Thursday, December 30, 2010

Hauliers irked by gate charge

BUTTERWORTH: The Association of Malaysian Hauliers (AMH) has urged the Transport Ministry to intervene on the move by the Malaysia Container Depot Association (MCDA) to impose a RM5 fee for every container that is returned to or taken from their depots.
AMH northern region chairman R. Amaiappan said MCDA had notified the association via email that it would imposed the fee starting Jan 2. All 30 AMH members had protested. “We are only transport agents who collect containers from the depot as ordered by the shipping agents and the charge should be imposed on the shipping agents,” he said.
Source: BizStar

Friday, December 24, 2010

Westports seals long-term deal with China Shipping

China Shipping Container Lines Co Ltd (CSCL) would continue to make Westports Malaysia in Port Klang its mega trans-shipment hub in Southeast Asia.
This was following the signing of a long-term Terminal Service Agreement between Westports and CSCL in Shanghai on December 7.

"CSCL will be deploying 14,000 20-ft equivalent units (TEUs) vessels from first-quarter next year as our 17m natural deep sea port is their preferred port of call.

"We have been constantly improving the productivity rate on their vessels. Our skilful workforce and state-of-the-art port facilities are ready to handle these growing sizes of container vessels, Westports chief executive officer Ruben Gnanalingam said in a statement yesterday.

CSCL, a division of China Shipping Group, is currently the second largest customer at Westports, after French Liner, CMA CGM.
Westports is expected to handle some 600,000 TEUs for CSCL this year, including the group's Feeder Liner - Puhai Shipping, Westports said.

"Westports had given excellent service and we are confident of growing further in the next decade," deputy managing director of CSCL Zhau Hongzhou said.

Zhau also expressed happiness with the agreement saying it reflected the strong bond of friendship and growing trade volume between both Malaysia and China.

Westports staff proved that productivity is the core objective of business by setting yet another benchmark for a China Shipping vessel in March this year.

They hit a crane productivity of 734 moves in a single hour of operations with nine-crane deployment. This feat was performed while working on CSCL Pusan, a 9,600 TEUs vessel.

Source: Business Times.

