The Economics of Jumbo Jets for Freight of Low Density and Low Value

FIRMS TODAY ARE turning more and more to a total cost or logistics view of their distribution operations.

Protective and promotional packaging reduces the shipping density of commodities.

Modal transportation economics become decisive in distribution of low value--low density commodities.

Air freight economics will be significantly affected by the advent of jumbo jet aircraft.

Ground support, and particularly the aircraft-truck interface through terminals, will be a more decisive factor in air freight pricing in the future.

Rate penalties for low density will be triggered at a lower density level and should begin to disappear for distances beyond the normal range of the aircraft.