CHAPTER 1 OVERVIEW OF AIR CARGO TRANSPORT

0. History of air cargo

1. International Civil Aviation Organization - ICAO & NAA
2. International Air Transportation Association - IATA
3. International Federation of Freight Forwarders Association - FIATA
4. GACAG
5. GSF & TIACA

0. History of air cargo:

The first all-cargo service was introduced in 1940 by United Airlines (UA) between New York and Chicago
● After WWiI, a dramatic increase in the amount of air cargo → air freight forwarders as middlemen between shippers
and airlines, having the right to consolidate individual shipments.
● The arrival of 747 jumbo jets in 1970 → at lower rates/fares for pax & cargo
● Deregulation in 1978 → curtailed many airlines' all cargo flights
● Northwest Airlines (NW) is the only originally certificated combination airline still operating all-cargo flights
● A large number of new and big aircraft will keep costs low, yet increasing labor costs offset the advantage of aircraft
innovation

Why choose air cargo?

When a commodity presents any of the following characteristics, the seller usually prefers to ship them by air: perishables
subject to quick obsolescence on short notice valuable relative to weight expensive to handle

Why choose air cargo?

● Security issues
● High competition from integrators, and other modes of transport of goods
● Paperless processes and customized services
● Environment issues
● Lack of space and airport capacity
● Overcapacity of airplane

While safety and security in postal air transport is maintained is the main priority for posts and air transport operators
● Air services is a prominent service Cost (Direct) is higher than surface services
● Air freight eliminates inventory costs
● Popular air cargo items include high-value fruits and vegetables, seafood, electronics, chemical materials, livestock, etc.
● Many small businesses are using air freight for no- inventory operations

When the distribution problems like the following exist, sellers usually prefer to ship products by air:
● Risk of pilferage, breakage, or deterioration
● High insurance cost for long in-transit periods
● HHeavy or expensive packing required for surface transportation special handling and care needed

Types of carriers: Integrated Carriers/Express Carriers operate door-to-door freight transportation networks that include
all-cargo aircraft, delivery vehicles, sorting hubs, and advanced information systems - FedEx, UPS, DHL, TNT, etc. (Integrators)

1. ICAO- INTERNATIONAL CIVIL AVIATION ORGANIZATION ICAO is funded and directed by 193 national governments to
support their diplomacy and cooperation in air transport as signatory states to the Chicago Convention 1944, dealing with
subjects:
 ● Flying over territories of contracting states ( air services, customs, rules of the air, spread of disease, charges of
discrimination..)
● Nationality of afrcraft- facilitation (customs, accidents investigation,...)
● Security documents
● In'l standards & practices, including those of dangerous goods

National Aviation Authorities

● Responsibilities:
● National aircraft registration
● Registration and licencing of air carriers
● Airworthiness certification
● Route development
● Enforcing national and international air regulations
● Aircraft safety and security
Senior member of these authorities represent their countries at ICAO meetings

LUẬT HÀNG KHÔNG DÂN DỤNG VIỆT NAM

LUẬT SỐ 66/2006/QH11 ĐƯỢC QUỐC HỘI THÔNG QUA NGÀY 29/6/2006 VÀ CÓ HIỆU LỰC TỪ NGÀY 01/01/2007

2. IATA- INTERNATIONAL AIR TRANSPORT ASSOCIATION

IATA - History and Aims
● Founded in 1945 - Successor to Int'l Air Traffic Association set up at the dawn of regular air Transport in 1919.
● Headquarters: Montreal, Canada (YMX), (America), Geneva, Switzerland (GVA), (Europe, Middles East and Africa)
● Regional offices: Singapore (SIN) (Asia and the Pacific)

TATA's aims:
● Promote safe, regular, economical air service
● Provide means of collaboration with industry
● Cooperate with ICAO & other relevant int'l organization
● Acct as an intermediary to keep airlines and nations speaking to each other.

IATA's mission:
● Representing
● Leading....
● Serving…

2.2. IATA cargo

● IATA Cargo under the APCS division establishes global cargo transportation standards and procedures to ensure safe
and efficient handling of cargo,
● Cargo Regulatory and Industry Affairs,
● Cargo Procedures and Automation, Cargo Member Services
● Cargo Distribution Services.
● Liaison with government agencies and includes Cargo Services, which global/regional agency associations;
● Development and implementation of the Cargo Services Program;
● Maintaining the ULD Control system;
● Developing and maintaining Cargo Service Standards and Procedures;

2.3 IATA cargo

● Developing and updating international standards for transporting dangerous goods, live animals, perishables,
pharmaceuticals and ULDs, as well as the representation of the industry on these issues;
● Introduction of new technologies and training programs;
● Maintaining IATA's formal relations with Cargo Agents through the IATA/FIATA: Consultative Council and the Cargo iQ
Interest Group, and Arranging and hosting various important industry events such as the annual IATA World Cargo
Symposium (WCS), Cargo Services Conference, Cargo Agency Conference and ATA Cargo Claims Conference.

IATA Cargo Agency Program (ICAP)

● ICAP regulates Member Airlines's working relationships with appointed sales agents / their cargo intermediaries.
● It provides agents wt industry recognition of their financial and professional competence and give airlines a worldwide
distribution network of approved agents to sell their products

Cargo Accounts Settlement System (CASS):

Objective:
● The first CASS was developed by Members in 1976 in Japan.
● Today, it is a worldwide system, covering over 78 countries and larger expansion in future.
● Simplifying the setting of accounts between cargo intermediaries and carriers -> reducing cost enhancing service
quality to agents and carriers.
● Advantages

Cargo Accounts Settlement System (CASS)

● Cargo Account Settlement Systems (CASS) is designed to simplify the billing and settling of accounts between airlines
and freight forwarders. It operates through CASSLink, an advanced, global, web-enabled e-billing solution.
● CASS handles more than 90 operations, serving over 200 airlines, general sales and service agents (GSSAs) and ground
handling companies. The on-time settlement rate is 100%.
● In 2022: CASS processed$66.1 billion
● In 2021: CASS processed $57.4 billion, with an on-time settlement rate of 99.999%.
● In 2020: $42.0 billion and on-time settlement rate of 99.995%.
● In 2019: CASS processed $32.7 billion.
● At the end of 2021, 97 CASS operations were serving more than 230 general sales and service agents (GSSAs) and over
240 airlines.

Cargo service Conference

Primary objectives:
● Setting standards for cargo industry procedures
● Developing common industry positions on cargo issues
● Exchanging info.
● Providing directions & guidance
● Liaising with IATA bodies

Cargo service Conference

Meeting schedules: annual meeting
Membership: All IATA active Member and associate Members airlines
Sub groups:
● Airmail panel
● Cargo business process panel
● Dangerous goods board
● IATA/ FIATA Customs working groups
● Live animals and perishables Boards
● ULD panels
● Publications

Simplifying the Business of Air Cargo:

The initial focus was on e-freight and e-AWB. The StB program has 6 goals:
● Modernizing cargo distribution
● Capitalizing on e-commerce
● Optimizing the end-to-end journey
● Moving to data on-demand
● Developing real-time interaction
● Making quality relevant
Projects that are currently underway include:
● Freight and e-AWB with a drive to accelerate e-AWB adoption and going paperless
 ● Digital Cargo with an objective to implement smart data sharing and a Single Digital Shipment Record (DSR)
● Interactive Cargo to enable shipments to be tracked at the piece level Smart Facility to improve the nature and quality
of cargo handling
● Air Cargo Incidents Database to assist with improving safety through analysis of data

IATA Cargo Priorities:

IATA's goal is to bring simplicity and efficiency to the air cargo industry. The aim is to achieve this by delivering the following
challenging agenda:
● Enhancing Safety
● Improving Security
● Driving Efficiency with Global
● Standards
● Facilitating trade
● Strengthening Partnerships
● Improving Quality
● Strengthening Air Cargo's
● Value Proposition
● Modernizing Air Cargo
● Building Sustainability

TIACA - The International Air Cargo Association: TIACA is a global not-for-profit trade association representing all the
major segments of the air cargo and air logistics industry: combination and all-cargo airlines, forwarders, airports, ground
handlers, road carriers, customs brokers, logistics companies, shippers, IT companies, aircraft and equipment manufacturers,
trade press, and educational institutions.

TIACA's objectives include:

● Supporting security measures
● Developing and promoting strategies and principles that address legitimate public concerns for sound environmental
policies; reforming and modernizing customs practices and raising industry
● Performance standards;
● Increasing market access
● Representing the interests of the air cargo industry.

GSF - Global Shippers' Forum

● The Global Shippers' Forum (GSF) represents shippers' interests and that of their respective organizations from Asia,
Europe, North and South America and Africa.
● The focus of the GSF is to influence commercial developments in the international freight transport industry
● It is the world's leading trade association for shippers engaged in international trade moving goods by all modes of
transport.

