Introduction To Air Cargo PDF

Unit-1 Introduction to air cargo  Introduction to air cargo According to Cambridge Dictionary, Cargo (Plural cargoes or cargos) means the goods carried by a ship, aircraft, or other large vehicle. Air cargo is another term for air freight. It is the carriage...

Unit-1 Introduction to air cargo  Introduction to air cargo According to Cambridge Dictionary, Cargo (Plural cargoes or cargos) means the goods carried by a ship, aircraft, or other large vehicle. Air cargo is another term for air freight. It is the carriage or the transportation of goods through an air carrier. Transport services via air are the most valuable when it comes to moving express shipments around the globe and it consists of air mail, air freight and air express (1). Urgent materials such as radiopharmaceuticals for medical diagnosis or treatment or high-value goods such as technological products and high value commodities are typically shipped by air cargo. Air transport is also ideal for certain food products such as fresh fish, exotic fruits and cut flowers (2). Air cargo transports over US $6 trillion worth of goods annually, accounting for approximately 35% of world trade by value (IATA, 2021) Source: What Types of Cargo are Transported by Air? https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air /  Types of Air Cargo When looking at the various types of cargo transported by air, they fall into two main groups: General Cargo and Special Cargo. Special Cargo is then divided up into smaller specialized sub-groups. It is these specialized sub-groups we will take a much closer look at further on. What is general cargo?: General cargo are items that do not fall into the Special Cargo categories and that do not require any extra precautions or special handling during air transport. These types of items are retail and most consumer goods (with the exception of mobile phones, tablets and laptops) , dry goods, hardware, textiles, and more. Think of your average, everyday objects; most of those would fall into the general cargo area. Source: What Types of Cargo are Transported by Air? https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/  Types of Air Cargo (Continued….) What is special cargo?: Special cargo is where things get a little more complicated. Special cargo are goods that, due to their nature, weight, dimensions and/or value, may have specific requirements including packaging, labelling, documentation and handling through the transport chain. The transport of these goods are addressed through specific regulations that must be followed when preparing, offering, accepting and handling this cargo. Items include dangerous goods, live animals, perishable cargo, wet cargo, time and temperature sensitive products among others. To ensure that there are globally harmonized standards that ensures the safe and facilitates of these products, IATA has three Boards: the Dangerous Goods Board (DGB), Time and Temperature Working Group (TTWG), and the Live Animals and Perishables Board (LAPB), which manage the standards and guidance related to the transport of these products.To learn more about this special cargo, let's break it down. Source: What Types of Cargo are Transported by Air? https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/  Types of Air Cargo (Continued….) Dangerous goods are grouped into nine classes: Class 1-Explosives Class 2-Gasses Class 3-Flammable Liquids Class 4-Flammable Solids; Substance Liable to Spontaneous Combustion; Substances which, in Contact with Water, Emit Flammable Gases Class 5-Oxidizing Substances and Organic Peroxides Class 6-Toxic and Infectious Substances Class 7-Radioactive Material Class 8-Corrosives Class 9-Miscellaneous Dangerous Substances and Articles, Including Environmentally Hazardous Substances Source: What Types of Cargo are Transported by Air? https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/  Types of Air Cargo (Continued….) Temperature controlled goods: Some commodities, such as pharmaceuticals, blood supplies, organs, or other life sciences products require specific controls on the temperature to which they are exposed during transport. Perishable goods: With fresh fruits and vegetables becoming more and more popular year-round, transportation of perishable goods is in high demand. Shorter travel time and controlled temperature make transporting perishable goods by air the preferred means of shipping. Source: What Types of Cargo are Transported by Air? https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/  Cargo and forms of transport AIR TRANSPORT ROAD TRANSPORT It is the most preferred mode for It provides flexibility to high value goods. It is rapidly gaining popularity in exporters. international trade due to This can be used only with Increase in market competition the bordering countries. and Increasing availability of cargo It is common for cross services country trade in land- Transportation of goods accounts locked nations and only 1 % in terms of volume and 20-30% in terms of value of total countries with strong eco- world trade groupings (EU).  