across the Gulf of Alaska, including weekly Army & Air Force Exchange Service (AAFES) shipments, cold-weather training cargo, and brigade-sized and division-level moves.

“We assemble a project team and work closely with stakeholders to make sure we have a safe solution,” Dahlin says.

Speed, Safety, Reliability

Through its fleet of roll-on/roll-off (RO/RO) cargo ships, TOTE offers speed, safety, and reliability. “If it rolls, our ships can accommodate it,” Dahlin says.

Once the ships are docked, shipments can be unloaded and on store shelves within two hours. “All our equipment is designed to quickly turn cargo in and out of the ports,” Dahlin says.

To ensure the entire state can access the supply chain, TOTE Maritime Alaska works closely with transportation partners, including line haul trucks going to Fairbanks and air freight to reach the outer villages.

“It’s pretty impressive to see the whole supply chain work together as well as it does,” Dahlin says. “Alaska is an incredibly beautiful and unique place and we’re proud to have served the state for nearly 50 years.”

Comparing these figures with 2019 shows demand at 13.7% and capacity at 8.2% above pre-pandemic levels.

Here are the top 10 global airports–based on total cargo–leveraging the increased demand, according to Airports Council International:

1. Hong Kong International Airport
2. Memphis International Airport
3. Shanghai Pudong International Airport
4. Ted Stevens Anchorage International Airport
5. Incheon International Airport
6. Louisville International Airport
7. Taiwan Taoyuan International Airport
8. Los Angeles International Airport
9. Narita International Airport
10. Hamad International Airport

This guide provides a comprehensive overview of the different types of air cargo, their uses, and the specific requirements for each.

What Is Air Cargo?

Air cargo refers to transporting goods and products via aircraft, either in passenger aircraft cargo holds or cargo-only aircraft. It is a critical component of the global supply chain. It enables businesses to move goods quickly and efficiently over long distances, ensuring timely delivery and access to markets worldwide. 

As a result, air cargo is a vital aspect of modern logistics and plays an essential role in the global economy. It connects manufacturers, suppliers, and consumers across the world.

The significance of air cargo in supply chain management cannot be overstated. It offers unparalleled speed and flexibility compared to other modes of transport, such as sea or ground shipping. 

While air freight service can be more expensive than other options, its ability to transport goods rapidly and reliably makes it the preferred choice for time-sensitive, bulk, or high-value shipments. 

Types of Air Cargo

With a solid understanding of the importance of air cargo and its role in the supply chain, let’s explore the nine distinct types of air cargo. We will also delve into their unique features and uses in various industries.

General Cargo

As the backbone of the air freight service industry, general cargo is a versatile and vital category. It covers a wide range of goods and products. This cargo can handle anything to do with electronics, clothing, machinery parts, medical supplies, and more. General cargo encompasses items that do not require specific handling or storage conditions during transportation. 

Manufacturers, retailers, and businesses across numerous sectors depend on general cargo air freight services to transport their goods quickly and efficiently.

While specific restrictions and regulations may apply depending on the nature of the items, general cargo is typically more straightforward in terms of packaging and handling requirements. This category allows for streamlined operations, contributing to its substantial air cargo market share.

Special Cargo

Special cargo refers to goods that have unique requirements for handling, storage, or transportation. This category covers a diverse range of items, such as fine art, pharmaceuticals, sensitive equipment, or even live stage props for entertainment events. 

The unique nature of these goods necessitates specialized care and attention, often involving additional security measures, temperature controls, or custom-designed containers.

Companies whose cargo includes museums and galleries, pharmaceutical companies, and event organizers rely on special cargo services to transport their valuable and delicate items safely and securely. 

Air cargo providers offering special cargo services are well-equipped to handle the stringent regulations and standards associated with these goods. This ensures compliance and minimizes risks during transportation.

Live Animals

This type of cargo transports our furry, feathered, or four-legged friends through the skies. The specialized sector handles various creatures, from pets and farm animals to rare species destined for zoos and conservation centers. This way, they all receive the utmost care during their journey.

The live animal air cargo sector is essential in fostering connections across the globe and providing a reliable, humane way to transport the planet’s diverse inhabitants. Pet owners, breeders, farmers, and wildlife conservationists in the United States entrust live air freight with more than 2 million animals annually.

To guarantee the welfare and safety of every living passenger, air cargo providers follow strict guidelines laid out by the International Air Transport Association (IATA) in Live Animal Regulations.

Dangerous or Hazardous Cargo

The hazardous cargo category includes goods that pose a potential health, safety, or property risk during transportation. These items require special attention and handling to ensure the safety of air cargo personnel and cargo aircraft.

Air freight shipping of such items is subject to stringent oversight. The IATA provides the Dangerous Goods Regulations (DGR), the global standards for transporting hazardous materials by air. These types of cargo fall into nine categories, each with its own set of regulations stipulating packaging, labeling, documentation requirements, and guidelines for handling and storage:

1. Explosives
2. Flammable Gasses
3. Flammable Liquids
4. Flammable Solids
5. Oxidizing
6. Toxic and Infectious
7. Radioactive
8. Corrosives
9. Miscellaneous, such as cargo requiring an elevated temperature, magnetized materials, and microorganisms. 