GSF campaigns for:

● Regulatory reform in ocean transportation in Asia and North America.
● Market based voluntary environmental efficiency measures to mitigate the impacts of shipping and transport emissions
and greenhouse gasses (GHGs).
● Mutual recognition of global security regimes through ICAO and WCO to enhance existing global security arrangements
and facilitate international trade.

GACAG - Global Air Cargo Advisory Group: In November 2010, TIACA, FIATA, IATA, and the GS agreed to form a new
advisory group to ensure the air cargo industry had a strong, unified voice in its dealings with worldwide regulatory
authorities and other bodies whose decisions directly impact air cargo. It is based in Geneva, Switzerland.
Mission: To ensure the air cargo industry has a strong, unified voice in its dealings with worldwide regulatory authorities and
other bodies whose decisions directly impact air cargo and to make the industry more efficient, competitive, sustainable and
profitable.

3. FIATA INTERNATIONAL FEDERATION OF FREIGHT FORWARDERS ASSOCIATION

Fédération Internationale des Associations de Transitaires et Assimilés
● Founded: 1926 in Vienna, Austria.
● Worldwide Association of Freight Forwarders
● Headquarter: Zurich, Switzerland
● Represent industry interests.

FIATA - A non- profit Organization- NETWORK :

 ● Active in 150 countries
● Represents 40,000 firms
● With an aim to protect industry interests
FIATA STRUCTURE Institute:
● Multimodal Transport Institute (MTI)
● Customs and Facilitation Institute ( CFI)
● Air Freight Institute (AFI)

The AFl is the only permanent committee with a full time director.
● Institute
● Advisory bodies
● Working group
4 Advisory bodies:
● Advisory body Dangerous Goods
● Advisory body Legal matter
● Advisory body Public Relations
● Advisory body Vocational Training
FIATA's objectives
● Uniting freight forwarding industry worldwide
● Representing, promoting and protecting the interest of industry

FIATA includes:
● Customs broker
● Ship/ aircraft brokers
● Warehousing
● Truckers
● Consolidators
FIATA consists of: FIATA, a non-governmental organization, represents today an industry covering approximately 40,000
forwarding and logistics firms, also known as the "Architects of Transport", employing around 8 - 10 million people in 150
countries.
● 92 ordinary members in 82 countries
● 31000 associate Members in 168 countries
● The global voice of Logistics

Chapter 2 AIR CARGO OPERATION

I. The IATA Cargo Agent
II. The Consolidator
IlI. Air Cargo Agent's Operation
IV. Air Cargo Agent's Service Functions
V. Organizations Of Air Cargo Agencies
VI. Liabilities

I. The lATA cargo agent

IATA air cargo agent is a freight forwarding agent registered by lATA to act as agent on behalf of IATA appointing airlines.
Required commercial knowledge of IATA cargo agent includes:
● Product distribution
● Marketing
● Selling
● Customer services
 ● IATA

The rights and obligations

● Obtain AWB and credit from airlines
● Receive commission
● Present cargo to airline Ready for carriage(TACT RULES 2.3.2, 7.3.2 & 8.3)
● Pay airline under terms stipulated by agent.
Relationship between IATA Agents and IATA member Airlines.
● Agents create markets air cargo for airlines
● VIATA airlines are principals of IATA cargo agents
● Partner in common venture
● Leads to quality service to shipping public

How to become an IATA cargo agent

● Qualified and duly trained staff particularly on acceptance and handling DG
● Sound financial standing
● Suitable working premises and handling facilities
● Active promotion & sale of int'l air cargo trans.

Services usually -provided

● Assisting the shipping public with info
● Providing facilities and security processing
● Arranging PUD
● Preharing airline documentation
● Ensuring shipper's cert and declaration r Arranging insurance for customers Arranging surface transportation, booking
and tracing the shipment

Summary on IATA cargo agent

● Prepares shipments and related doc. prior to deliver to the carrying airlines
● Handles shipments and related documentation prior to deliver to the carrying airlines
● Acts as a carrier's agent and also as an intermediary between the shippers and carriers

II. THE CONSOLIDATOR (AIR FREIGHT FORWARDER- FFDR)

Definition
● A consolidator is a FFDG agency providing shipments of goods for the benefit of clients, but does not operate or own its
own airplane.
● Consolidator issues HAWB for the clients and receive MAWB from the actual carrier

Break Bulk Agent

Definition
Duties
● Arranging customs clearance
● Collecting charges due at destination transfering to another agent

III. AIR CARGO AGENT'S OPERATIONS

 ● Ready for carriage
● Documentation
● Customs services
● Trucking sèrvices
● Packing services
● Chartering services
● Express/ Courier services
Documentation required for:
● Prior to the air transportation
● For the air transportation
● Post the air transportation
● For Payment purpose

Documentation
Prior to the air transportation
● Shipper's letter of instruction
● Commercial invoice
● Documents required for customs clearance at origin
● Various documents in accordance with nature of goods
For air transportation
● The AWB
Post the air transportation
● Commercial Invoice
● Documents required for customs clearance at destination
● Various documents in accordance with nature of goods
For payment purpose
● LC
● Bill of exchange

Customs services
● IATA C.A/ Consolidator complete the customs formalities on behalf of customers
● Customs import agent/ Brokers appointed by consignee handle customs clearances and payment for the imported
goods
4 main steps of Customs clearance procedures
● Recovery the document from Inbound carrier
● Notification of arrival to the importer
● Presentation of Customs Entry
● Presentation of Customs Entry and Payment of Duties

3.12 Express/ Courier Services

● Courier services, for non-dutiable documents carried on board passengers a/c as hand luggage
● Dutiable and non dutiable small parcels service.
 ● Express service, for small and medium size shipments
● All services door-to-door
● Hub and spoke model

Express/ Courier Services: The top 5 international courier companies worldwide are FedEx, UPS, DHL or Deutsche Post, Blue
Dart, and DTDC. They provide extensive shipping, fulfillment, and supply chain solutions like inventory management,
warehousing, pick and pack, loading and unloading, real-time order tracking, cold chain transport, and more.

IV. Air Cargo Agent's Service Functions

● Lesson overview
● Staff education
● Accounting
● Communication Facilities

IV ORGANIZATION OF AIR CARGO AGENCIES

Staff education: Essential training courses for air cargo agents worldwide managed by ITDI
● 1. Air Cargo Advanced Course- Rating & marketing
● 2. Dangerous goods Regulations (Initial & Recurrent)
● 3. IATA Cargo English
● 4. IATA Cargo Security Awareness
● 5. Live animal Regulations
● 6. Shipping Perishable Cargo/ Temperature Sensitive Shipments
● 7. Shipping guidelines for Infectious Substances

VI. LIABILITY
Carrier's liability (TACT 2.1.3) THE WARSAW CONVENTION 1929
→ defining liability of airlines. And apply only to airlines.
● Montreal Convention (1999)- MC 99
● Applied December 30 1999: SDR19/ kg
● Countries not ratified MC99: SDR 17/ kg
● Agent/ Consolidators liability

SUMMARY
● Air cargo agencies are either independent firms devoted mainly to forwarding cargo by air, or important departments
of multimodal enterprises
● Air cargo agents may provide a variety of value added services associated with air freight.
● An IATA cargo agent is a FF agent registered by IATA to act as an agent on behalf of appointing a/l. Now there are
about 4,775 small, medium and large companies accredited as Cargo agent worldwide
● A consolidator
● А ВВА
● All partners in air transport

Chapter 3: FACILITIES IN AIR CARGO TRANSPORT

1 Capacity concepts
2 Facilities Requirement
3 Operational consideration
4 Technology for Air Logistics ( self read)
5 Aircraft

1. AIRPORT CAPACITY CONCEPTS

In the past, airports have been consistently late in addressing cargo infrastructure demand while today overcapacity might be
more the norm.
 ● Cargo facility shortage historically has been more of an issue than excess capacity situations by a significant margin.
● Shortages create much more severe problems for an airport.
● Marketing to potential new cargo customers, retaining existing cargo customers and managing operating costs are
impacted negatively by facility shortages.

On-airport cargo facilities are designed differently to accommodate combination carriers (both passenger and cargo) versus
freighter operations.
● Freighter operators will seek to locate in a facility with contiguous parking apron, which offers operational and cost
efficiencies.
● Cargo facilities removed even a short distance from the airplanes are problematic.
It is ill-advised for an airport to try to force carriers to operate from facilities that are removed from the parking ramp.
The key to avoiding overcapacity is to build facilities with flexibility in mind. a level of overcapacity can produce some benefit
for an airport's carriers and supporting businesses.

The downsizing from larger passenger jet aircraft to smaller regional passenger jet aircraft → lead to overcapacity,
particularly in small and medium sized airports.
Carrier cargo handling consolidation and carrier consolidation in general, including code sharing, can also lead to
overcapacity at an airport. In some cases, the third-party can also be another carrier. *
In addition, airports are developing open floor plan buildings (no partitions) which enable the same building to be used
throughout the day to accommodate various peaks.

