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Air Cargo Carriers (ACC) developed a system for moving cargo in containers for the Shorts aircraft in 1989 and has continued to improve and modify the system to meet the needs of it's customers. ACC began the process with the development of ground equipment to allow the loading of seven ABX "C" containers into the Shorts Skyvan, the 3500 lbs. capacity aircraft from which the larger Shorts 330 and 360 have been derived. A conveyor was designed that would fit under the rear loading door of the Skyvan. It was simple and inexpensive to produce, and remains in service to this day. In 1990, ACC placed in service the larger Shorts 330, followed by the Shorts 360. Airframes were modified to accept the C containers, followed by containers of our own design to maximize the full cubic capacity of the fuselage. More advanced and simpler to use ground handling equipment was developed to accommodate the larger aircraft and multiple versions of the containers. Over 350,000 container shipments have been handled by ACC in the past ten years. An example of the ability of ACC to modify it's aircraft, containers and ground handling equipment is the system that has been designed and implemented for the movement of Priority Mail for the United States Postal Service. Emery Worldwide was awarded a $1.7 billion contract to privatize the movement of Priority Mail on the eastern seaboard of the United States. Emery contracted with ACC to provide "S" containers that flow seamlessly from the priority mail processing centers to Air Cargo aircraft and then from the aircraft to the regional Post Office and finally to local postal facilities. This system has been operating since October of 1997, and has proven to be very successful and productive for the Postal System because re-contouring of cargo is not required. Air Cargo Carriers will provide future productivity gains for their customers with the use of containers and ground equipment for Shorts aircraft that will be nearly 100% compatible with containers used by both narrow body and wide body trunk haul aircraft. This can be achieved by a proposed modification of the Shorts aircraft to accommodate both LD3 and AAY Demi containers. ACC has recently acquired three Sherpa aircraft, which are basically Shorts 330 aircraft with a rear-loading ramp. They are presently being modified to carry up to four LD3 containers. A system of loading equipment and dollys for the movement of the LD3 containers between Sherpa aircraft and the ground, or into trucks, has been developed and is being refined. These aircraft, together with the loading systems, should be fully operational in the third quarter of 2000. It will be an inexpensive method of providing container movement between wide body trunk haul jets and turboprops into selected markets. The ACC Shorts 360 aircraft, modified to accept AAY Demi containers, and paired with narrow body trunk haul aircraft, is the most practical solution for enhancing productivity. This concept will utilize a slightly modified Demi container with specialized loading equipment and dollys allowing containers to move seamlessly from the Shorts aircraft to the narrow body aircraft. Air Cargo Carriers has developed a system of blended pallets. This system can pair two Demi Containers onto these pallets, maintaining the same profile as a standard SAA narrow body container. This same system can be adapted to the LD 8, 9 or 11 Series of lower deck wide body containers. Air Cargo Carriers has demonstrated the ability to design and implement solutions that improve productivity, and cut costs within the overnight package delivery industry.