Passenger airlines start shifting idled planes into freight business
wsj.com
wsj.com
It's a strange and old fashioned industry, but also fairly flexible.
This seems more like a move for the airlines than a serious need outside of a few lanes. Generally speaking there isn't a lack of logistics capacity right now from what I've seen. Airlines have been in the logistics game for ages anyway. The amount they participate / effort ebs and flows at times, but they've always been there.
How sure are you about that? In my large Texas city, grocery stores have been packed all day every day for like 2 weeks. How long can out country operate at such capacity before supply shortages start? Stores are already unable to keep shelves stocked.,.
Similar for toilet paper in stores. Previously you spent 8-12 hours at work using your company's supply, now you have to use and buy your own. The in-home usage per day has pretty much doubled and shifted to retail.
And the base work, day care, and restaurant usage has plummeted. That's the thing about logistics and supply, a person can only use so much toilet paper for example. Once you've delivered 4 or 5 times the supply necessary for the population of a city, you're wasting effort. There is a distribution problem in that supply node, not really a logistics problem with the system.
We have distribution inefficiencies in many of our "supply nodes", no question. But these are not inefficiencies that airlines, or even traditional freight companies, can solve.
For example, Andrex (apparently Cottonelle in the USA) is owned by Kimberly Clark, which also sells commercial products.
You've missed one possible mitigating factor. Many people save their more... erm... resource-demanding toilet activities for home. ;-)
> Public latrines date back to the 2nd century BC. Whether intentionally or not, they became places to socialise. Long bench-like seats with keyhole-shaped openings cut in rows offered little privacy.
Or from https://ask.metafilter.com/235727/Have-humans-always-sought-... :
> When I lived in China, I had the experience of using many, many public restrooms which were basically just a big concrete trench in a room. Occasionally there would be small dividers but not always. So practically speaking, pooping would sometimes be quite the communal activity.
> I have a child who could not poo if someone was in the room or he was being watched, so a soon as he could move for privacy, he did. ... Many other kids will at least need to avert their eyes and at least pretend they have some semblance of privacy. Others will let go while grinning at you.
FWIW, my 3-year-old son loves to watch me poop, and will run into the bathroom when I need to go. And I let him, and don't find it difficult to poop.
I do have a hard time getting a sense for how much is "rooted in genetics" beyond the simple fact that we are living creatures.
Some people are scared of flying. Others are not. This cannot be a direct result of genetic selection, for obvious reasons.
Some children love certain foods, while a sibling does not. This too cannot be explained by simple genetics.
So given examples like the Romans, and Chinese and (again from the second link) "About a billion people -- 15% of the world's population -- practise open defecation" and "In the Samoan house there are no walls... the beaches are used openly as latrines." - how meaningful is it to say it's 'rooted in genetics', any more than we can say that at some level English is rooted in genetics?
Now, it's probably true that on average the share of food consumed from restaurants has dropped, but the sector isn't closed down.
Yeah, but the office was buying it at Costco too, and now they aren't. The total demand for TP hasn't increased, it's just shifted. Once everyone has a stockpile at home, they won't buy it anymore.
Same with food. The restaurants were buying it and now consumers are instead. The demand is shifting but the level is the same.
You're right for TP though. Imho that was simply a reaction to people understanding "you might have to be quarantined at home" as "you can't go out or get things delivered during that time, ever", and preparing adequately. Once they have their stash and/or realize that quarantined doesn't mean post-apocalyptic head-for-the-bunker, they'll relax and return to normal rates. It's important to quickly stock the shelves though, empty shelves make people nervous, and they'll overreact when they're nervous, buying more than they need ("the government and companies can't handle this situation, better stock up") and thus increase the problem.
I've stuck with a relatively conservative 2-3 week supply of noodles and rice, and the kind of toilet paper supply I'd normally buy anyway but where I'd previously be ok with waiting until I had a couple of rolls left before reordering. But that is mentally more effort than just panic-buying - I'm ok with 2-3 weeks because I've kept a close eye on supplies and know I can still top up, but if I'd just panic bought everything I could get my hands on I wouldn't have needed to put the effort into keeping track.
