Air Freight

The company said that this effort consisted of adding or improving coverage for roughly 1,300 ZIP codes, adding that for deliveries by 8 a.m. UPS said it now serves more ZIP codes and businesses than any of its competitors, as well as serving more ZIP codes with regular 10:30 a.m. next-day delivery service than any other carrier.

Pilot officials said that this new location is the first Europe-based company-owned station, adding that it will provide new and existing customers with various services, including air, ocean, ground, and logistics.

The air cargo industry “is living in several different realities,” reports the International Air Transport Association

An edict from the European Union (EU) focused on emissions reduction is drawing the ire of the United States Congress and the air cargo industry.

Given the uncertain nature of the economy, coupled with lessons learned from DHL Express in the U.S. and how it was forced to exit the U.S. market not all that long ago, this seems like the right move by Schenker. After all, should things improve, it can always come back with dedicated air cargo service here in the U.S.

UPS said this week that it has begun operating flights into Chengdu, China as part of an effort to expand its connections between Asia, Europe, and the United States.

Less than a month after reports indicated that Deutsche Bahn was considering shuttering its United States-based DB Schenker Logistics, a third-party logistics, trucking, and airfreight services provider, Schenker Inc. said late last week it is making significant changes to its North American business model.

As fellow blogger – Mike Regan – notes in a recent fine article by Jeff Berman, “there has never been a period of volatility in fuel prices like there has been in the last year."

The cost of the U.S. business logistics system jumped up 10.4 percent in 2010, making up more than half of the preceding year’s decline. But don’t expect gains like this to continue as the economy begins to slow and all four transportation modes scramble to make adjustments during this period of unprecedented volatility.

Challenges remain, but carriers prove resilient

As we discussed last week, air cargo shippers are increasingly concerned about the ongoing recovery of service in the Asia Pacific trade lanes.

The report stated that Deutsche Bahn management is considering restructuring Schenker’s U.S. business but added a withdrawal is more possible. And it added that Schenker management was due to deliver a business update by mid July and Deutsche Bahn executives plan to take a decision on the future of its U.S. business by the end of the year, possibly as early as August.

Business logistics costs rose 10.4 percent last year, totaling $1.21 trillion, which is about what American businesses paid for freight transport in 2010, according to the authoritative 22nd annual State of Logistics report released Wednesday.

While the International Air Transport Association further downgraded its 2011 airline industry profit forecast to $4 billion, Asia-Pacific carriers are expected to earn $2.1 billion—the most profitable of all regions.