Subscribe to our free, weekly email newsletter!

Japan’s air cargo sector also stressed

But given the high cost of fuel and institutional complications at Japan’s airports, that strategy will not work for long.
By Patrick Burnson, Executive Editor
March 16, 2011

With the closing of three Japanese ports — Sendai, Hitachinaka and Kashima — some U.S. manufacturers and retailers may be opting for air cargo alternatives to meet shipping and sourcing deadlines. But given the high cost of fuel and institutional complications at Japan’s airports, that strategy will not work for long.

According to The International Air Transport Association (IATA) Tokyo’s airports remain 75 percent more expensive than Seoul (Incheon) and more than double the cost of Singapore (Changi).

IATA has urged Japan to develop a more effective airport policy in Tokyo, a level playing field with more open markets for airlines to compete, and an approach to climate change commitments that includes sustainable biofuels.

Prior to last week’s earthquake, IATA said that Japanese international air cargo was expected to grow from 2.7 million tons (2009) to 4.4 million tons (2014). This 10.2 percent average annual growth exceeds the world average of 8.2 percent. The forecast also said that in 2014, Japan would be the fourth largest international freight market behind the United States (8.8 million tons), Hong Kong (5.4 million tons) and Germany (4.4 million tons).

All that should change soon, however, as the full impact of the catastrophe on the supply chain has yet to be measured.

The Air Forwarders Association in Washington, DC is conducting a survey among Board members today to determine if a significant shift from ocean to air is underway.

According to AFA’s executive director, Brandon Fried, the situation is made worse by the escalating fuel prices:

“One airline told me that due to a lack of fuel, they were carrying extra loads into NRT and making technical stops coming back,” he said.

IATA, meanwhile, is due to publish monthly air freight and passenger traffic data for February on March 29.

For related stories click here.

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.

On the heels of announcing it plans to acquire freight transportation and logistics services provider Con-way Inc. for $3 billion, XPO Logistics may be considering selling off Con-way Truckload, the company’s truckload arm.

The International Air Cargo Association (TIACA) has called on world leaders meeting at the United Nations this week to work together to find solutions to the ongoing migrant crisis in Europe

More than 20 U.S. port authority officials and their key staff, representing seaports from all four U.S. coasts, will gather on October 8 to meet with Congressional leadership to discuss the upcoming surface transportation bill and the U.S. Army Corps of Engineers’ navigation budget.

Companies used to compete on price and service. The future of supply chain, according to Steve Melnyk, is culture. In fact, innovators like Apple, Google, and Unilever are already leading because of their cultures. Your company can too.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA