Alaska Commercial Company (AC) is revamping its shipping strategy this winter as a combination of severe weather and high seasonal demand has caused disruptions in Nome and nearby communities.
AC President Kyle Hill said the mix of challenges have led to product shortages, delayed freight and increased spoilage — prompting both short-term action and long-term shifts in the company’s supply chain.
“This year was particularly bad over the past month or two, from a weather perspective,” Hill said. “In those temperatures some food was freezing on the tarmac here [in Anchorage] when it was getting loaded onto a plane, or freezing in Nome when it came off the plane, which is a constant challenge.”
Freight disruptions trigger emergency response
Hill said AC typically experiences a seasonal freight surge in the fall as residents begin spending Permanent Fund Dividend checks and preparing for the holidays. This year, that predictable uptick was compounded by unusually cold and persistent weather, which grounded aircraft, froze product during transport, and severely limited freight capacity for Western Alaska.
Produce, meat, dairy, and other perishables were especially at risk. AC VP of Operations, Walter Pickett, said barge shipments from Seattle often arrived with frozen or spoiled goods after floating up the Gulf of Alaska in subzero temperatures.
“We have pallets of product that we cannot ship to any store because it's already been compromised,” Pickett said. “We've asked Matson to ship on refrigerated containers, not because they're refrigerated, but because they're insulated.”
The extreme cold also led to mechanical failures among cargo aircraft operated by carriers like Alaska Air Cargo. Pickett estimates AC lost between 30% and 50% of its airlift capacity in recent weeks due to grounded planes and equipment issues.
Pickett is retiring at the end of January after nearly three decades in the grocery industry. He said the severity of this winter stands out as the most problematic.
“The weather events this year are, in my 29 years, the worst I’ve ever seen,” Pickett said.
According to flight data from FlightRadar24, Alaska Air Cargo’s daily scheduled flight between Anchorage and Nome landed just six times in the first three weeks of the year. The carrier's most recent landing in Nome was Jan. 13.
Spokesperson for Alaska Airlines, Tim Thompson, said in an email that “unexpected mechanical issues” with its fleet of Boeing 737 freighters were to blame.
“Alaska Airlines is committed to keeping essential goods moving and we understand how critical these shipments are and appreciate the patience of our customers and communities,” Thompson said. “We are working with other local cargo carriers to move the freight at the Anchorage warehouse to Nome as quickly and safely as possible.”
To address the shortage in Nome, AC is flying in 55,000 pounds of goods this week — 15,000 pounds via standard air freight Thursday and another 40,000 pounds on a chartered Northern Air Cargo 737-800 from Seattle on Friday. The flight will make a stop in Anchorage to pick up additional perishables and the full shipment is expected to be on shelves in Nome by the weekend. AC said it will also send eight employees from its corporate office in Anchorage to assist in unloading and restocking the store as quickly as possible.
Northern Air Cargo (NAC) VP of Cargo, Gideon Garcia, said the airline’s fleet of 737-800s have fared relatively well this winter.
“Northern Air Cargo is currently in a good spot with available aircraft, allowing us to have the flexibility to do extra flights to catch up in Nome as needed,” Garcia said.
Garcia confirmed Hansons Trading Company is a customer of NAC, but couldn't give any specifics on the amount of freight it was moving for Nome's only other grocery store.
"We may not be their primary customer, but most businesses in rural Alaska take advantage of all resources. They probably have their preferences based on pricing and volume contracts," Garcia said. "But every airline has challenges operating in this environment, and when you need food, you're going to use whoever's available and reliable at that time."
Long-term changes to shipping and storage
In response to Alaska’s harsh winters, AC is piloting a new shipping initiative that started in October. Highly perishable goods like bananas, berries, mushrooms and leafy greens travel aboard a “direct” NAC flight from Seattle to Nome with a quick stop in Anchorage. Hill said the process shaves several days off transit time.
“We recognize the winter causes all kinds of challenges, and we wanted to try a different method of freight movement,” Hill said.
In addition to new shipping strategies, Hill said AC recently remodeled its Nome store to increase backroom storage capacity. While this helps maintain a buffer of dry goods during delays, perishables still rely on regular deliveries.
Hill said AC is monitoring weather not just at the origin and destination points, but along the entire shipping route. It's also increased order volumes in recent weeks to account for changing customer behavior, including increased spending when items finally become available.
“What used to satisfy our customers in Nome for a week is now selling out in two to three days,” Hill said. “I’m assuming there’s probably a bit of hoarding, or what we call pantry filling going on.”
Hill said that while the emergency air shipments are intended for the Nome AC store, surrounding villages communities can place bush orders for the fresh goods. Those orders will continue to be filled as inventory becomes available.
