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AIR CARGO GUIDE ACI-NA Air Cargo Committee

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AIR CARGO GUIDE ACI-NA Air Cargo Committee AIR CARGO GUIDE ACI-NA Air Cargo Committee September 2019 DISCLAIMER ACI-NA’s Air Cargo Guide is intended to provide general, practical information to airport officials and others involved in air cargo development. It does not constitute professional legal advice and users should not rely on it as a sole source of information. ACI-NA, the authors and contributors disclaim liability for any such reliance. In no event shall ACI-NA or the authors and contributors be liable for consequential damages as a result of the use of the ACI-NA Air Cargo Guide. Questions or comments about the text or about the restrictions on reproduction can be directed to ACI-NA Economic Affairs and Research at (202) 293-8500. 1 AIR CARGO COMMITTEE CHAIR’S GREETING September 2019 As the 2019 Chair of ACI-NA's Air Cargo Committee, I am proud to present this newly updated version of the Air Cargo Guide. The original document, published in 1995, quickly became an imperative tool for many airports learning about this important segment of the air transportation industry. This updated version continues its focus on meeting the needs of airports of all sizes and types that are interested in understanding, supporting, and growing their air cargo business. It reflects input from air cargo professionals from airports, academia, and consulting firms, and incorporates the most useful and up to date information available. The Air Cargo Guide consists of ten chapters covering a range of important cargo issues confronting airports today. In several chapters there is an overlap of similar issues in order to address important topics from different perspectives. This is consistent with the intent of the original document – to provide airports with an understanding of different strategic issues fundamental to air cargo, with which the reader may not have previous experience. The Guide is not intended to provide all of the answers, rather it has been written to help users develop the right questions. Originally, Air Cargo was a Subcommittee of ACI-NA’s Economics Committee dating back to 1991, and has matured and grown full Committee status. Through the active participation of its airport and associate members, the Committee delves into a broad spectrum of cargo related issues and their effect on airports the intermodal transportation of goods, and associated land development. The Committee addresses important subjects including security and other regulatory mandates, international air service, U.S. freight policies, and financial and management strategies relating to cargo operations. The Air Cargo Guide is an enduring and modern tool encompassing the Committee’s efforts to provide a comprehensive understanding of the important issues touched on here. This work is supplemented and updated through periodic conferences, forums, and monthly webinars exchanging information among the membership and with other air cargo partners including airlines, integrated carriers, forwarders, shippers and others in the global supply chain community. I would like to formally acknowledge the individuals who contributed their time and effort to this updated version of the Guide, and to those who worked so diligently on the original edition and the previous updates, as they show clear examples of the energy, commitment, and breadth of knowledge and experience of the Air Cargo Committee members. We believe the Air Cargo Guide is an ideal instrument to expand the knowledge base of interested air cargo professionals at airports and throughout the industry. With this resource, we believe airports can benefit, and in so doing enhance local and regional economies through growth in their supply chain and trade- related sectors. However, the air cargo industry constantly evolves and creates new issues and challenges for airports to confront. To that end, it is our hope that you will continue to participate in the exchange of ideas contained within this updated edition of the Air Cargo Guide and with the ongoing activities of the Committee. 2 I welcome your thoughts on the guide and on ways that ACI-NA can better serve your air cargo related needs. I look forward to working with you as we continue to develop the relationship between airports and others in the air cargo industry over the coming years. Bryan Schreiber Chair (2018 – 2019) ACI-NA Air Cargo Committee 3 Guide Acknowledgements This Air Cargo Guide is the fourth edition of the document. It represents a collaborative effort by member airports and associate members that has produced a high-quality product offering a solid balance of viewpoints from different industry elements. Our sincerest thanks go to the talented individuals who worked on the original project and subsequently updated versions. We hope all those who have previously used this Guide recognized the value of their contribution. This Guide builds on those earlier efforts. As was the case with the original, the chapters were reviewed, revised, or (in the case of new sections) edited to reflect the experience and knowledge the industry has gained over the past five years and the changes that have impacted the global dynamics of air cargo. Once again, the finished product demonstrates the quality and hard work of our members. Chapter 1 Douglas C. Bañez, Managing Director, Hubpoint Strategic Advisors, LLC Andy Lyall, retired (former Manager, Air Service Development Cargo, Halifax International Airport Authority) Robert O. Walton, Associate Professor, College of Business, Embry-Riddle University - Worldwide Chapter 2 Trudy Wassel, Deputy Manager, Anchorage International Airport Chapter 3 Mark R. Heusinkveld, CPA CGMA, Associate Vice President – Business & Finance, Landrum & Brown Chapter 4 Jeff Mishler, PE, Vice President, RS&H, Inc. Gareth Hanley, AICP, CM, Aviation Planner, RS&H, Inc. Chapter 5 James Tyrrell, C.M., Chief Revenue Officer, Philadelphia International Airport Chapter 6 Christopher R. Bidwell, Senior Vice President, Security, Airports Council International- North America Matthew J. Cornelius, Executive Vice President, Airports Council International-North America Chris Oswald, Senior Vice President, Safety and Regulatory Affairs, Airports Council International-North America Ashley Sng, Senior Manager, Air Policy, Airports Council International-North America Chapter 7 Trudy Wassel, Deputy Manager, Anchorage International Airport Chapter 8 Robert Andriulaitis, Executive Consultant, InterVISTAS Consulting Inc. Dan Muscatello, Principal, DBM Aviation Consulting Chapter 9 Dan Muscatello, Principal, DBM Aviation Consulting Chapter 10 Dan Muscatello, Principal, DBM Aviation Consulting 4 TABLE OF CONTENTS CHAPTER 1 ............................................................................................................................... 6 AIR FREIGHT – HISTORICAL PERSPECTIVE, INDUSTRY BACKGROUND AND KEY TRENDS .................................................................................................................................... 6 CHAPTER 2 ..............................................................................................................................17 DEVELOPING AN AIR CARGO MARKET ................................................................................17 CHAPTER 3 ..............................................................................................................................34 DEMAND FORECASTING TECHNIQUES ................................................................................34 CHAPTER 4 ..............................................................................................................................58 AIR CARGO FACILITY ANALYSIS ...........................................................................................58 CHAPTER 5 ..............................................................................................................................92 FINANCIAL AND MANAGEMENT STRATEGIES .....................................................................92 CHAPTER 6 ............................................................................................................................113 BILATERAL AND REGUALTORY ISSUES FACING THE AIR CARGO INDUSTRY ............... 113 CHAPTER 7 ............................................................................................................................125 THE AIRPORT – TENANT RELATIONSHIP ...........................................................................125 CHAPTER 8 ............................................................................................................................143 AIRPORT PERFORMANCE BENCHMARKING ......................................................................143 CHAPTER 9 ............................................................................................................................157 SECURITY ..............................................................................................................................157 CHAPTER 10 ..........................................................................................................................180 ALTERNATIVE LAND USE .....................................................................................................180 5 CHAPTER 1 AIR FREIGHT – HISTORICAL PERSPECTIVE, INDUSTRY BACKGROUND AND KEY TRENDS 6 CHAPTER 1 AIR FREIGHT – HISTORICAL PERSPECTIVE, INDUSTRY BACKGROUND AND KEY TRENDS 1. AIR FREIGHT – HISTORICAL PERSPECTIVE, INDUSTRY BACKGROUND AND KEY TRENDS ...................................................................................................................................
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