Project Selfie examined load factors used in reporting by major airlines. It turns out that there is a wide range of ways the load factor is calculated by airlines. Weight alone yields low load factors (the percent of utilization of the aircraft with respect to cargo weight). Most of the airlines use a combination of weight and size, and this is done differently for different carriers. Thus they report load factors on different bases, so they are not comparable. IATA, the industry group, wants to have a more consistent basis than weight for reporting its figures for the industry. Weight alone is not very significant.
“(Weight alone) poorly reflects how full the planes really are.”
In short they cube out before they weigh out. Packages that go by air are not very dense! This may partially explain why air freight rates are going up while load factors are not very high. So IATA has been misrepresenting capacity utilization of planes.
via IATA to review air cargo load factor calculations after Project Selfie revelations – The Loadstar
Some notes on Project selfie: Weight loadfactors a poor way of showing utilisation, Project Selfie confirms – The Loadstar
Turkey has announced a new canal parallel to the Bosporus, to connect the Black Sea and the Sea of Marmara. It’s an expensive project for Turkey, and the government appears to want a PPP model for at least some of the route. Here’s a map, from the article.
Several universities participated in the research needed to get the project off the ground. Work is planned to start soon, and be completed by 2023.
via Transportation minister unveils final 45-kilometer route of Kanal Istanbul project – Daily Sabah
This is the first of two articles on the investment firm Stifel’s opinion of the top game changers in Logistics. It’s a summary of the report Stifel recently issued.
One of their interesting views is that for all the talk of automation coming, actually in logistics people are seeing shortages of blue collar workers to do the jobs that are needed now. the automation isn’t coming fast enough to help firms with a problem getting labor. Their argument points to autonomous trucks and the world wide driver shortage. Autonomous trucks are coming, but nowhere near fast enough to replace the dozens of folks leaving truck driving now. It won’t bail us out.
Another point they make is that the e-commerce strategy of placing inventory further forward in the supply chain to be closer to customers may come up against a real shortage of places to put it, particularly in urbanized areas. This makes Amazon’s purchase of Whole Foods look very good indeed as a strategy.
via Supply Chain News: Stifel Releases Its Top 10 “Game Changers” in the Logistics and Transportation Arena
Posted in Investing, Labor Economics, Logistics, Strategy, Supply Chains, Trucking
Tagged disruption, innovation, investment, Logistics, transportation, trends