Data Shows Rising Volumes, But Challenges Remain
According to Chicago Department of Aviation data cited by the Wall Street Journal, June air cargo shipments were up 7.1% from June 2014. Department of Transportation data shows a 5.6% increase in air cargo since January 2015 across the US. However, O’Hare has seen a 20% jump in volume in the first half of the year. The boost is said to be due to shipping issues at West Coast ports in Long Beach and Los Angeles, the Journal reports. However, as West Coast port flows improve, some businesses are choosing to continue shipments through O’Hare instead. The increased air shipment traffic has brought revenue to the airport, but there have been challenges as well. For example, road construction near O’Hare is hampering transport of shipments in and out of the airport, storage facilities at the site are now too small, and wait times to hire contractors to move shipments at the airport are increasing. Additionally, three sides of the airport itself are hampered by construction as the airport undergoes an expansion, leading to hours-long delays for truck drivers, the Journal notes. This is leading to costs for businesses. Forward Air regional vice president of operations Justin Lindsay noted, “It takes six weeks from when you sit with someone to when they start training. It takes minutes for them to get frustrated and walk out the door.”
What This Means For Small Businesses
Getting goods to customers around the world in the most efficient, cost-effective way is hugely important for the large number of small businesses involved in import/export operations. News that Chicago’s O’Hare airport is seeing increased shipping volume is positive for Chicago-area small businesses, who now have a local, potentially more cost-effective option for shipping and receiving goods. However, logistical issues in getting goods to and from the airport suggest O’Hare will need to work on its accessibility before small businesses can take full advantage of it as a preferred shipping site.
Additional Reading
NFIB recently noted a rebound in shipping traffic at West Coast ports.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