Cargo and forms of transport (Continued) AIR TRANSPORT: ROAD TRANSPORT: ADVANTAGES AND ADVANTAGES AND LIMITATIONS LIMITATIONS The advantages include: The advantages include: Speedier delivery Facilitates door-to-door delivery with Highly suitable for perishable goods little intermediate handling Does not require robust packaging Flexibility of operations Low risk of pilferage or cargo damage with competitive rate of insurance Competitive for small distances Documentation is simple and cost and effective Economy of packaging cost compared to Low inventory and storage cost ocean shipping. Reliability of services The limitations of air transport are: Lower risk of cargo damage during Air freight is more expensive compared to ocean transport transit. Limited capacity with air freighters The limitations of road transport are: Packages need to be small so as to fit in the air carrier Can be used to bordering countries only  Cargo and forms of transport (Continued) RAIL TRANSPORT OCEAN TRANSPORT Countries such as india, china, AND It is the largest means of transport RUSSIA have highly developed rail in international trade. systems in the world. Operations of merchantship is It can be used only to transport goods to estimated to generate over $ 600 bordering countries. bn in freight rates representing It is widely used in countries like about 5% of total global economy. E.U Shipping industry presents healthy competition among USA Over 10,000 individual shipping Canada companies in international trade Mexico operating over 50,000 ships CIS countries Over 3000 ports  Cargo and forms of transport (Continued) RAIL TRANSPORT: OCEAN TRANSPORT: ADVANTAGES AND ADVANTAGES AND LIMITATIONS LIMITATIONS The advantages include: The advantages transporting cargo by Economic vis-à-vis road transport containers include: Bulk cargoes can be handled in higher Facilitates door-to-door delivery volumes Reduces cost of packaging as the container It is widely used in many developed acts as a strong protective cover countries such as USA, Canada. Reduces documentation work The limitations of rail transport are: Lowers warehousing and inventory cost It can be used for bordering countries only Prevents pilferage and theft Limited to availability of railway network. Reduces susceptibility to cargo damage. Good relationship with neighboring The limitations of sea transport are: countries is a must for its success. It can be used only where there is sea.  Aviation contributions/Importance of air  cargo as a core business Air cargo is a trade facilitator that contributes to global economic development and creates millions of jobs. The global economy depends on the ability to deliver high-quality products at competitive prices to consumers worldwide. Air cargo transports over US $6 trillion worth of goods, accounting for approximately 35% of world trade by value. 2.5 million lives are saved every year by vaccines: Because of supply chain solutions, vaccines can reach their destination in time to be effective. The World Health Organization estimates that immunization programs prevent up to 3 million child deaths per year. Air cargo is critical in flying these temperature-sensitive pharmaceuticals in the best conditions, using cutting-edge technologies and procedures. Source: Air Cargo Matters. https://www.iata.org/en/programs/cargo/sustainability/benefits/  Aviation contributions/Importance of air cargo as a core business (Continued…) 7.4 billion parcels are sent every year: 328 billion letters and 7.4 billion postal parcels are sent every year and airmail plays an essential role in their delivery. While the emergence of electronic communications caused a dramatic decrease in the number of letters sent, more and more parcels are delivered daily thanks to e- commerce. Since the COVID-19 crisis began, air cargo has been a vital partner in delivering much-needed medicines, medical equipment (including spare parts/repair components), and in keeping global supply chains functioning for the most time-sensitive materials. This has been done through dedicated cargo freighter operations, utilization of cargo capacity in passenger aircraft, and relief flights to affected areas. Source: Air Cargo Matters. https://www.iata.org/en/programs/cargo/sustainability/benefits/ Source: value of air cargo brochure. https://www.iata.org/en/programs/cargo/sustainability/benefits/  Aviation contributions/Importance of air cargo as a core business (Continued…) To date, the primary air logistics beneficiaries of the e-commerce boom have been the integrated express carriers (eg, FedEx, UPS, DHL) and e-commerce retailers’ own in-house air operations (eg, Amazon Air). Passenger airlines now have an important opportunity to penetrate this market. To do so effectively, however, they will need to offer specialised