Businesses that deal with chemicals, pharmaceuticals, and other industries requiring hazardous materials are the primary users of dangerous cargo air freight service. 

High-Value or Fragile Cargo

The high-value or fragile cargo category consists of items with significant monetary value or that are prone to damage during transportation. Businesses and individuals shipping goods such as:

• Fine art
• Luxury goods
• High-end electronics
• Delicate musical instruments
• Precious gems or metals

All these require specialized handling and strong security measures to ensure their safe and secure transit. 

Air cargo services provide these enhanced security measures, such as surveillance, secure storage facilities, and in some cases, a dedicated cargo escort. They also employ specialized packaging materials and handling techniques. This protects fragile items from damage during transport.

High-value or fragile cargo makes up a smaller portion of total air cargo transport than general cargo. Therefore it remains an essential service for numerous industries and clients seeking secure and reliable transportation for their valuable or delicate items.

Perishable Cargo

When it comes to perishable cargo, time is of the essence. Because they have a limited shelf life, these goods require specialized air cargo transport. It is essential for perishable cargo to reach its destination quickly and in the best possible condition. Fresh fruits, flowers, meats, seafood, and even temperature-sensitive pharmaceuticals are delicate items that fall under this category. 

Perishable Cargo Regulations are in place to ensure the safe transportation of perishable cargo. Guidelines cover everything from proper packaging and temperature control to transit times.

Although perishable cargo is a smaller slice of the air cargo shipping pie, it’s essential for industries that rely on the prompt and efficient transportation of goods with a limited lifespan. For example, Africa’s burgeoning floriculture industry relies on specialized air cargo services to ensure the quality of its products. 

Temperature Controlled Cargo

Temperature-controlled cargo is a game-changer for businesses that rely on precise temperature conditions during transportation. This specialized category is designed to maintain a consistent environment for goods sensitive to temperature fluctuations. The goal is that the goods arrive at their destination in perfect condition. 

Industries that deal with temperature-sensitive goods, such as pharmaceuticals, chemicals, and food processing, rely heavily on temperature-controlled air freight services. These services employ advanced temperature-controlled containers and monitoring systems to maintain a consistent climate throughout the journey. By doing so, the cargo is protected from potential damage. 

The IATA Temperature Control Regulations provide guidelines for packaging, temperature management, and handling procedures.

Mail Cargo

The mail cargo segment plays a pivotal role in the worldwide postal and parcel delivery network. It guarantees the prompt delivery of letters, documents, and packages to their intended destinations. Air freight handles approximately 328 billion letters and 7.4 billion packages annually, making mail cargo the most significant percentage of air shipment loads. 

This air cargo category comprises personal correspondence and e-commerce purchases as well as essential business paperwork and small parcels, all requiring efficient transportation to bridge the global gap between people and businesses.

Users of mail cargo air freight services primarily include postal authorities, online retailers, and courier firms. These services collaborate closely with customs agencies to ensure compliance with international shipping regulations, which cover restrictions on specific items, weight constraints, and proper documentation.

Human Remains, Tissue, and Organ Cargo

Air transport is mission-critical in the delicate realm of human remains, tissue, and organ cargo. This category deals with transporting human remains for repatriation or funeral purposes. It also ships life-saving tissues and organs for transplants. Given the sensitive nature of these items, it is of the utmost importance that they are transported securely, respectfully, and efficiently.

The primary users of this specialized air cargo service include funeral homes, medical institutions, and organ transplant organizations. These services adhere to strict regulations and guidelines to ensure the ethical and safe transport of human remains, tissues, and organs. Relevant authorities, such as the World Health Organization (WHO) and IATA, provide comprehensive guidelines regarding the packaging, documentation, and handling procedures required for this type of cargo. 

Organ procurement organizations (OPOs) are also working with cargo and passenger airlines to implement the UNOS Organ Tracking System. This collaboration improves the in-flight tracking system for donated organs in transit. As of December 2022, they have successfully tracked 7,000 organ shipments while providing up-to-the-minute information from loading to landing. 

Frequently Asked Questions

In this Frequently Asked Questions section, we address some common concerns. Additionally, we provide valuable insights into regulations, accessibility to air cargo services for individuals and small businesses, and the environmental impact of air cargo.

What regulations apply to air cargo?

Air cargo is subject to international and national regulations, depending on the type of goods being transported and the countries involved. 

The IATA, the World Customs Organization (WCO), and the Federal Aviation Administration (FAA) are key regulatory bodies. Regulations typically cover packaging, documentation, safety, and customs procedures.

Can individuals or small businesses use air cargo to transport goods?

Yes, air cargo services are available to individuals and small businesses. Many air cargo companies offer tailored solutions for small-scale shipments.

While the cost of air freight might be higher than other modes of transportation, it can be a viable option when speed, reliability, and security are crucial factors.

Does air cargo have an impact on the environment?

Like other modes of transportation, such as intermodal, air cargo has an environmental impact, primarily through greenhouse gas emissions. 

The aviation industry continually works to minimize its carbon footprint by adopting fuel-efficient aircraft, optimizing flight routes, and investing in sustainable aviation fuels. 

Final Thoughts

Understanding the various types of air cargo is essential for businesses and individuals planning to transport goods by plane. Each category has its unique requirements, regulations, and applications, addressing the diverse needs of the global supply chain.

As the air cargo industry evolves, it remains vital to global trade and logistics. By focusing on these different types of air cargo, this article is intended to provide valuable insights for those seeking to make informed decisions when transporting goods by air. 

Remember the various options and their specific considerations to ensure every shipment arrives safely, securely, and on time.

A combination of factors threw air cargo capacity for a loop in 2021. On one hand, U.S. retail sales reached $5.6 trillion in 2020, and then added another $1 trillion in 2021, the Census Bureau found.

On top of that, data from healthcare improvement firm Premier Inc. shows that hospitals spent more than $3 billion on personal protective equipment (PPE) in the first two years of the pandemic.

Many PPE products had to be transported from overseas. Unfortunately, this coincided with sharp declines in international air travel. While U.S. imports rose 20.7% in 2021, according to the U.S. Bureau of Economic Analysis, data from the International Air Transport Association (IATA) shows that global passenger traffic in 2021 was only 58.4% of 2019 levels.

Lower Capacity, Higher Rates

“When the passenger airlines stopped flying internationally, it sucked a lot of capacity out of the system,” explains Neel Jones Shah, executive vice president and global head of air freight at Flexport, a San Francisco-based freight forwarder and customs brokerage.

“Supply was nowhere close to meeting demand, so rates went up by three or four times what they historically were,” Shah adds.

More than a few conditions have changed since then. For one, many airlines added additional freighters to their fleets or converted passenger planes to mitigate passenger travel shortfalls in the wake of the pandemic.

“Airlines looked to cargo to limit their losses during COVID,” says Robert Burdette, vice president of strategy at Shapiro, a Baltimore-based customs brokerage. “They had to find ways to get the most use out of each airplane.”

More Capacity Here to Stay

Additional cargo capacity won’t go away after air travel normalizes, Burdette warns. Domestic airlines transported 674 million passengers in 2021, according to the Bureau of Travel Statistics. That’s 82.5% more travelers than in 2020, but still 27.3% fewer enplanements than in 2019.

Enplanements continued to grow in 2022. Domestic U.S. revenue passenger kilometers (a measure of actual passenger traffic) climbed 7% annually in August 2022, peak travel season, IATA reports. Global revenue passenger kilometers rose 67.7% annually that month, to reach 73.7% of 2019 levels. Air travel will recover to 94% of pre-pandemic levels in 2023, then reach 103% of it in 2024, IATA predicts.

These numbers indicate that passenger plane belly capacity—which accounts for 54% of air cargo capacity, according to Boeing—will be readily available within two years. When that happens, Burdette explains, airlines could become saturated with excess supply.

“A lot of alternatives to passenger aircraft were put in place during the pandemic,” Burdette explains. “Those aircraft won’t be thrown away. It will be interesting to watch the airline industry deal with its excess capacity.”

Cargo Booking Earns Instrument Rating

It isn’t just a capacity glut that has made cargo space easier to come by. Electronic booking options proliferated in 2020 and 2021, enabling shippers and freight forwarders to compare rates and see different carriers’ availability in real time.

“Digital tools such as CargoNet and cargo.one gave freight forwarders the ability to see a carrier’s rates over several days, and make quicker decisions with fewer emails,” says Cindy Cargain, air cargo pricing supervisor at Shapiro. “These tools are like priceline.com for air cargo. They have made shippers and forwarders much more efficient at using and rating that capacity.”

In addition to cutting down the time it takes to reserve capacity, booking platforms also give shippers an opportunity to find and work with new carriers, explains Brennan O’Dowd, CEO and co-founder of 7LFreight/WebCargo, a rate management and booking platform.

Prior to the pandemic, the main way to book space with an air carrier was by going to them directly. Once freight capacity went online, shippers and freight forwarders could see and compare a wider variety of options available to them. O’Dowd likens it to using a transportation management system to look for capacity in the trucking market.

“Online booking tools give freight forwarders visibility into pricing and capacity from carriers that they might not have used in the past,” O’Dowd says. “Right now, around 40% of global capacity is available on the 7LFreight platform for users to be able to book with. Using this technology, shippers are able to leverage available capacity in a much more intelligent way.”

A Chance of Turbulence in International Markets

As of October 2022, cargo space is readily available in import and export markets. But that could change, cautions Bogen Chi, director of air freight at C.H. Robinson, a third-party logistics provider headquartered in Eden Prairie, Minnesota.

In Europe, for example, travel protocols were mostly relaxed during the spring and summer months, and belly space flooded the market.
Even as cargo volumes sag (data from benchmarking index Xeneta shows air freight shipments from Western Europe to North America fell 1.4% between mid-March and late April), capacity climbed by 21%.

But availability to and from Europe could tighten as passenger travel demand falls in the fourth quarter. Assuming cargo demand remains steady, this would create an environment where capacity is stretched and spot rates rise, warns Chi.

Meanwhile, capacity nearly reached pre-COVID levels during the summer of 2022 in the trans-Pacific, according to IATA. Between flagging demand for goods and lower instances of ocean conversions, cargo space has been consistently available.

That said, “the market can and has shifted on a dime in the past 18 months,” says Chi.

One example of this is “zero-COVID” policies. While countries like Japan have reopened for international travel, China continues to pursue policies to check the spread of disease. As of October 2022, the U.S. Embassy to China warned that all travelers are subject to a minimum 10-day quarantine upon entering the country. This discourages travel, which, in turn, reduces the number of flights to or from the region.

