MIT ICAT Constraints on Air Cargo Growth · Economic recession Reduced production demand for goods, international trade · Trade barriers Tariffs or protectionism designed to limit free trade Aircraft regulations Air cargo operators have used older aircraft that are most affected by new regulations on noise emissions and safety For example, noise hush-kits reduce cargo payloads Modal competition Air freight has tremendous speed advantage for long distances, but is highest-cost option Trucks very competitive for short haul (1000 miles, overnight Development of new"fast ships"for ocean cargoMIT ICAT MIT ICAT Constraints on Air Cargo Growth • Economic recession – Reduced production, demand for goods, international trade • Trade barriers – Tariffs or protectionism designed to limit free trade • Aircraft regulations – Air cargo operators have used older aircraft that are most affected by new regulations on noise, emissions and safety – For example, noise hush-kits reduce cargo payloads • Modal competition – Air freight has tremendous speed advantage for long distances, but is highest-cost option – Trucks very competitive for short haul (1000 miles, overnight) – Development of new “fast ships” for ocean cargo