air cargo logistic management

1. Air Cargo Logistics Management
Session 15 & 16
24 Mar 21

2. Today’s Learning Point
• Cargo Capacity
• Improvements in the value chain
• E- Airway Bill
• E Freight
• Planned outcome by IATA
• Airports and cargo Transportation
• Friendly Cargo Airports
• Air Gateways
• Pearl River Delta (PRD)
• KPI & CSF

3. Cargo Capacity Facts
• Cargo capacity corresponds to the saleable space
the airline can offer for shippers to transport their
goods.
• However, available capacity prediction is much more
complex than in the passenger segment for various
reasons:
 Demand more volatile.
 Belly capacity is not fixed.
 Depends on runways, weather, passenger cabin
occupancy, fuel carried.
 Capacity is multi-dimensional based on volume,
weight, configuration of containers.

4. Improvement Along The Value Chain
Project of IATA
1. e-Air Waybill (e-AWB).
2. e-Freight.
Purpose and Aim
• Standardizing air waybills.
• Increased accuracy & Quality.
• Reliability of data exchanges across airlines
and shippers/forwarders.
• Reduced processing costs and delays.

5. E- Airway Bill
• Started in 2010
• E-AWB became the default contract of carriage for all air
cargo shipments on enabled trade lanes on 1 January
2019
• This key industry milestone brings air cargo into a new
era where digital processes are now the norm and paper
is the exception
• Paper documents are still usable, but should be
considered nonstandard
• The change does not affect the current e-AWB processes
or standards
• Paper AWB may still be required due to applicable
international treaties, national law, or as bilaterally
agreed between the parties

6. E-freight Initiative by IATA
1. Customs documents. Engaging regulators and
governments worldwide to create an "e-freight route
network" where customs procedures are fully electronic
and regulations support paperless shipments.
2. Transport documents. Working collaboratively within
the cargo supply chain to digitize the core industry
transport documents, starting with the AWB.
3. Commercial & special cargo documents. Developing a
plan to digitize the commercial and special cargo
documents typically accompanying air freight today, in or
out of the "cargo pouch".
Road map for removing paperwork in three areas

7. By end 2020 it is envisaged that:
• Evolve more efficient system of cargo
transportation.
• Low-carbon end-to-end transport and
logistics services will be planned,
executed and completed cooperatively
in a global freight business ecosystem.
Planned Outcome by IATA

8. Airports and Cargo Transportation

9. Cargo Terminal at Airport

10. Cargo Terminal Airside

11. Important Facts
• Links between the flight and market
• More than 40000 airports
• Various type of cargo transported by air.
• No two airports are same
• Cargo handling varies with airport to airport

12. Why Cargo Friendly Airport Needed
• Plays a major role in the international airport
network.
• Major airports are increasingly congested and
unable to cope with increasing air traffic.
• Carriers, shippers and their agents are
permanently looking for savings.
• Cargo aircraft to compete with belly carriers.
• So concept of "Cargo Friendly Airport" can address
the trends and concerns.

13. Cargo Friendly Airport
(05 Criteria)
1. Capable to accommodate and handle all types of
aircraft and cargo. (general cargo, perishable,
hazmat, oversized, high value) in safe and secured
conditions.
2. Open 24/7, with no curfew, no night restrictions,
with high-speed turnarounds, so as to maximize the
use of the aircraft.

14. Cargo Friendly Airport
3. Low landing fees, technical assistance, cargo
handling, parking and Jet A1 to reduce the cost of
the stop.
4. 24/7 services of customs, veterinarian and
cleaning services, freight forwarders, trucking
companies and certifications.
5. Connected with highway network for immediate
distribution of the goods and easy consolidation of
outbound shipments.

15. Other Important Aspects
• Cargo plays major role than passenger.
• Help industry run seamlessly for product
production.
• Secures supply chain.
• Air Gateways must for commerce.
• Need of Freight hubs.
• DHL– USA, Germany, HK
• FEDEX– Memphis
• UPS – Kentucky, Canada, Germany

16. Pearl River Delta (PRD)
Factory of the world or World’s factory

17. Pearl River Delta
Significance and fast growth of this region is
because of proximity to Hong Kong's
financial sector, a world-class airport,
seaport, a huge and inexpensive labor pool,
cheap and abundant land, and few
regulatory impediments to rapidly growing
companies.