And even millions of people trying to be similarly restrained but accounting for the reality that others aren't still has a massive negative effect.
Overall I agree with you that it needs to bottom out soon, though. And I also very much agree about the psychological effect of keeping shelves look stocked.
office depot delivers TP with the copier paper and kleenex. IME that's been more common than costco for any business large enough to have an office manager.
Logistics has a built in circuit breaker. Whether you're talking about military use cases or civilian use cases. At some point, you will just have too much on the ground. No more will fit. At that point, it's a question of distributing the oversupply of what's already there in a fashion appropriate to the purpose of the day.
In any case I bought a couple weeks worth over a month ago when I saw what was coming.
Maybe they'll provide better units we can actually discuss on.
> However everyone is probably stocking up on bananas and potatoes and fresh meats which will start to go bad after a week.
I doubt people are overbuying bananas too much, but more importantly meat can go in the freezer and something is wrong with your potatoes.
The real concern would be if the outbreak were to suddenly sideline huge amounts of truck drivers / pilots / etc.
But many 'non essential' or 'seeing less demand' warehouses are shutting down / not busy, and that frees up a lot to focus on other things. Also truck drivers are now allowed to exceed their usual maximum driving hours ... and they are moving fast traffic wise.
As far as truck drivers and etc I'm seeing warehouses isolate drivers where previously the driver was not isolated. They're providing them an isolated room and etc to limit contact between delivery point personnel or warehouses.
Logistics in the US is strange, surprisingly low tech sometimes, but also very flexible industry. Outside still fairly flexible as well.
I'm counting on some disruption. Even during isolation these people are basically walking infection vectors because of the nature of their jobs - loading/unloading (touching and breathing on) goods carried across the country. And I doubt we currently have the PPE for them...
If grocery stores sell faster, and so requested more resupply, you'd just see more 18-wheelers on the road and more freight-trains passing through. Neither "infrastructure" of which is operated anywhere near its capacity.
And as for farmed foods you can't just flip a switch when everyone is panic buying. Unless you mean to say we throw away half of the harvest under normal conditions.
The supply chain for food is complicated, to say the least, but one of the things about food is that we’ve been working on extending shelf life for the past hundred years, and transport food globally, and it really shows. You can buy apples at the supermarket right now, even though they went out of season in October. If you had to think for a moment about when “in season” is for apples, well, the reason why you had to pause and think is because the modern supply chain gives you apples year round. The only way it can do that is by having a massive stockpile of shelf-stable apples which are sourced from both hemispheres.
As a matter of details, people aren’t really eating more or less, we’re just getting different foods through different channels, and the long & complicated supply chain takes a while to switch over. I just want to emphasize again that the supply chain is a real beast. Because of the nature of the beast, it has to have excess capacity, because it is just so damn inefficient.
> And as for farmed foods you can't just flip a switch when everyone is panic buying.
There’s enough slack in the supply chain to absorb panic buying, if you wait it out. Anecdotally, panic buying is drying up in NYC and we’re getting closer to steady state.
There's only so much over-buying the average household can do before the pantry is totally full. Give it another week or two and things will be much better.
A “grocery store” that you’d just call that is defined by a partnership with one or a number of domestic distributors.
There’s a different type of store (without a coherent name—it’s usually either “[country] import store” or “[culture] food market”) which is defined by a partnership with a specific import business (where that importer is in turn defined by their relationship to an export business in a specific country—though they may be re-exporting goods that were already imported there from elsewhere!) The supply chain for these companies is constrained by the logistics of international shipping, which means it’s more profitable to just specialize in one particular 1:1:1 logistical pipeline, rather than many.
The remote Alaskan grocery stores are really the latter type of store. They’re US import stores! (And a real “grocery store” in such a part of the would would just sell, like, seal meat. And maybe hydroponic hot-house vegetables, if they ever bother doing that.)
By air it was easy to arrange, it's there a day later, and can wait in their warehouse for up to three days free of charge. By land, it took a week and was difficult to arrange.
