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<blockquote data-quote="Ricochet1a" data-source="post: 1119506" data-attributes="member: 22880"><p>It costs 3-4 times as much to move package volume by air freight as it does via overland truck (distances 500+ miles..., anything shorter than that, air freight becomes ENORMOUSLY cost inefficient). </p><p></p><p><a href="http://siteresources.worldbank.org/INTTRANSPORT/Resources/336291-1227561426235/5611053-1229359963828/5680661-1253555418746/tp-26-Air_Cargo_Ch4.pdf" target="_blank">http://siteresources.worldbank.org/INTTRANSPORT/Resources/336291-1227561426235/5611053-1229359963828/5680661-1253555418746/tp-26-Air_Cargo_Ch4.pdf</a></p><p></p><p>Go to page 5....</p><p></p><p>An MD-11 costs about $15,000 an hour to operate. It can carry the equivalent of 6 full length trailers. In an hour of operation, that MD-11 can travel approximately 500 miles, give or take depending on time spent in pattern, climb out, etc. Half of that operating cost of an MD-11 is fuel expense. The remainder is depreciation, maintenance, aircrew expense and other cost factors.</p><p></p><p>So, to move the equivalent of a a single full length trailer's volume in packages 500 miles by MD-11, it costs $2500, or put another way, $5 per mile per full trailer's worth of packages in a MD-11.</p><p></p><p>To move a tractor trailer full of packages, it costs in the neighborhood of $1.50 per mile traveled. This cost includes fuel, maintenance, wages and depreciation for the equipment. </p><p></p><p><a href="http://fleetowner.com/blog/infographic-shows-real-cost-trucking" target="_blank">Infographic shows ‘the real cost of trucking’ | A Trucking Journal</a></p><p></p><p><em>It breaks down the costs of fuel ($70,000 a year), driver pay (36 cents per mile), purchase costs for the tractor ($100,000) and trailer ($50,000), repairs and maintenance (12 cents per mile), insurance (5 cents per mile), tires (3 cents per mile), permits, tolls and licensing (2 cents per mile). <u>All totaled, a single tractor-trailer rig costs a average of $1.38 a mile or a total of $180,000 a year to operate.</u></em></p><p></p><p>So it costs 3-4 times as much to move a volume of packages by air freight over distance, than it does to move the same volume by tractor trailer. If the tractor trailer were to be 'doubles', the cost for tractor trailer would fall by at least 33% to potentially 40% compared to moving a single trailer. </p><p></p><p>Express moves as much by tractor-trailer as it can. This EXCLUDES the obviously necessary movement between stations and ramps. The hubs have their sort operations specialized to enable freight which can be moved by tractor-trailer and still make commitment, to have that movement completed with overland movement. </p><p></p><p>A portion of deferred volume in Express NEVER goes onto an aircraft. It is loaded onto tractor-trailer (roller bed) at ramps, moved to either to hubs or in some cases directly to another ramp if there is sufficient volume to justify the route, sorted, then moved again via overland tractor-trailer to the destination ramp. </p><p></p><p>Another portion of deferred volume is moved on one segment by air, then after arriving at a hub, is sorted and departs on tractor-trailer routes (if the receiving ramp is close enough to enable the volume to meet ramp sort times to make commitment).</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1119506, member: 22880"] It costs 3-4 times as much to move package volume by air freight as it does via overland truck (distances 500+ miles..., anything shorter than that, air freight becomes ENORMOUSLY cost inefficient). [url]http://siteresources.worldbank.org/INTTRANSPORT/Resources/336291-1227561426235/5611053-1229359963828/5680661-1253555418746/tp-26-Air_Cargo_Ch4.pdf[/url] Go to page 5.... An MD-11 costs about $15,000 an hour to operate. It can carry the equivalent of 6 full length trailers. In an hour of operation, that MD-11 can travel approximately 500 miles, give or take depending on time spent in pattern, climb out, etc. Half of that operating cost of an MD-11 is fuel expense. The remainder is depreciation, maintenance, aircrew expense and other cost factors. So, to move the equivalent of a a single full length trailer's volume in packages 500 miles by MD-11, it costs $2500, or put another way, $5 per mile per full trailer's worth of packages in a MD-11. To move a tractor trailer full of packages, it costs in the neighborhood of $1.50 per mile traveled. This cost includes fuel, maintenance, wages and depreciation for the equipment. [url=http://fleetowner.com/blog/infographic-shows-real-cost-trucking]Infographic shows ‘the real cost of trucking’ | A Trucking Journal[/url] [I]It breaks down the costs of fuel ($70,000 a year), driver pay (36 cents per mile), purchase costs for the tractor ($100,000) and trailer ($50,000), repairs and maintenance (12 cents per mile), insurance (5 cents per mile), tires (3 cents per mile), permits, tolls and licensing (2 cents per mile). [U]All totaled, a single tractor-trailer rig costs a average of $1.38 a mile or a total of $180,000 a year to operate.[/U][/I] So it costs 3-4 times as much to move a volume of packages by air freight over distance, than it does to move the same volume by tractor trailer. If the tractor trailer were to be 'doubles', the cost for tractor trailer would fall by at least 33% to potentially 40% compared to moving a single trailer. Express moves as much by tractor-trailer as it can. This EXCLUDES the obviously necessary movement between stations and ramps. The hubs have their sort operations specialized to enable freight which can be moved by tractor-trailer and still make commitment, to have that movement completed with overland movement. A portion of deferred volume in Express NEVER goes onto an aircraft. It is loaded onto tractor-trailer (roller bed) at ramps, moved to either to hubs or in some cases directly to another ramp if there is sufficient volume to justify the route, sorted, then moved again via overland tractor-trailer to the destination ramp. Another portion of deferred volume is moved on one segment by air, then after arriving at a hub, is sorted and departs on tractor-trailer routes (if the receiving ramp is close enough to enable the volume to meet ramp sort times to make commitment). [/QUOTE]
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