Lack of proper handling, inventory management and plain old respect for the humble unit load device, or ULD, continues to unneccesarily cost the industry close toUS$220 million each year. Heiner Siegmund has the story.

“Times indeed are terrible,” observes Steve Savage, IATA’s manager for cargo standards, “but terrific for optimising our industry”. Optimisation in the air cargo industry is needed in many ways, be it in E-Freight, bar coding standardisation, or by speeding up shipments.

One possibility for enhancing the quality of air transports and save cash at the same time is the ULD field. There, carriers burn up to US$220 million yearly by not paying sufficient attention to their flying assets. By paying more attention to this key area, “this indeed could print a lot of money for airlines,” stated Bob Rogers, VP Asia/Pacific of Nordisk Aviation Products. A statement that was illustrated by a number of alarming pictures presented at a recent seminar on the ULD business that demonstrated the often shadowy existence of ULDs.

Heavily damaged LD3 containers ripped, torn and banged up by forklifts, toppled over trolleys because of false loading, torn up nets, unsecured shipments because of missing straps and dented pallets, to name just a few examples presented by various speakers how ULDs often are mistreated by ground handlers, airline personnel or forwarding agents.

Due to severe damage, theft or demurrage, airlines tend to overstock their ULD fleet “up to six times the number needed for aircraft utilisation,” CEO James Everett of Auckland, New Zealand-based JMI Aerospace, critising the enormous waste of value. This especially applies to equipment being off airport as “many airlines still don’t know what happens with their ULDs,” he said. As a result, proper inventory control is badly needed, he suggested.

“First thing you need to know while managing ULDs is who has what and for how long,” he stated. Adding that, “those who are responsible for damaging your devices should be billed for the damage.” By doing so this could save airlines asmuch as 30 per cent of their ULD repaircosts, Everett calculated.

Containers for consolidating and carrying air freight have been in use since the 1970s. Ever since the materials have improved making the aluminum boxes not only lighter but even more robust. This aspect was outlined by Bob Rogers who spoke of the 60 per cent weight reduction of modern containers compared to those of the 1970s.

But that’s not the end of the road since even lighter devices with higher durability are to come, predicted Manager Cargo Services Albert Lo of Cathay Pacific and Air Canada’s ULD boss Urs Wiesendanger.

Both their carriers are meanwhile utilising a large number of light weight containers mainly made of composites with encouraging results. “Because we carry less tare weight we reduce our fuel consumption, diminish our operating costs and increase our payload at the same time,” lauded Wiesendanger.

Flying tare weight across the skies can get expensive, as Bob Rogers pointed out. It could amount to as much as US$800,000 per year for a B747-400 freighter with an assumed fuel price of US$750 per ton. “So weight reduction of their unit load devices is one aspect to save the airlines’ some money,” he said.

However, “before you go to light weight make sure people can handle those devices” warned Joseph Chan of Hong Kong-based ground handlerJardine Aviation Services. Very often problems are not caused by hardwarebut human factor, he noted.

To avoid incorrect handling his enterprise has launched specific training programmes for supervisory level and above, for airlines, ground service providers and freight forwarders. “What’s needed to prevent damage and loss is a competent workforce with basic knowledge and skills,” Chan urged.

And a stiff regime with daily inventory checks and strict controls will also help keep ULD’s out of danger, emphasised CK Ng of Hong Kong International Airport.

Are empty containers properly stowed in designated areas, do tractors tow no more than six trailers and do the personnels obey the speed limit of 25 km/h while driving across the tarmac, are some of the essentials that constantly have to be checked, Ng said.

“If not, it will end up in chaos with nobody knowing where his ULDs are,” he added. Because of having imposed strict and highly transparent rules, Hong Kong International Airport is surely a benchmark for properly managing the flying assets on the ground and thus saving money for the cargo industry as a whole.