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Ontario International Airport freight shipments surge by 22% in March

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E-commerce shipments highlight the importance of the airport and the Inland Empire in the nation’s supply chain

(Ontario, California – April 15, 2020) – Passenger terminals across Southern California’s Ontario International Airport (ONT) have been quiet for much of last month, but air cargo shipments into and out of Ontario International Airport (ONT) posted one of their largest single-month gains ever. This has underscored the critical role ONT and Southern California’s Inland Empire play in managing and safeguarding the nation’s supply chain.

More than 70,000 tons of commercial cargo moved through ONT in March, up 12,600 tons – or nearly 22% – from the same month in 2019. From January through March, Ontario handled 186,000 tons or freight, a 13% increase over the first three months of last year.

“Our airport is the heart of one of the most vital supply chain networks in the country, and during this time of crisis, it has become an even more vital transshipment hub for many household supplies ordered online,” said Mark Thorpe, chief executive officer of the Ontario International Airport Authority.

The 21.95% increase in air cargo tonnage in March 2020 compared with March 2019 was the second greatest monthly increase since ONT transitioned in local control under the Ontario International Airport Authority in November 2016. The greatest year-over-year increase since then was reported in January 2018 when cargo tonnage increased 22.87 percent over the same month the previous year.

 

Air cargo

(tonnage)

March

2020

March

2019

% Change

YTD

2020

YTD

2019

% Change

Freight

70,221

57,582

21.95%

186,278

164,988

12.9%

Mail

1,480

2,325

-36.34%

4,498

6,738

-33.2%

Total

71,701

59,907

19.69%

190,775

171,725

11.1%

 

Landing fees associated with increasing freight shipments, Thorpe noted, help to offset decreases in landing fees generated by fewer passenger flights and help maintain ONT’s strong position as a cost-effective international gateway for all air carriers.

And as passenger levels declined and concessionaires adjusted operating hours accordingly, some impacted workers found new opportunities with cargo carriers. Those workers are particularly attractive to cargo movers since they’ve previously undergone required federal background checks and possess valid airport credentials and understand airport operations.

Cargo volumes at ONT are particularly notable given recent declines in freight shipments handled by larger airports around the world. According to the CAPA Centre for Aviation which analyzes trends in the aviation and travel industry, the top 20 cargo airports all experienced “sharp” declines from January through March because of the coronavirus pandemic. The report, released April 8, is available here.

The Ontario freight market, which includes a vast warehouse network proximate to major inter-state highways and the nation’s largest seaport complex, was the top-ranked U.S. market for outbound cargo in 2018. Commercial freight shipments through ONT totaled more than 760,000 tons in 2019, up 5.1% over 2018.

Passenger volumes, meanwhile, decreased significantly in the last two weeks of March as state and county stay-home orders were implemented, leading to a 46% decline in the number of passengers who traveled through ONT during the month. From January through March, consequently, were 7% lower than the first quarter last year.

 

Passenger

Totals

March

2020

March

2019

% Change

YTD

2020

YTD

2019

% Change

Domestic

221,481

412,440

-46.3%

1,044,210

1,124,922

-7.2%

International

12,295

24,261

-49.32%

64,060

71,411

-10.3%

Total

233,776

436,701

-46.47%

1,108,270

1,196,333

-7.4%

“We look forward to a return to full commercial air travel schedules in the months ahead when the coronavirus is brought under control and passengers take to the skies again, but in the meantime, we anticipate that cargo operations will remain strong and continue to keep critical U.S. supply chains open, drive the Inland Empire economy, and support our national economy as it recovers,” Thorpe said.

The Inland Empire Business Journal (IEBJ) is the official business news publication of Southern California’s Inland Empire region - covering San Bernardino & Riverside Counties.

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Stockbridge Acquires 540,478 SF Inland Empire Industrial Portfolio for $142MM

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San Francisco based Stockbridge acquires 100% leased assets in premier IE West location

Cushman & Wakefield’s EDSF also sources acquisition financing for transaction

Cushman & Wakefield announced the firm has arranged the sale of a core industrial portfolio totaling 540,478 square feet in Southern California’s premier Inland Empire West (IEW) submarket. The portfolio consists of two freestanding Class A buildings located a few miles apart at 3351 E Philadelphia St and 4450 E Lowell St in the city of Ontario. The buildings are 100% leased to prominent tenants in the distribution and retail industries.

San Francisco based Stockbridge acquired the two-property portfolio from Principal Asset ManagementSM a global financial and investment management firm. The portfolio sold for $142.25 million.