Especially when, depending on your demographic, you're probably visiting America either for college, tourism, or birth tourism. None of these three situations are things that could easily be outsourced to Europe or bulk produced somewhere cheaper because they are largely cultural products of America.
Domestic demand in China doesn't affect chartered flights that only fly internationally.
I know what I'm talking about, I run a logistics in SE Asia - check out my profile :)
I have also been shipping hundreds of thousands of masks for the last 6 weeks to Universities, Government agencies, and other businesses and have seen the capacity change since America realized this was serious.
You have probably seen these being loaded onto passenger planes at airports: https://en.wikipedia.org/wiki/Unit_load_device
This is the last serious terrorist incident I recall: https://en.wikipedia.org/wiki/2010_transatlantic_aircraft_bo...
And usually, shippers don't work directly with the cargo departments of airlines. There are forwarding companies in between, e.g. Flexport or Kühne & Nagel, or DHL freight or Schenker, or XPO,...
Wait...this can't be true. Do you have a citation for that, that would blow my mind!
https://www.joc.com/maritime-news/coronavirus-cost-china-por...
Could idled planes be re-tasked as medivac flights, to load balance hospitalization around the country and avoid locally overloaded resources?
But then I asked myself, that given how much pain and annoyances us regular (and healthy) passengers have to go through on perfectly ordinary flights, is it really feasible to be transporting sick and/or vulnerable individuals in planes? I'm imagining it's very non-trivial, and would require a lot of support (a lot of doctors), so might not even be a net gain...
I agree with your point though, we can safely make a difference to someone, but statically it doesn't show up as we dare not spare that many people lest a real local emergency happen.
Somewhere around 500 banks failed, with something in the neighborhood of half a billion dollars of assets.
Just certain banks were propped up because the powers that be decided it would have too big of an impact on things.
Too big to fail and all that.
Nationalize the failed company, keep it running for strategic purposes, and privatize it to new owners at a later date.
It wasn't for nationalization though, the treasury didn't vote with its stock while it had it (also it was bought back).
For example US Bancorp didn't partake in much if any of the crazy stuff, and was financially pretty fine, but it still got a bunch of tarp funds it didn't need.
It wasn't always a case of pointing or whatever, it was a giant broad effort to prop up many sectors of the economy.
But they lent to everyone, and every bank knew that every other bank was good. Which meant that they all did business with each other.
However the eye-popping sums were misleading since these were short term loans. In fact that USA officially made $15.3 billion in profit off of TARP. (Which was about breakeven if you consider inflation.)
There are also many sets of numbers going around. For example TARP originally was supposed to be $700 billion, but only $475 billion was authorized, we spent $426.4 billion and got $441.7 billion back. The $15.3 billion profit that we made is very close to break-even when you consider inflation.
They never did; real-world capitalism has always been crony capitalism, far longer than the mixed economy/welfare state has existed. Laissez-faire was a dishonest propaganda tactics for selling what was actually crony capitalism that was crafted after criticism of capitalism gained currency, not a thing that actually existed or was ascribed to be real governments.
Free market capitalosm but rather facilitate the corpate-crony welfare state.
Some of the remaining 747's will be flown to the boneyards a year or two ahead of schedule, never to make the transition to freight. This could be the end of them, with a few exceptions such Air Force One.
Then the current requirements related to 'panic buying' or disruption in supply chains are a bubble. Can't invest in something that is going to be over in three months.
These requirements related to the disease won't provide work for the whole industry. Particularly when the depression sets in and nobody has money to spend on plane flights even if they can fly anywhere.
From 2018 https://thepointsguy.com/news/how-airlines-make-big-bucks-fr...
Airlines don’t make money just from flying passengers: air cargo is a big business. It doesn’t fly just in dedicated freighter aircraft, but also in the belly holds of passenger flights. And right now it’s booming.
Also, the WSJ.com article seems to indicate American Airlines is the first in doing this in this covid-19 crisis, and that other airlines are following.
However I believe it was Korean Air that started to focus on shipping cargo on passenger airlines without having passengers onboard. This timeline makes sense as Korea was the first nation outside of China that had a big spike in covid-19 infections. S. Korea was one of the first nation that saw its citizens barred from entering other nations in this covid-19 crisis.