Strategy Development
Marketing brochures, personal visits, trade shows and a multitude of promotional materials are developed and utilized each
year by airports trying to entice potential cargo customers.
● Significant resources are expended each year to attract new cargo customers; the first priority should be to ensure your
existing customers are well served.
The first step is to determine the market of cargo customers for a particular airport. the second step is to generate an
inventory of the airport's strengths and weaknesses, develop strategies to maintain those strengths (advantages) and
eliminate or mitigate the weaknesses (disadvantages) → requires an objective examination of the airport's cargo
infrastructure.
● There is no substitute for frequent and meaningful personal contact with local, regional and national decision-makers of
the carriers and other cargo customers.

Security Requirements: Security requirements will continue to play a major role in how cargo facilities are built and operated.
Cargo security requirements incorporate a level of increased cargo screening*.
Technological advances may make on-airport screening more efficient and more prevalent.
● Employees with access to the Air Operations Area (AOA) are subject to a greater level of security background checks
and screening.
● Access to the AOA is more limited today, and the number of access points to the AOA has been reduced.

Change in Technology
● Technology change can rapidly make a facility inefficient. Not all technology has a negative impact.
● A facility sponsor (airport, private sector, carrier) can create more space with automated technologies such as new
stacking systems.
● The key is to examine evolving technology and, where feasible, make allowances for accommodation in the
infrastructure at a later date.

Industry Growth:
● Air cargo is the mode of transportation most impacted by globalization. Until recently, gateways and large coastal
metropolitan areas were synonymous.
● Evaluate the potential impact (positive or negative) industry growth and technology changes have on the airport and
the region*.
Vertical and Horizontal Integration
● Carriers are integrating the services offered to customers beyond rapid and safe delivery of cargo.
● A growing segment is either providing or exploring warehousing, inventory management, order processing and other
customer services.
● These trends and the next generation of services should be introduced to the infrastructure equation.

Operational Concepts: Carriers are constantly seeking, and rapidly implementing, new operational concepts designed to
reduce costs and deliver cargo more efficiently.
Hubbing operations can be impacted by changing distribution patterns and could be replaced by other concepts or modes.
Multi-Modal Transportation
Multi-modal transportation exists in any cargo infrastructure strategy.
● Anticipate the evaporation of the clear distinctions between land, sea, and air cargo transportation. Air carriers are
becoming truckers and vice versa.
● The integration of rail and sea and the impact on any strategy.
● Access to and from cargo areas on-airport must consider the geometric roadway and staging layout requirements of
trucks.

New Generation of Larger Wide-body Aircraft

● Boeing and Airbus have created a new generation of wide-body aircraft that have had a dramatic impact on cargo
capacity, particularly at primary international gateways.
● Expanded belly capacity is reducing the need for freighters on some routes → creates the need for additional
combination carrier cargo facilities at these international gateways.

Local and Regional Economic Development

● The airport may represent one of the most important resources available to the local and regional economic
development effort.
● Conversely, the economic development resources can prove a valuable economic and political ally to the airport.
● Capital resources available for infrastructure creation and improvement are often difficult to secure and having support
from the economic development team can facilitate raising capital.
● For air cargo, the minimum time spent on the ground before and after the flight can make a particular airport
attractive and will play a role in the ultimate selection by the forwarders and con,olidators
● Cargo requires warehouses with access to the aircraft, plus a good road network nearby.
● Truck-loading bays integrated into the warehouse aid both speed and security.

Medium-Sized Airports
● Apart from the capital city hubs, there are many regional and medium to small airports serving their local catchment
areas for both passengers and cargo.
● In most cases cargo plays a minor role but is still important to the airport's bottom line.
For example, Düsseldorf International Airport is situated in the North Rhine Westphalia region, the traditional home of
Germany's industries.

In summary:
Air cargo infrastructure development must be carefully integrated with the process of attracting and retaining air cargo
carriers.
Air cargo carriers have much more flexibility in selecting an airport and determining the magnitude of operations at an
airport.
● Although an airport has little control over cargo volumes available to the carriers, it can create the infrastructure to
support efficient operations.
● If the cargo volumes are available, you want them flown out of and into your airport. If the airport does not supply the
necessary infrastructure, your competition will.
Cargo infrastructure can actually, and often does, lead the successful process of attracting and retaining cargo operations.
Air cargo carriers now transport freight more rapidly, further, and more safely than at any time in the industry's history. *
2 FACILITIES REQUIREMENT:
Due to the wide range of variables that could impact the operational efficiency of an air cargo facility, a clean and simple
formula does not exist to project facility infrastructure needs at any given airport.*
"Norms" are only measurement devices and the only thing they measure is the reasonableness of a very general population.

Total Land Area Requirements

One key factor that may be important to consider at the outset is understanding the total land area requirements for an air
cargo facility.
● Total land area refers cargo building, aircraft apron, auto parking, truck trailer storage areas, etc
● Understanding the quantity of land associated with typical air cargo facilities can help planners and airport operators
identify sufficient land areas to accommodate this demand.

The analysis of Total Land Area Requirements can serve two purposes
1) it can help determine the amount of space that should be allocated to accommodate an air cargo facility based on
anticipated cargo volume; or
2) it can help determine the approximate anticipated air cargo volume that can be achieved at that site based on a
quantification of available land.*
→ Airport planners should also consider if the tenant plans or the airport needs to use a multi-level cargo building (instead of
the traditional single-level facility) because this can result in a more efficient site utilization rate since more cargo can be
processed within a smaller building footprint.

Functional Area Space Requirements

Applying functional area space metrics can be useful to determine the amount of space within a total site that should be
allocated to achieve a balanced air cargo facility. → to understand if the desired or identified site is generally suitable to
accommodate an air cargo facility.
The site that generally can be allocated to accommodate the three primary functional areas of an air cargo facility. The
general site allocations are as the chart

Cargo Operator Type

It is important to understand common characteristics associated with the different cargo carrier type is key to appropriately
planning air cargo facilities → This is because the facilities associated with each carrier type tend to be configured differently
based on the operational characteristics associated with each.
A key characteristic of integrated cargo facilities is highly efficient buildings.

3 CARGO OPERATOR TYPE:

Integrated Cargo Facility Considerations
Air cargo carried exclusively on freighters by carriers specializing in providing full-service logistics operations (handling cargo
from shipper to delivery points) is known as integrated cargo.
Integrated cargo facilities include an apron for aircraft parking, the cargo building, and landside area. In general, the industry
average cargo building utilization ranges from 1 to 2 tons per square foot.
A key characteristic of integrated cargo facilities is highly efficient buildings.

The integrated cargo carrier category can be further classified into two subcategories based on operational model:
● Integrated Cargo Carrier Type 1 tends to process most, if not all, cargo on-airport → requires a larger on-airport facility
compared to Type 2.* utilization rates such as 0.95 tons of air cargo
● Integrated Cargo Carrier Type 2 tends to process cargo on the apron or at off-airport facilities, which generally results
in a smaller building than Type 1.
 ● This operational model tends to mathematically achieve a higher level of cargo processing efficiency since relatively
lower cargo volumes are processed within the building.
● It may be common to achieve greater utilization rates such as 1.35 tons or air cargo/ sf

Freight Cargo Facility Considerations

● Freight cargo carriers do not provide full-service logistics operations and are reliant upon ground handlers to process
the cargo and potentially additional third-party companies responsible for the ground transportation*
● Freight cargo facilities include an apron for aircraft parking, the cargo building, and landside area.
→ In general, freight cargo facilities are not as efficient, in terms of space utilization or cargo processing, when compared to
integrated cargo carrier facilities.

Belly Cargo Facility Considerations

● Air cargo carried on passenger aircraft is also known as belly cargo.
● Belly cargo facilities typically include a truck apron and docks for the loading/unloading of cargo, a warehouse and
office area for the processing, break-down/buildup, inspection, and storage of cargo, and a container staging area.
● Belly cargo is usually tugged from the passenger terminal area where the aircraft is parked. → These facilities required
access to the airside and efficient connectivity to the terminal.

Air Cargo Buildings

There is considerable variability in the utilization rates in facilities depending on a number of factors that include: amount and
type of cargo facilities needed at an airport, size of the airport, whether the airport serves as a hub, the type of cargo to be
moved, the characteristics of the cargo operators, the average length of dwell time, and various other factors.
Utilization rates are measured by tonnage per square footage.

Facility planning for any airport needs to consider both the utilization rates at comparable airports and input from the carriers
before determining the rate for long-term facility requirements.
For general planning purposes, it is recommended that a utilization rate of one ton per square foot be used as a macro
benchmark (chuẩn mực vĩ mô), subject to circumstances the specific or requirements or an airport.

