I mproving ground networks and growing shipper expected to tally 5.1 percent and 3. 8 percent gains, respectively, over demands are spurring significant changes in the U.S. last year’s levels. By comparison, air volumes are expected to rise by domestic time-critical delivery market. only 1.2 percent, according to The Colography Group. Together, the Time-sensitive shipments are no longer automatically ground alternatives are expected to account for 86 percent of new loaded onto aircraft; rather they are more frequently put U.S. expedited shipment growth this year. on trucks and sped to their destinations. The trend toward using ground transportation for time-critical

For that matter, speed, while still critical, is not all that shippers or on-demand shipping picked up steam “in the late 1990s but are seeking from their transportation providers. They are increas- really took off in 2002,” said Geoff Muessig, vice president of sales, ingly using expedited services to help boost their supply-chain effi- Pitt Ohio Express. ciency. This means carriers often must deliver shipments not just on The reasons for the shift include increases in the costs and regula- time but at specific times and use a battery of technologies to keep tions associated with air transportation since the events of Sept. 11, their customers abreast of their shipments’ progress. and improvements in the nation’s trucking networks. Many LTL car- These changes are spurring challenges for carriers but also riers are posting strong on-time rates and at least beginning to use opportunities for them to grab a stake in a flourishing market. satellite and information technologies to allow shippers to keep close tabs on their shipments while in transit.

The time-critical trend “Businesses are increasingly reluctant to pay a premium for

As it transitions, the U.S. expedited market is also growing and is overnight air service, and continue to build their inventory and projected to generate $97.9 billion revenue in 2006, up 7. 6 percent distribution models around more economical, time-definite deliv-over last year’s projections, according to the industry research and eries moving in ground parcel, LTL and TL,” said Ted Scherck, consulting firm, The Colography Group. president, The Colography Group.

This increase is being sparked by a “resurgent trucking sector,” the Though diminishing, “air is still an important part of busi-firm said, with ground parcel and the less-than-truckload operations ness…airfreight is never going to go away,” said Sean O’Neil,

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