Thursday, December 23, 2010

Syed Mokhtar gets Penang Port

Losses from the ferry service have hamstrung PPSB’s efforts to be publicly listed. — Reuters pic
KUALA LUMPUR, Dec 24 — Tycoon Tan Sri Syed Mokhtar Al-Bukhary has won the race to take over the Ministry of Finance’s (MoF) Penang Port Sdn Bhd (PPSB), adding the northern port operator to his maritime logistics operations.
The Malaysian Insider understands that the Cabinet approved the sale at its meeting this week despite competitive bids from other top businessmen and also the Penang government, which owns the port land.
“The Cabinet has decided in favour of Syed Mokhtar,” a source told The Malaysian Insider, saying the tycoon’s company will buy into the port operator and the ferry service between Penang and Butterworth.
It is not known what price the government had agreed on but sources said it will be finalised soon.
Syed Mokhtar also owns PTP and Johor Port.
The influential businessman already owns Port of Tanjung Pelepas and Johor Port via MMC Corp Bhd, whose joint venture with Gamuda Bhd were also named Project Delivery Partner (PDP) for the RM36 billion Mass Rapid Transit (MRT) project in Kuala Lumpur.
Sources said Syed Mokhtar was the preferred contender as he already owned ports and airports although another Putrajaya-friendly tycoon Datuk Siew Ka Wei was keen to purchase PPSB through Ancom Logistics Bhd, whose chairman Datuk Abdul Latif Abdullah used to be PPSB chairman.
PPSB is a wholly-owned subsidiary of MoF Inc while the regulator, Penang Port Commission (PPC), also reports to Putrajaya through the Transport Ministry. Prime Minister Datuk Seri Najib Razak recently named MCA president Datuk Seri Dr Chua Soi Lek to head the PPC.
Penang Chief Minister Lim Guan Eng wrote to Najib in early December to put in a bid to run the port, which has declined since the MoF took over in 1994. The port lost its free port status in 1974.
It is learnt that cargo volumes have failed to match Port Klang and Tanjung Pelepas, growing only 5.8 per cent a year between 1995 and 2009, against Klang which grew 14.2 per cent annually.
Syed Mokhtar’s Tanjung Pelepas port began in 1999 but now handles more than six million TEUs (twenty-foot equivalent units) a year, six times more than the one million TEUs in Penang.
Penang has complained that federal ownership of the port operator has worsened its financial position, with net debt rising from RM148 million in 2004 to RM832 million in 2009 — a 462 per cent increase in five years.
Apart from the debt, any company taking over PPSB will also have to find nearly RM400 million to dredge the port channel and attract larger vessels there.
PPSB is already carrying out dredging in the North Channel to ensure it goes from 11.5m to between 13.5m and 14.5m in the coming year.
Lim’s administration had sought to take over PPSB.
PPSB has been planning to privatise and float its shares on Bursa Malaysia since 1996, but it was not able to do so because of the loss-making ferry service. A plan to hive off the ferry operation to Syarikat Prasarana Negara Bhd last year also fell through at the last minute.
The ferry service has been a major hindrance to state-owned PPSB’s listing plans in the past due to the losses incurred, running into some RM13 million to RM15 million a year.
PPSB made RM77.74 million in after-tax profit in 2009, up from RM22.70 million the previous year despite revenues falling to RM268.54 million in 2009 against RM277.04 million in 2008.
State government sources said Lim could bring in enough businessmen and experts to run PPSB, which needed funds to deepen the port’s channel and also modernise its wharfs and berths.
“Lim has a few ideas to turn around the port and make it perform better,” a source said, pointing out that Penang owns the port’s land and waters and would have a say over who eventually owns PPSB.
Lim’s DAP colleagues had told Parliament on November 24 that Putrajaya should come clean on whether Syed Mokhtar had bought into the management of PPSB, which is led by Penang Umno leaders such as PPSB chairman Datuk Seri Dr Hilmi Yahya and its managing director, Datuk Ahmad Ibnuhajar.
A unit of Syed Mokhtar’s diverse infrastructure and logistics conglomerate was awarded a 4G network provider licence recently while another subsidiary is interested in acquiring the North-South Expressway (NSE).