processing services tailored to e-commerce, including enhanced tracking and tracing, rapid clearance, last-mile delivery, and – above all else – speed and reliability in delivery from end to end. Airports also must recognise that cargo will represent a much more important revenue opportunity, going forward. Airports would be well served to align their approach to air cargo – strategy, air service marketing, selection of handling service providers, IT, and facility and infrastructure development – with the needs and requirements of the airlines and the economic enterprises in their catchment areas. As a priority, airports should work to ensure that cargo is handled and processed with the highest level of quality, transparency, speed and efficiency that the markets demand, and tailored to the specific types of commodities that are produced or consumed within the airport’s catchment area. Only through a synergistic approach between airports, airlines, GHAs and local authorities can airports assist airlines to return to a profitable and viable business case. Source: Airlines must see cargo as a 'core business' from now on. https://theloadstar.com/airlines-must-see-cargo-as-a-core-business-from-now-on/  Air Cargo trade size Worldwide In 2015, airlines transported 52.2 million metric tons of goods valued at USD 5.6 trillion. Air cargo is key in supporting the current global trading system, with an estimated 35% of value of global trade carried by air, even though it covers less than 1% by volume. The role of air cargo is even greater for trade in advanced industrial, high value goods, and other sectors that rely on rapid, reliable and secure transport. As illustrated in the chart below from available data on imports to the US and EU. The report by Developing Trade Consultants, commissioned by IATA, further investigates the relationship between air cargo connectivity and participation in global trade. The study – Value of Air Cargo: Air Transport and Global Value Chains – found that air cargo is a critical enabler of supporting integration into the global trading system. Countries that have better air cargo connectivity (measured by the Air Connectivity Index) also engage in more trade in value terms. The study does not attempt to quantify a causal relationship but the associations identified key characteristics that enable countries to better integrate into the global trading system. The study found a strong association between better air cargo connectivity and higher total trade value – as stated above a 1% increase in air cargo connectivity is associated with a 6.3% increase in total exports and imports. Source: VALUE OF AIR CARGO AIR TRANSPORT AND GLOBAL VALUE CHAINS. https://www.iata.org/en/iata-repository/publications/economic-reports/value-of-air-cargo-air-transport-and-global-value- chains-summary/  Air Cargo trade size Worldwide (continued..) Source: https://www.statista.com/statistics/564717/airline-industry-passenger-traffic-globally/  Air Cargo trade size Worldwide (continued..) Following somewhat slow growth in the early 2010’s, the global volume of air freight increased rapidly in recent years with freight volumes reaching 66.2 million metric tons in 2021. The global air freight market: The air cargo market refers to the transportation of goods via air, either by commercial airlines or specialized freight companies. The largest flows of air cargo are in and between East Asia and the United States, with airports in these regions dominating the top ten in terms of freight volume. Drivers of growth: Two factors have strongly influenced the growth of the air freight market. The first is the global increase of e-commerce. This has connected retailers and consumers in different geographic locations across both domestic and international markets, driving up the demand for delivery services in the process. Second is the cost of airline fuel. The period circa 2012 where airline fuel prices reached historic highs coincides with slow growth in air freight volumes, while the increasing growth in freight volume seen from around 2016 coincides with a sharp fall in the cost of airline fuel. Pressures in Aviation The mix of pressures in aviation including spikes in fuel prices, fierce competition from other transport modes, economic fluctuations, war, weather and environmental issues, air cargo operators and ground service providers are forever striving to offer a better service at a lower price. This balance becomes almost impossible if quality is to be maintained. The integrators have for many years led the way by providing rapid door-to-door overnight service but at an extremely high price. Source: Michael Sales and Stan Wraight (2014). Aviation Logistics: Part 2 – Air cargo, the 'vital contributor', comes under pressure. https://theloadstar.com/aviationlogistics2/  Pressures in Aviation (Continued….) Source: https://www.gminsights.com Pressures in Aviation (Continued….) Fuel Efficiency: Since nearly three decades, aviation fuel availability and costs have remained one of the fundamental economic variables affecting the airline business. The financial portfolio of an airline is directly affected by high jet fuel prices. Fuel prices were at an all-time high, creating a vicious spiral, as the number of airline businesses increased year over year. Alternative fuels haven't had much of an impact, thus maintaining fuel economy is one of the aviation industry's biggest difficulties. Global Economy: One of the biggest difficulties facing the airline industry is the health of the global economy. The size of the aviation industry, for example, was severely impacted by the 2008 economic recession. Travel and fuel expenses are rising as the global economy crumbles, while passenger numbers are declining. One of the primary economic variables affecting the airline business is the impact of the recession on the tourism sector. When it comes to expanding into new countries and exploring new routes, air transport businesses must keep market conditions and instability in regional zones in mind. In addition, different countries have distinct economic growth conditions, which airline firms must keep in mind when looking to expand internationally. Source: https://www.gminsights.com Pressures in Aviation (Continued….) Passenger Comfort and Experience: The aircraft sector is service- oriented, and passenger satisfaction is crucial to its success. Because no two passengers are alike, passenger satisfaction is at the heart of the airline industry's issues. At any given time, a segment of customers may be unsatisfied. This is, however, what has pushed airline businesses to assure seamlessness throughout - the actual flight, excellent security, fewer/no difficulties in airport lineups, convenient baggage claim, customer service, and more. Airline Infrastructure: Runways, terminals, concourses, hotels, shopping complexes, lounges, and other airport infrastructure must all be upgraded on a regular basis. There is a lot of competition in this location, therefore onsite amenities like aircraft ground handling systems will need to be rebuilt on a regular basis to keep the airline's image and stay ahead of the competition. While doing so on occasion is undoubtedly beneficial, resulting in increased passenger numbers, repeating the upgrade on a regular basis will have a substantial financial impact on the airline firm. Pressures in Aviation (Continued….) Global Congestion: A couple of decades back, air travel had been a luxurious affair; playthings of the rich, especially in the developing countries. The scenario has changed drastically, today, airports the world over are so crowded that it has led to unnecessary flight delays. Most flights seem full, terminals are always congested, and more importantly, the skies are overcrowded with the excessive number of aircraft. Air traffic and airport congestion are major challenges faced by the airline market, which seem to have no feasible solution, at least in the immediate future. Carriers continue to make trips seamless for flyers, however, this will continue to remain a viable challenge. Technological Advancements: To think that technological developments are one of the challenges of the airline industry may come as a surprise. Technology, however, is a double-edged sword, and despite the revolution it has brought about, rising dependence on the same can make the entire industry vulnerable. For instance, in case of a software issue, the operations of the airline may remain crippled until it is resolved. In case of insufficient funding, upgrading crucial infrastructure such as aircraft communication systems may be impossible, causing the entire system to collapse. Source: https://www.gminsights.com Pressures in Aviation (Continued….) Terrorism: Tragic events from the past have created ripples of fear not only among the masses, but also airport personnel. Although terrorist activities have dimmed down in recent times, this is still very much a threat, as airline companies must remain consistently vigilant. Increasing fear of terrorism leads to stringent check-ins and consequently longer lines and delays. It also pressurizes airline companies to come up with highly secure state-of-the-art screening procedures and equipment. On a related note, even political scuffles between two nations can pose as one of the major challenges of the aviation industry. After all, airlines are the connection between two countries, and unreasonable government regulations due to strife between two nations can make it very difficult for carriers to conveniently transport passengers and cargo in and out of international borders. Covid-19: Air transport is key to global economic development. This wider economic benefit is underpinned by both the direct connections between cities - enabling the flow of goods, people, capital, technology and ideas - and falling air transport costs. COVID-19 