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Air cargo primarily refers to the transportation of goods through an air carrier.
True
Air cargo accounts for approximately 50% of world trade by value.
False
General cargo includes items that require extra precautions during air transport.
False
Special cargo can be divided into smaller specialized sub-groups.
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Items such as fresh fish and exotic fruits are typically categorized as general cargo.
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Retail and most consumer goods, except mobile phones, fall under special cargo categories.
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Air transport is highly valued for moving express shipments globally.
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Air cargo transports over US $10 trillion worth of goods annually.
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Dangerous goods are classified into seven categories.
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Temperature controlled goods do not include pharmaceuticals.
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IATA has three Boards that manage standards for special cargo transport.
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Perishable goods can be transported by air without specific temperature controls.
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Class 4 of dangerous goods includes only flammable solids.
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The transport of special cargo follows specific regulations.
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Live animals are considered part of special cargo.
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Class 9 dangerous goods include only firearms.
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The Master Operating Plan (MOP) is the first industry-endorsed standard description for ocean cargo transportation.
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Air freight travels significantly faster than ocean freight, with Pacific air shipments taking about 3-5 days.
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Customs clearance for air shipments often begins the same day as the shipment arrives.
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One of the primary objectives of air cargo acceptance is to comply with the rules of the shipper only.
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Transporting perishable goods is a key consideration for utilizing air freight services.
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The process of the Master Operating Plan includes accepting shipments and preparing them for transport.
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Air cargo shipping is typically more expensive than ocean shipping due to longer transit times.
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The Master Operating Plan (MOP) includes transferring shipments to and receiving shipments from the carrier domain.
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Airports should align their air cargo strategy with the needs of airlines and local economic enterprises.
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In 2015, airlines transported 52.2 million metric tons of cargo valued at USD 5.6 billion.
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Air cargo covers more than 1% of global trade by volume.
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The air connectivity index measures how well countries are connected through air cargo transport.
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Air cargo plays a minor role in trade for advanced industrial, high value goods.
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Cargo processing services for e-commerce should focus primarily on cost over speed and reliability.
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Countries with better air cargo connectivity tend to engage in less trade in value terms.
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Last-mile delivery is considered an important aspect of cargo processing services.
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A consignor is the entity that receives goods for transport.
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Brokering functions are usually performed separately from forwarding and warehousing.
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A buyer in international trade is also known as the exporter.
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Ground handlers, regulated agents, and express carriers play no role in the air cargo supply chain.
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A known consignor meets specified security requirements in some States.
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A single entity is always restricted to one role in the air cargo supply chain.
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Postal operators are one of the parties involved in air cargo.
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Crime prevention authorities do not have any stake in air cargo outcomes.
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Study Notes
Introduction to Air Cargo
- Air Cargo is the transportation of goods via air carriers.
- Air cargo is crucial for moving urgent or high-value items, like pharmaceuticals, technology, and luxury goods.
- It's also ideal for perishable products like fish, exotic fruits, and flowers.
- Air cargo accounts for approximately 35% of world trade by value.
Types of Air Cargo
- General Cargo: Everyday objects like retail goods, hardware, and textiles.
- Special Cargo: Requires specialized handling and regulations due to their nature, weight, dimensions, or value.
- Examples of Special Cargo include:
- Dangerous Goods: Classified into 9 categories, including explosives, flammable liquids, toxic substances, and radioactive materials.
- Temperature Controlled Goods: Require specific temperature controls, like pharmaceuticals, blood supplies, and organs.
- Perishable Goods: Include fresh produce, which benefits from faster travel time and controlled temperature.
Air Cargo Trade
- In 2015, airlines shipped 52.2 million metric tons of goods valued at USD 5.6 trillion
- Air cargo is vital for global trade, accounting for 35% of value, despite making up less than 1 % of volume.
- Countries with better air cargo connectivity have higher participation in global trade.
Air Cargo Master Operating Plan (MOP)
- The MOP standardizes the processes involved in transporting air cargo from shipper to consignee.
- It covers key steps like booking, receiving, preparing, transferring, unloading, and delivery.
Air Cargo Processing Time and Cost
- Air freight offers significantly faster delivery times compared to ocean shipping.
- Air freight is advantageous for perishable goods and time-sensitive deliveries, despite being more expensive.
Parties Involved in Air Cargo
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A wide range of businesses participate in the air cargo supply chain, including:
- Air Carriers
- Express Carriers
- Postal Operators
- Consignors
- Consignees
- Ground Handlers
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These entities may have overlapping roles, such as brokers, buyers, and consignors.
Key Stakeholders and Their Roles
- Broker: Facilitates cargo movement, including arranging transport and dealing with customs requirements.
- Buyer (Importer): Purchases goods and handles customs clearance.
- Consignor: Initiates cargo transport and may be the same entity as the Shipper, who initiates the trade itself.
- Consignee: Receives the cargo.
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Description
Explore the fundamentals of air cargo and its significance in global trade. This quiz covers the types of air cargo, including general and special cargo, and delves into the specific requirements for handling dangerous and temperature-controlled goods. Understand why air cargo is essential for moving urgent and high-value items.
