In the latest episode of Talking Trade, Crow Holdings Industrial Vice President Jack Rabenn says a new air cargo facility set to open in Milwaukee will provide an alternative to the delays and congestion importers and exporters currently face in Chicago.
Rabenn spoke with Talking Trade host Sandi Siegel about the new supply chain center set to open in the third quarter of next year at Milwaukee International Airport. He said under the current system, freight is trucked between Wisconsin and O’Hare International Airport in Chicago. He said that “doesn’t make sense.”
“There’s an understanding among the shipping community in Wisconsin of … it does not make sense operationally for stuff to be trucked down in Chicago, then back up to Wisconsin,” Rabenn said. “There’s a lot of uncertainty with the congestion of O’Hare. So when their goods fly in, and they might be stuck for days sometimes before they can get back up to Wisconsin, or on the way out, get stuck at the building because of their ground stops, what have you.”
He also said using the Milwaukee facility would be about 60% cheaper for importers and exporters than O’Hare.
Rabenn said there has been a lot of excitement about the new facility, and he’s working on turning that into action by addressing any perceived risks. He said he understands no one will lose their job sending goods through O’Hare, even if it’s inefficient and costs more.
“So we’re working to reduce that perceived risk to make sure we get a first mover,” Rabenn said. “Because the first question I always get from a carrier or even a forwarder that doesn’t know the area is, ‘Well, who’s currently flying in there?’ And that’s inherently the wrong question, because there’s no facilities for them to fly into, and that’s why there’s the opportunity.”
Rabenn said part of tackling the issue will involve working with state lawmakers to create incentives, such as reducing landing fees or offering fuel tax subsidies, working with freight forwarding groups to demonstrate the benefits, and engaging with shipping companies.
“Because ultimately, if enough of them agree, making some type of commitment to a carrier on loads as a whole is a lot less risk than one of them sticking their neck out. So that’s where we’re at right now,” Rabenn said.
Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel.