“Think about how many business people, or families, fly to Asia every year under normal circumstances,” Chi explains. “That has almost come to a halt. Airlines are operating fewer flights to the region as a result. Why would they want to operate such an expensive plane if it is almost empty?”

Goods Demand Has a Soft Landing

Domestically, two factors impact the demand side of cargo capacity. The first is inflation. Prices rose 8.2% year-over-year in September 2022, the latest in a series of increases that kicked off in summer 2021. Food and fuel costs accelerated particularly rapidly, which led some consumers to cut back on other expenditures.

This directly impacts volumes, and in turn, demand for air cargo capacity, notes Wally Devereaux, vice president of cargo and charters for Southwest Airlines.
“Not everything that moves on aircraft is affected by economic conditions,” Devereaux says. “But certain items fall into the discretionary spend category. When the economy softens, you’ll see reduced demand and lower volumes for those types of products.”

Second, after two years of robust goods spending, consumers are venturing back into the world of experiences.

“Our air cargo operations grew 16% from 2020 to 2021,” notes Jim Szczesniak, chief operating officer for the Houston Airport System. “It was a result of the ‘Everybody’s buying stuff from their couch’ phenomenon. Passenger traffic took a nosedive during that time, but now it’s returning.”

Loosening restrictions on travel means that budgets are once again shifting toward vacations and restaurants. According to travel website Expedia’s 2022 Travel Trends Report, 68% of Americans planned to “go big” for their next vacation.

What it adds up to is greater belly capacity, but less of a need for it.

“We’ve seen a real shift in consumer behavior toward service-oriented experiences as opposed to product-oriented experiences,” says Shah. “Demand for air cargo could stagnate through 2023.”

There’s a forecast of clear skies, with a slight chance of headwinds for air cargo markets.

Visibility Takes to the Skies

Following the initial COVID outbreak, Collins Aerospace responded to shifting market dynamics by making it easier to convert passenger planes into freighters. The Charlotte, North Carolina-based aerospace systems provider began offering packages that could, for example, allow airlines to remove seats and add tie downs and additional firefighting equipment. In one week, an airline could reconfigure a passenger airplane into a freighter, says Joe Virtanen, senior manager of cargo systems business development at Collins Aerospace.

As travel restrictions ease, and passenger traffic returns, aerospace manufacturers are shifting their focus toward visibility. Cargo planes will utilize Internet of Things technology and automated data collection to monitor the location and status of shipments, and avionics for pilots to observe cargo while in flight.

“In the future of cargo aircraft, you’ll be able to track a shipment from the cargo loading system, to where it sits on the plane and what condition it’s in, all the way to the final destination,” Virtanen says.

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]]> https://www.inboundlogistics.com/articles/alaska-inspiring-awe-and-innovation/ https://www.inboundlogistics.com/articles/alaska-inspiring-awe-and-innovation/#respond Fri, 29 Apr 2022 09:00:00 +0000 https://inboundlogisti.wpengine.com/articles/alaska-inspiring-awe-and-innovation/ The state of Alaska offers so much. “Alaska is beautiful, and that’s driven tourism,” says Chris Rye, vice president of operations with TOTE Maritime Alaska. “In the summer, you get daylight for 20 hours a day. The winter has fewer hours of daylight, but also has the Northern Lights.” With more people working remotely, it’s possible some, and particularly those who enjoy the outdoors, will take advantage of the opportunity to relocate to Alaska. “My colleagues there love it,” he adds.

At more than 663,000 square miles, Alaska is about one-fifth the size of the 48 lower states combined. East to west, it measures about 2,500 miles, or roughly the distance from Savannah, Georgia, to Santa Barbara, California.

Substance accompanies Alaska’s size and beauty. “The state also has enormous energy, mineral, and seafood resources,” says Alex McKallor, executive vice president and chief operating officer with Lynden, a provider of logistics and transportation solutions.

“Alaska is strategically important to the United States,” says Jason Totah, president of logistics provider Odyssey International and Odyssey Alaska. Along with its reserves of oil and other natural resources, Alaska is home to multiple military bases.

Logistical Challenges

The Frontier State presents multiple logistical challenges. “Outside of war zones, Alaska is the world’s most challenging logistical laboratory,” says Darren Prokop, Ph.D., professor of logistics with the University of Alaska Anchorage.

In this, Inbound Logistics’ 10th edition of its supplement on the state of Alaska, we explore the beauty and resources in the state and the challenges presented by its location, geography, and climate. We highlight the logistics providers committed to serving their Alaskan clients, often relying on grit, dedication, and expertise to move products to, from, and within the state safely and efficiently.

For many logistical purposes, Alaska is basically an island. It’s connected to Canada and the continental United States by a single road and lacks a robust manufacturing industry in-state that could supply goods. More than 90% of Alaskans rely on ocean shipping services for everyday necessities.

“Almost everything is brought to Alaska from the lower 48 states, typically by ship several times each week,” Totah says, adding that Odyssey provides reliable ocean service between Seattle and Anchorage.

Odyssey, which annually moves cargo valued at $60 billion, operates terminals in Anchorage, Fairbanks, and Kenai-Soldotna and provides a range of ocean freight consolidating and freight forwarding, trucking, logistics, and warehousing and distribution services.

