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Home » HP goes anchors aweigh
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HP goes anchors aweigh

November 1, 2008
Mark B. Solomon
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Soaring jet fuel prices have led to speculation that aircargo users might begin migrating to lower-cost ocean service. But up until recently, there hasn't been much in the way of confirmation. Now comes word that one of the world's biggest users of airfreight services is indeed opting for the water route. Hewlett-Packard Co. reportedly is shifting some of its intercontinental shipments from air freight to ocean to mitigate the impact of jet fuel prices and the generally higher costs of moving goods by air.

According to a well-placed carrier source, HP is in the process of a strategic shift from air to ocean transportation for its so-called "support products," like printers and keyboards. Higher-value goods such as computers will continue to move by air because of worries about inventory obsolescence, the source says.

Given the electronics giant's high volume of international shipments, HP's move could affect capacity and pricing in both the air and ocean service markets. HP declined to comment on the report.

Transportation Supply Chain Services Air Maritime & Ocean
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Marksolomon
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.

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