Report: U.S. domestic air cargo market struggling

Report: U.S. domestic air cargo market struggling    U.S. domestic air cargo tonnage and air-freight shipments declined in 2003, according to a new report by The Colography Group.
   The domestic market generated revenue of $30.9 billion in 2003, a modest gain of 0.7 percent over 2002, according to the report. Shipment count for 2003 fell 3.5 percent to about 2.5 billion, while tonnage declined to 16.8 billion pounds from 16.9 billion pounds.
   Revenue per pound, or yield, rose 2 cents per pound to $1.84, reflecting an increase in the weight of the typical shipment, according to the report.
   The Colography Group, an Atlanta-based research and consulting firm, said the domestic U.S. air cargo market was restrained by weak results from the U.S. Postal Service’s air expedited products and the continued shift from air to surface services in U.S. commerce last year.
   “The performance of the USPS’s two expedited air products, Priority Mail and Express Mail, were the biggest drag on 2003 results,” the group said.
   According to the report, another underperformer was Airborne Express, which merged with DHL in early 2003. “Airborne posted across-the-board declines on a year-over-year basis as air traffic migrated to surface transport and some shippers reacted with concern over the fallout from its merger with DHL,” the Colography Group said.