UIPA Board Meeting Highlights Air Cargo Leakage and Potential Solutions

Utah faces significant air cargo leakage, with 94% of qualifying air cargo repositioned outside the state for international departures, according to a 2023 cargo assessment. The assessment was presented during the Utah Inland Port Authority (UIPA) board meeting on September 5, where UIPA’s newly appointed Director of Air Freight Strategy & Development, Sebastian Abril, outlined the key issues and potential strategies to address them.

The report revealed that 91% of Utah’s imported air cargo arrives via adjacent states, with Los Angeles and Miami being primary hubs for goods that could otherwise be moved directly through Salt Lake City International Airport. Abril explained that most cargo produced in Utah is transported by truck to out-of-state airports, contributing to increased road congestion and environmental impact.

Abril highlighted three main factors necessary to improve logistics: infrastructure, capacity, and goods. He noted that Utah already has substantial air cargo  infrastructure in place, but there is a need to focus on attracting high-value cargo, particularly in the life sciences and medical equipment sectors. These industries, represented by companies like BioMerieux, Edwards Life Sciences, and Thermo Fisher, require time-sensitive, temperature-controlled air shipping solutions.

“We need to address temperature-controlled infrastructure to accommodate a range of air cargo needs,” Abril said, referencing gaps in the ability to handle certain temperature ranges. He pointed out that while some airlines can currently manage cargo at 2 to 25 degrees Celsius, there is a need to support the 15 to 25 degree range, which makes up a significant portion of the life sciences cargo produced in Utah.

Abril proposed increasing temperature-controlled capacity and creating better infrastructure to facilitate air cargo shipments directly from Utah, reducing reliance on out-of-state facilities. He also mentioned that expanding into Latin American markets, such as Costa Rica, could be a future opportunity for Utah’s air cargo sector.

The board also discussed the utilization of existing capacity at Salt Lake International Airport. Currently, only 6% of available belly cargo space on departing passenger flights is being used. Abril and other board members emphasized the importance of addressing this underutilization to improve economic and logistical efficiency within the state.

Further updates on Utah’s air cargo strategy are expected in future board meetings.

Author: Kaitlin Felsted
Date: September 11, 2024