The extreme Alaskan weather—average January temperatures in Fairbanks range from -17° to 1° Fahrenheit—along with heavy snowfall and seasonal flooding adds to the challenges.

Most equipment purchased to operate in Alaska has to incorporate heaters that can warm the engine blocks and ensure they turn on when needed, no matter the temperature, Totah notes.

The salt spread across the roads to melt snow wears away at equipment. Some parts of the state, like the North Slope and Prudhoe Bay, are accessible by road only in winter, when the ground is frozen, Prokop says.

Alaska’s population is not only small—about 740,000 people—but half live in the three cities of Anchorage, Fairbanks, and Juneau. The remaining residents are scattered in villages across the state.

Another challenge “is the lack of transportation infrastructure,” McKallor says. Most of the state isn’t connected to the road system, so many shipments must combine multiple transportation modes. “Lynden applies new approaches to connecting these remote communities,” he says.

Indeed, since completing its first scheduled truck delivery to Alaska in the early 1950s, transporting a load of fresh meat from Seattle to Fairbanks, Lynden has deployed trucks, ships, barges, ferries, aircraft, and even hovercraft to help customers move shipments beyond Alaska’s roads and to their customers. “By leveraging our large service center network and multimodal capabilities, we can connect Alaska’s people and businesses seamlessly to each other and to the world,” McKallor says.

Air Transport Soars

“The limited road structure makes air transport more essential,” says Adam Drouhard, managing director of cargo with Alaska Airlines.

What’s more, the primary airport in Alaska, Ted Stevens Anchorage International Airport, is within about 9.5 hours flying time to 90% of the industrialized world. Perhaps not surprisingly, it routinely ranks among the busiest cargo airports in the world.

About 80% of air cargo freight from Asia that’s destined for the mainland United States will move on air cargo freighters that lay over in Anchorage as part of “gas-and-go” operations, Prokop says. When the freighters are fully loaded, they need to refuel in Anchorage. “The extra one or two hours of in-transit time is more than compensated for by the extra revenue earned by carrying more cargo,” he adds.

“Alaska Airlines supports many markets and communities in Alaska and creates new supply chain channels where it needs to,” Drouhard says. The fifth-largest U.S. airline based on passenger traffic, Alaska Airlines is the only passenger airline in the United States with dedicated cargo planes. From its headquarters in Seattle, Alaska Air Cargo’s fleet of 737-700 freighters delivers transportation flexibility and capability to, from, and throughout the state of Alaska.

Even as many logistics operations were tested over the past few years, “air cargo didn’t miss a beat,” Drouhard says. Indeed, Alaska Airlines airplane bellies were 80 to 90% fuller, he says. As in the rest of the world, e-commerce orders in Alaska “have been on fire,” Drouhard adds, noting this boosted the air cargo market.

In addition to e-commerce orders, Alaska Airlines has long moved items essential for daily living, like food and pharmaceuticals. That included transporting COVID-19 vaccines through Project WarpSpeed and other partners. “We move groceries and life-saving medicines every day. It’s humbling to be part of these efforts,” Drouhard says.

Similarly, Alaska Airlines handles the movement of transplant organs throughout the state, Drouhard says. “It requires much coordination, as well as understanding what’s at stake at the end of the day: life and death. We strive to make sure these go off perfectly.”

The airline also has led in its environmental efforts. Alaska Airlines was one of the first to compost and remove single-use plastic straws and citrus picks from its planes and lounges. It’s the leading U.S. airline on the Dow Jones Sustainability Index, and ranked first in fuel efficiency for seven consecutive years by the International Council on Clean Transportation, an independent, nonprofit research organization.

In 2023, Alaska Airlines will add two 737-800 aircraft to its Alaska Air Cargo fleet, for a total of five scheduled freighters connecting Alaska to the mainland United States. The planes will be converted from existing passenger aircraft and will offer more main deck and belly-load space, as well as higher fuel efficiency than the three 737-700 planes currently in use.

Streamlining Operations

That’s not the only change. Alaska Air Cargo is partnering with IBS Software to upgrade its cargo management system to iCargo, also during early 2023. Among other changes, this will enhance terminal operations and the mobile application. Shippers also will be able to manage their accounts through a new online portal.

Other logistics providers also offer air transport in Alaska. Lynden’s Hercules cargo planes fly scheduled service to the Alaskan towns of Bethel, Nome, Kotzebue, St. Mary’s, Emmonak, and McGrath from the company’s hub in Anchorage.From Bethel, Lynden’s hovercraft service supplies villages on the lower Kuskokwim River.

In addition to moving shipments from mainland U.S. to southcentral Alaska, Span Alaska, a division of Matson Logistics, offers overnight or two-day air service from Anchorage to Fairbanks and the Kenai Peninsula. Some of the westernmost villages are only accessible by air or ocean, so Span Alaska offers air cargo service to those points to ensure total state coverage.