Friday, December 17, 2010

Tight capacity seen in container sector ahead

The container shipping industry is expected to experience tight capacity next year due to limited access to new capital or bank financing for ship building coupled with tight supply of new containers, said United Arab Shipping Co (UASC) Malaysia Sdn Bhd country general manager Desmond Yong.
“Trade volume is also expected to continue to grow in line with this year’s trend indicating a possibility of a global container trade reaching 11.1% growth or a total of 138 million twenty-foot equivalent units (TEU).
Desmond Yong ... ‘Security, environment and oil price will have major effects on the business.’
“Although various regional trade sectors may see differing demand as well as supply trend – vessel lay-ups, extreme slow steaming, service or capacity diversions will continue to be the options for lines to strike a balance in revenue.
“Looking ahead, three major factors will have major effects on the business, namely security, environment and oil price, which will require sector players to adjust their business process to a new mode of operation,” Yong told StarBiz.
In general this year, Yong said the trend of global demand was exceeding boxship supply due to cancellation of ship deliveries and the high demolition rate earlier this year.
As for Malaysia, Yong indicated that there were a number of positive developments which had materialised this year, with some shipping lines and manufacturing base making Port Klang their hub.
“The challenges ahead for next year is really on how Malaysia can focus on seizing this golden opportunity by enhancing and strengthening Port Klang, making it truly a convenient and business friendly hub for the shipping lines and manufacturers.
Yong said there were a number of areas that the country needed to benchmark against neighbouring countries in order to increase local efficiencies.
“As for shipping lines sustaining their hub at Port Klang, areas we do need to watch out for are some untimely and outdated practices and policies within the industry, which do not make it any easier for shipping lines to conduct their business.
“And there is indeed an urgent need by various authorities and sector players to jointly make the necessary improvements,” he said.
Meanwhile, Wilhelmsen Ships Service managing director Winston W.F. Loo foresaw a pickup in demand in the near term (next month) running up to the Chinese New Year festival, before it tapers off.
This year, Loo said it had been a decent year for container operators despite rates being “softer” compared to 2009.
“Rates for both the main East-West trades have remained fairly decent supported by shortage of containers as well as shortage of spaces in the early part of the year.
“Rates were as high as US$2,000 per TEU to European main ports during the first quarter.
“Unfortunately, the rates continued to slip from thereon by an average of US$200 per TEU per quarter.
“Present rates out from Malaysia hovers around US$1,300 – US$1,400 per TEU,” he said.
Going forth, Loo said many carriers had announced general rate increase (GRI) to be implemented with effect from Jan 1, with average increase of between US$250 and US$300 per TEU.
On the other East-West trade of Asia-US-Asia, Loo said it started off the year poorly, averaging US$1,800 (West Coast) and US$2,900 (East Coast), but gained strength during the second quarter.
“Implementation of the peak season surcharge of US$600 per forty-foot equivalent units (FEU) for West Coast and US$800 per feu (East Coast) in June were very successful.
“This success prompted the shipping lines to further implement a GRI averaging US$600 per feu (West Coast) and US$800 per FEU (East Coast) from July 1.
“Unfortunately, some could only hold for two weeks before mitigation starts creeping in due to both supply and demand pressures. After that, rates continued to decline.
Presently, Loo said the rates out of Malaysia hover around US$1,900 to US$2,000 per FEU (West Coast) and US$2,900 – US$3,000 per FEU (East Coast).
“In the near term, we foresee that volume to the United States out of Malaysia will remained stagnant, thus rates will remain under pressure going into next year,” he said.
Source: BizStar

Sunday, December 12, 2010

Tight capacity seen in container sector ahead

The container shipping industry is expected to experience tight capacity next year due to limited access to new capital or bank financing for ship building coupled with tight supply of new containers, said United Arab Shipping Co (UASC) Malaysia Sdn Bhd country general manager Desmond Yong.
“Trade volume is also expected to continue to grow in line with this year’s trend indicating a possibility of a global container trade reaching 11.1% growth or a total of 138 million twenty-foot equivalent units (TEU).
Desmond Yong ... ‘Security, environment and oil price will have major effects on the business.’
“Although various regional trade sectors may see differing demand as well as supply trend – vessel lay-ups, extreme slow steaming, service or capacity diversions will continue to be the options for lines to strike a balance in revenue.
“Looking ahead, three major factors will have major effects on the business, namely security, environment and oil price, which will require sector players to adjust their business process to a new mode of operation,” Yong told StarBiz.
In general this year, Yong said the trend of global demand was exceeding boxship supply due to cancellation of ship deliveries and the high demolition rate earlier this year.
As for Malaysia, Yong indicated that there were a number of positive developments which had materialised this year, with some shipping lines and manufacturing base making Port Klang their hub.

Sunday, December 5, 2010

Tamadam to divest unit?

Logistics and in-flight catering services provider Tamadam Bonded Warehouse Bhd is said to be contemplating spinning off its loss-making warehousing business and selling it to Amanah Raya Bhd.

However, when contacted by The Edge Financial Daily recently, managing director Eric Cheam declined to comment, saying that only once the board of directors was aware of any corporate exercise would it make an announcement as required by Bursa Malaysia’s guidelines.

Rumours are also circulating that the company is considering privatising its profitable food business, although management again declined to comment.

Tg Langsat Port revamp on the cards

The former executive director of Johor Port, Abdul Khalid Khan Lal Khan, is set to lead a revamp of Tanjung Langsat Port (TLP), which will include the set-up of a free trade zone.

According to sources, Abdul Khalid will take over the running of TLP to make it a full-fledged container port that will tap the demand in Pasir Gudang.