Aircraft Parking Positions

● Air cargo ramps vary considerably more in relation to cargo volumes than buildings, and, in part, are a function of
available land and the airport layout.
● Due to the variability among airports, the best approach to determining aircraft ramp requirements appears to be an
average-day/peak-heur methodology
● The forecast of air cargo tonnage can sometimes serve as a basis for the projection of all-cargo hardstand position
requirements.
● The projection (forcast) uses a ratio of tonnage to departures, recognizing changes in average aircraft size and
continued use of an airport's parking ramp use strategy. This ratio is assumed to increase at the same rate as the ratio
between a macro forecast of revenue ton-miles and airfreight aircraft size

When developing a projection of required hardstand positions, it is important to make allowances for and consider variables
such as:
● Aircraft mix
● Exclusive versus common use hardstand
● Time buffers between aircraft departures and arrivals
● Use of hardstand positions by non-cargo aircraft
● Peak month activity
The trend for all cargo carriers is toward larger aircraft, not more aircraft.
● Aircraft ramp space can vary based on the type of aircraft being operated.
● For purposes of air cargo, most aircraft fall into one of four categories determined by the FAA's Airport Reference Code
("ARC").
● Code C aircraft, a Boeing 737, requires 2,300 square yards of ramp space.
● Code D aircraft, a Boeing 767 or Airbus A300, requires 3,900 square yards of ramp space.
● Code E aircraft, a Boeing 747, requires 6,500 square yards of ramp space.
● Code F aircraft, a Boeing 747- 8F, requires 8,650 square yards of ramp.
● These criteria should be considered when determining future aircraft ramp space.
● Changes in air carrier schedules may alter the relationship between all-cargo aircraft operations and hardstand
position requirements in the future.

Landside Effectiveness
The biggest change in the air cargo industry over the past several years has been a modal shift to trucking. -> it is important
to have a set of planning parameters to measure landside effectiveness.
These benchmark measures for truck docks, truck maneuvering and staging areas, employee parking, customer parking, and
access roadway capacity are provided below.

Truck Docks, Maneuvering and Staging Areas

● Integrated carriers are expanding their ground networks, which entails the construction of additional surface hub or
cross-dock facilities at or near strategic airport locations throughout the U.S.
● The landside truck fleet ranges from the standard
● 53-foot-long freight trailer and tractor to smaller parcel delivery vehicles.
● The landside area of air cargo buildings (and truck docks) should have the flexibility to accommodate a range of
landside vehicles to support flexibility for the cargo operator.

Employee Parking
● Greater use of automation and mechanization within cargo buildings will have a dampening effect on employee growth
at airports*
● Where the development area is limited, alternative locations for employee parking will have to be considered.
● This includes remote lots that utilize shuttle services and rooftop parking.
● Typically plan on allocating 300 sf per parking position. If space permits, these positions should be separated from the
truck apron and maneuvering areas.

Customer Parking: On-airport cargo buildings are not typically high customer activity areas*.
Access Roadway Flow and Capacity
The capacity of airport roadways is based on a Level of Service (LOS) methodology found in the Highway Capacity Manual.
Airport roadways are typically planned to accommodate LOS C**.

4. OPERATIONAL CONSIDERATIONS
Airports are now being forced to take both an immediate and more long-term view of air cargo operational issues.
Some of these operational issues include the capabilities of air cargo facilities to meet current and future needs, the need for
more air cargo infrastructure investment support for users, the provision of new and enhanced cargo processing services and
the role of the airport in regional intermodal/multimodal planning and investment.

One of the best ways to emphasize the need to focus on the future is to look at the past decade and
consider the significant changes that have had a large impact on airport air cargo operations.
Two of the most significant are the rapid growth in the cargo-carrying capacity of airline fleets with the corresponding
increase in the number of larger, wide-bodied aircraft in cargo operations and the continuing shift to trucking of domestic air
cargo activity.

Express carriers now account for a majority of domestic air cargo activity and will require more specialized airport facilities to
match their highly time dependent processing operations.
● The introduction of wide-bodied aircraft in significant numbers has driven the need for larger and more specialized
airport facilities, infrastructure, and services to match the carrying capacity of these aircraft.
● The air cargo operation for many carriers has matured to become an independent profit center and has gained greater
attention within these companies when investment and resource allocation decisions are considered.
● The express carriers, to an even greater extent, require more specialized airport facilities and infrastructure support to
match the highly time-dependent package processing capability of their operations.
● These two changes have significantly influenced the investment decisions made on airports in responding to a growing
air cargo industry.
 ● Some of the key operational issues that airports should consider and evaluate include:
More Specialized Air Cargo Facilities
● There will be a need for greater specialization in airport cargo facilities. This includes specialization that meets the
individual operating needs of the carriers, cargo tenants, airport and the cargo industry will be required.
● Efficiencies to keep costs down while accelerating cargo processing and improving customer service will be the key →
include the development of more sophisticated and automated facilities.
● The airport gains in providing facilities and supporting infrastructure that conserves land, capital, and building space;
increases handling efficiencies; and lowers unit costs.

Collocated Air Cargo and Fulfillment Centers

● In recent years, the air cargo industry has experienced a growing trend in collocating air cargo facilities with nearby
fulfillment centers or on-airport when space permits. By nature, these types of facilities look and operate differently but
some operators have embraced this concept to suit their operation.
● The most significant difference between these two types of facilities is their function.
● Typically, air cargo facilities are designed to process cargo efficiently with limited expectation that goods will remain
within the building for any significant amount of time*.
● By function, fulfillment centers tend to be quite large facilities which can pose challenges in accommodating these
facilities on airport

Air Cargo Infrastructure Support

● New air cargo infrastructure that includes aircraft parking ramp, truck operating and staging area, container and
ground service equipment, warehousing space, and tenant/customer automobile parking will in many cases require
more common use among airport tenants to ensure optimization.
● Greater numbers of larger capacity aircraft, operating in narrow scheduling windows at both domestic and
international airports, plus separate and distinct peaking of the growing express carrier operations absorb significant
amounts of capital and property to satisfy infrastructure support needs.

Enhanced Processing and Federal Inspection Services

● Carriers and air cargo facility tenants in the immediate future will require enhanced processing and customer services
to match the speed and efficiency of their new cargo handling operations. This may include centralized and less
paper-intensive federal inspection services to clear cargo as rapidly as possible as well as responsive fueling, deicing,
and ground service handling that can accommodate the scheduling requirements of the carriers as they attempt to
increase the utilization of fleets that result in aircraft spending less time on the ground.

Facility Location
● The nature of the business will have a significant bearing on the relative locations of particular facilities.
● Integrated and all cargo carriers may be located in remote areas provided there is sufficient taxiway and ramp
facilities to service their dedicated aircraft. Air cargo facilities require good access to the regional road network if an
air-truck and/or sea-air interchange is to be a target market.
The service segment has a significant bearing on facility location but the key is to keep the facilities close to the aircraft.
● The guiding principle for locating cargo facilities is very simple: keep the cargo buildings very close to the aircraft.
● For the passenger airlines, this means locating their facilities near the terminal building.
● Airline cargo facilities require efficient access to the passenger terminal for the purpose of handling belly cargo.
● Tug distances have cost and other competitive implications for the carriers.

Airside Vehicular Circulation -Tug Roads

● The airside vehicular circulation network must be planned in consideration of the phasing of the air cargo complex as
well as the proposed extension and additions to airfield components such as runways and taxiways.
● Belly cargo handlers are most affected by the efficiency of tug roads. Depending on the general airport master plan
and airfield configuration, there is a potential for numerous conflicts between aircraft and GSE circulation routes.
→ Therefore, it is important to identify these potential conflicts and address them early in the master planning process.

Airside Vehicular Circulation -Tug Roads

Truck Docking and Maneuvering Area
● Once again, these requirements will be highly dependent on the operational characteristics of the user.
● Since multi-tenant facilities should be planned and designed with flexibility in mind, sufficient area must be allocated on
the landside of the facility to accommodate large tractor-trailer movements.
● Some trucking companies require an area 150 or 200 feet wide adjacent to the building in which to maneuver rigs,
depending on the frequency of movements as well as the spacing of dock doors. This large amount of truck
 maneuvering and queuing space often accounts for the relatively small cargo terminal facility in terms of total site
requirement (i.e. floor-to-site area ratios of 20% or less). This is further aggravated by multi-tenant facility users.

Employee/Customer Parking
The circulation conflicts, especially between infrequent facility visitors unfamiliar with circulation patterns separation between
customer/employee parking and truck maneuvering areas to improve the efficiency of operations and to promote safer
conditions.
Access Roads
Access roads must be planned such that the long-term circulation characteristics of the complex are properly addressed.
Based on the classification of roads, adequate design standards must be established to ensure uninterrupted operation for a
reasonable cycle.

Facility Orientation: Cargo facilities can either be arranged in the traditional configuration, where the buildings and apron
area are positioned parallel to the runway/taxiway system, or arranged such that buildings and apron area are positioned
perpendicular to the runway/taxiway system, or some combination of the two methods.

