One thing stayed the same: Alaska remains a broad region presenting an array of unique logistics challenges. “I like to say that if you can manage logistics to, from, and within Alaska, you can manage logistics anywhere in the world,” says Dr. Darren Prokop, professor emeritus of logistics in the College of Business and Public Policy at the University of Alaska Anchorage.

Resourceful and resilient logistics professionals are meeting Alaska’s challenges, handling logistics over the roughest terrain, and the state is significantly better for it. “Alaska’s socio-economic fabric is highly dependent on logistics,” Prokop says. “The largest state in the United States (more than double the size of Texas) is separated from the rest of civilization and surrounded by the vast Pacific and Arctic oceans and the Yukon wilderness.”

While it is one of the country’s least populous states, Alaska’s population is widely dispersed across an environment subject to earthquakes, tsunamis, volcano eruptions, blizzards, and floods. “On top of all that, Alaska’s transportation infrastructure is concentrated in the center of the state between Anchorage and Fairbanks,” says Prokop. Given the population concentration, the Port of Alaska has become the principal gateway for large-volume freight deliveries to those cities.

Alaska’s distinctive configuration means logistics professionals must know their way around and through the state’s demanding land and water obstacle course. “You can’t fake logistics,” Prokop says. “Either the shipment is on time, or it isn’t. This is especially crucial for Alaska.”

About 90% of Alaska’s inbound freight arrives by water. The Port of Alaska’s share of this serves about 85% of all Alaskans. “Importantly,” Prokop says, “of the amount that arrives in Anchorage, only half is for local residents.”

Navigated by specialists experienced in the logistics challenges of Alaska, freight makes its way to the state’s bustling cities as well as remote villages and towns. (The state’s name is derived from the Aleut word “Alyeska,” literally meaning “the object towards which the action of the sea is directed.”)

Feeding the Flow

The state’s own abundant natural resources are shipped throughout the world. For example, Alaska’s fisheries—the source of such delicacies as halibut and king crab—are in the world’s most treacherous waters.

Additionally, “Alaska’s oil helps power the nation and is transported from one end of the state to the other by the 800-mile engineering marvel known as the Trans-Alaska Pipeline System (TAPS),” notes Prokop.

The state’s impressive logistics infrastructure includes highly valuable assets such as Ted Stevens Anchorage International Airport, one of the top air cargo facilities in the world. The airport’s geographic advantage is that it is within 9.5 hours flying time to 90% of the industrialized world. Being at the center of the great circle route between U.S. and Asia markets, it is not surprising most cargo planes stop in Anchorage to refuel.

“Apart from this geographic advantage is the airport’s operational advantage,” Prokop adds. “Its special air cargo transfer rights are unique to the airport and these allow foreign planes to transfer their cargo between them. It is a variation of a form of trade liberalization known as cabotage and it makes a rare example of unilateral trade liberalization by the United States for the benefit of Asia-Pacific trade flows.”

Meeting All Tests

Span Alaska moves more than 400 million pounds of freight annually throughout Alaska, offering chill/freeze services for perishables, food and beverage, and medical/pharmaceutical shipments.

The transportation and logistics infrastructure of Alaska has been tested over time and terrain, and through all types of severe weather, yet it remains resilient and able to serve all Alaskans, no matter how central or remote they are.

“The transportation infrastructure is one of the most resilient—and geographically dispersed—in the country,” says Michael Johnson, president of Span Alaska, which connects Alaska to the rest of the United States, and the world, with a weather-tested transportation network over land, sea, and air.

“Due to Alaska’s size, its weather, and lack of road infrastructure, delivering products can be complicated and challenging,” says Johnson.

But as the state’s largest freight forwarding company transporting freight and shipments to, from, and around Alaska, Span Alaska meets the challenges and ships more than 400 million pounds of freight annually throughout the state. The company utilizes ocean container service, barges, and trucks ranging from semi-trailers to step vans, flatbeds, and air and rail service to deliver to its customers.

Span Alaska, launched in 1978, opened the largest DC and service center of its kind in the state in Anchorage in 2019. The facility has 88 dock doors, a lay-down area for breakbulk cargo, and an in-house maintenance shop.

Expanding Services

In 2023, the company opened a new and expanded service center in Fairbanks, Alaska’s second-largest city. Span Alaska has additional service centers in Wasilla, Juneau, Soldotna/Kenai (in the Kenai Peninsula Borough), and Kodiak.

Span Alaska direct loads containers to service centers from its consolidation center in Auburn, Washington, near the Port of Tacoma. “That means customers’ shipments are loaded into shipping containers destined directly for one of the six service centers or the Anchorage air cargo facility,” Johnson explains. “This eliminates rehandling and costly delays. The shipments are not rehandled or devanned and reloaded along the way.”

Span Alaska offers expanded chill/freeze services for perishables, food and beverage, and medical/pharmaceutical shipments.

The company offers Keep From Freezing (KFF) options, usually from late September to April, for products that would be compromised or damaged if they freeze in transit.

Johnson is enthusiastic about Alaska and Span Alaska’s place in it. “Alaskans live here because they love the natural beauty, the wilderness steps from their door, access to fishing, hunting, and hiking, and the pristine environment,” he says. “Whether they are in metro cities or a remote bush village, they need reliable availability of food, clothing, and everything else for everyday life. Because of the commitment and service of Span Alaska and other logistics providers, Alaskans can enjoy the same access to goods and services that those in the Lower 48 have.”

Span Alaska continues to invest in technology and provides instant tracking and delivery confirmations. “Shipment visibility is vital for customers, especially as their products can be shipped via several modes—ocean, road, rail, and air,” he adds. Span Alaska offers delivery throughout Alaska, from metro Anchorage to the North Slope to remote villages in the bush.

Customized solutions are available for the commercial and industrial sectors, including oil and gas, construction, food and beverage, and retail/tourism.

Making Tracks

Alaska Railroad provides critical freight service, bringing freight from the lower 48 states through its gateway of Seattle, Washington, and into the port of Whittier, Alaska.

