UNITED PARCEL SYSTEM HEADQUARTERS: ATLANTA, GA (WORLD S LARGEST EXPRESS CARRIER & LARGEST PACKAGE DELIVERY COMPANY)
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1 UNITED PARCEL SYSTEM HEADQUARTERS: ATLANTA, GA (WORLD S LARGEST EXPRESS CARRIER & LARGEST PACKAGE DELIVERY COMPANY). 24/7 DELIVERY 4 HOURS URGENT DELIVERY 180 COUNTRIES PICK-UP W/I MINUTES OF COMPUTER ORDER RECEIPT. REAL-TIME TRACKING (BAR CODE/ WIRELESS TRANSPONDERS-PDA) 7 MIL. ON-LINE QUERIES PER DAY
2 UPS RETAIL STORE (INPUT TO PACKAGE / PARCEL DELIVERY SYSTEM)
3 UPS FULL-SERVICE PACKAGE / PARCEL RETAIL SYSTEM
4 UPS ( CONTINUED) SYNCHRONIZED TRUCKS / PLANES/ TRAINS ( FOR CROSS-COUNTRY DELIVERY).CHRISTMAS WEEK (19 DEC.).18,000,000 PACKAGES(210per sec.).35% SURGE ( 13.6 M PER DAY AVG.).UPS AIR: 4.5M packages 24 DEC..ADDED 12 A/C TO 600 A/C FLEET
5 LD-3 & LD-4 CONTAINERS ENROUTE UPS 747 FOR LOADING
6 UPS DAYLIGHT LOADING
7 UPS 747 FREIGHTER WITH LD3 CONTAINERS
8 UPS RETAIL DELIVERY
9 200,000 BROWN TRUCKS; 400,000 PEOPLE!* * INCLUDES 60,000 SEASONAL WORKERS FOR CHRISTMAS RUSH
10 FEDEX HEADQUARTERS: MEMPHIS, TN.EXPRESS DELIVERY TO 211 COUNTRIES.REGIONAL LESS THAN TRUCKLOAD DELIVERY OF HEAVY WEIGHT FREIGHT. NON-STOP DOOR-TO-DOOR DELIVERY OF TIME-CRITICAL SHIPMENTS. FEDEX BOUGHT AMERICAN FREIGHTWAYS, RTS AND VIKING TO COMPETE WITH UPS FOR GROUND MARKET
11 FEDEX RETAIL STORE
12 FEDEX RETAIL DROP-BOX
13 TIME-CRITICAL DROP-OFF SYSTEM 5:45PM CUT-OFF
14 FEDEX TRAILERS UNLOADING (SKY HARBOR AIRPORT-PHOENIX)
15 MARKET CONSTRAINT FLAGSTAFF PRESCOTT 40 MILES 60 MILES PHOENIX SKY HARBOR AIRPORT MARKET AREA CONSTRAINED BY DRIVE TIME FROM RETAIL PICK-UP BOX CONSOLIDATION TO AIRPORT!!
16 MD-900 EXPLORER UTILITY HELICOPTER (NOTAR).CARGO DELIVERY TO OIL RIGS, REMOTE DRILLING SITES. CORPORATE DELIVERY OF HIGH PRIORITY DATA, PACKAGES, PARTS. SMALL PACKAGE DELIVERY WAS A DESIGN CONSIDER- ATION
17 MD-900 CARGO CAPACITY
18 FEDEX LD-3s AWAITING LOADING
19 FEDEX PARETO ANALYSIS OF DELIVERY FAILURES PERCENT OF PACKAGES NOT BEING DELIVERED BY 10 AM NEXT DAY WAS ANALYZED (e.g. 1 1/2% ) EACH FACTOR ANALYZED ( WRONG ZIPCODE, ROUTING MISTAKES, LOST PACKAGES, ETC. A FEDEX V.P. WAS ASSIGNED TO ELIMINATE EACH FAILURE CAUSE THE SEE THROUGH CONTAINER WAS THE SOLUTION TO SMALL PACKAGES LOST IN THE BOTTOM OF CONTAINERS!!
20 SEE-THROUGH CONTAINERS
21 FEDEX VIRTUAL INVENTORY SYSTEM PIONEERED SOFTWARE TO PROVIDE SEAMLESS INTERFACE FROM: PRODUCT DESIGN ORDER PLACEMENT RAW MATERIAL P/U & DELIVERY FINISHED PRODUCT PICK-UP & DELIVERY TO END CUSTOMER FEDEX PROVIDES ALL PICK-UPS AND DELIVERIES WORLD-WIDE COMPANY CAN OPERATE WITH ZERO INVENTORY!!!
