Abstract
In this paper we propose, to the best of our knowledge, the first analysis of the global networks of integrators FedEx, UPS, and DHL using network science. While noticing that all three networks rely on a “hub-and-spoke” structure, the network configuration of DHL leans towards a multi-“hub-and-spoke” structure that reflects the different business strategy of the integrator. We also analyzed the robustness of the networks, identified the most critical airports per integrator, and assessed that the network of DHL is the most robust according to our definition of robustness. Finally, given the unprecedented historical time that the airline industry is facing at the moment of writing, we provided some insights into how the COVID-19 pandemic affected the global capacity of integrators and other cargo airlines. Our results suggest that full-cargo airlines and, much more dramatically, combination airlines were impacted by the pandemic. On the other hand, apart from fluctuations in offered capacity due to travel bans that were quickly recovered thanks to the resilience of their networks, integrators seem to have escaped the early months of the pandemic unscathed.
Highlights
Air cargo transportation plays a role of paramount importance in the global economy, especially when time and safety are crucial factors
We provided a thorough analysis of the network structure of integrators FedEx, UPS, and DHL, using historical data from public sources and estimated cargo weight capacity between airports to model each network
Our results show that FedEx owns the most developed network in terms of overall capacity, but DHL is more developed in terms of air ports and connections
Summary
Air cargo transportation plays a role of paramount importance in the global economy, especially when time and safety are crucial factors. While roughly 1% of the overall cargo volume worldwide is transported via air, the percentage spikes to 35% if value is used as a measure (IATA website, 2020). The first option offers more flexibility in terms of frequencies and destinations, but a limited cargo capacity per aircraft. This cargo ca pacity can suffer from unexpected variations, because it depends on how much luggage passengers check in for a specific flight (Morrell and Klein, 2018; Delgado et al, 2020). Dif ferently from (i) and (ii), that only offer air transport services between airports and rely on freight forwarders and ground handlers for the landside logistics, integrators offer a door-to-door service to customers
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