Contributing mightily to the transportation and logistic solutions of Alaska is the Alaska Railroad, which provides passenger service to most of the population with routes traveling some 500 miles between Seward, Anchorage, and Fairbanks.

The railroad also provides critical freight service, bringing freight from the lower 48 states through its gateway of Seattle, Washington, and into the port of Whittier, Alaska.

“We operate two distinctive services to meet the needs of the people and business in Alaska—rail freight and passenger service,” explains Dale Wade, the railroad’s vice president, marketing and customer services. While best known for its passenger service, Alaska Railroad freight is the larger of the railroad’s two business segments.

“The Alaska Rail Marine Barge, operated under a long-term contract to the Alaska Railroad, connects the lower 48 states to Alaska via a port operation just a stone’s throw from downtown Seattle on Harbor Island,” Wade says. “There, rail carloads that originated deep in Texas and Mexico move seamlessly without transloading onto a rail barge for the seven-day trip to Whittier, a few miles from Anchorage. This is the most cost-effective way to move container and full railcars to and from Alaska.”

Maintaining a Critical Energy Link

The railroad is mindful of its responsibility to the critical chain of the energy and mining industries as well as to consumers in the expansive commerce center of Alaska, says Wade.

While the challenges presented by the state’s terrain are numerous—including extreme cold, flooding, rockslides, and avalanches—Wade says there are no obstacles the railroad cannot overcome.

“Because we are remote, we don’t rely on third-party services that are available to railroads in the lower 48 states,” he explains. “If it happens, we handle it. This requires us to be prepared, well-planned, and extremely resourceful.”

A common misconception is that the Alaska Railroad is connected to the lower 48 states via a railroad in Canada. “While there have been several big resource projects that have looked at building a connection between the Alaska Railroad and the Canadian National Railway, none has taken the process beyond the planning phase,” he says. “The barge connection between Harbor Island, Washington, and Whittier, Alaska, continues to be the only method to get railcars to south central Alaska from the lower 48.”

Unless delayed by weather or other circumstances, the barge sails weekly on Wednesday and arrives in Whitter one week later. Each barge can carry 40-50 railcars.

Due to current demand, the Alaska Railroad has contracted an extra sailing every Friday in addition to the weekly scheduled sailings.

The future of the Alaska Railroad promises to be as rewarding as its past. “We just completed our centennial year in 2023,” Wade says. “The first 100 years were both challenging and exciting. The next 100 years will bring so many more opportunities for us. Alaska is rich in culture and resources but has limited infrastructure. No doubt our next chapter will be about expanding the system in a responsible and sustainable way to meet market demands as they arise.”

Flying High

Alaska Air Cargo serves 20 communities across Alaska and is set to launch a dedicated freighter service between Anchorage and Los Angeles, through Seattle, in spring 2024.

Alaska’s air carrier infrastructure is vital so that both passengers and essential cargo can be transported into remote communities. Playing a crucial role in transporting people, products, and supplies to and from Alaska is Alaska Airlines, the fifth-largest airline in North America when measured by scheduled passengers carried. Through its airline partners and the oneworld global alliance, Alaska Airlines passengers can travel to more than 1,000 destinations on more than 20 airlines.

Headquartered in SeaTac, Washington, just outside Seattle, Alaska Airlines is now the only passenger airline in the United States with dedicated cargo planes, and it connects with large international and integrated carriers to carry ecommerce goods and other critical supplies into and around Alaska. Alaska Air Cargo is the largest scheduled cargo carrier in the Frontier State.

Alaska Air Cargo’s growing freighter fleet will expand its reach to Los Angeles (LAX) in spring 2024—the first time its dedicated freighters, which serve 20 communities across the state of Alaska, will connect to cities beyond Seattle (SEA) in the lower 48.

The two newest 737-800BCF freighters can carry 10,000 more pounds than the airlines’ three 737-700 freighters. Many of the groceries, household goods, and essential medicine shipping into the state of Alaska come from Southern California, and this new freighter route will streamline that supply chain, says Adam Drouhard, managing director for Alaska Air Cargo.

The bigger freighters will also be in full service in time for the height of the salmon fishing season, allowing fresh sustainable sockeye from Bristol Bay and other fisheries to reach markets across the lower 48 more quickly. “We are excited to build on our long history serving the state of Alaska and forge new connections between communities there and cities across the United States,” Drouhard says.

More freighters in the schedule serving the state of Alaska will also improve the reliability of that service. “Our markets in the state will get more dedicated service that’s not shared,” Drouhard says. “We’ll be able to spread that schedule across more aircraft.”

Bethel (BET), Juneau (JNU), and Sitka (SIT) will be among the first communities to benefit from the bigger freighters and more frequent service. The aircraft’s expanded range also will allow the cargo team to explore other new routes, such as a possible nonstop from King Salmon (AKN) to Seattle.

Prospects for continued growth are excellent, especially against the backdrop of the state’s overall logistics strengths. For example, Alaska Air Cargo’s services are facilitated by Ted Stevens Anchorage International Airport, which has long played an integral role in the growth of Anchorage and the state.

The airport’s geographic location provides unlimited potential for moving goods, services, and infrastructure to be used in the global marketplace. For Alaska Airlines, that means easier connections from rural Alaska to global markets, which is particularly important for the efficient and fast export of wild Alaskan seafood. There is potential for ecommerce and other goods coming into the state to be transported around Alaska more quickly as well, which is very good news for communities that are not on the road system, allowing faster delivery of goods around the state.

Seeing Possibilities for Innovation

Where others may see only roadblocks, the logistics specialists at Lynden—a family of companies providing transportation and logistics solutions in Alaska, as well as Canada, the Pacific Northwest, Hawaii, and around the world—see opportunities to create innovative solutions.

“Alaska logistics are different, but not insurmountable,” says Alex McKallor, Lynden’s executive vice president and COO.
Offsetting the state’s logistics challenges is its strategic location, offering literal and figurative “top-of-the-world” access to Asian, European, and North American markets.

“The strategic location of Alaska is very advantageous,” McKallor says, emphasizing both its air cargo assets and its “incredible” coastline.

