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Performance Metrics Used by Freight Transport Providers - page 26 / 35

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W. Cottrell

Cal Poly Pomona

Magellan, Enbridge Energy, and other companies also report standard financial measures to the SEC, including net income, earnings per unit, and EBITDA.

Aviation

An air cargo excellence survey is regularly conducted by

air freight operations.

carriers.

Airports are rated in four

The performance measures include:

areas:

Air Cargo World magazine, rating airports and performance, value, facilities, and regulatory

  • Amount of allied services (ground handling, trucking)

  • Dependability

  • Extent to which promises are fulfilled and contractual obligations are met

  • Promptness and courtesy of customer service

Although the other three areas are not labeled “performance,” aspects of performance are represented in all three. For example, value measures include competitiveness of rates, reasonableness of rates, and availability of value-added programs. Facilities measures refer to the size and adequacy of infrastructure, such as aprons, warehousing, accommodation of perishables, access to highways, and access to other modes of transport. Regulatory measures focus on the adequacy and integrity of customs, security, and a foreign trade zone. Airports are grouped into three categories: 1 million or more tons of freight annually, 500,000 to 999,999 tons, and less than 500,000 tons. Each airport is scored in each of the four areas by survey participants, each of whom rates the airport on a scale of one to five. The participants’ scores are summed and normalized (within each of the three airport groups), such that the average air cargo terminal has a value of 100. Thereby, airports with a score of greater than 100 are above average. Table 10 lists the above average airports. The Memphis, Tennessee and Seoul Incheon (South Korea) airports were the highest-rated in the one million and more tons of cargo category, with scores of 114; Osaka was highest in the 500,000 to 999,999 tons group, with Dallas-Ft. Worth the highest in the U.S. in this group; Nagoya was highest in the less than 500,000 tons group, with Houston Intercontinental the highest in the U.S. in this group. A total of 51 airports worldwide were “above average,” 17 of which were in the U.S.

The air cargo excellence survey also rates air carriers, in five areas: customer service, performance, value, and information technology. Each airline is scored in each of the five areas in a similar manner as the airports, as explained above. Areas of performance addressed in the survey include:

  • Accomplishment of scheduled transit times

  • Dependability

  • Extent to which promises are fulfilled and contractual obligations are met

Areas of customer service include expedience with which claims are handled, promptness and courtesy with which problems are solved, and professionalism and knowledge of sales force. Value measures are similar to those used to evaluate airports. Finally, information technology measures include the efficiency and capabilities of the air cargo carrier in tracking and tracing shipments, Internet ordering and processing, and electronic commerce. Air cargo carriers with a score of greater than 100 are above average. The world’s “top 50 airlines” in the 2008 survey are shown in Table A2, in the Appendix. Lufthansa was the world leader, with an overall score of 124, and top scores of 131 in information technology and 125 in customer service. Swiss WorldCargo led in the performance category, with a score of 124, while Emirates SkyCargo led in the value category, with a score of 119. The top U.S.-based air cargo carrier was FedEx, with an overall score of 115.

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