Aerotropolis Supply Chain Advantage

By Patrick Burnson, Executive Editor
March 25, 2014 - SCMR Editorial

As noted in today’s news section, airports with new infrastructure and access to population centers will remain dominant in the air cargo arena.

The top three “aerotropolis” districts—the areas surrounding these cargo-intense airports—stand out in JLL’s annual “Airport Outlook Report.”

1. Chicago O’Hare (ORD) moves to the top position, up from second in last year’s index. Infrastructure is a priority, with new cargo facilities planned that offer both airside and landside access. For supply chain executives, the greater Chicago market offers six major railroad connections, and is a one-day drive to nearly a third of North American consumers. This positions ORD as a gateway of choice- and investors are noticing that buildings are commanding higher rents than ever before within a 3-mile radius from ORD.

2. Miami (MIA) scores second highest in the index, down from the top position in last year’s report. The airport and surrounding businesses control the food and flower trade (moving 71.2 percent of all U.S. perishables) and the lack of a single dominant carrier makes room for enhanced competition and demand for real estate.

3. Los Angeles (LAX) moved up in the rankings from last year’s report, and now ranks third. Freight-forwarders were especially active near the airport in 2013, and real estate demand from logistics providers, consumer non-durables and food & beverage was notable throughout the surrounding market. China remains LAX’s largest trading partner, followed by Japan, Hong Kong, Thailand and South Korea; goods that enter through this access point help serve Los Angeles County’s ten-million-strong population.



About the Author

image
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 Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 5.4 percent from May 2013 to May 2014 at $103.9 billion.

With an eye on making transportation of crude oil by rail (CBR) and ethanol safer following various tragic accidents over the last year, the United States Department of Transportation yesterday released details regarding its rulemaking proposal designed to improve how large quantities of flammable materials by rail can be moved in a safer manner.

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Article Topics

Blogs · Air Cargo · Supply Chain · Logistics · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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