“Alaska has over 6,000 miles of coastline, and if you count the islands, almost 50,000 miles of actual coastline,” he notes. Some 2,670 named islands help contribute to Alaska’s rank as the state with the largest land mass in the United States.

“Alaska’s coastline’s proximity to its natural resources is a tremendous advantage,” McKallor says. “Our business model is built around filling the gaps in infrastructure, which reaches only a small fraction of the vast area of Alaska.

“We build our business strategy around filling those gaps in the best way possible. Where you don’t see a road, you see a marine, air, or another solution. We use interesting things like PistenBully snowcats (used in heavy snow and ice), hovercrafts, and Hercules aircraft to access areas unreachable by other methods.”

Lynden’s experience in Alaska is applicable in other hard-to-navigate places too. “Some of these issues are not necessarily unique to Alaska,” McKallor says. “What makes us especially effective is that as an asset-operating transportation company we know the pitfalls and risks of proposed logistical plans. What may be theoretically possible may not be practically possible and have a high risk of failure. If a certain part of the plan for a logistics project doesn’t pan out it could have catastrophic effects on the success of the project.”

In those instances, Lynden has the practical knowledge and ability to turn to alternative methods. “That’s where we add a lot of value when it comes to advice and helping customers,” he says.

Looming energy and mining projects bode well for Alaska’s continued strategic importance throughout the world. “We’re bullish on Alaska,” he says. “Alaska is very well positioned to be a critical natural resource supplier, especially with the focus on trying to develop secure supply chains for strategic minerals.”

He refers to the current era as “the century of the Pacific,” and he believes the next five years will see greater investment in the energy and mining sectors. “Our focus is to support these projects wherever we can.”

“Large projects with large swings in volume can be disruptive to existing supply chains,” McKallor says. “The most important thing to Lynden is to make sure we can continue to serve our existing customers with reliable service.”

Fortifying the Future

Alaska’s presence as an American state gives the country an enhanced definition. “Alaska makes the United States an Arctic nation,” notes Prokop. “As such, it is on the frontier of the wealth of resources that are being discovered in the Arctic Ocean. In the decades ahead, Alaska will also play a major role in opening the Arctic to transportation via the Northwest Passage and the Northern Sea Route.”

He is proud the University of Alaska Anchorage contributes to the state’s assets through its logistics and supply chain management programs.

“We teach students how to plan well and use their imagination,” he says. “It took a lot of imagination and daring to build Alaska into the logistics powerhouse it is today.”

Alaska on Top of the World?

Myths about Alaska are as vast and meandering as the area itself. Much of the confusion arises from the state’s appearance on a typical map of the world, says Dr. Darren Prokop, professor emeritus of logistics in the College of Business and Public Policy at the University of Alaska Anchorage.

Where is Alaska? Most people would likely answer the question after conjuring up a map in their heads, Prokop says. They might say: “Alaska is at the top of the world.”

Well, everyone does say that, even many who regularly write about the state. Not so?

“Well, they would be right—but only to the extent that a flat earth wall map is an accurate depiction of a round, three-dimensional earth,” Prokop says. “With apologies to the Flat Earth Society, such maps are not accurate. There is no ‘top’ of the world. In fact, Alaska is equidistant between the major population centers of Far East Asia and the Lower 48 if one travels the shortest distance between them. But one could never tell that by looking at a wall map.”

In this case, the reality is better than the myth.

“The consequence of these ‘great circle routes’—the shortest distance between two points on a sphere—is that all airplanes using them would fly over Alaska,” Prokop says. “Also, ocean vessels traveling from Asian ports to those along the U.S. West Coast use shipping lanes that follow great circle routes which are not too far off Alaska’s shores.”

So, perhaps surprising to those who are not logisticians, a more accurate answer to the question is: “Alaska is at the center of world trade.”

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.”

• Alaska Air Cargo is adding two Boeing 737-800 aircraft to its dedicated freighter fleet serving Alaska. The two converted aircraft come from Alaska Airlines’ passenger fleet. The planes will be converted from their passenger configuration to all-freight aircraft and are expected to re-enter service as freighters in 2023, nearly doubling Alaska Air Cargo’s total freighter lift capacity.
• The transatlantic ZIM Container Turkey service (ZCT) from ZIM Integrated Shipping Services became a weekly service starting in mid-May, providing an enhanced connection between Turkey and the U.S. East Coast. Now with a weekly fixed-day frequency, the ZCT calls on Mersin, Yarimca, Aliaga, Tangier, New York, Norfolk, and Savannah.
• The new OTTO Lifter from OTTO Motors can pick up and drop off pallets autonomously. Equipped with safety sensors, the autonomous forklift works alongside people, vehicles, and existing infrastructure in dynamic environments, improving safety in warehouses and facilities.

Services

• Dayton Freight Lines, a provider of regional less-than-truckload (LTL) transportation services, moved its South Bend location to a new facility in Elkhart, Indiana. Located four miles north of the old service center, the new build sits on 30 acres with 88 doors and an 80-foot-wide dock. It offers 12,000 square feet of warehouse space with a 24-foot-high clearance.
• DHL Supply Chain now offers on-demand packaging solutions to make shipments more cost-effective and environmentally friendly. The AI solution OptiCarton helps optimize the filling volume of boxes from an existing, pre-configured set of cartons and can suggest the splitting of an order into several consignments to make individual shipments more cost-effective or reduce their carbon footprint.
• Penske Truck Leasing constructed a new facility in Fontana, California, to better serve its customer base in the area, as well as provide capacity for new customers. At this location, Penske offers truck rental, full-service truck leasing, and contract truck fleet maintenance.

Products

• ORBIShield protective dunnage from ORBIS is designed to protect unique vehicle parts during transit, assembly, and storage using a variety of foam, rigid, and fabric materials. The PolySilk nonwoven center fabric (pictured) is ideal for soft divider sets, hanging bags used for lightweight parts, and protection for extra-delicate Class-A components, chrome, and painted parts.
• Motorized roller (MDR) conveyors from Ultimation Industries operate with 24-volt DC power and use motorized rollers within the conveyor frames to move products. They use zero pressure accumulation, which means loads continue moving along the MDR conveyor until they get close to (but do not touch) the product unit in front, ensuring there are no gaps in the assembly line.
• NexSys iON lithium-ion batteries from EnerSys for lift truck fleets are manufactured with high-performance cells to provide high energy capacity in a smaller footprint. With their modular construction, they can be customized to power and fleet demands and can reduce carbon dioxide emissions and water consumption.
• Siemens Logistics introduced a space-saving version of its Visicon singulator, which processes large volumes of parcels in various shapes for sorting operations. Utilizing an AI-based vision system, the Visicon Compact system performs package singulation in small spaces. It singulates up to 7,000 consignments per hour, preparing them for the sorting process.

Technology

• Supply chain risk management software provider Avetta launched a subcontractor management solution within the Avetta One platform. The solution gives users visibility into their connected suppliers’ subcontractors that may pose hidden risks.
• Supply chain visibility platform project44 introduced Yard Solutions, a set of dock, yard, and asset management capabilities designed to automate yard operations from a single platform. project44’s Yard Solutions suite includes slot booking, yard visibility, and yard management.
• Descartes Systems Group integrated its ShipRush multi-carrier parcel and LTL shipping solution with its suite of e-commerce warehouse management systems. This integration allows customers to improve their warehouse and shipping performance through a unified solution.
• FourKites, provider of a real-time supply chain visibility platform, unveiled Sustainability Hub, a suite of analytics tools to provide better visibility into resource consumption and waste generation. Through the platform, companies can input their sustainability goals and track saved emissions; benchmark progress against industry averages; and drill down into load-level details to pinpoint opportunities for optimization.
• Retailers can now use the Freight Intel analytics dashboard to view and analyze data such as shipping trends, damage percentages, net losses, and average transit times. Part of Freight Club, an end-to-end freight shipping platform from Cymax Group Technologies, the dashboard provides real-time assessment of carrier performance.
• Magaya launched Quote Automation by Magaya, an AI-powered inland freight quote automation solution, which automates the process of receiving quote requests, gathering rates from multiple carriers, and preparing, formatting, and sending quotes. Quote Automation by Magaya can save an estimated 15 minutes on average per quote.
• CEVA Logistics opened a contract logistics warehouse in Jundiai, Brazil. The facility features 37 docks and a storage capacity of 38,000 pallets. The company’s LATAM contract logistics management team is now located on-site.
• The In-Sight 2800 series vision system from Cognex can be trained to perform classification and sorting tasks with no programming required. In-Sight’s EasyBuilder interface guides users through the application development process to set up jobs. Tools can be used individually for simple jobs or chained together for more complex logic sequences.

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.

The Western Union line linked underwater with an Asian line. Even then it was clear that navigating Alaska was all about logistics—the art and science of connectivity.

Although the intrinsic challenges of moving products and supplies across a land mass twice the size of Texas will forever be a fact of life in Alaska, modern innovations in technology, equipment, and strategies developed by logistics service providers have resulted in a logistics infrastructure that serves the state extraordinarily well.

Bear in mind Alaska has fewer than 5,000 miles of paved roads (in contrast to Texas with 79,000 paved road miles). This fact alone means the effectiveness of the state’s logistics infrastructure is essential, relying on the connectivity of ocean, land, and air transportation.

Moreover, logistics providers in Alaska must handle shipments much differently from the way they handle them elsewhere. Cargo in Alaska—food, construction materials, healthcare supplies, and virtually all retail products—are dependent on an intricate network of assets in order to successfully make it to the final mile. Distribution centers and warehouse operations in Alaska are fewer and farther between than those found in the lower 48 states.

The challenges of geography and weather notwithstanding, logistics providers and other business leaders have marshaled their resources over the years and have led the way to Alaska’s present-day leadership in industries ranging from crude oil to fishing.

Resilient & Resourceful

While the pandemic brought about economic stresses across the country and throughout the world in 2020, causing Alaska to experience its first-ever year of deflation, the state is expected to reflect the economic improvements predicted for other locales that present less daunting logistics obstacles.

Alaska will record approximately 18,000 new jobs from 2018 to 2028, for total growth over that period of 5.5%, according to projections by the Alaska Department of Labor and Workforce Development. The labor department creates 10-year industry and occupational projections for Alaska every other year.

The logistics sector figures prominently among the factors contributing to the projected job growth. The Alaska Department of Transportation and Public Facilities oversees 237 airports, 10 ferries serving 35 communities, more than 5,600 miles of highway, and 776 public facilities throughout the state.

The transportation department’s central region expects a busy construction year through 2021, awarding up to $420 million in construction contracts, including airport, trail, and highway improvements.

Surging Volumes

More than 3.48 million tons of air cargo landed at Ted Stevens Anchorage International Airport (ANC) in 2020, representing a 16% increase over its record-setting volumes in 2019.

"The tremendous surge in cargo volumes through ANC has been fueled by an increase in e-commerce, personal protective equipment (PPE), and displaced belly cargo," Airport Director Jim Szczesniak said in a written release in February 2021.

"The pandemic has left an indelible mark on the e-commerce landscape, accelerating market growth—reaching numbers not forecast to be seen in the United States for another two years," he added. "We expect our cargo numbers to remain strong into 2021; as the air cargo industry continues to recognize the benefits and efficiencies of ANC; as e-commerce shopping becomes routine; and as international travel restrictions continue to displace belly cargo."

None of this optimism should come as any surprise given the state’s "top of the world" geographical identity. Because it extends into the eastern hemisphere, Alaska is technically the westernmost, easternmost, and northernmost state in the United States. The Ted Stevens airport is less than 10 hours from 90% of the industrialized world. Meanwhile, Alaska has more ocean coastline than all of the other U.S. states combined.

Overcoming Obstacles

With this geographical advantage comes a distinct challenge: Alaska is one of only two states (the other being Hawaii) whose capital city is accessible only by ship or air, because no roads connect Juneau to the rest of the continent. Likewise, Alaska and Hawaii are the only states not bordered by another state.

