Surface Versus Air Transportation Analysis (Automatic Downgrade Endeavor for the U.S. Navy, Air Force, and Marine Corps)

Abstract : This is an analysis of the Defense Logistics Agency (DLA) automatic downgrade endeavor. Under this program, the United States Navy, Air Force, and Marine Corps have permitted DLA to automatically downgrade issue priority group/ transportation priority I and II (IPG/TP I and II) shipments from air to surface transportation modes during a 1-year test period. This project evaluates the initial 6 months of the program for each service. The analysis determined the total number of IPG/TP I and II shipment downgrades for each service during the test period, the related processing and transit times for those shipments, the actual surface transportation costs of those shipments, and the associated transportation costs via an air freight carrier. These figures and the calculated cost differential between surface and air modes, which amounted to approximately $16.4 million a year for these services at existing levels of traffic and current rates, will be used to determine the feasibility of continuing the program. It is recommended that DLA continue with the automatic downgrade endeavor and monitor system performance to determine if the dollar cost savings versus increased shipment times is cost effective in the future. Keywords: Land transportation, Air transportation, Traffic, Cost effectiveness, Surface to air, Military transportation.