Sunday, November 28, 2010

Dry-bulk shipping outlook still fragile

The outlook for dry-bulk shipping remains fragile as new deliveries of vessels are expected to flood the industry next year.
ABC News reported recently the global fleet of dry-bulk carriers was expected to outpace economic demand in 2011. It said this was the result of an industry buying spree two years ago before the financial crisis severely slashed sea trade.
The Baltic Dry Index (BDI), the barometer of commodity shipping, reached an historical high of 11,793 points on May 20, 2008 but six months later – on Dec 5 – it fell 94% to 663 points.
Year to date, the performance of the BDI has been satisfactory, averaging 2,823 points. It hit a high of 4,209 points on May 26 and a low of 1,700 on July 15. On Friday, the BDI was at 2,200 points.
According to a Bloomberg report, Capesize vessels, the largest of commodity ships, would drive the overall fleet expansion, estimated at 21%, while on average the global dry fleet is forecast to grow 15% this year, which might pull down the index.
Unless shipowners delay some of their new deliveries next year, the market outlook is seen uncertain.
Locally, the country’s largest dry-bulk shipping company, Malaysian Bulk Carriers Bhd (Maybulk), recently reported positive results for its third quarter ended Sept 30.

Sunday, November 14, 2010

Shippers add surcharge at Johor Port

JOHOR BARU: Several shipping companies have this month started imposing surcharge on manufacturers using Johor Port to export their finished products due to severe congestion at the port.
Johor Port Shipping and Forwarding Association secretary Michael Cheah said shipping companies had no choice but to impose the surcharge because of the unsolved delays at the port.
He said most shipping companies would start imposing the surcharge on users if congestion at a port was beyond control and it was up to individual companies whether to impose the surcharge or not.
Inefficiency is said to be one of the main reasons that contributed to the congestion at Johor Port.
Cheah said the surcharge was to recover or mitigate tremendous losses suffered by vessel operators in running costs for chartered hired, bunker burn and misconnections to mother vessels.

Tuesday, November 9, 2010

How logistics players can help to meet NEM targets

They have to re-orientate the way they think of business, ops and processes
MALAYSIA is at a crossroad. It has done well to boost economic growth, thanks to sound economic strategies and management.
From being a developing nation dependent upon commodities and agriculture to power its economic growth, Malaysia is now one of the top 20 trading nations. However, it has fallen into ‘middle income trap’.
The economy, while more diversified today compared with three decades ago, is still reliant upon labour-intensive activities.
Malaysia’s vulnerability to external shocks, as seen during the recent global recession, underscores the urgent needs for the economic transformation to be more robust by climbing up the value chain.
Maritime players must boost efficiency in the production of goods and the provision of services.
The New Economic Model (NEM) provides the compass with which Malaysia can refer to in deciding which way to go from this crossroads.

Wednesday, November 3, 2010

Penang Port aims to handle more cargo

Penang Port Sdn Bhd aims to double the volume of cargo handled from the one million 20-foot equivalent units (TEUs) it looks on course to achieve this year.

Managing director Datuk Ahmad Ibnihajar said the company was in the process of formulating a new five-year plan.

Speaking after handing out excellent service and long service awards to 59 employees in Penang last week, Ahmad said the port handled 958,476 TEUs last year and was confident of reaching one million TEUs this year.

On another development, he said that works to deepen the North Channel to 14.5 metres, from 11 metres, was expected to begin next year.

"The deepening needs to be done to accommodate demand that will arise from the Northern Corridor Economic Region (NCER) initiatives.

"A deeper channel will enable goods from Kedah and Perlis to be brought here to Penang and then transported out," Ahmad said, adding that the deepening was likely to take more than a year.

It was reported last month that Penang Port had hoped that the federal government would speed up the channelling of funds for the project, as announced under the 10th Malaysia Plan.