Surrounded by the Yukon wilderness as well as the Pacific and Arctic oceans, Alaska has always presented formidable hurdles for those charged with the responsibility of traversing it. And then came the pandemic.

While the challenges posed by COVID-19 have been unprecedented, for logistics providers in Alaska overcoming immense hurdles is nothing new. Those who navigate the state’s rugged terrain and weather-related obstacles are familiar with overcoming whatever nature sends their way.

Multimodal Solutions

A case in point is Span Alaska, which ships more than 400 million pounds of freight to Alaska every year.

"Span Alaska’s operations throughout the state continued uninterrupted from the start of the pandemic," says Tom Souply, president, Span Alaska Transportation. "We had contingency plans in place and pre-tested for scenarios that included logistics slowdowns and government restrictions."

Span Alaska, a subsidiary of Matson Logistics, immediately enhanced its safety processes to manage the challenges of COVID, Souply says. The company fully implemented protocols advised by the Centers for Disease Control and Prevention, including contact tracing, facility deep-cleaning, PPE provisioning, and testing requirements.

While the company’s senior leadership team continues to meet daily to discuss COVID-related issues, their agenda also includes tactics and approaches to make shipping seamless regardless of temporary matters. "The size and scope of Alaska’s geography present challenges every day," Souply says, adding that Span Alaska keeps freight moving by having its eyes on shipments at all times.

"Span Alaska has developed an exceptional, responsive, and highly functional multimodal network, using our own assets, containers, trucks, and facilities," he explains. "When we do go out of our network we have excellent relationships with long-term partners that share our values and passion for serving our customers."

Headquartered in Auburn, Washington, Span Alaska operates service centers in Anchorage, Fairbanks, Kenai, Kodiak, and Wasilla. In addition to shipments from the lower 48 to south central Alaska, the company offers overnight service from Anchorage to Fairbanks and the Kenai Peninsula, and provides LTL service via barge from Seattle to Southeast Alaska.

All LCL/LTL shipments from the lower 48 are loaded into containers at Span Alaska’s operations center in Auburn, Washington—an operation the company calls its "Direct Loading" service. The containers then travel by vessel or barge to Anchorage or Kodiak and then directly to the final Span Alaska service center for last-mile delivery.

"By keeping the container intact, the risk of damage or delay is minimized, and it also speeds transit times," Souply explains.

keeping it cool

The company recently introduced a new Chill and Freeze service to Alaska, moving temperature-controlled items such as perishable foods—meats, ice cream, and other frozen items—from the lower 48 to Alaska grocery stores. With its new service center in Anchorage and its investment in dual temperature-controlled delivery trucks, Span Alaska provides cold chain service throughout Central Alaska and Kodiak.

The company’s array of multimodal assets are key to its success in overcoming the intrinsic logistics challenges of Alaska. "It’s the combination of multimodal assets that have to sync up to deliver goods from central Anchorage to the farthest reaches of the state," Souply says.

Span Alaska moves more LTL freight than any other carrier between the lower 48 and Alaska. That heavy volume translates into supplies equal to the needs of the Alaska market.

"Retailers are adamant about preventing in-store stock-outs," Souply says. "Residents increasingly want expedited delivery for their e-commerce orders.

"And while same-day or next-day delivery is still sometime in the future for most of Alaska, Span has worked to expedite the transit and last-mile speed and reliability," he adds. "Transit times from our Tacoma area facility to our Alaska terminals are consistently just five calendar days, helping to meet retailer and consumer just-in-time demands."

Souply is enthusiastic about Alaska’s post-pandemic future. "We are here to support Alaska’s growth with more direct services to more locations," he says. "We talk to our customers about their expansion plans in the next five years so we can be prepared to support them. We are also eagerly awaiting the return of tourism and the summer cruise season."

Summoning Adventurers

The unique challenges and promise that define Alaska draw those with the most adventurous spirit to its shores. That is true of all who answer the call to blaze trails in the ice, but no more so than those in the field of logistics.

"This is probably the most interesting place in the world and this is the most interesting company," says Alex McKallor, executive vice president and COO of Lynden Inc. The Lynden family of companies provides transportation and logistics solutions in Alaska, Canada, the Pacific Northwest, Hawaii, and around the world.

Lynden has been providing transportation and logistics solutions to customers since 1906, and pioneered the first scheduled over-the-road truck service to and from Alaska in 1954. At the time there were those who considered the challenge of regularly reaching remote locales in Alaska insurmountable.

"We took what was impossible and made it possible," McKallor says. "That set the tone for what we still do today."

In Alaska, the route from here to there to Market Square may not be immediately obvious. Logistics providers need to be prepared to take whatever means are necessary to make the trip effectively.

"We had a long-term goal to have a statewide marine service," says McKallor. That goal, among many others, has been achieved, with barge services now extending from locations like Ketchikan and Juneau in Southeast Alaska all the way to the North Slope villages on the Arctic coast.

"No matter where you need to move freight, we have it covered, from Ketchikan to Kotzebue to Kaktovik," he adds. "And if any of these locations are unfamiliar, our Alaska logistics experts are happy to explain the unique challenges in Alaska that you’ll need to plan for."

Lynden’s fleet of Hercules cargo planes—basically flying trucks—completes the trifecta of primary transportation modes in Alaska.

More unique modes of transportation are also in the Lynden arsenal. These include commercial-size hovercraft, floating giants that can glide over land, water, ice, or sand while carrying up to 12,500 pounds of freight. It also includes PistenBully snowcats, mighty vehicles that can pull sleds and other equipment through the roughest of rough snow- and ice-encrusted terrain.

Unique Assets

"Our ability to combine our various modes of transportation helps to erase a lot of the challenges," McKallor says, by providing last-mile solutions connecting Alaskans to the rest of the world. "These are pretty amazing solutions."

For all its challenges, the state has undeniable assets as well. "The most important asset is its coastline," McKallor says. "There is no question about it."

At 6,640 miles, Alaska has the longest coastline of all 50 states, nearly five times the length of the coastline of Florida, the state in the second spot.

