Air Cargo Management

11 November 2018

The report is on the air cargo management and the recent developments and trends in the aircargo industry. The report also provide the air cargo business and factors contributing to growth of global air cargo business.INTRODUCTION;Air cargo any property carried or to be carried in aircraft. Air cargo comprises air frieght, air express and airmail. Air cargo plays a crucial role in today’s world.

Whether it’s through express shipments providing expedited service, cargo carried in the holds of passenger aircraft linking together businesses across the globe, freighters delivering cargo on high volume trade lanes, or chartered flights providing needed supplies on special service schedules, the air cargo industry serves as a key engine of economic growth and development. It supports trade and investment, promotes connectivity, and improves efficiency and competitiveness.Air cargo represents a relatively small percentage by volume of world trade (less than 10%) – but its significance leaps by value, where it accounts for more than 30% of international trade.

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In other words, air cargo is oriented towards high value or time sensitive products. For example, the express industry has enabled the widespread adoption of just-in-time practices by many businesses, which saving countless dollars in inventory and logistical costs. That said, air cargo continues to expand its clientele and now serves a diverse range of businesses and consumersAIR CARGO BUSINESS;Air cargo generally consists of products that are quite valuable , and that need to get from supplier to buyer quickly. Air cargo operations have always been important to airlines and other air transportation companies.

Indusrty estimates say that cargo represents 15-20% of the business done by airlines. The air cargo business has made major strides because of several technologies advances. Most of this technology involved material handing. One of the most important advances was containerization- a process to concentrate cargo into unit load devices (ULD’s). Before ULD’s were available loading air frieght was more than science. Shippers of any size can use air consolidation service. But it is especially useful for organizations with lean supply chains or those that operate in just in time environments who need to ship smaller quantities of material more frequently, butdon’t have enough frieght to charter a flight on their own.

Frieght forwarder or air consolidatiors accept complementary frieght from multiple shippers and combine this frieght into unit load devices(ULDs)- essentially, big cookie sheets that slide into a cargo plane’s racking system for transport. Only the very largest friegt forwarders are likely to jave the customers volumes to reserve air space through the airlines, shippers who use cocolidation have saved betweem 30% and 50% on air shipping. Technology plays an importatnt role in aviation and air cargo business. This covers a range of applications that include: air cargo security, handling the cargoes in airports, the monitoring of goods in transit, improvement of communications and real time data acesses etc.TRENDS AND DEVELOPMEMENT IN THE AIRLINE INDUSTRY;The airline industry is a large and growing industry which is because of the stunning environment that are forced to compete with, to compete, to make profit and to make business models consistently and widening. The developments and trends and their importance in the airline industry that will influence its future the most. The airline industry is classified into four categories: international , national, regional and cargo.

The airline is for the global growth, global trade, international investment and tourism industry. It is a huge industry in globalization. Worldwide economic activity reflecting the global gross domestic product is the most powerful driver of airports. Technology is now playing an increasingly important role in the aviation and air cargo business.This covers a range of applications that include: air cargo security, handling the cargoes in airports, the monitoring of goods in transit, improvement of communications and real time data acesses etc. Business provides following techical support in the context of air cargo transportation:SECURITY: Limit options that includes transit, handling, screening and security of transit items. A wide range of technology applications can now the process as progressive scanner, computer system, database applications and personnel trained in the technology in order yo support these applications.

COMPUTERS: A vast technology that supports that back office functionality of business side management and legislative document requirements to support business activity. Wireess handheld computer devices for scanning and recording in transist inforamation have been extended to the frieght forwarder or handler of the goods.SOFTWARE: Microsoft cloud is widely acknowledged in the air cargo business area for combining information technology and communications, Thereby providing more complex and comprehensive solutions to integrating computer technology into business.DIGITIZATION: There is a rise in the digitization of system in all the industries acreoss the world. Similarly, an digital process will increases the air cargo value proposal by launching innovative services and solutions. Airwaybill (AWB) is one of the main air cargo documents. The first steps towards digitalization is shifting to e-AWB.