5 AIRCRAFT: 5 main structural units:

● Fuselage
● Wings
● Engines
● Undercarriage
● Empennage
● ULDs (freighter)

AIRCRAFT STRUCTURE AND CATEGORIES

Conventional or narrow- body aircraft
Fuselage width app. 3m(10ft)
The cargo hold in the lower deck in most cases can carry loose (bulk) cargo only.
Examples:
● A318, A319, A321
● B707, B717, B727, B737, B757
● DC-8, DC-9, MD- 90

Wide -body aircraft

● Fuselage width not less than 4.72m(15ft) or with 2 aisles
● The main cargo hold in the lower deck can carry palletized and containerized cargo. Loose cargo is loaded in the bulk
cargo hold
● Examples:
A300-B, A330, A340, A380
B747, B767, B777
DC-10, MD- 11

Aircraft categories
Conventional and wide- body aircraft further be divided into:
● All cargo or freighter aircraft
● Passenger aircraft
● Mix passenger/ freighter aircraft or combi- aircraft

● Cargo is carried in the belly under the passenger cabin.

● Belly is accessible by loading hatch (from outside)
● Air and light facility is provided to transport AVI
● Belly first servers baggage, airmail then regular cargos
Belly of the aircraft may be utilized, mainly in the main deck of an aircraft.
● Reinforced floor & wider door → easier loading cargo.
● Pallets are built up in warehouses.
● Ball matches with lockers to move cargo and fix the cargo during transportation.

Weight/ volume limitations

Maximum payload for the specific aircraft varies based on length of flight, weather, etc...
Maximum weight applied for: a specific hold a specific compartment per piece of cargo
The largest size or volume that a hold or a compartment can handle

Weight/ volume limitations

● Maximum payload for the specific aircraft
● Weight / volume restrictions for the a/c.
● Maximum weight for a specific hold/ compartment, per piece of cargo may vary from airline to airline or from station
to station depending on manpower or equipment available.
 ● The largest size or volume that a hold or a compartment can handle

Dimension limitations
● Loading chart (TACT 7.2)
● Each a/c will be listed with maximum dim. in cm or in inch ( inch in
● italic)
● Draw lines for clarity/ clearance
● Loading charts should be used as a guideline only.
● Tilting in the airfreight world means the piece can be laid on it's side (H become W) ( tilting mean angling in other
means of transportation)

Volume limitations
● The volume that can be occupied by the payload in a hold or in a CPT is finite and depends on the internal dimensions
of the aircraft.
● Low- density cargo (bulky cargo) will use the entire volume of the CPT before reaching the weight limitation.
● High-density cargo will first be limited by the maximum weight limitation of the CPT. The remaining volume cannot be
used.

Cargo Density
Cargo density. is the relationship of the weight to volume. An average density has been assigned by the airlines to major
commodities as a guideline.
● Clothing - average density 120 kg per m3
● 120 kg of clothing has an approximate volume of 1 m'
● Chemicals - average density 400 kg per
● 400 kg of chemicals has an approximate volume of 1 m'
UNIT LOAD DEVICES
What is ULD? A unit load device (ULD) is a pallet or container used to load luggage, freight, and mail on wide-body aircraft
and specific narrow-body aircraft. It allows a large quantity of cargo to be bundled into a single unit
Types of ULDs
ULDs have many forms and sizes
● Pallet + net
● Pallet + igloo + net
● Container
Special ULD with climate control for vegetables, meats, or pressurization for live animals or special loading for hanging
garments.

Pallets are flat aluminum sheets where cargo was built up. Pallet comes with a net to tie up cargo.
Frames guides cargo building-up to shape cargo into contour of an aircraft and to maximize permissible mass.
Igloo is a cap with a net made of strong and light materials on top of pallets that shape cargo.
UNIT LOAD DEVICES: Reason of having Unit Load Device
- Speeding up loading process
- Efficiency of handling cargo
- Shortening connecting time for passenger aircraft waiting at terminals

LOADING DEVICES
Reason of having Unit Load Device
ULD advantage
● Easy weighted
● Easy physically distributed in aircraft
● Easy handling in the ground
● Easy administration
Used for further carriage
● ULD disadvantage
● Increase weight → more fuel burn
● Requires special handling and exchange among carriers

Benefits of using ULDs: Managing global ULD inventories is a major challenge for airlines, but the benefits of effective
management are many and varied:
● Easy access via any PC connected to the internet
● True availability at a glance
● Maximized demurrage charges and revenues
● Maximum operational stock levels
● Easy identification of poor performing stations to improve performance System upgrades and enhancements
immediately available
● Intuitive and easy to use
● Drag and drop functionality and multiple-selection speeds up data capture

CHAPTER 4: SPECIAL CARGO HANDLING

1 Types of air cargo
2 Special cargo handling
3 Required documents

1. TYPES OF AIR 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.
● Every kind of product imaginable is routinely delivered by air including: computer chips, telecom and mobile phones,
household goods, clothes, day old chicks and ships' spares.
● Goods that are required for emergencies or specific needs may demand a chartered freighter aircraft suitable for a
specific task.

● Charter brokers who serve this market are experts in matching aircraft to shipment.
● The fashion the transport of orchestras, music groups, art and museum exhibitions and even election equipment
● On the ground handling of these delicate shipments requires highly skilled experts.
● There is the continuous movement of horses for racing, show jumping and breeding.
→ Very specialized equipment and skills are essential for this high and sensitive traffic.

Airlines transport over 62 million cargo tonnes of goods a year, representing more than 35% of global trade by value but less
than 1% of world trade by volume.
That is equivalent to $8.3 trillion worth of goods annually, or $22.7 billion worth of goods every day.

2. SPECIAL CARGO HANDLING: 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 subgroups we
will take a much closer look at further on.

● 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, labeling, 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, Perishables 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, lATA 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

The IATA Dangerous Goods Regulations (DGR) manual is the global reference for shipping dangerous goods by air and the
only standard recognized by airlines. It provides everything needed to classify, prepare, accept and handle dangerous goods
shipments in compliance with international air transport regulations. IATA has been publishing the DGR for over 60 years.
The DGR is published annually to ensure that the industry has the most up-to-date information regarding the shipping of
dangerous goods. IATA works closely with governments, other industry associations and the International Civil Aviation
Organization (ICAO) in the development of these regulations.
This way, lATA ensures that the regulations for the transport of dangerous goods by air are effective, efficient and
internationally accepted to facilitate their transport while putting the safety of all those on board first.

WHAT IS DANGEROUS GOODS ?

"Dangerous goods are articles or substances which are capable of posing a risk to health, safety, property or the environment
and which are shown in the list of dangerous goods in these Regulations or which are classified according to these
Regulations."

Dangerous goods are grouped into nine classes: check CIMP code in TACT rules
● Class 1-Explosives (REX)
● Class 2-Gases (RFG); (RPG); (RNG)
● Class 3-Flammable Liquids ( RFL)
● Class 4-Flammable Solids (RFS); Substance Liable to Spontaneous Combustion (RSC); Substances which, in Contact with
Water, Emit Flammable Gasses (RFW)
● Class 5-Oxidizing Substances.(ROX) and Organic Peroxides (ROP)
● Class 6-Toxic (RPB)and Infectious Substances (RIS)
● Class 7-Radioactive Material (RAM)
● Class 8-Corrosives (RCM)
● Class 9-Miscellaneous Dangerous Substances and Articles, Including Environmentally Hazardous Substances (RMD)

• Identification of dangerous goods

• Dangerous goods are assigned to UN numbers and proper shipping names according to their hazard classification and their
composition.
The identification of dangerous goods is essential for the proper packing and packaging, documentation, acceptance and
handling. The IATA DGR lists approximately 3,000 substances and articles commonly shipped by air.
Documentation:
Air Waybills) accompanying dangerous goods consignment(g) for which a dangerous goods declaration is required must
include the following statements, as applicable in the "Handling Information" Box

VIP Animals
● Few members of the public are aware that a large variety of animals, birds, fish and insects are routinely transported by
air, including even large animals such as tigers, Rhinos, pandas and even elephants.
● Animals require fast and expert handling and transportation → domestic transport is carried out on the road, for
international transport flying is frequently the only option.
● Airports are governed by strict regulations for quarantine and phytosanitary supervision to live animals and associated
products
→ Animal Diseases and Regulations
IATA publishes its Live Animals Regulations (LAR) that demonstrate how to transport animals safely, legally, efficiently and
cost effectively.

Animals are broadly classified as follows, although there is a cross-over between the various groups:
● Pets, which may include some laboratory animals;
● Agricultural, covering the full range of cattle, pigs, sheep, goats, poultry;
● Horses and other equine species, which includes racehorses, show horses, polo ponies and breeding stock;
● Zoo animals, including dolphins, sharks and whales. As most zoo animals cannot tolerate a long journey time, air
transport is often the best or only solution.
● Exotics, which includes monkeys, lemurs, tropical birds, snakes and reptiles, insects, bees and a number of rare breeds.

Equines
● Due to the increasing costs of air transport, only high-value animals are likely to warrant air transfer.
● Such value can be commercial, as with racehorses and equine competition horses moving to show events.
● There are also horses moving between champion breeders
● Airports Liege in Belgium, Kennedy airport, USA or
● SCHIPHOL in Amsterdam, have set up special facilities for expertly handling large quantities of horses.

