World trade, measured by volume, expanded by 9% last year -- more than doubling the rate of growth in 1993 -- and achieving the largest gain since 1976. From 1993 to 1994, the Port of New York and New Jersey's air cargo exports (measured by volume in long tons) increased by almost 6% and almost 71% over the last ten years. The air cargo fleets servicing the Port are responsible for facilitating this achievement.

Last year the United States exported almost $513 billion worth of goods and imported almost $664 billion -- for a total of $1.18 trillion in trade with the rest of the world. The Port Authority of New York and New Jersey handled a whopping 26% of all air cargo shipments. This represented about 65% more traffic, by tonnage, than the next leading U.S. port. Airports under the control of the Port Authority of New York and New Jersey include JFK, which handles about 90% of international cargo, Newark, which handles about 10%, and LaGuardia Airport, which handles domestic shipments only.

The United States is the leading world exporter and importer, followed by Germany, Japan, France, the United Kingdom and Italy. Last year the United States maintained a 12.3% share of world exports and a 16% share of imports. This represents 22% more global export market share and 84% more import market share than Germany, the next leading contender. The Port of New York and New Jersey -- the leading U.S. port by far -- is a major world competitor in terms of volume and efficiency.

In 1994, major export destinations for air cargo departing from the Port of New York/New Jersey were Northern Europe, with 176,497 metric tons; the Far east, with 100, 375 metric tons; the Mediterranean, with 36,846; Southeast Asia, with 34,894; the Middle East, with 29,411; and South America, with 28,557.

Leading air cargo exports from the Port include: machinery, office equipment and computers; electronic machinery and sound equipment; optical, photographic and medical equipment; paper and paperboard; fish; plastics and related products; books and newspapers; vehicles; chemicals; aircraft, spacecraft and parts; iron and steel; and pharmaceuticals.

Last year, major air cargo received by the Port arrived from Northern Europe, with 211,524 metric tons; the Far East, with 159,095 metric tons; Southeast Asia, with 97,057; the Mediterranean, with 78,938; South America, with 26,686; and the Middle East, with 22,769.

Leading imports by air through the Port included: apparel and accessories; machinery, office equipment and computers; electric machinery and sound equipment; footwear; vegetables; optical, photographic and medical equipment; books and newspapers; leather products; plastics and related products; fish; chemicals; plants; toys, games and sport equipment.

Several airlines operating out of JFK and Newark effectively connect the New York and New Jersey region to all major regions throughout the world. These airlines include Asiana Airlines, Cathay Pacific, Volga-Dnepr, Cargolux, and Singapore Airlines, among others.

On July 13, Asiana Airlines celebrated the grand opening of its new $1 million cargo facility at JFK International Airport. According to Asiana, the new facility more than doubled their handling capacity, enabling the South Korean airliner to better serve its new scheduled 747-400 freighter flights. The airline completely renovated the 85,000-square foot cargo building formerly leased by Japan Air Lines, and added a 7,500-cubic-foot refrigeration room to handle perishables and a 151-pallet elevated transport vehicle system for more efficient storage of cargo containers.

On July 2 Asiana began operating new flights every Sunday (New York-Seoul-Singapore) and Thursday (New York-Seoul). Stated by B.H. Moon, General Manager of JFK cargo, these new flights (which bring the total to 12 weekly flights) add 58% more cargo, reaching nearly 600 tons per week. The company now operates 34 Boeing aircraft. Five more are scheduled for delivery this year and plans call for an additional 21 aircraft by the year 2000.

Last year U.S. exports to the Pacific Rim reached $147.8 billion, up more than 12% from 1993. Imports topped $261 billion, up 13.8%. Asiana, the 1994 recipient of Boeing's Award for Excellence for maintaining the highest overall dispatch reliability for Boeing aircraft, flies 28 international routes serving 38 cities in 10 countries in Asia, Far Eastern Russia and the United States. The majority of cargo, however, is picked up or delivered to the Pacific Rim. As trade develops in this dynamic area of the world, the Port of New York/New Jersey will continue to offer state-of-the-art facilities to Asiana and others airliners in order to efficiently handle the growing number of air cargo shipments to and from the region.

Next year will mark the 50th anniversary of Cathay Pacific Airways' operations. According to the company, it is the 12th largest international air cargo carrier, with a monthly uplift of 40,000 tons. Based in Hong Kong, Cathay Pacific serves 44 cities in 27 countries.

On July 12, Cathay Pacific took delivery of its second B747-400F airliner. According to the company, the B747-400F freighter version of the ultra-long B747-400 passenger aircraft is more fuel efficient and can fly further than earlier models, and has a capacity of approximately 120 tons of cargo. "The 400 freighter really comes into its own on long-haul services.... For us, it is particularly well suited to transpacific services," said Robert Cutler, General Manager of cargo. This cargo market is one of the biggest and fastest-growing worldwide, Cutler said.

On July 27, Cathay Pacific began operations of its latest acquired aircraft on a new Hong Kong-Toronto freighter route. This, combined with the company's four B747-200s, brings the total freighter fleet to six. This year the company will take delivery of eleven new aircraft.

Cathay Pacific serves a wide variety of cargo markets. "From North America, we carry seafood, fresh fruit and vegetables, heavy machinery, and high-tech equipment to Southeast Asia, Australia and the Middle East," said Ava Thomas, Cargo Manager, Western USA. More than 50% of the airliner's freight consists of Asian exports of textiles, electronics, automotive components and food items to global destinations.