McKallor also cites Alaska’s resource-based economy, particularly the fishing industry, as an asset that distinguishes the state from others. And then there is Alaska’s location halfway between Europe and Asia.

"Those are two assets that won’t change," McKallor says, regardless of how the logistics landscape shifts amid competitive, political, and technological changes.

"Going forward, mining, fisheries, and energy will be mainstays," he adds. "We continue to focus on being able to support those industries. We are heavily investing in technology to improve the customer experience and operations."

Lynden prides itself on customized solutions fitting the needs of individual companies navigating commerce in Alaska.

"We are driven by a desire to make it simple for the customer by demystifying the complexities," McKallor says. "That’s what people want. They want some choices in their solutions to really remote places."

The Right Stuff

"To be successful in Alaska, you need two key assets—the right equipment and the right people," says Grace Greene, president, TOTE Alaska ("TOTE"). TOTE, a leading owner/operator of domestic shipping in the United States, specializes in moving cargo between North America and both Puerto Rico and Alaska.

"TOTE is proud of our custom, built-for-Alaska, ORCA-class vessels, which feature specialized design and redundancies to help navigate Alaska’s challenging waters," Greene says. "Our ORCA-class ships were specially built for Alaska and provide state-of-the-art protection from the elements."

Braving the elements is a way of life in Alaska, and logistics providers must continually be prepared. "We have roll-on/roll-off (Ro-Ro) operations, ‘Keep from Freezing’ service, below-deck stowage, and specialized refrigerated trailers, to help protect our customers’ cargo," Greene says.

"We also have a great team and amazing partners," she adds. "If someone is looking to get cargo to a remote village off the road system, they know to call us to get it over the water, and then our network of logistic partners will get it the rest of the way, whether that’s by water, air, or a sled team."

To put it mildly but succinctly: Resilience is required. "As a critical maritime highway to the state, the supply chain must be resilient to keep food on grocery store shelves and to deliver other products that are vital to Alaska’s consumers and businesses," Greene says.

When supply chain pressures occurred in the early months of the pandemic, she says, TOTE worked closely with state and local authorities to ensure there were no disruptions to the shipping or delivery of essential goods.

Beyond regular health and safety protocols, TOTE implemented special provisions to minimize the ship-to-shore interface in order to mitigate the risk of exposure to the coronavirus on vessels. The company also updated policies regarding crew changes through stricter pre-boarding quarantines and testing requirements.

Continuous Improvement

TOTE prides itself on having a "continuous improvement" mindset. "As a carrier, we’re always looking at how we can improve our customers’ experience so they can better serve the Alaska community," Greene says. "From our online portal that allows customers to track and release shipments, to our extended gate hours and equipment options, we ensure that we can provide unique solutions for the unique challenges that come with shipping to Alaska."

Greene believes the Frontier State’s logistics infrastructure will continue to cover yet newer frontiers. "Alaska is well positioned to continue to grow in the logistics marketplace," she says. "The state’s rich natural resources and central location between Europe, Asia, and North America make it primed for a continued strong, strategic presence."

She adds that TOTE will continue to help lead the journey. "TOTE is excited to continue our investments in our assets and in Alaska," Greene says. "In 2021 we will be continuing our terminal enhancements with Gate Vision in Anchorage and Tacoma that will improve our inbound partners’ experience and efficiency at our gates, which already have the fastest turn-times in the market.

"We are also in the final stages of our historical LNG engine conversion," she adds. "Once converted, TOTE’s ORCA-class vessels will emit fewer air emissions and be among the most environmentally friendly vessels in the world."

A Global Perspective

By geographical mandate, logistics leadership in Alaska demands an acute understanding of the logistics land- and seascape around the world.

"Pre-pandemic, logistics was becoming more and more global," says Kevin Kelly, president at American Fast Freight, a subsidiary of Odyssey Logistics & Technology Corporation. Headquartered in Danbury, Connecticut, Odyssey has operations throughout North America and key cities in Europe, the Middle East, Africa, and the Asia-Pacific region.

In Alaska, Odyssey has facilities in Anchorage, Fairbanks, and Kenai/Soldotna, handling a wide variety of time-sensitive customer cargo in retail, medical, and dry/temperature-controlled foods or products. Kelly says Odyssey’s expertise in servicing and handling the unique demands of Alaska has carried over into the other markets the company serves.

Odyssey acquired American Fast Freight in 2018, and Kelly says the acquisition enabled the company to leverage its long-established transportation network in Alaska, as well as domestically in the lower 48 states, Hawaii, and internationally."We now present multiple solutions to our customers and tailor services to best fit their needs," he says.

"Our staff has the expertise to handle any business vertical or mode of transportation and Odyssey is positioned better than ever to provide targeted, comprehensive logistics solutions that address our customers’ needs and visions," he adds.

Odyssey’s services are available in all modes of transport—intermodal, trucking (LTL/TL, bulk, flatbed, and warehousing), managed services, international transportation, and a web-based transportation management system called WIN (Web Integrated Network), which provides access to a multi-billion-dollar carrier network. Through this service, clients can generate spot quotes and route guides, execute and track shipments, and complete necessary paperwork such as bills of lading.

For all those technology advantages, Kelly says he believes the most important logistics asset in Alaska is its people.

"You have to have the local knowledge and people to move shipped goods," he says. "There must be drivers, warehouse and administrative staff, and management."

Resilience tempered with innovation, he says, is required at each and every level. "Throughout this challenging year, Odyssey has adapted and consistently delivered support and solutions to our customers while adjusting to new ways to work in order to keep each other healthy and safe," he notes.

"From enhanced technologies to working to ensure our customers’ networks are optimized, our local history paired with our understanding of global markets was especially helpful as the supply chain demanded flexibility for Alaska businesses and residents," Kelly adds.

"As with Odyssey, Alaska and the people that live and serve the state are innovative and resilient, which has shown in both robust and challenging economic times as well as during the global pandemic," he says.

Alaska Takes Flight

Challenges on the ground and on the water—pandemic-related and otherwise—did nothing to deter Alaska Airlines from soaring over the past year.