22 FEDEX: SUPPLY CHAIN SOLUTIONS PROVIDE WAREHOUSING AT MEMPHIS FOR CUSTOMERS WANTING TO OFFER 1 or 2 DAY DELIVERY OF CRITICAL ITEMS WORLD-WIDE (CATERPILLER TRACTOR) OFFER CUSTOMS BROKERAGE, INTERNATIONAL OCEAN FREIGHT FORWARDING, TRADE FACILITATION
23 WHERE IS THE MARKET FOR AIR CARGO EXPECTED TO GO?
24 CENTS PER TON-MILE AVERAGE FREIGHT REVENUE PER TON MILE BARGE RAIL TRUCK AIR CARGO (DOMESTIC) OIL PIPELINE SOURCE: U.S. DEPARTMENT OF TRANSPORTATION, BUREAU OF TRANSPORTATION STATISTICS, ; TRANSPORTATION IN AMERICA,
25 U.S.TON-MILES OF FREIGHT BILLIONS OF TON-MILES 1600 AIR CARGO TRUCK RAIL WATER (COASTAL) WATER (LAKE/RIVER OIL PIPELINE SOURCE: NATIONAL TRANSPORTATION STATISTICS, U.S. GOVERNMENT, BUREAU OF TRANSPORTATION STATISTICS, 2002
26 AVERAGE LENGTH OF HAUL DOMESTIC FREIGHT 1400 AIR CARGO STATUTE MILES TRUCK RAIL WATER (COASTAL) WATER( LAKE/RIVER) OIL PIPELINE SOURCE: TRANSPORTATION IN AMERICA-2000, 2001
27 TOTAL U.S. FREIGHT EXPENDITURES DOLLARS (BILLIONS) AIR CARGO RAIL BARGE OIL PIPELINE NOTES: 1.INCLUDES INFRASTRUCTURE COSTS, TAXES, SUBSIDIES, AMTRAK SOURCE: TRANSPORTATIN IN AMERICA-2000, 2001
28 IATA INTERNATIONAL AIR FREIGHT FORECASTS
29 INTERNATIONAL AIR CARGO FORECAST IATA DATA 2001
30 NOTE: EXCLUDES CIS SOURCE: ICAO FORECAST (2002) ICAO AIR CARGO FORECAST FOR THE YEAR 2010 FREIGHT TONNE KM - MILLIONS WORLDWIDE ACTUAL ACTUAL FORECAST AVERAGE GROWTH RATE , , , % 6.0%
31 ICAO REGIONAL FORECAST OF AIR CARGO FOR 2010 (FREIGHT TONNE KILOMETRES IN MILLIONS) FORECAST 2010 RATE 0F GROWTH RATE OF GROWTH AFRICA 1,176 19, % 5.0% ASIA- PACIFIC 15,634 37,564 83, % 7.5% EUROPE 19,246 31,193 52, % 4.5% LATIN AMERICA NORTH AMERICA SOURCE: ICAO 2010 FORECAST % 4.5% 15,962 29,028 51, % 5.0%
32 OUTLOOK FOR AIR CARGO WORLD AIRLINE PAX TRAFFIC FORECAST TO GROW 4.5% WORLD AIR FREIGHT GROWTH %. ASIA-PACIFIC REGION EXPECTED TO DOMINATE AIR FREIGHT GROWTH MARKET. UNIT COSTS ( OPERATING COST PER AVAILABLE TONNE-KILOMETERS) (ATK) DECLINED AT AN AVERAGE ANNUAL RATE OF 3.0% FOR PERIOD ) LARGER, MORE EFFICIENT FREIGHTERS ARE MAKING AIR FREIGHT MORE COMPETITIVE!
33 CONCLUSIONS AIR CARGO MARKET IS TIED TO WORLD GDP; ALMOST A LEADING ECONOMIC INDICATOR USED PAX AIRCRAFT CONVERTED TO FREIGHTERS ARE COST-EFFECTIVE! CORPORATE FOCUS ON LEAN HAS DRIVEN INTERNATIONAL AIR CARGO GROWTH. AIR CARGO IS RAPIDLY GROWING NICHE IN TOTAL CARGO MARKET!!!
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