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Northern Air Cargo challenges Alaska Airlines on Seattle-Anchorage route

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Northern Air Cargo plans to start service next month to Alaska on a route dominated by Alaska Airlines as it downsizes to concentrate on core markets and stabilize finances.

The subsidiary of Seattle-based Saltchuk Resources, a freight transportation, logistics and energy distribution conglomerate, announced on Tuesday that it will launch a direct cargo route between Seattle-Tacoma International Airport and Anchorage on Oct. 5, with departures three times weekly.

The new service will utilize a Boeing 737-800 converted freighter, supplemented as needed by older 737-300 and 737-400 cargo jets.

Northern Air Cargo only operates one 737-800, which is currently providing dedicated air transportation for DHL Express on a triangle route between Los Angeles, Phoenix and Reno, Nevada. The announcement strongly suggests that DHL has not renewed the contract and that NAC is redeploying the aircraft to its core Alaska market. A company representative declined to comment on the DHL relationship.

DHL did not definitively confirm whether NAC will continue providing transportation service. “Per our corporate policy, we don’t disclose details of third-party contracts. Northern Air Cargo has been a trusted partner for several years, operating various routes within our network. We maintain close communication and value their continued support. We continually adapt our network to meet customer demand while ensuring reliable coverage across all regions we serve,” said DHLGroup spokeswoman Pamela Duque Rai via email.

A possible replacement candidate for DHL’s route is Global Crossing Airlines, which is flying an Airbus A321 converted freighter on a trial basis for the express carrier along the eastern seaboard, although neither company has indicated any expansion of the partnership so far.

Northern Air Cargo said the new route will help support rural communities and businesses in Anchorage, with the ability to deliver shipments in as little as 12 to 18 hours on a single air waybill. Shipments originating in Seattle will connect directly into the airline’s statewide network. The route also offers alternative transport for Alaskan businesses to ship fresh seafood and other goods to markets in the Pacific Northwest.

The airline currently provides scheduled and charter freight service from its Anchorage hub to communities across Alaska, delivering essential goods such as groceries, medical supplies and construction materials. Most of the cargo bound for Alaska from the Lower 48 states moves through Seattle or Tacoma, Washington, by barge, truck or air. NAC receives shipments in Anchorage and distributes them across the state.

NAC is moving into a trade lane long-dominated by Alaska Airlines, which operates three Boeing 737-700 and two 737-800 converted freighters between Anchorage, Seattle and Los Angeles, and within Alaska. The cargo jets operate three times per week from Seattle to Anchorage and the airline also moves shipments to-and-from Alaska on passenger aircraft.

“We believe there is room for another carrier in the lane. NAC’s ability to be 100% focused on the movement of cargo is a differentiator. By focusing on a smooth handoff of cargo in Anchorage and excellent communication with our customers, we believe we can offer better performance and ultimate service delivery,” said April Spurlock, director of marketing and communications, for Saltchuk Aviation, in an email exchange.

But the Trump administration’s decision in May to end the de minimis duty exemption for parcels from China under $800 in value has resulted in a significant decrease in e-commerce transshipments on Alaska Air’s northbound route from Seattle, said a former industry executive familiar with the regional market, who asked not to be identified to preserve good relations with former employers. Instead of a tight market, there is plenty of capacity available to shippers, who may feel less urgency to use an alternate carrier, he suggested.

Credits: Northern Air Cargo