air cargo overview ppt
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Air Cargo BusinessTRANSCRIPT
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Air Cargo Overview
Prof. (Dr.) S N Misra
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Air Cargo Carriers
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Air Cargo Carriers
Air cargo services are provided by a segmentedgroup of air carriers that provide variousservices based upon wide ranging customerdemands.
The following four basic types of carriers providethese services:
• Integrated express operators
• All-cargo carriers
• Commercial service passenger airlines
• Ad-hoc cargo charter carriers
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Integrated express operators
FedEx, UPS, and DHL operate a fleet of scheduledaircraft, trucks, and couriers offering door-to-doordelivery service. These carriers operate extensivehub-and-spoke networks providing expansivegeographic coverage.
In 2003, integrated express carriers accounted for61 percent of the U.S. domestic air cargo market,yet held only 12 percent of the international market(projected to increase to 31 percent by 2019).
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DHL Cargo plane
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FedEx Cargo Planes
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UPS Cargo Plane
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All-cargo carriers
Atlas Air Cargo, Gemini, etc. generally operatescheduled wide body aircraft from one major airportto another, such as Chicago to Tokyo and are highlyreliant on the air freight forwarding industry.Approximately 10 to 15 percent of world air cargotraffic is moved by all-cargo carriers, primarily on long-haul international or transcontinental routes.
Due to their airport-to-airport service structure, all-cargo carriers are typically concentrated in large, highvolume market airports; geographic coverage islimited.
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Atlas Air Cargo
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Gemini Air Cargo
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Commercial service passenger airlines
United, Delta, US Airways, Lufthansa,Air India, etc. are scheduled passengerairline operators. Space in the belliesof these aircraft is generally availableto move cargo airport-to-airport.Commercial air carriers account for themajority of international air cargo lift.
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Commercial service passenger airlines
However, within the U.S. domestic market,commercial carriers account for only 15 to 20percent of the domestic air cargo – a marketdominated by the integrated express carriers.
The air cargo market share of commercialpassengers carriers, particularly on domesticroutes, has declined significantly due to securitymeasures and restrictions brought about by theSeptember 11 terrorist attacks. Pre-September 11,it was estimated that commercial passenger carriersaccounted for 25 percent of the domestic air cargomarket.
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Ad-hoc cargo charter carriers
Grand Aire, Volga-Dnepr are unscheduled aircharter operators who move goods from airport-to-airport. The market share of these operatorsis minimal.
Sporadic and unscheduled operations maketracking tonnage difficult; best estimates put ad-hoc cargo operator market share at 5 per centdomestically and 2 to 3 per cent internationally.
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Grand Aire
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Volga-Dnepr Airlines
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Air Cargo Services
The four types of air cargo carriers discussed inthe previous section provide the following threeprimary types of air cargo service options:
• Integrated express service
• Freight forwarding
• Airport-to-airport
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Integrated express Integrated express carriers move the customer’smaterial door-to-door, providing shipmentpickup, transport via air or truck, and delivery.
Integrated express operators include FedEx, UPS,DHL, Airborne Express, and to a certain extentU.S. Postal Service (USPS).
Express companies provide next day, document,and small package services to the customersthey serve. Increasingly, however, expressoperators are transporting “heavy” freight,identified as more than 70 pounds.
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Integrated express (cont..)
Integrated express carriers operate using a hub-and-spoke system similar to the passenger airlinesystem. The hub is the backbone to the integratedexpress carrier since it provides connections to eachmarket.
Each day of operation, flights from around the U.S.arrive at the hub where packages are offloaded,sorted in the hub to the appropriate destinationmarket, and then reloaded onto the aircraft.
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Freight Forwarding
Freight forwarding companies act as brokersbetween the shipper and the carrier (all-cargo,commercial passenger or ad-hoc charter).
The forwarder handles wide-ranging types andsizes of freight, from small packages to beconsolidated into container loads, to oversized,one-time freight movements. These loads arethen tendered to an air cargo carrier orcommercial carrier to deliver to the forwarder’sagent or subsidiary at another airport.
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Airport-to-Airport
Airport-to-airport service is provided by all-cargo, ad-hoc charter and commercial passengercarriers. Freight must be dropped off at theairport by the shipper, or the shipper’s freightforwarder, and must be picked up at thedestination airport by the customer, or thecustomer’s freight forwarder. All-cargo carriersoperate airport-to-airport air cargo services fortheir customers, but do not offer passengerservice.
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Cargo Aircraft Types
There are three major kinds of aircraft that serveas air freighters:
wide-body jets,
narrow-body jets, and
narrow-body turboprop aircraft (commonlycalled “feeder aircraft”).
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Various Wide-body Freighters
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Boeing 747
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McDonnell Douglas MD-11
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Airbus A380
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Various Narrow-body Freighters
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Douglas DC9-15
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McDonnell Douglas MD-80
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Boeing B727
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Various Air Cargo Feeder Aircrafts
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Cessna Caravan
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Fairchild Metro III
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Shorts SH360
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Thank you very much