SPECIAL CARGO HANDLING- Live animal

Cattle and Farm Animals
● This business is mostly concerned with breeding stock required by countries wishing to improve domestic quality.
● In China, for example, now that the population has acquired the taste for meat on a regular basis, significant numbers
of beef cattle are being imported in order to increase local herds. Over the years, pigs and sheep have been shipped
from countries such as Ireland to Korea.
● The international traffic of farm animals is controlled and monitored by a set of regulations within the IATA LAR. It
covers the basic conditions under which animals may be transported on an aircraft.
● IATA publishes its Live Animals Regulations (LAR) to cover animals safely, legally, efficiently and cost effectively.
● IATA publishes its Live Animals Regulations (LAR) covering the transport of animals safely, legally, efficiently and cost
effectively. The transmission of animal diseases, which we now suspect can also cause human health problems, is a
primary concern of regulatory bodies
● IATA Live Animals Regulations ( LAR) set out the minimum standards for transportation for animals carried by air.
LAR is approved by:
● Live Animals & Perishables Board in consultation with Office International des
● Epizooties (OIE)
● The Convention on International Trade in Endangered Species of Wild Fauna and
● Flora (CITES)
● Government Authorities that implement the LAR for animal transportation ( ref: EU)

What's inside the LAR?

1. The LAR covers animal transport of all kinds and contains comprehensive information about the requirements for protected
and endangered species such as lab animals, livestock and domestic animals.
2. Applicability (shipper and carrier responsibilities, training, combating illegal trade)
3. Government regulations (general and variations by country)
4. Carrier regulations (general, variations by carrier, airline contact information and AVI services)
5. Reservations and advance arrangements (schedules, routing, interline advance, delivery, accompanying persons)
6. Animal behavior (general, disturbance, segregation, sedation, euthanasia, in-flight environment)
7. Listing, description and species size (taxonomy, alphabetical list, description and size)
8. Documentation (shipper's certification, waybill, captain notification, CITES documents, other documents, live animal
acceptance checklist)
9. Container requirements (general, stocking density, marking, labeling)
10. Handling (animal acceptance, ground handling, loading, feeding and watering, captain's advice, health and hygiene, OlE
recommendations)
11. CITES (general, documentation, list of states, management authorities by country, Article XI, combating illegal trade)
12. Life science logistics for lab animals (health status, anima type and number, species, and container considerations)

Application and regulations of shipping live animals

● Forty-five countries or regions have formally adopted IATA's LAR into their national regulations.
● Each year the list is updated within the current IATA LAR to include the most current information about which countries
apply and enforce the regulations.
● Within these shipping live animals regulations it states that, with the exception of service dogs, all live animals must be
placed in a container specified in the regulations.
● The IATA LAR meets the strictest regulations so when you follow the regulations you will be in full compliance.

Animal behavior and shipping live animals

It is very important to understand a particular animal's basic behavior under stress because it will affect how they react
during shipping. Their reactions can cause problems or even harm to the animal or handler.
● There are guidelines for handling animals in heat, nursing, and traveling with other young.
● It is crucial for the animals and the handlers that these guidelines be followed for the safety and well-being of all.
● The animals should be disturbed as little as possible, with few people handling them and then only when properly
trained.

Handling procedures for shipping live animals: When shipping live animals, the shippers are responsible for ensuring all
animals are healthy and in good condition. The carriers have a responsibility to make sure that the shippers have complied
with all of the regulations.
- When ensuring the guidelines are met, they must check:
● The details of the documentation.
● The design of the container.
● Marking and labeling.
● Routing and reservation information.

Marking and labeling for shipping live animals

When dealing with the shipping of live animals, proper marking and labeling is crucial and is always required.
Labels should be printed and adhered to the outside of the animal container.
English must always be used in addition to the original language used by the shipper.
Each container should be marked clearly and legibly with the full name, address, current contact number of the shipper,
consignee, and a 24-hour contact if they are not one of the previously mentioned people. It should also list the animal's
common and scientific names and list the number of animals within the container.

Marking & labeling

● The shipper is responsible for all necessary marking and labeling
● Live animals label
● Package orientation label
● Laboratory animals labels

Reservations & Advance arrangement

● Reservations have to be made prior to offering the animal for transportation
● The most direct route should be taken to minimize the handling and climatic changes.
● The regulations of the destination country.
● The rate applied is surcharge
What to know about shipping Perishables goods?
● With fresh fruits and vegetables becoming more and more popular year-round, transportation of Perishables goods is in
high demand.
● Shorter travel time and controlled temperature make transporting Perishables goods by air the preferred means of
shipping.

PERISHABLES AIR CARGO

● Transporting Perishables cargo by air presents a time-efficient solution, especially for items with short shelf lives.
● Using state-of-the-art equipment, carriers like American Airlines Cargo ensure the fast and safe delivery of goods such
as fresh fruits, vegetables, and live tropical fish.

Application and regulations for shipping Perishables goods

● When shipping Perishables goods by air, specific steps and regulations apply to the process of shipping by air.
● Is the cargo acceptable? Is it marked and labeled? Does it meet the prescribed conditions, etc.? There are also shipper
and carrier responsibilities that must be met. Regulations for each step of the process must be in compliance. You can
learn more about these responsibilities in sections 1.2 and 1.3 of the lATA Perishables Cargo Regulations Manual (PCR).

● Other documentation may be required, such as some countries may need the permit numbers included on the cargo
manifest.
● Shippers should always mark what is contained in the packaging and whether dry ice is used because it is classified as
a dangerous goods. Then the packaging should be correctly labeled with the standard IATA label as such: "Perishables"
"this way up" or "wet cargo."

Packaging for shipping Perishables goods

● There are a wide array of Perishables goods, and they are each subject to deterioration, some faster than others.
Appropriate packaging and handling are crucial to the Perishables goods being delivered in good condition.
● The packaging must facilitate both the integrity of the goods as well as the handling and storage of the goods.
● The packaging must meet food safety regulations and meet food-grade standards while still being durable enough to
withstand temperature changes and stacking.
● A lot goes into creating proper packaging for Perishables goods. You can find more information about the specific
structures in Chapter 5 of the IATA PCR.

IATA publishes a manual for the shipping of Perishables including pharmaceuticals.

Perishables Cargo Regulations: The Perishables Cargo Regulations (PCR) provide access to the most current and efficient
practices for Perishables cargo operations and an integral tool to achieve cost savings and avoiding delays by guaranteeing
shipments are problem-free and compliant with international or local regulations.
The PCR includes: Up-to-date airline and government requirements pertaining to the transport of Perishables cargo,
requirements on handling, marking and labeling, packaging requirements, information on the necessary documentation and a
comprehensive classification of 100s of Perishables commodities. The PCR is a necessity for everyone involved in the transport
of Perishables goods by air and is specifically geared towards: Commercial shippers, shippers of fresh fruits and flowers,
pharmaceutical companies, ground handlers, freight Forwarders and airlines.
We assume pieces of cargo to be unique goods if they satisfy one or more conditions:
● Cargo whose transportation is not possible without the development and use of specialist engineering and design
solutions;
● Cargo that requires loading and unloading to and from aircraft with the use of non-standard ground and aircraft
loading equipment;
● The transportation of cargo requiring special preparation of the aircraft and training for the flight crew

COOL CHAIN LOGISTICS

● Within the cool chain logistics sector, competition is always fierce with an element of risk. Because the harvesting of
some produce can be irregular or seasonal, market conditions and prices can vary considerably.
● This means that business planning contains a strong element of unreliability.
● The margins may be very tight and thus short-term losses can be easily suffered which impacts directly on long term
viability.
● Companies working in these Perishables markets, however, know their business well and based on years of experience
are able to sustain worthwhile profits.
● Violent weather events can of course cause rapid loss of product.

Pharmaceutical products need to maintain an absolutely constant temperature throughout their complete supply chain cycle,
and they are transported in specially developed containers with a constant temperature that can be individually set between
-20°C and +20°C

Perishables Logistics Sectors

● The business is broadly divided into the following.
● Food - fruit, vegetables, live fish and shellfish, meat and meat products.
● Fresh flowers and plants
● Medical products, including pharmaceuticals, vaccines, body parts, plasma Breeding products such as bull semen, eggs
● Live insects and mammals
● Some hi tech goods and components

Flowers
● Despite severe worldwide recessions and other social problems which have occurred over the last 20 years, the market
for fresh flowers has steadily increased.
● What could, by some, be classed as a luxury, individual people and companies continue to spend money on flowers and
plants.
Fruit and Vegetables: Most countries are able to successfully farm and deliver crops to wholesalers, stores and supermarkets
within their own national markets.
Asparagus: Asparagus has become the main agricultural high value export by air from Peru, one of the most important
producers and exporters of this crop worldwide. While the largest overall producer of Asparagus is China, Peru is the largest
and principal exporter of fresh Green Asparagus, surpassing China and European countries.

Imported Seafood Products: China is the largest producer of seafood products in the world, and Japan and the United States
are the largest importers of seafood products*.
● Shrimp is the most important imported seafood product, Thailand was the leading U.S. supplier of shrimp followed by
Ecuador, Indonesia, China, Vietnam and Mexico.
● Tuna was the second most important imported product, and an almost equal amount of Canned tuna and fresh and
frozen.
● Freshwater fish filets ranked third in volume for all seafood products imported into the United States.