Thursday, October 28, 2010

PKA unveils guidelines to resolve issues in Port Klang

Port Klang Authority (PKA) has taken the initiative to resolve disputes pertaining to deposit collection by shipping lines, non-vessel operating common carrier (NVOCCs) and box operators in the port community.

This is in line with its vision to develop Port Klang as a preferred logistics hub

According to a PKA statement last week, importers and forwarding agents had frequently raised the issue of deposit collection by shipping lines, NVOCCs and box operators to recover post-delivery charges for detention, container repair and washing.

Both importers and forwarding agents have held that deposit collection is considered an unhealthy practice and has frequently led to disputes between various parties.

In view of this, PKA had recommended best practices/guidelines to create a level playing field for all the logistics players in Port Klang. PKA’s best practices/ guidelines were also adopted during the port consultative committee meeting which was held on Oct 5.

All parties were requested to extend their fullest cooperation in facilitating cargo transactions to minimise any inconvenience to parties involved, the port said.

“Shipping lines are encouraged to carry out proper assessment of their customers to avoid deposit collection for deserving cases,” it added.

Noting that there may be instances where shipping lines, box operators and NVOCCs may require assurance against anticipated loses, PKA’s guidelines were recommended to resolve possible issues that may arise. In principle, shipping lines, box operators and NVOCCs may collect a deposit from the consignee if they have previously defaulted on a payment due or failed to settle due payments or the consignee has no prior transactions with them.

The guidelines would also help industry players resolve disputes on container damages as they outlined the modus operandi for the container delivery system, PKA said.

PKA said it believed that commitment from every party in the logistics chain was vital and essential to improve the efficiency of the delivery system.

Source: StarBiz

Saturday, October 23, 2010

The World's Busiest Ports

HONG KONG -- The global shipping industry is beginning to show signs of returning to profitability after suffering through one of its worst years ever in 2009. Falling exports and a glut of too many ships ordered during the boom years drove prices down to unsustainable levels on some routes, but the outlook is now improving for both the ports and the shipping companies.

Container traffic provides a window on trade patterns and the state of the global economy because it is the most closely tied to consumer demand. Six of the world's 10 busiest ports are located in China, when measured in terms of cargo shipped in standard containers, or TEUs (20-foot equivalent units).

In fact, Asia's exporting prowess is so dominant that Dubai and Rotterdam are the only two ports from outside the region to even make the list.

Since container shipping accounts for 52% of the total value of the world's seaborne trade, according to Lloyd's Maritime Intelligence Unit, Forbes used it to rank the world's busiest ports. Tankers make up 22%, general cargo 20% and dry-bulk commodities 6%.

China's exports returned to growth late last year after recording 13 months of declines during the financial crisis. The country's exports rose to $119.9 billion in April, a jump of 30.5% from a year earlier, while its imports surged 49.7% to 118.2 billion.

China Merchants Holdings, the country's largest publicly traded container port operator, said volumes this year may exceed 2008's level, according to a recent Bloomberg report. China Merchant's container throughput increased over 20% in the first four months of the year.

Macquarie selected China Merchants as its top pick of the China port sector with an "outperform" rating and raised its price target to 31 Hong Kong dollars ($4) from 21 Hong Kong dollars ($2.70). The Australian bank expects the recovery in exports to continue in 2010 supported by resilient North American and Intra-Asian volume.

China's resurgent economy and renewed demand for commodities is also benefiting its Asian neighbors. The Baltic Dry Index, which measures shipping rates for commodities, has jumped 40% for the year so far, 22% in May alone.

The improvement in shipping rates is helping to bolster shares of Japan's biggest dry-bulk shipper Mitsui O.S.K. Lines, which have surged 32% this year, while its rivals Nippon Yusen KK and Kawasaki Kisen Keisha are up 15% and 40%, respectively. All three of Japan's biggest shippers are forecasting a jump in profits this year based on the strength of the country's export-led recovery.

Growing demand from China and other Asian economies helped to boost Japan's exports for the past five months, but shipments to Europe have already begun to slow. If the euro-zone's sovereign debt troubles continue to worsen and spillover to the wider financial system, then China's shipping outlook may shift again.