The proposed Anchorage Pacific Air-to-Sea Service (ANC PASS) will likely enhance air cargo’s viability and coverage. Under the proposal, shipments would fly via air charter from Asia to Anchorage, transload in Anchorage to ocean vessel (or truck for ANC PASS+), head to Seattle/Tacoma, where they’d be transloaded to truck for final delivery. A study found cargo from Asia could travel to West Coast distribution facilities in as little as six to seven days, with the worst-case maximum of 15 to 19 days.”ANC PASS can offer shippers a medium-speed, medium-cost, transpacific option,” said Jim Szczesniak, Ted Stevens airport director.

Ocean Transport Provides Reliability

About 90% of goods (outside of petroleum) heading into Alaska travel by ocean. The Port of Alaska in Anchorage handles about half of all inbound freight into Alaska and is one of 17 commercial strategic seaports in the United States, supporting military operations in Alaska, the Arctic, and across the Pacific Rim.

Reliable service in Alaskan shipping operations is critical, Totah of Odyssey says. If a part breaks or fails to work, trying to expedite a replacement can be a nonstarter, given limited supplies, he adds. For instance, Odyssey often has just a four-hour window to restock a cruise ship. “You can’t have problems,” he says.

Along with cruise ships, Odyssey frequently works with oil and gas producers. Again, reliability is critical, given that the potential cost of downtime due to a delay can hit six figures per day, Totah notes.

TOTE Maritime Alaska, which has been serving customers in Alaska since 1975, operates two cargo ships that transport goods to and from Tacoma, Washington, to Anchorage, Alaska, twice-weekly. Rye also recognizes how critical reliability is. “It’s such a tight supply chain and Alaskans rely on consistent service” Rye says. “We operate safely, but reliably.”TOTE Maritime’s Orca Class ships were built for the challenging conditions of the Gulf of Alaska. As important, its telematicstechnology provides end-to-end visibility of shipments.

The unique roll-on, roll-off (RORO) ships of TOTE enables shippers to drive their cargo directly onto the ship, Rye says.Another benefit: the ships can accommodate blended cargo and keep all goods within their trailers. What’s more, cargo can be safely loaded without using forklifts and cranes.

During the pandemic, when access to Canada was limited, many Americans from mainland United States who wanted to get to Alaska could ship their vehicles and RVs on TOTE, and fly-in to meet them in Anchorage, Rye says. “It’s like an extension of the highway to Alaska.”

TOTE offers a range of equipment, including 53-foot, refrigerated, and insulated trailers. “When it gets to minus temperatures, insulated trailers maintain the temperature without freezing,” Rye says. TOTE also moves construction and military equipment, using vessels that accommodate over-the-road trailers and over-sized freight equipment. As important, its telematicstechnology provides end-to-end visibility of shipments.

Preventing Stockouts

Alaska’s size, geography, and weather can make distribution centers and centralized warehouses expensive and impractical. As a result, shippers from the lower 48 states need to coordinate and consolidate shipments to arrive on time to prevent stockouts at stores. The weekly replenishment of clothes and food from ocean shipments is critical, says Michael Johnson, president, Span Alaska, a division of Matson Logistics. “We can serve as a company’s distribution center in Alaska, providing a statewide service network and last-mile delivery to virtually any part of the state,” he adds.

Span Alaska Transportation provides over-the-water shipping twice weekly via containership, or weekly via barge, from the Port of Tacoma, Washington, to the Port of Anchorage as well as Kodiak Island. Its team of expert logisticians then uses rail, road, and air to deliver shipments to their ultimate destinations. Span Alaska is a leader in moving less-than truckload (LTL) and less-than-container (LCL) freight across Alaska. At its base in Auburn, Washington, Span Alaska Transportation operates a 93-door terminal on 15 acres.

From Anchorage, Span Alaska also offers southbound shipping to Kodiak, Dutch Harbor, and the Port of Tacoma once weekly. For shipments destined beyond Tacoma, Span Alaska leverages a network of premium truck and rail carriers to deliver Alaska-origin shipments to any location throughout the United States and Canada.

To ensure adequate inventories, especially given current supply chain shortages, Odyssey and some other companies have been back ordering supplies, Totah says. Odyssey also has helped get some clients to change packaging materials to those that are more readily available. “We pride ourselves on being agile,” Totah says. “If we need to, we’ll fly someone to accompany a shipmentor hand-carry a critical item to ensure it arrives at its final destination.”

Ensuring Reliability

Matson Navigation Company has been a leader in shipping through the Pacific Ocean since 1882 and its team has been serving customers in Alaska since 1964, says Bal Dreyfus, senior vice president, Alaska, with Matson. In 2015, through the acquisition of the Alaska operations of Horizon Lines, Inc., Matson added the ports of Anchorage, Kodiak, and Dutch Harbor to its shipping network. Matson also invested millions in new equipment, including a 65-ton Gantry crane for its Kodiak terminal. It’s both the largest in Alaska and powered by renewable energy.

Matson operates three ships in the Alaska trade lane. The ships call in Anchorage and Kodiak twice each week and Unalaska once per week. Matson owns its own equipment and operates its own terminals in Tacoma, Anchorage, Kodiak, and Unalaska.Control of these assets allows Matson to operate reliably as close to its service schedule as weather and tides allow.

Matson, which is the only Jones Act containership operator serving Kodiak and Dutch Harbor, serves more Alaska ports than any other containership operator. Matson’s Alaska service offers a large inventory of refrigerated containers and expertise in cold-chain operations to ensure consistent product quality. Cold chain logistics solutions help keep Alaska seafood exports frozen.

