Intermodal Competition: Cargo Airships versus Long-Haul Trucking for Perishable Commodities

Abstract

Intermodal competition changes with changes in technology, economics, and environmental concerns. Trucks and airships are generally considered not to be competitors, but this depends on the distance of haul. The tonne-kilometer cost of trucking rises much more quickly with distance than it does the cost of a cargo airship. At some distance, the two modes are direct substitutes. The costs of the Mexico-Canada refrigerated truck supply chain are compared with the costs of a 100t-lift, electrically-powered airship. The flight characteristics of the Hindenburg Zeppelin are used as a model for a modern cargo airship. The supply chain cost of trucking tomatoes is used to test the theorical proposition. The cost difference works out to about US10￠/kg (5￠/lb) advantage for trucking Mexican tomatoes to Canada. However, this cost disadvantage of the airship could be made up by their vibrationless ride, better air circulation and one-day service versus four days by truck. This alternative form of transportation could have a positive impact on worldwide north-south distribution of food. Airships can overcome trade barriers and distance to open new markets for perishable food exports. In addition, they would reduce the carbon emissions of transport. Canada imports 160,000 refrigerated truckloads of fruits and vegetables by from the southern US and Mexico. With an average driving distance of 3,000 km, these trucks emit 606,000 MT of CO 2 annually. Airships powered by hydrogen fuel cells would have zero-carbon emissions. Markets are not yet incorporating the environmental advantage of airships in any freight comparison, but inevitably this will be important.