China's shipping companies have been singled out as the sector most exposed to the E.U.'s uncertainty. Credit Suisse estimates that 35% of China COSCO's revenue and 32% ofChina Shipping Container Lines' comes from the Asia-Europe route, while earnings from European trade for the country's port operators varies between 7.3% to 34.1%.

Source: Forbes

Below is the Forbes list of the busiest ports in the world. Ranking is from first downwards:


Shanghai, China

Hong Kong

Shenzhen, China

Busan, South Korea

Guangzhou, China

Dubai, UAE

Ningbo, China

Qingdao, China

Rotterdam, Netherlands

Monday, October 18, 2010

Oversupply of ships to be resolved

THE oversupply of ships in the maritime industry is expected to be resolved within two years as economic recovery boosts global trading activities, Deputy Transport Minister Datuk Abdul Rahim Bakri said.

He said that shipping companies worldwide had suffered severe losses over the last two years, with many in financial ruins as markets plummeted. More than a thousand ships were left idle or mothballed in numbers never seen in the history of shipping.

"Shipping companies in Asia suffered heavily, and I am painfully aware that some in Malaysia were hit just as bad.

"Mercifully, the industry has found its footing again. Based on the trends and signs I am seeing, I'm optimistic that the issues with oversupply (of ships) will be resolved within two years."

Abdul Rahim said that 95 per cent of global trade relied on shipping currently. Hence, as the economies in Asia continue to grow, demand for shipping services will increase, as will also demand for ports and logistic services.

Abdul Rahim was speaking to reporters after opening the 6th Asia Maritime & Logistics Conference and Exhibition 2010 in Kuala Lumpur yesterday.

He said Asia was expected to lead the way in recovery of the world shipping industry. Some of the biggest lines are Asian-owned, or, if foreign-owned, operating extensively in the Asian market.

The world's leading shipbuilders, such as South Korea, China and Japan, are in Asia. Seven out of the 10 leading ports in the world are also in the region.

"Six of the most connected liner ports in the world are in Asia," Abdul Rahim added.

He said the shipping industry was proposing that the government offers some funding support for the industry to help the shipowners recover and take advantage of the economic rebound.

"However, I am not sure if any goodies will be given to the shipping industry. The decision will be made after the assessments by the economic council," he said.

Meanwhile, Malaysian Shipowners' Association chairman Nordin Mat Yusoff, in his opening address, said that the new focus was expected to shift towards keeping the seas and environment clean.

"There is expected to be new pressure on shipowners over maritime carbon emission with the recent progress made by the International Maritime Organisation in developing measures to improve the energy efficiency of ships, in order to reduce greenhouse gas emission from international shipping," he said.

Nordin added that the shipping industry, which accounts for 2.7 per cent of total carbon emission, might have to look at steaming slowly to address the emission problem, especially since it has been estimated that a four-knot reduction in sailing speed could reduce daily emissions by nearly 40 per cent.

Sunday, October 10, 2010

Only handful opt for third-party logistics

KUALA LUMPUR: Malaysia’s manufacturing sector is still in transition to fully realise the advantages of outsourcing their logistics activities.

This outsourcing effort, known as third-party logistics (3PL) services, usually involves integrated warehousing and transport services being customised to meet customer’s needs based on their markets, demands and delivery requirements.

According to Dynamic Learning Resources trainer consultant G. Vizayer Raj, only a handful of Malaysian companies have fully outsourced their logistics activities.

“For manufacturers, the long-term benefits of using 3PL services include reduction in warehousing and distribution cost as well as enhanced focus on core activities such as quality control, production and marketing.

“In the long run, the cost of transportation, distribution and inventory management could be reduced by more than half if the company opts for 3PL services,” he told StarBiz.

“At the end of the day, manufacturers could produce good quality and competitively priced products that could reach their target markets on time.”

Vizayer recently presented a paper on Creating Global Value Through Efficient Trade Logistics at the 2nd National Logistics Conference organised by The Exporter Club.

