ULD Pooling: Airline efficiency tool could help curb emissions

Estimates suggest that there are more than 900,000 unit load devices in service across the globe. Two-thirds of these ULDs are owned and managed internally by an airline, while the remaining third are managed by a third-party service; this outsourcing generally is referred to as “ULD pooling.” ULD pooling was an idea originally dreamed up by the team at Swiss WorldCargo. There are now two main players dominating the market: Unilode (formerly CHEP) and Jettainer. ULD pooling service providers generally offer two service levels: Asset sharing, where ULDs are branded with the owner’s logos, and assets are shared openly across multiple airlines; and A hybrid model, where the ULD service provider manages the assets, but they are only used by and generally branded by one airline. ULDs are essential to the success of cargo operators. Without an abundant supply of containers, pallets, cargo nets and straps, an airline cannot meet the demands of its customers. ULD pooling has a direct impact on an airline’s operating cost, leads to a better customer experience and helps to reduce emissions. Advantages for carriers The main advantages of ULD pooling are that it relieves the airline of managing the supply of containers or pallets and offers cost savings. Airlines enrolled in a ULD pooling program can rely on an abundant supply of ULDs across their networks when needed. With multiple airlines carrying ULDs, it decreases the need to carry empty ULDs. However, many contracts still require airlines to carry empty ULDs in certain circumstances. Pooling companies use software to forecast demand and plan required movements. ULD pooling also opens the option for airlines to utilize specialized ULDs that they may not need regularly, and for which they would not be able to justify making the expenditure. There also are accounting benefits from the elimination of capital investments in ULDs. For upstart airlines, this can help ease barriers to entry. Thomas Sonntag, managing director at Jettainer, estimates “airlines’ cost reductions, especially for small- and mid-sized carriers, amount to around 20% compared to their expenses when managing pallets and containers themselves. Even legacy carriers such as Emirates, Qatar or United are able to drop their costs by 10% to 20%. ” ULDs are designed to protect the contents inside, and as a result there is significant wear and tear. Third-party programs take on the responsibility of maintaining their ULDs and generally have extensive networks of repair facilities that extend beyond anything that could be established by a single airline. But if the cost savings and overall benefits are true, why don’t all airlines participate? Many airlines are happy with their current state and may feel that ULD pooling will create a large workload in the short term to transition from an in-house model to an outsourced one. Also, in some regions of the world, outsourcing is viewed in a negative light, as a loss of control. Another figure that airlines consider is the ULD loss rate — how many goes missing. ULD Care estimates that for some airlines, this can be as high as 7% . Mitigating loss Ensuring that each ULD is returned can be a logistical headache. How does a ULD simply disappear? One likely scenario is when airlines operate charters to remote, one-off locations and ULDs get left behind. When an aircraft arrives at its destination, it is not uncommon for ULDs to be transferred to a customer’s warehouse. Another contributor to the 7% loss rate may be straps and netting. Walk through any air cargo warehouse and you are likely to see a bin or a pile of lost and forgotten nets, straps and other supplies in a corner somewhere. There is also a darker side to this loss rate: Intentional theft has historically plagued the industry. However, with increased regulations surrounding ULDs, we have seen a decrease in theft in the past few years. The introduction of next-generation tracking has likely also helped combat loss. In 2018, Unilode, Cathay Pacific and OnAsset concluded the testing of Bluetooth low-energy (BLE) beacons with great success . These beacons differ from regular Bluetooth devices in several ways. While standard Bluetooth devices must be charged regularly, a BLE beacon will last years on a single charge. The beacons can transmit up to 80-100 meters; therefore, small receivers can be placed at strategic locations in warehouses to capture the movements of ULDs without the need for manual scanning and additional manpower. The location of a ULD and, more importantly, the shipment inside, can be transmitted to customers. An industry concern with these types of technology has always been radio interference inflight. Through extensive testing, BLE technology has been proven to be compliant with Section 10 of FAA Advisory Circular 91.21D (Use of Portable Electronic Devices Aboard Aircraft). Pooling to meet emissions targets Skypooling, Jettainer’s sharing platform, estimates that there are upward of 10 million empty ULD movements per yea r. Non-revenue movements equate to approximately 1 million tonnes of CO2 generated per year.Based on its current operations, the platform estimates it has the potential to save up to 100,000 tonnes of CO2 per year — but, if properly scaled, this number could swell to up to half a million tonnes per year across the industry. With an ever-growing focus on the environmental impacts of the air cargo industry and air travel, ULD pooling is a relatively cost-effective solution that airlines could implement immediately meet emissions targets. Will regulators step in to make pooling a requirement? Only time will tell.

ULD Pooling: Airline efficiency tool could help curb emissions

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