"Our commitment to cargo hasn’t changed during the pandemic," says Adam Drouhard, director, cargo revenue, planning and postal affairs.

Headquartered in SeaTac, Washington, just outside Seattle, Alaska Airlines connects with large international and integrated carriers to carry e-commerce goods and other critical supplies such as medicine, medical supplies, and perishables into and around the state. It is the fifth-largest airline in the United States when measured by fleet size, scheduled passengers carried, and number of destinations served.

The airlines’ Alaska Air Cargo network includes more than 100 destinations in the United States, Canada, and Mexico.

"Demand remains strong across our network, including the state of Alaska, where the majority of our destinations are not accessible by road," Drouhard says. "We are excited for 2021 as we increase flying to meet demand across our network, adding new direct non-stop routes to the state of Alaska, such as Anchorage to San Francisco, Denver, Las Vegas, and Phoenix."

Drouhard says freighter aircraft destinations will be expanded to 20, including expanded service into Dillingham and King Salmon, locales that are inaccessible by roads.

"We’re evaluating other new routes to ensure we are supporting local industry as the economy rebounds," Drouhard adds. "Our goal is to expand our reach by creating more same-day shipping options between Alaska and the rest of the United States."

Strengthening networks

Alaska’s air carrier infrastructure is vital so that both passengers and essential cargo can be transported into remote communities.

"In recent months, Alaska Air Cargo has assisted with the transportation of the COVID-19 vaccine to more than 30 communities both within and beyond our network in partnership with regional carriers," Drouhard says. "Our scheduled service is the most reliable in the state and is crucial for shipping critical items, as well as everyday goods, across the state."

Alaska Air Cargo enjoys the strengths of Alaska Airlines while also having the benefits of its own management.

"Alaska Airlines has invested in Alaska Air Cargo’s infrastructure in many of the locations in the state," he explains. "Owning our own facilities and hiring our own employees allow us to remain focused on the safety and efficiency of our operation."

This combination of strengths bodes well for the future. "Logistics is more important than ever and air cargo is essential, especially in the state of Alaska," Drouhard says. "We have seen the marketplace grow across a number of the communities we serve and expect that trend to continue."

Clearly, then, Alaska will be exploring yet more frontiers—and overcoming their logistics challenges—for many years to come.

2013 Report Card for Alaska’s Infrastructure

At 586,412 square miles, Alaska is the largest U.S. state in land area—more than twice the size of Texas. Its road system, however, covers a relatively small area of the state, linking the central population centers and the Alaska Highway, the principal route out of the state through Canada.

Many cities, towns, and villages in Alaska do not have road or highway access at all—the only modes of access involve travel by air, river, or sea.

Among the roads that do exist, only 31 percent are paved, according to the 20th Annual Report on the Performance of State Highway Systems, a study by the Reason Foundation, a public policy research organization. And with rugged terrain and extreme weather in much of the state, moving cargo to, from, and within Alaska can be challenging.

But Alaska is also a land blessed with an abundance of natural resources, including crude oil, natural gas, and seafood, which translates to high demand for logistics services. Savvy shippers and logistics providers know success in Alaska is a matter of balancing the demands with the challenges.

"Alaska’s extremely varied topography and harsh climate present challenges for shippers and logistics companies," says Joe Samudovsky, director of cargo sales at Alaska Air Cargo, which has been operating in Alaska for more than 80 years. "Its geographic features—along with strong winds, extreme temperatures, precipitation, and periods of dense fog—can create obstacles for any transportation mode. Dealing with these obstacles is the key to success for any transportation operations in the state."

Know Your Options

Alaska’s unique environment means the state’s shippers and logistics providers must be prepared to handle shipments differently than in the lower 48.

"The top physical challenge in Alaska is the extreme weather," says Steven Selvig, vice president of sales and marketing at Tualatin, Ore.-based trucking company Reddaway. "The average temperature in Alaska year-round is slightly above freezing. That creates conditions the rest of the United States simply isn’t accustomed to."

Logistics providers must therefore offer multiple transportation modes—from steamship to barge, highway, and air—to reach all destinations.

"It’s important to understand all the transportation alternatives," says Alex McKallor, chief operating officer and executive vice president for Alaska-based Lynden Incorporated, a family of transportation and logistics companies. "Alaska’s seasonal ice can mean some areas are accessible by water in the summer, but not in the winter, for example. Shippers have to be aware of those factors, and be able to adapt as needed."

A majority of Alaska requires the use of multiple modes, which means shippers must prepare cargo to move via any combination of marine, surface, or air transportation, which can be a challenging and complex proposition. Lynden operates its own vessels, trucks, airplane fleet, and even hovercraft in some areas, offering shippers a single carrier contract that simplifies complex shipping problems.

"Shippers outside the state may not fully grasp the magnitude of Alaska’s logistics challenges," says McKallor. "Our single carrier contract can help ease some of the anxiety. We also tie all our companies together through our Web services, so shippers can always see where their freight is, even when it’s moving by multiple modes."

Reddaway, which serves Alaska in partnership with Pacific Alaska Freightways, has also taken steps to simplify shipping, offering a single point of contact to customers to improve visibility throughout the state. The company uses electronic data interchange to update shippers on cargo at each significant point along a route.

"Some companies purchase domestic 48-state service with one carrier, and the shipment terminates at the Port of Tacoma. It then transfers to an Alaska consolidator, and starts a second shipment," says Selvig. "That Alaska consolidator may not provide shipment visibility. But the streamlined solution of Reddaway and Pacific Alaska Freightways means not only continuous movement of freight from its point of origin in the lower 48 to its delivery point in Alaska, but also full visibility throughout the entire experience."

Cargo Big, Small, or Cumbersome

Another logistics challenge unique to Alaska involves moving large pieces of equipment and spare parts to remote areas of the state to serve the oil, gas, and mining industries. Supporting these industries requires specialized equipment to accommodate high, wide, and heavy loads.

"Some of the oversized pieces and parts needed to keep mines and oil rigs running in Alaska cannot be belly loaded in passenger aircraft," says Alaska Air Cargo’s Samudovsky. "For oversize or heavyweight shipments, we can deploy our B737-400 Freighter or B737-400 Combi aircraft to get the job done."

