DHL Express has added Northern Air Cargo to its portfolio of contractors that connect air hubs and local parcel distribution centers within its air network.

Northern Air Cargo, which serves communities in Alaska from its base in Anchorage and also operates freighter aircraft on behalf of sister companies Aloha Air Cargo and Miami-based StratAir, began flying last month with a single Boeing 737-800, DHL spokeswoman Pam Duque confirmed.

Trade publication ch-aviation first reported the new air transport partnership between NAC and DHL.

Duque said the NAC-supplied aircraft is supporting DHL in the Lower 48 states, not Alaska. Flight tracking service Flightradar24 shows the 737-800 converted freighter is shuttling each day between Los Angeles International Airport, Phoenix Sky Harbor International Airport and Reno, Nevada.

The move appears to fill a gap in DHL’s route network.

The express logistics company didn’t indicate whether the new addition to in-house airline DHL Aviation was to replace lost capacity from other partner airlines. DHL terminated its transport services agreement with Phoenix-based regional passenger carrier Mesa Airlines in March. Mesa Airlines operated three Boeing 737-400 converted freighters for DHL. The 737-800 is a larger aircraft than the older -400. iAero, another contract carrier with 737 cargo jets, went out of business earlier this year.

“The NAC partnership came about because we are constantly adjusting our network and rightsizing our capacity to meet the varying demand that we experience throughout the year,” said Duque.

The DHL tie comes at an opportune time for NAC, which is coping with soft demand in certain markets. More importantly for NAC is the possibility that DHL could eventually expand the contract if the airline performs well and DHL experiences volume growth.

NAC, a subsidiary of Seattle-based freight transportation and logistics company Saltchuk Resources, experienced a 15.5% drop in cargo volumes measured by distance carried during the 12 months ending March 31, according to data compiled by the Bureau of Transportation Statistics. Reduced demand led to a 53% loss in revenue and a $12 million loss during the same period.

Earlier this year, Saltchuk subsidiary NAS Aircraft Leasing Co. LLC, which provides aircraft to NAC, placed two newly acquired Boeing 767-300 widebody freighters in storage because of insufficient demand. Aloha Air Cargo abandoned its Los Angeles-Honolulu route at the end of May because of weak load factors in a highly competitive lane. NAC, which operated the 767 on that route, subsequently furloughed 18 pilots.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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