Through its Alaska-Asia Express service, Matson offers direct service from Dutch Harbor, Alaska to Ningbo and Shanghai, China. Once at the Shanghai hub, shipments can transfer to 37 other cities in Asia through Matson’s partner network, including in South Korea, Japan, and Taiwan.

Sustainable Shipping

Carriers increasingly are taking steps to reduce the environmental impact of their voyages to Alaska. TOTE is in the process of converting its fleet to dual-fuel liquid natural gas (LNG) technology, which will cut greenhouse gas and sulfur emissions.

In 1993, Matson became the first container vessel operator to adopt a zero solid-waste policy. Its “Greentainer” program collects all non-food solid waste for transfer to recycling, waste to energy, or other environmentally regulated disposal facilities on shore. Other than food waste, no solid waste aboard its vessels is thrown overboard. Matson has also been an industry leader in installing ballast water treatment systems to prevent the spread of invasive species.

Matson recycled the last of its steamships in 2021. It’s committed to a 40% reduction in Scope 1 greenhouse gas emissions from its fleet by 2030. It’s also set a goal of net zero total Scope 1 greenhouse gas emissions by 2050.

Although it was in operation for only part of 2021, Odyssey’s Cloverleaf Sustainability Program reduced carbon emissions for clients by about 490,000 tons. To achieve this, Odyssey invested in a range of technologies, including alternative fuel vehicles, devices enabled by the Internet of Things (IoT), and telematics. The company also created tools that help it work with customers to determine sustainable transportation modes, and partnered with its clients to identify intermodal options.

Alaska’s Road Network

Of the goods arriving at the Port of Alaska via containership, approximately 25 to 30% is distributed throughout the state via rail and truck service. Alaska has one mile of paved road for every 640 square miles of land. In comparison, Minnesota has 22 square miles of land for every mile of road, while North Carolina has 14 square miles of land. About 20% of Alaska’s roads are paved; in the other 49 states, the average is 91%.

Moreover, the road network is mostly in south central Alaska, Prokop says. Anyone traveling any distance in Alaska, including truck drivers, knows they’re vulnerable to extreme weather and topography, which can occur amidst long stretches without cellphone service or GPS service. As a result, “each trucker will stop to help another over lonely stretches of road,” no matter which company they’re from, he says.

That’s especially true when traveling Alaska’s unique ice roads, which are built each winter to traverse land that’s otherwise too soft to drive on, Prokop says. By traveling the ice roads, trucks can proceed from Fairbanks up the Prudhoe Bay oil fields near the Arctic Ocean. Otherwise, deliveries have to be made via expensive air freighters. At the same time, “the drive can be treacherous,” he adds.

Between about late September and through April, Span Alaska, one of the largest freight forwarders in Alaska, offers a “keep from freezing” or KFF service. Insulated containers for KFF goods maintain temperatures above the freeze point. “A significant portion of freight moves within these insulated containers,” Johnson says. At times, Span Alaska heats its containers to keep them from freezing, he adds. Examples of products shipped this way include water-based paints and adhesives, and certain pharmaceuticals.

Span Alaska, also recently initiated a chill/freeze offering and is growing this business to supply stores across Alaska, Johnson says. The chill/freeze service is primarily for perishable products, such as refrigerated groceries, produce, and meat.

Over-the-Road Technology

Span Alaska also is “intensifying its focus on technology,” Johnson says. Among other initiatives, it’s implementing faster connections to carrier partners to automate the transmission of bills of lading and other documents. It’s also releasing a new customer portal and redesigning its website to improve the user experience. “Over the next year, we’ll be redeveloping our entire operating system so it’s easier and faster to connect to online,” he adds.

The 54,000-square-foot Anchorage Service Center, which Span Alaska opened several years ago, is a “signature facility,” Johnson says. It boasts 88 dock doors and incorporates technology that allows Span to enhance customer service, streamline freight handling, and accelerate delivery timelines. The center handles about 60% of the freight Span moves through Alaska. “Our Anchorage Service Center is a major hub in our Alaska multimodal network,” he says. “Owning our own assets, including trucks, containers, and facilities, makes our network seamless, responsive, and transparent.”

Coordinating Modes

Alaska’s logistics infrastructure must be built and maintained to withstand the state’s challenging weather and topography. For example, the Port of Alaska requires frequent dredging because it’s surrounded by waters that take in cold, silty glacial run-off, Prokop says.

Moreover, in a state as vast as Alaska, shippers need to rely on several modes of transportation and seamless handoffs between them, Johnson says. That’s why Span Alaska is advancing its shipment visibility technology—so customers can monitor their shipment every step of the way and be assured that the delivery will be on time.

In developing its business in Alaska, Lynden has been driven by its customers’ need to “get beyond the road to reach their customers,” McKallor says. Lynden’s service center network is one of the largest in the state. By leveraging its operating hubs and multi-modal capabilities, Lynden is “able to connect Alaska’s people and businesses seamlessly to each other and to the world.” Because Lynden offers a range of transportation options, customers can optimize their time and money when shipping to, from, or within Alaska, he adds.