He said the lack of awareness on 3PL services in Malaysia could be due to the perception towards logistics services here.

“Around 20 years ago, we were largely dependent on Singapore in terms of logistics. Our logistics services then did not bring the desired result, but the sector has since evolved.

“Many international logistics companies have set up their hubs in Malaysia and they include DHL, Schenker and Ceva Logistics,” Vizayer said.

He noted that Malaysia had developed its own logistics companies that offered services of international standards. They include Century Logistics Holdings Bhd, Freight Management Holdings Bhd, Tiong Nam Logistics Holdings Bhd and Freight Mark (M) Sdn Bhd.

Vizayer said to achieve a strong logistics sector, a country must put in place the processes of logistics.

“Certain factors must be addressed to stimulate growth and they include infrastructure and policies.

“Physical assets such as skilled workforce; infrastructure like roads, bridges, airports, seaports, railways; and adequate communications network must be of international standards,” he said.

“We also need Government support in the areas of policies, procedures and regulations to ease and promote trade.”

Vizayer said corporations should also play their part to stimulate trade growth.

“They must educate employees on the benefits of global trade, create a sustainable enterprise, utilise the resources of 3PLs and make supply chain management a strategic priority.”

Source: StarBiz

Tuesday, October 5, 2010

Air Freight: Unit Load Device

A unit load device, or ULD, is a pallet or container used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft. It allows a large quantity of cargo to be bundled into a single unit. Since this leads to fewer units to load, it saves ground crews time and effort and helps prevent delayed flights. Each ULD has its own packing list (or manifest) so that its contents can be tracked.

Volume indicated is internal volume.
Container typeVolumeLinear dimensions
(base width / overall width × depth × height)
LD1[1]4.90 m3 (173 cu ft)156 / 234 × 153 × 163 cm
(61.5 / 92 × 60.4 × 64 in)
contoured, half width
LD2[2]3.40 m3 (120 cu ft)119 / 156 × 153 × 163 cm
(47 / 61.5 × 60.4 × 64 in)
contoured, half width
LD34.50 m3 (159 cu ft)156 / 201 × 153 × 163 cm
(61.5 / 79 × 60.4 × 64 in)
contoured, half width, dimension according to IATA
LD68.95 m3 (316 cu ft)318 / 407 × 153 × 163 cm
(125 / 160 × 60.4 × 64 in)
contoured, full width, equivalent to 2 LD3s
LD86.88 m3 (243 cu ft)244 / 318 × 153 × 163 cm
(96 / 125 × 60.4 × 64 in)
contoured, full width, equivalent to 2 LD2s; DQF-prefix
LD117.16 m3 (253 cu ft)318 × 153 × 163 cm
(125 × 60.4 × 64 in)
same as LD-6 but without contours; rectangular
Pallet typeVolumeLinear dimensionsRemarks
LD86.88 m3 (243 cu ft)153 × 244 cm
(60 × 96 in)
same floor dimensions as container variant; FQA-prefix
LD117.16 m3 (253 cu ft)153 × 318 cm
(60.4 × 125 in)
same floor dimensions as container variant; FLA- and PLA-prefixes
(2 pallet variants)
10.8 m3 (381 cu ft)
11.52 m3 (407 cu ft)
224 × 318 cm
(88 × 125 in)
244 × 318 cm
(96 × 125 in)
PAG- and P1P-prefixes
PMC- and P6P-prefixes
Pallet volumes shown are built 64 in tall for lower deck loading. Height limit for main deck depends on aircraft type.

ULD capacity

Aircraft loads can consist of containers, pallets, or a mix of ULD types, depending on requirements. The table below indicates the maximum capacity of an aircraft for all-container and all-pallet configurations. In some aircraft the two types must be mixed as some compartments take only specific ULDs.