Jeff Chiate, Jeffrey Cole, Rick Ellison, and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group—West represented the seller in the transaction. The firm’s Phil Lombardo, Chuck Belden and Andrew Starnes also provided leasing advisory.

Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Joseph Lieske, Max Schafer, and Becca Tse collaborated in sourcing acquisition financing for the transaction.

“Stockbridge has acquired an institutional-quality industrial portfolio with a phenomenal infill location combined with strong tenancy and premium distribution features and functionality. Both properties have maintained a historical occupancy of 100% for nearly a decade speaking to the tenant demand for industrial buildings of this quality and location,” said Jeff Chiate, Executive Vice Chair. “Additionally, with current rents below market rate, the buyer has a compelling mark-to market opportunity along with existing durable cash flow, providing a variety of value-add strategies.”

The properties offer convenient access to Southern California’s robust freeway network and other vital nodes of transit such as Ontario International Airport, the Los Angeles & Long Beach Ports, and LAX International Airport (60 miles). Access to a deep labor pool and robust consumer population also makes the region a superior industrial location.

According to Cushman & Wakefield’s latest industrial market report, the Inland Empire West submarket had a vacancy rate of 5.4% in Q1 2024, representing the tightest submarket in the broader Inland Empire market. Additionally, IEW achieved nearly 1 million square feet of positive net absorption (occupancy growth) in the first quarter of 2024.

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Stater Bros. Charities and Reyes Coca-Cola Bottling Give Back to Military Families

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Stater Bros. Charities, the philanthropic arm of Stater Bros. Markets, partnered with Reyes Coca-Cola Bottling again this year for their Give Back program during National Military Appreciation Month. The program ran for the entire month of May, during which Reyes Coca-Cola Bottling committed to donating $0.25 per eligible product purchased to the Bob Hope USO. Reyes Coca-Cola Bottling donated $15,000, and Stater Bros. Charities matched their donation for a total contribution of $30,000.

A check presentation occurred during a K-EARTH 101 radiothon benefiting the Bob Hope USO. The radiothon took place at the Bob Hope USO at LAX (Los Angeles International Airport) on June 29, 2023, where Stater Bros. Charities and Reyes Coca-Cola Bottling presented Bob Hope USO with a $30,000 check.

Bob Hope USO’s mission is to strengthen America’s military service members by keeping them connected to family, home and country, throughout their service to the nation. The Give Back program is a unique opportunity to show gratitude and support to the brave men and women who risk their lives for our freedoms and to care for their families while they are away from home on deployment.

“Stater Bros. Markets has a long history of supporting veterans, service members, and their families,” said Danielle Oehlman, Director, Stater Bros. Charities. “We are so pleased to partner with our friends at Reyes Coca-Cola Bottling and the USO to give back to those who have given so much for us.”

Lorin Stewart, President, USO West Region, said, “We are deeply grateful to Stater Bros. Charities and Reyes Coca-Cola Bottling for being sustaining partners of the USO. The Give Back program embodies the essence of the USO mission by enabling the community at large to come together to support and give thanks to our armed forces and their brave military families in an impactful way.”

Funds will support the Bob Hope USO and USO San Diego Center operations, including programs and services that strengthen the social, mental, physical, and emotional well-being of local military service members, their families, and their communities.

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BDK Logistics Intelligence Fully Leases 114,190 SF Industrial Facility in Corona, CA

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Cushman & Wakefield represents landlord in lease in SoCal’s Inland Empire

Cushman & Wakefield announced that BDK Logistics Intelligence, Inc. has signed a lease for an entire 114,190-square-foot industrial facility at 1161 Olympic Drive in Corona, California. Situated in Southern California’s renowned Inland Empire, the building is owned by Monterey Rancho Mirage, LLC, which was represented by Brett Lockwood and Rick Ellison of Cushman & Wakefield in the transaction.

“We are pleased to welcome BDK to the property as a quality industrial tenant that is expanding its presence in the market, which it also currently occupies multiple warehouse facilities,” said Director Brett Lockwood. “Our client was instrumental in helping this deal transact as there were many variables that needed to be navigated which led to this lease coming together quickly and successfully.”

1161 Olympic Drive is a quality freestanding building situated on ±4.8 acres and features 20 dock high loading doors. The property is conveniently located off Interstate 15 near the confluence of SR 91 and is proximate to the extensive freeway network traversing the entire Greater Los Angeles region and into other major markets in and out of state.

According to Cushman & Wakefield’s latest Q2-2023 quarterly report, the Inland Empire industrial market posted an overall vacancy of 3.4% and has recorded more than 2.7 million square feet of positive net absorption through the first half of 2023.

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