A Cost Comparison Between Modes in the Shipment of Mission Capable Parts Within the Continental United States

A numerous amount of Mission Capable Parts (MICAPs) are shipped throughout the world by the Air Force. These parts are required in order to meet mission requirements. MICAPs are often shipped via an express, small parcel air carrier, like Federal Express (FedEx). However, there is a lower cost alternative: Less-Than-Truckload express carriers. In using actual Air Force MICAP shipping data, an 11 percent savings was shown if the lowest cost carrier, either FedEx or Roadway Express, an LTL express carrier, was used in shipping these MICAPs. Also, in using simulated shipping data, over 50 percent of all types of shipments, based on weight and distance, would be shipped less expensively using Roadway than FedEx.