Maybe the next step is to turn the jumbo jets into flying drones. And improve on the fuel efficiency, and maybe switch to fuel cells powered by hydrogen or liquid ammonia instead.
https://www.youtube.com/watch?v=p_eP0zdfZFk
So, assuming you can get the load safely in to the plane, without some kind of containerization inside it you are running a significant risk. Note that the video shows a crash due to one or more Humvees not being properly secured and I'd expect shifting loads to be a bit nicer than that on average but still, that's a risk that need not be taken.
Cargo planes are cargo planes for a reason.
I still prefer the properly controlled and planned way, so.
True, but it would allow workers to use a dolly to easily and more efficiently load small pallets of larger items (compared to carrying them in by hand and trying to buckle them into a seat or something).
Maybe they could use also use the seat attachment points to somehow secure the cargo.
Presumably there’s no serious flight issue with planes being bottom heavy.
But it's good to see that planes are getting backin the sky for freight.We can use every single tonnage right now, especially for urgent stuff. Heck, I am looking for some capacity ex Shanghai right now that's not ruinously expensive.
EDIT: Typo
No, the FAA doesn't regulate seating layouts.
Weight and balance have to be met, and exit time is verified.
Since people are heavier today, and carrying unweighed baggage into the cabin, weight and balance are actually not being met.
They're blocking off the last 2 rows on the A320neo because of this: https://www.forbes.com/sites/heatherfarmbrough/2019/09/19/wh...
I'm a commercially-rated airplane pilot. I tolerate the pedantic HN comments, but please realize that I know what I'm talking about, and if you're not a pilot, you don't.
On the photos from the airport you can see Czech firefighters & the army making a human chain unloding lots of boxes from the passenger compartment & of course regular unit load devices from the planes cargo space.
https://www.b92.net/eng/news/business.php?yyyy=2020&mm=03&dd...
The Chinese generosity was excellent here, but at the same time it's disappointing that other European countries couldn't spare any real help for poorer countries nearby.
Maybe flying slower would be a way to make cargo flights more efficient but planes are pretty tuned to their cruising speed so maybe even that wouldn't have a big effect.
You also do not need to take off with max fuel weight-- and airliners these days rarely do, so that leaves more mass budget for cargo. For the past couple decades, airlines have been really focused on eliminating weight and using the efficiency increases this brings to reduce fuel weight, further increasing efficiency.
Across huge scales, this can have surprising effects. United figured they saved $300k/year of fuel by printing their in flight magazine on lighter paper.
Anyways, the main point: passengers and their luggage on a 737-sized craft might weigh 15,000 kilos. You might save 340 kilograms/hour by flying slower, too, so a 6 hour flight without passengers could move 17 tonnes more than it did with pax onboard, so long as you have space for what you're shipping.
You are right that the 747 program definitely considered both freight and passenger versions throughout their design process, but that was pretty much assured from the start given that the plane they designed had its roots in cargo.
I’d hold a little celebration of life party if I heard American was done and dead and over as an airline.
If shareholders like that are wiped out then maybe next time they won't punish companies for having a cash reserve!
I imagine quiet a few cargo B727, B757, A300s and even some B747F aircrafts sitting at Mojave.
No, that's not how it works. Air freight is containerized, so you need space that can take those containers, and converting a passenger plane into a freighter takes about three months.
No, that's not how it works. Airlines will hate to make the best out of a bad situation which means maximizing results while minimizing expenditure. If we're talking about (quote) "emergency medical supplies" (and not only) it will be done exactly as I described. Sturdy seat covers and airmail bags are actually a practice today for some companies.
And rules change in emergencies. Converting a GM, Tesla, or Ford factory to build ventilators would take fornever. And yet here we are with them volunteering to do it on short notice.
Re-use, reduce, repurpose, redirect. An axiom for the current situation.
1) They never were safe.
2) After being grounded for up to a year, it will take 2 weeks of maintenance each to make them airworthy after the repairs are done (wiring, FOD in fuel tanks, software and hardware updates for MCAS system.)