A major part of this product category is the Vietnamese fish species, called pangasius, basa or swai in U.S. markets.
Other important products in order by volume imported include salmon from Norway, Canada, and Chile; ground fish species
like cod, haddock, pollock and hake from Canada and Northern Europe, crabs and crabmeat from Southeast Asia, frozen fish
blocks used to make fish portions and sticks from China, Russia, Canada and Iceland.

Live Lobsters
For successful live lobster transport certain key criteria are essential:
● Correct temperature
● Limited time in transit
● Correct packaging and handling
lobsters can be shipped out of water for up to 48 hours with little to no mortality.
This 48 hours shipment time is why airfreight is necessary to allow live lobsters to reach international destinations while
maintaining their premium quality and strength.
Pharmaceuticals
● This is the biggest and most profitable single sector in the growing cool chain market and the most temperature
sensitive.
● The well-being of many millions depends on access to vaccines, insulin, blood plasma and other temperature-sensitive
healthcare products.
Temperature Sensitive Ground Handling: "To protect sensitive products from temperature fluctuations during offloading and
transportation to the warehouse, staff in airports which process significant Perishables traffic, the fast unloading or loading is
essential as direct sunlight can quickly damage most products.

Perishables Cargo Regulations

● The Perishables Cargo Regulations (PCR) provide access to the most current and efficient practices for Perishables
cargo operations and an integral tool to achieve cost savings and avoiding delays by guaranteeing shipments are
problem-free and compliant with international or local regulations.
● The PCR is a necessity for everyone involved in the transport of Perishables goods by air and is specifically geared
towards: Commercial shippers, shippers of fresh fruits and flowers, pharmaceutical companies, ground handlers, freight
Forwarders "and airlines.

1. The word Perishables must be shown in the nature and quantity of goods box on the AWB.
2. Advance arrangement must be made to keep the transit time of the cargo to the minimum.
3. The most direct route should be used.
4. Space for Perishables should be booked well in advance with the carrier.
5. Perishables label is required to each package, next to the consignee's address if possible.
6. "This way up" must also be used if applicable.

Marking and labeling for shipping Perishable goods

● There are numerous documents needed for shipping Perishable goods. The process begins with ensuring that the Air
Waybill is filled out completely and accurately and without unreasonable requests for handling the Perishables.
● The cargo manifest should be labeled with the proper IATA handling codes. These codes are for internal use but ensure
your Perishables goods are handled properly.
● Cargo handling codes can be found in Appendix D of the lATA PCR

Some examples of cargo classified as unique:

● A high-pressure gas column 17.36 m in length, 4.64 m in width, 4.14 m in height and weighing 63,400 kg;
● A special container with a satellite 11.2 m in length, 4.1 m in width and 4.2 m in height;
● A hydroelectric turbine impeller 6.25 m in diameter and 3.51 m in height weighing 97,600 kg.
● A rectifying column 38.4 m in length, 3.72 m in diameter and weighing 70 T

Planning of transportation or project: Sensible optimum planning of transport and logistics operations is the key to its
successful implementation.
Technical development and preparation of cargo for transportation: In practice, oversized and heavy cargo can rarely be
transported by air without additional preparation.
Ground delivery before and after air transportation.
The ground delivery of unique cargo is a highly specialized matter.
Focaying deliver, wis preferable to choose proven transport companies with experience

SPECIAL CARGO HANDLING- Valuables

● Cargo has a declared value excess of USD 1000/ kg or GBP 450/ kg is considered valuable cargo
● The list of valuable cargo is shown in sect. 3.6.6 TACT Rules
● AWB must have the exact name & address of the consignee, the shipper and the full description of the airport of
departure.

● Check TACT Rules, sect 7.3.2 for airport facilities and information relating to the valuable cargo.
● Valuable cargo should be locked in a security area while not in transit.
● Carrier's liability is only SDR 22.00/ Kg
● Valuation Charge ( 3.2 TACT Rules)
● The rate applied is surcharge

● Special Packaging may be required for your valuable

● Box size
● No labels can be used on the packages
● All information on package must be handwritten
 ● Package must be tied with string and sealed with wax
● Package should fly before the weekend

SPECIAL CARGO Handling-personal Effects

● Unaccompanied baggage is excess baggage not personal effects, professionally packed and moved as cargo.
● A full description of the baggage should be indicated in the nature and quantity of the goods box on the AWB.
● If keys are sent with the shipment, it must be attached to the AWB in a separate envelope.

● Baggage must be labeled with shipper's & consignee's address as well as the AWB label.
● Consignee's address should be accurate street add. and include a contact number.
● Care must be taken to assure that " hidden" restricted articles are not included in personal effects.
● The rate applied is Rebate (see 3.6.8 TACT rules)

SPECIAL CARGO HANDLING- outsized or heavy cargo

1. Advance arrangements are very important to ensure that appropriate space as well as handling equipment is available for
the type of cargo.
2. Check loading chart ( Sect 7.2 TACT Rules) for potential aircraft loading problems.
3. Carriers should be contacted directly to ensure that their aircraft can accommodate outsized or heavy cargo.

Airport and terminal services.

● When choosing the airport of departure, it is necessary to determine the possibility of delivery to the parking area of
the intended aircraft where loading will be carried out, the suitability of the access road for the movement of the trailer
with a heavy load, and the width of the entrance gate on route to the platform.
● Oversized cargo cannot pass the scanning procedure → special aviation security procedures need to be applied to such
loads.
● These procedures must be agreed upon with the relevant departments of the airport.

SPECIAL CARGO HANDLING-unique

● Airport and terminal services.
● When choosing the airport of departure, it is necessary to determine the possibility of delivery to the parking area of
the intended aircraft where loading will be carried out, the suitability of the access road for the movement of the trailer
with a heavy load, and the width of the entrance gate on route to the platform.
● Oversized cargo cannot pass the scanning procedure → special aviation security procedures need to be applied to such
loads.
● These procedures must be agreed upon with the relevant departments of the airport.

SPECIAL CARGO HANDLING- Required documents

What are the documents required for air cargo shipping?
1. Shipper's Letter of Instruction (SLI) Also known as the shipper's export declaration, it is an authorization document that is
issued by the exporter to its agents or freight forwarders. ...
2. Commercial Invoice. ...
3. Packing List. ...
4. Air Waybills. ...
5. Cargo Manifest....
6. Billing Invoice.

● For AVI shipper's certification, waybill, captain notification, CITES documents, other documents, live animal acceptance
checklist, Health certificates and serological tests (anti-rabies for dogs and cats, new castle for chickens and parrots,
myxomatosis for rabbits, etc.)
● Other: permits required by national authorities, information concerning sedatives or tranquilizers administered to
animals.
● For Perishable
● For Dangerous goods

CHAPTER 5: AIR CARGO MARKETING

1 Key marketing concepts and strategies
2 Marketing research and information
3 Product management and branding
4 Marketing in crisis times
1 KEY MARKETING CONCEPTS AND STRATEGIES:
Some unique characteristics of air cargo market:
● Directional imbalance
● Highly heterogeneous
● Highly concentrated market
● Extensive surface competition
● Inadequate control of capacity supply

Definition of Marketing: Air freight marketing is an activity aimed at increasing awareness of air freight products and/or
service offerings, creating interest, building custom relations, and acquiring new business opportunities.
In the air cargo industry, mktg 's role is all about identifying what the customer wants and where possible, providing this
service at a price which economical for both the airline and the customer

Air cargo marketing involves strategies to promote and sell air to freight services to businesses and individuals who need to
transport goods by air. Here are some key concepts in air cargo marketing:

Air cargo marketing is not just about selling products, cargo services, or providing cargo space on the aircraft. it's about
helping the customers, solving their problems and providing them the solutions they needs -> requires be creative and find
ways to help them

2 MARKETING RESEARCH AND INFORMATION:

● Marketing research refers to a more systematic, project-specific investigation aimed at solving specific marketing
problems or exploring opportunities, involving designing the research, collecting data, analyzing results, and presenting
findings that were not previously known or fully understood.
● The goal of marketing research is to gather new information that can answer particular questions or test specific
hypotheses.
It is often project-based and can include qualitative methods like focus groups or in-depth interviews, and quantitative
methods such as surveys and statistical analysis.

Marketing research plays a crucial role in the air cargo industry by providing vital insights that can drive strategic decisions
and enhance operational efficiency:
1. Understanding Market Demand:
2. Customer Segmentation and Targeting
3. Competitive Analysis
4. Pricing Strategies
5. Service Development and Innovation:
6. Risk Management:
7. Customer Satisfaction and Loyalty Programs:
8. Regulatory Compliance and Sustainability

Global Air Cargo Management Market Dynamics

Precise generic description of Market Dynamics:
● The global air cargo management market is driven by increasing globalization and international trade, leading to rising
demand for efficient cargo transportation solutions.
 ● Technological advancements, such as automation and digitization, are revolutionizing the air cargo industry, enhancing
operational efficiency and customer satisfaction.
● Market dynamics are further influenced by factors like economic fluctuations, regulatory changes, and environmental
concerns, shaping the competitive landscape.