Container capacity of an aircraft is measured in positions. Each half-width container (LD1/LD2/LD3) in the aircraft it was designed for occupies one position. Typically, each row in a cargo compartment consists of two positions. Therefore, a full-width container (LD6/LD8/LD11) will take two positions. An LD6 or an LD11 can occupy the space of two LD3s. An LD8 takes the space of two LD2s.

Aircraft pallet capacity is measured by how many PMC-type LD7s (96" × 125") can be stored. These pallets occupy approximately three LD3 positions (it occupies two positions of one row and half of the two positions of the following row) or four LD2 positions. PMCs can only be loaded in cargo compartments with large doors designed to accept them (small door compartments are container only).

A = Airbus; B = Boeing; L = Lockheed; MD = McDonnell-Douglas; F = freighter; ER = extended range; LR = long range
AircraftMax Container Cap.Max Pallet Cap.Remarks
B727-100Fnone8 pallets*[3]*88" × 125" pallets only; the 727 is a narrow-body
B727-200Fnone12 pallets**88" × 125" pallets only; the 727 is a narrow-body
B727-200C (combi)none11 pallets**88" × 125" pallets only; the 727 is a narrow-body
B747-100/200/30030 LD1s[4]5 pallets + 14 LD1s
B747-40032 LD1s[1]5 pallets + 14 LD1s
B747-400ER26 LD1s[1]4 pallets + 14 LD1s
B747-400F/ERF32 LD1s (lower deck) + 30 pallets (main deck)[1]freighter aircraft, capacity includes all decks
B767-20022 LD2s[2]3 pallets + 10 LD2s[2]
B767-30030 LD2s[2]4 pallets + 14 LD2s[2]
B767-300ER30 LD2s[2]4 pallets + 14 LD2s[2]
B767-300F24 pallets* (main deck) + 30 LD2s (lower deck)[2]*accepts 88" × 125" pallets only; freighter aircraft
B767-400ER38 LD2s[2]5 pallets + 18 LD2s
B777-200/200ER/200LR32 LD3s[5]10 pallets
B777F30 LD3s + 27 pallets37 palletsfreighter aircraft, capacity includes all decks
B777-300/300ER44 LD3s[5]14 pallets
B787-8/-328 LD3s9 pallets
B787-936 LD3s11 pallets
A300B2/B420 LD3s ?
A300-60022 LD3s4 pallets + 10 LD3s
A300-600F41 LD3s25 palletsfreighter aircraft, capacity includes all decks A300-600F deck layout
A31014 LD3s3 pallets
A320PF10 pallets* (main deck) + 7 LD3-45W (lower deck)10 AAZ (main deck) + 7 LD3-45W (lower deck)*accepts 88" × 125" pallets only; freighter aircraft equipped with fwd cargo 86×121" door
A321PF13 pallets* (main deck) + 10 LD3-45W (lower deck)13 AAZ (main deck) + 10 LD3-45W (lower deck)*accepts 88" × 125" pallets only; freighter aircraft equipped with fwd cargo 86×121" door
A330-20023 pallets or 26 LD3s8 pallets + 2 LD3s
A330-200F9 AMA containers + 4 pallets (main deck) + 26 LD3 (lower deck)22 pallets (main deck) + 8 pallets + 2 LD3 (lower deck)freighter aircraft, capacity includes all decks A330-200F deck layout
A330-30032 LD3s11 pallets
A340-20026 LD3s9 pallets
A340-30032 LD3s11 pallets
A340-50030 LD3s10 pallets
A340-60042 LD3s14 pallets
A380-80038 LD3s13 pallets
A380-800F59–71 LD3s66 palletsfreighter aircraft, capacity includes all decks A380-800F deck layout
MD-11F32 LD3s[6]26 pallets
L-101116 LD3snoneall series except 500 (250/200/150/100/50/1 series)
L-1011-50019 LD3s4 pallets**if equipped with fwd cargo 104" door
Il-8616 LD3s ?
Il-9618 LD3s ?
Maximum capacity shown does not reflect weight restrictions.
Actual number of ULDs loaded may be lower if aircraft is at its weight limit.

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