has caused a significant loss in air connectivity. As a result of travel restrictions, unique city-pairs declined for the first time since the global financial crisis. Source: https://www.gminsights.com  Freighter Aircraft A cargo aircraft (sometimes called a freighter, airlifter, or cargo jet) is a fixed-wing aircraft that is built or converted to transport cargo rather than passengers. These planes normally don't have any passenger facilities and have one or more big cargo doors. Civil passenger or cargo airlines, private people, or individual countries' military forces may all operate freighters. By 2015, dedicated freighters represent 43% of the 700 billion ATK (available tonne-kilometer) capacity, while 57% is carried in airliner's cargo holds, and Boeing forecast Belly freight to rise to 63% while specialised cargoes would represent 37% of a 1,200 billion ATKs in 2035.The Cargo Facts Consulting firm forecasts that the global freighter fleet will rise from 1,782 in 2019 to 2,920 twenty years later. https://www.boeing.com/resources/boeingdotcom/commercial/about-our-market/cargo-market-detail-wacf/download-report/assets/pdfs/wacf.pdf  Types of Freighter Aircraft and Comparison of cargo aircraft capabilities https://en.wikipedia.org/wiki/Cargo_aircraft  An airliner having a fuselage broad enough to carry two passenger aisles with seven or more seats abreast is known as a wide-body aircraft, sometimes known as a twin-aisle aircraft. The average fuselage diameter is 5–6 m (16–20 ft). Passengers are seated seven to ten abreast in a standard wide-body economy cabin, with a total capacity of 200 to 850 passengers. The largest wide-body planes are over 6 meters (20 feet) wide and can carry up to eleven people in high-density arrangements. A typical narrow-body airliner, by comparison, has a diameter of 3 to 4 m (10 to 13 ft), a single aisle, and seats two to six people per row.Wide-body planes were created for a combination of efficiency and passenger comfort, as well as to improve cargo room. However, in order to maximize revenue and profits, airlines swiftly caved in to economic pressures and curtailed the excess passenger space.Commercial freight and cargo are also transported using wide-body aircraft.  Air cargo is Striving to Survive The International Air Transport Association (IATA) urged the air cargo industry to continue working together at the same pace, with the same levels of cooperation as during the COVID-19 pandemic to overcome future challenges and build industry resilience. Sustainability, modernization, and safety were highlighted as key priorities for the industry post pandemic. The call was made at the 14th World Cargo Symposium (WCS). “Air cargo is a critically important industry. This pandemic reminded us of that. During the crisis, it has been a lifeline for society, delivering critical medical supplies and vaccines across the globe and keeping international supply chains open. And for many airlines, cargo became a vital source of revenue when passenger flights were grounded. In 2020, the air cargo industry generated $129 billion, which represented approximately a third of airlines’ overall revenues, an increase of 10– 15% compared to pre-crisis levels. Source: Key to Air Cargo Resilience Post Pandemic: Cooperation, Safety, Sustainability, Modernization. https://www.iata.org/en/pressroom/2021-releases/2021-10-12-01/  Cargo Handling Cargo handling is the segment of the supply chain which processes goods landside in the cargo facility. From the delivery at the airport of origin until it is ready for loading on the plane, to the unloading at destination and handover to the consignee/freight forwarder, many steps are involved with cargo handling that must be closely followed to ensure shipments are delivered safely and securely. These steps are found in the cargo Master Operating Plan (MOP). What is the cargo Master Operating Plan (MOP)?: The Master Operating Plan (MOP) describes the key processes and sub- processes involved in transporting air cargo from shipper to consignee in a systematic and harmonized manner. It provides the air cargo supply chain with the first, industry-endorsed, standard description of the end-to-end process for transporting cargo by air. Source: What to Know About Air Cargo Handling. https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-to-know-about-air-cargo-handling/ Source: What to Know About Air Cargo Handling. https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-to-know-about-air-cargo-handling/  The primary objective for air cargo acceptance and handling is to ensure that consignments are ready for carriage in compliance with operator and IATA regulations, as well as with export and import rules of the countries through which the cargo will transit. Key steps of the MOP include Book and plan shipments, pick them up from the shipper Receive freight at the forwarder branch and transfer it to the forwarder hub Prepare export