Volga-Dnepr is the biggest Russian cargo airline. In June the company established a new DC-10 chartered service from JFK to Moscow. Stated by Andrew Shumilin, Foreign Relations Manager, "We are awaiting approval from the Department of Transportation to start regular scheduled services."

Last year the Russian Federation exported $48 billion to and imported $28.2 billion worth of merchandise from the rest of the world. Its exports to the United States increased by 85.5%. In 1993, the airliner said it moved 35,655 tons of cargo. As the Russian economy emerges from a period of slow economic growth, the demand for air shipments will increase.

Stated by Alexey Isaikin, President of Volga-Dnepr, in 1993 the airliner was formally appointed by Russia to operate both charter and scheduled flights from the United States and China to Russia.

The company's aircraft fleet is based largely on its six Antonov An124-100 Ruslans, the biggest aircraft in the world. The Ruslan is unique in terms of megalift payload capability. According to the Volga-Dnepr, the outsize and super heavy cargo market, where the Ruslan is most competitive, is experiencing a constant growth in demand. As a result, the company has focused on developing this market.

The use of a modified loading/securing system now makes it possible to transport large diesel engines for ships, power station turbines, nuclear power stations design elements, helicopters, boats and yachts, and large-size oil and gas extracting equipment.

In 1993 Volga-Dnepr increased its number of its international flights. According to the company, it obtained traffic rights and flew independent charters to a host of destinations including the Benelux countries, Britain, Germany, Hungary, Turkey, South Korea, Thailand, Singapore, Israel, Sweden, the United Arab Emirates, India, among others. The company plans to increase its presence in Southeast Asia, the Middle East and North America.

Cargolux Airlines International S.A., founded in Luxembourg in 1970, moved 670 tons of goods to global destinations last year. Since 1970, this represents an increase in tonnage of 2,481% .

In order to accommodate the growth in world trade, Cargolux entered into numerous agreements and established many new routes last year. At the beginning of 1994, the company signed an agreement between Luxembourg and Bahrain nominating Cargolux as the official Luxembourg carrier. On January 17, the company entered into an agreement with the Japanese Government to service Japanese cities. Cargolux reestablished its operations out of JFK on April 30. On May 19 the company was awarded rights to service Prestwick, Scotland. In July, it began flying to Ho Chi Minh City. In September, new services were inroduced to Lebanon, Iceland, Zimbabwe and South Africa.

The company is currently utilizing 4 B747-200Fs and 2 B747-400Fs. It is taking delivery of a third 747-400F this fall in order to satisfy a growing demand for its services.

The company's slogan ,"You Name It -- We Fly It", announced in 1973, is representative of its cargo shipments. For example, Cargolux's principle commodities departing JFK include fruit and vegetables as well as aircraft engines destined for Iceland; fabric, oversized machinery, telephonic switching gear and cars destined for Istanbul; and a wide variety of cargo, including 100 feet long pipes, dangerous goods, etc., destined for Luxembourg and distributed throughout Western Europe through the company's trucking network.

This trucking network, which the company claims to be the most sophisticated of any air carriers in Europe, provides a "hub and spoke" operation combining B747 capacity with direct road feeder service to and from Europe's major industrial countries.

In 1994, the United States exported $118 billion to and imported almost $131 billion from Western Europe. As this trade steadily grows, Cargolux is well positioned to accommodate the expanding demands for air cargo shipments.

Beginning on September 3 and every Sunday thereafter, Singapore Airlines introduced a new 747-400 freighter service called the "Mega Ark." The flight departs from JFK and flies to Brussels, Dubai and Singapore. This will complement the airline's daily service capacity of 120 tons to Asia and other global destinations.

Singapore Airlines began operating out of JFK in July 1992. It currently moves general cargo to 75 cities in 41 countries linking Asia, North America, Europe and Africa. Stated by Mike Christiansen of the airlines, Singapore airlines has become more service oriented. It recently invested in a 60,000 sq. ft. facility at JFK in order to facilitate its new Mega Ark traffic and built a new "superhub" valued at $150 million in Singapore for the purpose of improving its service worldwide.

Last year the United States exported almost $32 billion to and imported almost 51 billion from Association of South East Asian Nations (ASEAN), the trade organization comprised of Singapore, Thailand, the Philippines, Malaysia, Indonesia and Brunei. These figures represent an increase of 13% and 23%, respectively. As U.S. trade with ASEAN increases, Singapore Airlines, with its newly expanded facilities at JFK and in Singapore, will be well positioned to service the growing cargo demands.

In 1994, the Port of New York/New Jersey handled 1.07 million metric tons of cargo by air (448,355 outbound and 625,937 inbound). According to the World Trade Organization, the body that recently replaced the General Agreements on Tariffs and Trade, world trade this year is anticipated to increase by 8%, a very strong pace. This will, again, support the ever-growing air cargo shipments originating and arriving at the Port of New York/New Jersey.

This article appeared in VIA Magazine, a division of The New York Times, September-October 1995.
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John Manzella
About The Author John Manzella [Full Bio]
John Manzella, founder of the Manzella Report, is a world-recognized speaker, author of several books, and an international columnist on global business, trade policy, labor, and the latest economic trends. His valuable insight, analysis and strategic direction have been vital to many of the world's largest corporations, associations and universities preparing for the business, economic and political challenges ahead.




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