Across its fleets, Lynden invests in new equipment and modifications to ensure their trucks, planes, and vessels are as aerodynamic and energy efficient as possible. Lynden companies consistently score among the most efficient fleets in the nation despite operating in some of the most steep terrain and extreme weather. These efforts have led to Lynden being the first Alaska-based transportation company recognized by the Environmental Protection Agency (EPA) SmartWay Transport Partnership and the first trucking company to earn the Green Star Award for Alaskan businesses.

Matson coordinates truck, rail, and barge service connections throughout south central Alaska, Kodiak, and the Aleutian Chain, as well as the lower 48 states. Its equipment includes dry and refrigerated containers, open-top containers, insulated containers and flat racks. Technology offers end-to-end transit cargo visibility.

Rail Transport

The mainline track of the Alaska Railroad is about 470 miles long, anchored on the south by Seward and on the north by Fairbanks. It’s one of a few railroads that handles both passenger and freight traffic, with more than a half million passengers riding Alaska Railroad trains each year.

Yet, freight generates more than half of its operating revenues. The Alaska Railroad moves major commodities, including petroleum products, chemicals, oilfield supplies, gravel, coal, and dry goods.

Supply Chain Education

Considering the challenges of moving shipments to, from, and within Alaska, it’s not surprising that the University of Alaska Anchorage has offered a BBA in global logistics and supply chain management and an MS in global supply chain management for more than 20 years. Prokop says faculty have published widely, showing how Alaska meets its logistics challenges and uses logistics and supply chain management to enhance its economy and the quality of life of its residents, and to maintain a key role in U.S.-Asia trade.

Since 2011, the Alaska Performance Scholarship (APS) program has awarded Alaskan high school students who excel more than $98 million in scholarships they can apply toward in-state secondary education. In 2020 and 2021, more than one-third of students were eligible for the scholarships.

A primary goal of the program is to keep high-achieving graduates in Alaska. One to six years after graduation, APS recipients were 8% more likely to remain in the state than their non-APS counterparts. More than two-thirds (71%) said the scholarship influenced their decision to attend school in-state.

The Workforce and Military

Education doesn’t stop at graduation. “Alaska-based companies devote many resources to train personnel for the unique challenges involved in doing business in Alaska,” Prokop says. Examples include teaching employees about the requirements of Arctic engineering and mining.

The oil and gas industries account for the largest component of Alaska’s economy; nearly 85% of the state’s budget comes from oil revenue. Next is tourism; the state attracts 1.1 million visitors each year.

Nearly 6 billion pounds of seafood are harvested each year off Alaska’s coastlines. The state is one of the world’s top producers of wild salmon. Forestry is another thriving industry, given Alaska’s 28 million acres of commercial forest.

Somewhat surprisingly, about 15 million acres of Alaskan land can be farmed. With sunlight stretching long into the night in the summer, produce can reach mammoth sizes. Cabbage grown in Alaska’s Matanuska Valley, for instance, can top 90 pounds.

Alaska also is home to multiple military bases, and TOTE is among the logistics providers that specializes in military moves across the Gulf of Alaska. This includes cold-weather training cargo, and brigade-sized and division-level moves. “When the military is moving equipment from Alaska to the lower 48 states, our vessels and experienced team give them ideal operations to work with. We’ve moved tanks and helicopters, among other equipment,” Rye says. TOTE provides shipping updates via EDI and manually, as needed. Its employees understand military moves and provide knowledgeable support.

Tackling Challenges

Alaska poses unique challenges, yet the logistics providers doing business in the state, as well as their clients, pride themselves on tackling these obstacles to deliver the products their customers need. That includes during the pandemic. Matson, for instance, maintained reliable supply chain service throughout the pandemic. “To date, Matson has not ‘blanked’ (canceled) a single Alaska sailing and has continued to deliver critical supplies, including PPE, throughout the pandemic,” Dreyfus says.

A few years ago, Lynden’s barge service expanded into multiple Arctic villages, like Barrow and Wainwright. “We mean it when we say we cover the entire state of Alaska,” McKallor says. “We have earned a reputation for being able to get it there, no matter where ‘there’ is.”

Shipping to Alaska Ten Factors to Consider

1. Alaska is a logical refueling point between Asia and mainland United States.
2. Alaska is about 9.5 hours flying time to 90% of the industrialized world.
3. The sheer beauty of the state draws more than one million visitors each year.
4. Alaska is strategically located as a key trans-shipment hub for businesses targeting Asian, European, and North American markets, says McKallor of Lynden.
5. It’s likely one of a few places in which you can travel on ice roads.
6. The size of the state and lack of infrastructure mean many shipments must travel by a combination of transportation modes. Logistics providers need to be experts in connecting these together to offer a seamless experience.
7. In addition to harsh weather, Alaska is home to 70 potentially active volcanoes. Every year, more than 5,000 earthquakes rock the state. Carriers have to plan for contingencies in case the weather or topography—or both—decide not to cooperate, Prokop says.
8. Alaska is, for most logistical purposes, an island.
9. One challenge with most ocean shipments to and from Alaska is the inability to fill backhaul trips, Prokop says. Boats carrying food, apparel, and other items to Alaska typically return empty, as do the tankers hauling commodities from Alaska. Fronthaul shippers bear the entire cost of the roundtrip, boosting prices on many retail items, he says.
10. Parts of the state are so remote, GPS and cell service is questionable. Truckers and other drivers need to be prepared to handle any event on their own.