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Video on INFRASTRUCTURE IS IN DEMAND GLOBALLY
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INFRASTRUCTURE IS IN DEMAND GLOBALLY
Monty Guild
Air Cargo-Guest Commentary by David Hendershott
Traditionally a lot of air cargo planes were
older passenger planes converted to cargo planes.
Conversions are still done, but the supply of
older planes has dried up for now, and the need
for fuel efficiency is making conversions a lot
less attractive than it used to be. Because of
the urgent need for freighters, even the
inefficient older planes are converted as fast as
they become available. Boeing entered the
conversion business last year. Even with the high
fuel costs, airfreight is far more efficient than
maritime shipping for the timely delivery of high
value, low weight or perishable items such as
electronics, food and apparel directly to their
destinations. The biggest market for new aircraft
is in the long haul segment.
In reality it's not just the air cargo system
that is straining it's capacity. The maritime
shipping industry doesn't have enough ships. The
ports are operating at nearly full capacity, or
more in some cases. The rail systems are proving
inadequate even in the U.S. There was an article
in the WSJ on Wednesday detailing some of the
infrastructure needs in the U.S., concluding that
we need to spend $1.3 trillion by 2010 just on
maintenance and repair, and that won't help the
capacity issue.
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