Meanwhile, Lynden uses a rail barge service to help overcome some of the challenges unique to Alaska, such as moving railcar loads of bulk chemicals needed in the oil fields of the North Slope or in remote mining facilities.

"One mine we service is above the Arctic Circle," says McKallor. "We move 50,000 tons of supplies each year during a 100-day, ice-free window to support the mine."

One of Alaska’s best-known exports is seafood. Ensuring that fresh or frozen seafood makes it from Alaska to the rest of the world in prime condition requires keeping temperatures stable while moving between destinations where the climate may vary dramatically.

"Ensuring safety and quality in the seafood supply chain is critical," says Samudovsky. "That is why Alaska Air Cargo partnered with the Alaska Seafood Marketing Institute and one of our seafood customers to develop a cold chain training program that all cargo employees are required to participate in. The program helps increase awareness for the safe and efficient handling of perishable seafood."

Lynden ships both fresh and frozen seafood, and also delivers many of the materials needed to support Alaska’s fishing industry.

"We serve many of the seafood processing plants located along Alaska’s vast coastline, bringing in fishing supplies and packaging materials," says McKallor.

Tourism and outdoor recreation also make up significant parts of the Alaskan economy, necessitating the shipment of a wide range of related products. Some logistics providers work with customers to arrange solutions that help better meet Alaska’s unique logistics needs.

For example, Reddaway serves a sporting goods business that operates four stores in Alaska. Because each store had a high volume of regular shipments, Reddaway worked with the retailer to offer exclusive-use containers for each store.

The company’s products now move from its distribution center in Utah to the Port of Tacoma, Wash., where—because Reddaway and Pacific Alaska Freightways are asset-based and own their docks—the freight can be held in order to build straight loads.

"We build loads on the dock in Tacoma, then move them directly to the retailer," says Selvig. "It brings shippers tremendous value because they don’t have to worry about additional handling—everything moves together purely for that shipper."

Transporting health-related products or drugs is another significant challenge in Alaska, especially when patients are located in far-flung villages.

"When it comes to healthcare logistics, Alaska’s limited highway system and extreme weather present the same difficulties experienced in third-world countries," says Samudovsky. "Transporting pharmaceuticals, blood supplies, and lifesaving vaccines to remote villages in Alaska is important to the communities we serve.

"With Alaska Airlines’ growing network, we can transport a shipment of pharmaceuticals from Phoenix, where the outside temperature might be 120 degrees on the tarmac, to rural Alaska, where it could be minus 60 degrees," he continues. "Planning for these extremes, and making sure the shipment is expedited to a temperature-controlled environment, is critical."

Air is King

The challenging conditions in Alaska mean air transportation is more vital than in other parts of the United States. Products such as construction equipment, sheetrock, lumber, and cement that typically move via surface transportation in the lower 48 must often move by air in Alaska.

For example, the state capital, Juneau, is not accessible by road. Making matters worse, Juneau is difficult to fly into, and often plagued with fog and wind challenges. Alaska Air Cargo relies on the Juneau Airport Wind System (JAWS), an air turbulence system that alerts pilots about severe wind conditions at and around Juneau International Airport.

A heavily used approach takes aircraft through the 15-mile-long Gastineau Channel, which is flanked on both sides by mountain ranges that create moderate to severe turbulence. After several close calls, the Federal Aviation Administration (FAA) suspended certain flight paths, and some carriers stopped serving Juneau due to multiple cancelled flights.

Alaska Airlines—a subsidiary of Alaska Air Group, which serves Alaska, the continental United States, Hawaii, Canada, and Mexico—worked with the National Center for Atmospheric Research and the FAA for 18 years to develop JAWS. It was formally commissioned in July 2012, but data from JAWS has already enabled Alaska Airlines to operate at the airport for more than one decade with a flawless safety record.

The JAWS equipment provides wind shear and turbulence data airlines can analyze to provide a go or no-go recommendation to pilots arriving and departing Juneau.

"Alaska Air Cargo also has one of the industry’s youngest and most efficient aircraft fleets," says Samudovsky. "We are well-equipped to deal with the best that Mother Nature can throw at us to get the job done for our customers."

Extreme Solutions

Whether it’s getting fresh tomatoes to Bethel or a critical machine part to the North Slope, moving cargo into, out of, or around Alaska will always involve challenges.

"It’s a logistical exercise to supply Alaska’s residents in remote areas with everyday necessities," says McKallor. "For example, from the time a head of lettuce leaves California and moves to Alaska, it’s traveled much farther than it would have had it crossed the entire United States."

While logistics may never be easy in Alaska, logistics providers that take extra precautions, focus on safety, and plan ahead for seasonal changes may find Alaska a land full of opportunity.

2013 Report Card for Alaska’s Infrastructure

A closer look at Alaska’s transportation infrastructure reveals how these connections and resources affect logistics operations in the state.

Aviation

• There are 408 public-use airports in Alaska.

Bridges

• 128 of the 1,173 bridges in Alaska (10.9%) are considered structurally deficient.
• 147 of the 1,173 bridges in Alaska (12.5%) are considered functionally obsolete.
• Alaska received $12.9 million from the Federal Highway Bridge Fund in FY2011.

Inland Waterways

• Alaska has 5,500 miles of inland waterways, ranking it first in the nation.

Ports

• Alaska’s ports handled 46.2 million short tons of cargo in 2009, ranking it 18th in the nation.

Rail

• Alaska has one freight railroad covering 506 miles across the state, ranking it 45th by mileage.

Roads

• Driving on roads in need of repair costs Alaska motorists $181 million annually in extra vehicle repairs and operating costs—$359 per motorist.
• 49% of Alaska’s roads are in poor or mediocre condition.
• Alaska maintains 15,718 public road miles.
• Alaska’s highway vehicle-miles traveled in 2009 was approximately 6,719 per capita, ranking it 50th in the nation.
• Alaska’s gas tax of eight cents per gallon has not increased in 42 years.

Source: American Society of Civil Engineers