shipments Transfer shipments to and receive shipments from the carrier domain, Accept shipments as ready for carriage and prepare for transport Send shipments to the flight and distribute information Unload and dispatch shipment to warehouse Check-in and arrive shipments, transfer shipments to forwarder Load truck and produce run sheet, deliver and obtain proof of delivery Source: What to Know About Air Cargo Handling. https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-to-know-about-air-cargo-handling/  Process time of air cargo and cost The travel time for goods being transported via air freight is much lower than ocean shipping. In air shipment crossing the Pacific will take around 3-5 days, while an ocean shipment can take closer to 3 weeks. Not only is the transportation time less, but customs clearance can also be quicker, often starting the process the same day and taking only a couple of days to finish. For time sensitive shipments, or shipments that contain perishable goods, air freight shipping can make such a supply chain function, and the price difference becomes well worth it. Shipping cargo by air may be necessary for some shippers, especially those dealing with perishable goods, foods, or expensive items. Shipping cargo via air can be a lot more expensive than ocean or land shipping but also occurs much faster. Air Freight Costs: Air freight is a lot more expensive than other shipping methods. On average is about 4 to 5 times more expensive than road shipping and 12 to 16 times more expensive than shipping via ocean freight. Additionally, the cost of the actual delivery is more expensive, and import duty and taxes are calculated as a percentage according to the total cost of goods and shipping. However, importers and exporters who need to move high-value goods or make time-sensitive shipments may see the added delivery costs as a necessary step in order for them to continue doing business. Shipping goods via air freight is usually priced by gross or volumetric weight, whichever is higher. Volumetric weight is calculated by multiplying the shipment’s 3 dimensions, length, height, and width in inches, and dividing the result by 166. Source: The Essential Guide to Air Freight: Process, Costs, and Timelines. https://www.asianausa.com/essential-guide-air-freight-process-costs-timelines/  Air cargo’s SWOT Analysis Strength Weakness Speed Over capacity Safety Complexity Security Low land occupancy Perceived as not No theft environmentally friendly High level of expertise for special cargo Perceived as not price- Best mode for land-locked competitive countries Weak economics of most No path congestion carriers Source: An Introduction to Air Cargo – SWOT and Overview. https://www.hemisphere-freight.com/an-introduction-to-air-cargo-swot-and-overview/  Air cargo’s SWOT Analysis Opportunities Threats E-commerce growth Terrorism Bali Package trade agreement New players (Amazon, Alibaba, Growth of economy & trade etc.) Drones Fuel costs New technologies (IoT, digital platforms, big data, automation) Airport congestion Alternative fuels, solar power, Increased regulatory oversight etc. on aircraft loading Capacity increase in extra Ground waiting times European airports (clearance) Source: An Introduction to Air Cargo – SWOT and Overview. https://www.hemisphere-freight.com/an-introduction-to-air-cargo-swot-and-overview/  Requirements of Air cargo Two main factors define the choice of air transport for certain products: the value of the commodities and the speed with which they must be transported. Urgent materials such as radiopharmaceuticals for medical diagnosis or treatment or high-value goods such as technological products and high value commodities are typically shipped by air cargo. Air transport is also ideal for certain food products such as fresh fish, exotic fruits and cut flowers. The growth in demand for the transport of pharmaceutical and healthcare products has also resulted in the introduction of new regulations for the proper handling of time and temperature sensitive shipments. Although passengers and cargo are very often carried in the same aircraft together, for an airline these are two distinctly different businesses each with its own requirements and unique challenges. Let’s take a closer look at the cargo business. Source: https://www.iata.org/en/publications/newsletters/iata-knowledge-hub/what-types-of-cargo-are-transported-by-air/  Parties involved in Air Cargo A multitude of businesses with varied roles handle goods along the chain, including airplane operators, express carriers, postal operators, regulated agents, consignors, consignees, and ground handlers. Furthermore, depending on the State or region in which they are located, these entities are recognized by different names. Before reaching its destination, cargo may be transferred between many planes, and consignments are subjected to a range of procedures and documentary requirements in compliance with legal and commercial frameworks. Authorities in charge of aviation safety and security, as well as crime prevention and fiscal revenue protection, have a stake in the outcome and their own set of rules. Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf  A single entity may fulfil more than one role in the supply chain and take on the combined responsibilities. Broker: A broker is an independent agent who facilitates the movement of goods from buyer to seller, for instance by arranging air transport or meeting Customs requirements, such as goods declarations. Brokering functions are often integrated with forwarding, consolidation and even warehousing functions within a single entity. Buyer :The buyer is the purchaser of the goods and, in the international trade context, is also known as the importer. The buyer or importer either clears consignments on its own or utilizes the services of a broker to assist with various requirements of border regulatory agencies. Consignor :A consignor is the entity or individual who initiates the movement or transport of the goods. In other words, it is the sender. (A ’known consignor’ is an entity recognized in some States as meeting specified security requirements). The term ‘shipper’ is often used to describe the entity or individual who initiates the trade in goods. Consignor and shipper are separate roles but can be the same entity or individual. Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf  Consignee : The consignee is the party designated on the invoice or packing list as the recipient of the goods at the end of the transport movement. Freight forwarders: Freight forwarders are part of the transport logistics process within the supply chain and their main task is to arrange for air shipments to be managed in such a way that they are ready for transportation by aircraft operators. Such arrangements might include the consolidation of cargo. A freight forwarder and logistics service provider may offer a service relating to the preparation, storage, carriage and final delivery of goods, including the applicable documentary and facilitation formalities. Services offered by the forwarder may include consolidation, storage, handling, packing, or distribution of the goods. In addition the forwarder can provide a range of ancillary and advisory services in relation to the physical movement of the goods. These services will often include Customs and fiscal matters, declaring the goods for official purposes, procuring insurance for the goods, and collecting or procuring payment or documents relating to the goods. Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf  Ground handlers: Ground handlers are subcontracted and act on behalf of freight forwarders and/or aircraft operators. This occurs when the freight forwarder or aircraft operator does not have the necessary facilities. Ground handling services can include the provision of warehouses to accept, handle, prepare, and tag cargo and mail, as well as loading/unloading, transit, and storage of cargo and mail. Ground handlers are responsible for dealing with operational aspects, based on the instructions of freight forwarders and aircraft operators. Once a consignment is ready for shipment, the freight forwarder will release the cargo and instruct the ground handler to deliver it to the aircraft operator. Ground handlers are often located on airport premises, either airside or at the frontier between landside and airside, though they may also be located landside. Airport operator: An airport operator is the entity responsible for the provision and security of the airport infrastructure. The operator will establish a secure environment through which the goods move and may also be responsible for the provision of ‘on airport’ cargo services. In some cases, an airport operator will be the party responsible for the protocols for dealing with incidents resulting from a positive identification of a physical threat in air cargo. Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf  Aircraft operators : Aircraft operators, also known as airlines and air carriers, provide air transportation for goods. A transport contract (air waybill) binds an aircraft operator with the relevant contracted parties for the safe and secure transport of cargo and mail from one location (e.g. the airport of departure) to another (e.g. the airport of arrival). The air cargo may be transported on passenger aircraft or all-cargo aircraft. In some instances, particularly for short distances, aircraft operators may also transport air cargo by road. The transport contract remains an air waybill, however, and the road segment is considered as a flight, with a designated flight number. This type of op Express carriers: Express carriers combine the work of a broker, haulier, freight forwarder, groun d handler and aircraft operator into one single company or group, which is why they are also sometimes referred to as ‘integrators’. Express delivery has thus become a specific business model in the cargo industry. Express carriers manage end-to-end multimodal supply chains spanning 220 States and territories. They operate sophisticated track-and- trace information technology systems, which allow them to monitor the progress of an individual shipment through their chain, from pick up to delivery. Express carriers typically transport high-value-added, time-sensitive cargo, with a time definite deliveryeration is known as a ‘road feeder service’. Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf Source: Moving Air Cargo Globally. https://www.icao.int/Security/aircargo/Moving%20Air%20Cargo%20Globally/ICAO_WCO_Moving_Air_Cargo_en.pdf  Air cargo and Environment Air transport as a whole represents just 2% of global carbon emissions. The industry is committed to achieving carbon-neutral growth by 2020 and reducing 50% in net emissions by 2050.​ Air cargo already compares favorably with other transport modes like maritime shipping, which accounts for about 4% of global carbon emissions. However, the air freight sector has an enormous role to play if aviation is to meet its environmental targets. Despite the turbulent economic times, there is a genuine desire amongst the whole air freight supply chain to be greener. It includes efforts on transparency with the measurement of air cargo carbon footprint; concreate actions to reduce fuel consumption by reducing weight on board (going paperless with e-freight (end-to-end paperless transportation process), investing in lightweight ULDs-Unit Load Device ) and larger strategies to modernize fleet, use biofuels, and make all cargo operations more efficient. Source: Air Cargo Carbon Footprint. https://www.iata.org/en/programs/cargo/sustainability/carbon-footprint/  Threat to air cargo from sea/ocean cargo In terms of accessibility to markets, sea freight has a better advantage than air freight as there is the possibility of containers moving further inland by rail on an intermodal basis. An air freight shipment is considerably more expensive than the same volume of sea freight cargo. This is mainly due to the capacity available on a plane, the higher fuel consumption, and operational costs of a plane. Due to the volume of cargo a ship can carry at once, as compared to an aircraft, the freight cost by sea freight is much cheaper than air. Source: Barrios (2018). Air Freight Versus Sea Freight: Which Should You Choose?. https://www.xeneta.com  Air cargo history The first cargo flight took place on the 7 November 1910 in the USA, between Dayton and Columbus, Ohio. The Douglas DC-8 (sometimes McDonnell Douglas DC-8) is a long-range narrow-body airliner built by the American Douglas Aircraft Company. After losing the May 1954 US Air Force tanker competition to the Boeing KC-135, Douglas announced in July 1955 its derived jetliner project. In 1968, Boeing launched the four engine 747, the first wide-body aircraft. The 747 was the first aircraft capable of transporting full pallets in the cargo hold, revolutionizing the air cargo industry. dc-8/ Source: When does the first cargo flight take place?. https://rabinmarine.com/en/first-cargo-flight-take-place/, https://hangar.flights/aircraft/douglas-  The Antonov An-124 Ruslan is a four-engined, large, strategic airlift aircraft created by the Antonov design bureau in the Ukrainian SSR, then part of the Soviet Union, in the 1980s (USSR). After the one-off Antonov An-225 Mriya, the An-124 is the world's heaviest gross weight production cargo plane and second heaviest running cargo plane (a greatly enlarged design based on the An-124). The An-124 is still the world's largest military transport plane. In the 1990s, cargo became a strong cornerstone of the sector. The express package carriers, such as FedEx, DHL, TNT, and UPS, as well as improvements in manufacturing techniques, were the catalysts for the sector's renewed expansion. Thousands of FedEx customers received software on computer disks in 1992, allowing them to track shipments from their own workstations. Source: https://www.iata.org/contentassets/4d3961c878894c8a8725278607d8ad52/air-cargo-brochure.pdf  Unit load device On wide-body and narrow-body airplanes, a unit load device (ULD) is a container used to load luggage, freight, and mail. When opposed to 'bulk-loading' single items of goods or luggage by hand, it permits preloading of cargo, certainty that the containerised load will fit in the aircraft, efficient planning of aircraft weight and balance, and reduced labor and time in loading aircraft holds.. Pallets and containers are the two types of ULDs. ULD pallets are tough aluminum sheets with rims that lock onto cargo net lugs. ULD containers, also known as cans and pods, are closed containers constructed of aluminum or a mix of aluminum (frame) and Lexan (walls) that may include built-in refrigeration units depending on the nature of the items to be carried. Source: google image