E-AWB desktop work tool has been utilized for easy and efficient e-AWBs to generate, send and control e-AWBs and transmit small, medium -sized aviation goods.AUTONOMOUS VEHICLES: autonomous vehicles are becoming increasingly popular with products, such as Google’s driverless vehicles. The popularity of autonomous vehicles has also ripped into the logistics sector. Self driving vehicles have made inroads in logistics, reaching a level of maturity for commercial use in warehouse operations. When introducing the autonomous forklifts it will help the warehouse productivity easily.REASONS FOR USING AIR FREIGHT;There are different modes of transport, and each mode has its own benefits and drawbacks. Air freight is often used for high value and low volume shipments.

Air freight parcel delivery is the transfer and shipment of goods via an air carrier, which may be charter or commercial. Such shipments trave out of commercial and passenger aviation gateways to anywhere planes can fly and land. Shipping by air offers the advantage of a high level of security, as the airport safetycontrols over cargo are tightly managed. Tightly managed airport controls also reduce the cargo exposure to theft and damage.There are some reason for using the air freight are;1.THE FASTEST SHIPPING METHOD;When the goods are need to be moved quickly, air frieght is the best method compared to sea freight or road transport, no doubt about it. As air travel continues advantce, flying goods from all corners of the world which has the fastest menthods of logistics.

When urgent deliveries occur all the company will prefer only air transport, as well as those with the perishable goods that cannot be left for days in transit.2.HIGHLY RELIABLE ARRIVAL AND DEPARTUE TIMES;The arrival and departure times of flightsare highly reliable, as airlines tend to be very on top their schedules. Even missing a flight wouldn’t cause much delay as there are usually flights departing every hour.3.SEND THE CARGO ALMOST ANYWHERE;Many airlines have a large network of destinations that covers almost entire world. This means that good can send the shipment to nearly every destination.

4.LOW INSURANCE PREMIUM;As the transportation time for air cargo is compartively short, the insurance premimum is lower. Even if air frieght can be expensive, this bring about savings in terms of lower insurance costs. When the transist time is fast the air frieght premims are lower, on average , when compared to other forms of shipping. The less time for package is in route, the lower the risk of it being loststolen5.HIGH LEVEL OF SECURITY;Shipping by air offers the advantage of a high level of security, as the airport safety controls over cargo are tightly managed. Tightly managed airport controls also reduce the cargo exposed to theft and damage.

Air shipping is one of the safest method , the longer that goods take to get to their destination, the more chance there is that something can go wrong along the way. As well as being safer in general , shipping by air also ensures that there is less handling during transir. This reduces the risk of damage- a factor that almost every business requires.6.LESS NEED FOR WAREHOUSE;With the quicker transit time of air frieght, company have less need for using the local warehousing and do not need to keep items in the stores. Customs clearence, cargo inspection and cargo handlers are more efficient as most cargo is cleared within a matters of hours. When the deliver is faster then the packages means small business will be relying less on storing local inventory.

When cargo is able to arrive and depart without delay, inventory management becomes more natural.7.LESS PACKAGING REQUIRED;Normally, air shipment require less heavy packing than for the sea shipments. This means that company save both time and money to provide service for additional packing. Shipping via land or sea means packaging must be bulkly and through to absorb bumps and drops. In air freight allows lighter packaging ,further expenditing the process of shipping by manufactures. As the result the shipments will be lighter and it will to save even more on freight costs.

CONCLUSION;The report explained about the air cargo management. Air cargo generally consists of products that are quite valuable , and that need to get from supplier to buyer quickly. And also explained about the air cargo business. The report also provides the recent development and trends in air cargo. The developments and trends and their importance in the airline industry that will influence its future the most. Also explained about the factors contributing to growth to growth of global air cargo business.

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