Air Cargo Management Market Trends

● Description of trends:
● Integration of loT and blockchain technologies for enhanced supply chain visibility and security.
● Rise of e-commerce driving demand for express air cargo services, particularly in urban areas.
● Adoption of sustainable practices, including alternative fuels and eco-friendly packaging solutions, to mitigate
environmental impact

Air Cargo Management Market Challenges

● Description of challenges:
● Infrastructure constraints at airports and cargo terminals leading to capacity limitations and operational inefficiencies.
● Regulatory complexities and compliance requirements posing challenges for international cargo movements.
● Volatility in fuel prices impacting operational costs and profit margins for air cargo carriers.

The air cargo industry has experienced significant growth thanks to e-commerce, increased global trade, and constraints in
maritime shipping that have shifted some demand to air transport.*
The industry's load factor has also seen an increase, indicating efficient utilization of this growing capacity

Companies are continually innovating and adapting to meet the dynamic demands of the market
The urgent need for rapid
Environmental concerns
→ This complex interplay of factors suggests a vibrant future for air cargo, with ongoing challenges but also significant
opportunities for growth and innovation.

→ Effective marketing research helps in setting prices that are competitive yet profitable.
→ In summary, marketing research is indispensable in the air cargo industry as it provides a foundation for making informed
decisions that affect every aspect of the business, from operational tactics to strategic planning.

3 PRODUCT MANAGEMENT & BRANDING:

Air cargo management is an essential component of efficient logistics and supply chain operations in today's global
marketplace.
With the rapid rise of eCommerce and the increased demand for items to be delivered swiftly and efficiently, air cargo
management has become more critical than ever..
● E-Commerce
● Product positioning and promotion*
● Pricing strategy and tools, and right time to review pricing
● Product price elasticity and distribution channels

The term "product" in the context of air cargo generally refers to the services offered by air freight carriers. These services
can vary widely but typically include:
1. Express Air Freight: For urgent shipments that need to be delivered within the shortest possible time.
2. Standard Air Freight: For less time-sensitive shipments, offering a balance between cost and speed.
3. Consolidated Air Freight: A more economical option where cargo from multiple shippers is combined into one lot and
shipped together.
4. Charter Services: Custom flights chartered for specific cargo needs, which may be critical or oversized that cannot be
handled by regular flights.
5. Special Cargo Services: Handling and shipping of special cargo like perishables (e.g., food and flowers), dangerous
goods (e.g., chemicals and batteries), valuable goods (e.g., artworks and jewelry), and live animals.
Each of these services can be considered a "product" within the air cargo industry, tailored to meet different logistical
requirements and customer needs.

Product management: Product management in air cargo involves overseeing the development, positioning, and marketing of
air cargo services to meet the needs of various stakeholders, including customers, airlines, and logistics providers. Here are
key aspects of product management in the air cargo industry:
1. Customer Needs N
2. Product Development
● Creating air cargo products tailored to customer requirements.
 ● Technology Integration: real-time tracking, automated booking systems, and digital documentation for faster
processing.
3. Pricing Strategy
4. Capacity Management
5. Regulatory Compliance
● B2B Sales:
● Brand Positioning:
6. Performance Monitoring and Optimization
7. Sustainability Initiatives
8. Customer Relationship Management
Product management in air cargo is a complex task that requires balancing customer needs, operational efficiency, and
regulatory compliance. Effective product managers need to be strategic, data-driven, and adaptable to changing market
conditions.

The Marketing Mix (4Ps)

Aim: center the 4 Ps on the Target customers to create perceived value & generate a positive response
● Product
● Price
● Place
● Promotion
These can be used to construct a Marketing Plan

Cargo Market Segmentation

The air cargo market is segmented by service type and end-use industry. The market is segmented into express, regular, and
special cargo.
Grouping a market into smaller subgroups
● Recognises that the total cargo market is made up of submarkes (called 'segments')
● These segments are homogeneous

The Marketing Mix (4Ps)

Product
• In cargo, it deals with the
● Actual specifications of cargo services
● How it relates to the end user's needs & wants

Air Cargo Product/Service

Perishability
Empty space, once aircraft departs,
● Cannot be re-sold nor regained
● Is a lost economic opportunity
● Has a greater impact on freighters
Lack of 'transportability': Cargo services must be consumed at the point of "production"
Lack of homogeneity: Cargo services are typically modified for each major client

Labour Intensity
Variability usually involves considerable human activity so it's difficult
● to install a system of precisely determined process
● to achieve economies of scale
Very difficult to estimate demand
Varying demands by season, time of day, business cycle, geographic region etc.

Exercise
You are now employed as Logistics Manager by a global shipper of high value, time sensitive goods. You have 2 brochures on
your desk offering an array of services. Compare the descriptions of the Products on offer.
Your decision on the choice of a service provider:
1. What differences can you identify between the two product propositions?
2. Who would you choose in order to meet your company's requirements?

The Marketing Mix (4Ps)

Place (distribution)
● How the product gets to the customer
● For air cargo, the freight forwarder dominates the distribution channel & is in fact the agent of the shipper
 ● A fundamental issue for airlines: Forwarders dominate the airline distribution channel (90%) either directly or indirectly
● Impossible for airlines to be present in all relevant markets but an effective channel is critical for business development

Electronic Distribution Channel

E-distribution, refers to the digital dissemination of products, services, or information through electronic channels.
This method eliminates the need for physical distribution processes, making use of the internet, email, and other digital
platforms.
• Impact on airlines
• Cargo
● Industrial nature of the business
● Shipper preference to deal with Forwarder
● Limited success of electronic initiatives e.g., EDI, Bar Coding
● Limited focus on process or systemised product control
• May have a positive impact for airlines
● Access to direct customers

• Impact on integrator
• Growth of business due
● High Retail component
● Ownership of customer base
● Finer distribution network
- Processes geared towards handling own & customers' online sales
• IT-enabled to provide real-time information

Technology
● Latest Technology: Keep up with the latest technology so that you can provide your customers with the best possible
service. Technology can be used to enhance your customer experience and increase sales.
● Use Marketing Tools: Use marketing tools and technology that are appropriate for your business to improve your
customer experience and increase your sales.

Exercise: How can an airline's cargo division develop high yield services in a rapidly growing market, without having
direct control over its Channel in that market?

The Marketing Mix (4Ps)

Promotion
● Various methods of promoting your cargo products or company
● Includes advertising, sales promotions, publicity & personal selling
● Promotional Events
● Promote Seasonal And Special Events
● Trade Events
● Celebrate Your Achievement

Purpose of Promotion
● To create a favorable image of the company & its products
● To reinforce positive attitudes that already exist
● To counter any negative attitudes or misconceptions
● To keep the product/service in the minds of the customer
● To help stimulate demand for the product

Discussion: How necessary is advertising in the air cargo market?

Promotion
● Advertising: Any paid message
● Personal selling: Customer contacts by sales staff
● Sales Promotion: Communications or persuasive devices
● Publicity: Any unpaid-for mention of your company
● Public Relations

Discussion
In most industrial markets, Personal Selling can be quite effective.
1. What is your opinion of the impact of Personal Selling by the airlines' cargo sales staff?
2. Should airlines have their own Sales force?
To consider:
● Not a core airline competence
● High airline costs
● Servicing role

Limitations of the 4Ps

Most useful for marketing mass products
Focus on product, features & the sale
Air cargo:
● Need to be service-led than product-led
● More focus on people & interactions than product offering & brand
Industrial or B2B marketing:
long term contractual agreements typical in supply chain transactions
Relationship marketing: long term relationship perspective instead of individual transactions

EXTENDED MARKETING MIX (7PS)

Booms & Bitner
Service-based 'products' has 3 additional components:
● People
● Process
● Physical evidence

People
Any person with customer contact impacts on satisfaction
Customers' eyes: People generally inseparable from the total service
Right person must be appropriately trained & well motivated

Process
Involved in providing a service
Behavior of the people along the freight cycle which can be crucial to customer satisfaction
- This area is almost completed neglected in the traditional cargo industry

Physical Evidence
Environment in which the
● service is assembled
● seller & customer interact
● combined with tangible commodities that facilitate
● performance or communication of the service
Also critical to reduce shipper's risk by showing performance capability in advance…. track record

Internal Marketing
• Enables promises
• To deliver the firm's promises, the staff must have
● Well defined operational processes
● Clear procedures & responsibilities
● Skills
● Abilities
● Tools
● Motivation

Organizational Design Implications

● Your Business Strategy dictates your
● Organizational Structure
● Your Organizational
● Structure drives your performance
The Value of Customer Loyalty
Why customer retention impacts profitability:
● Costs 5 times more to get a new customer than to retain an existing one
● Satisfied customers more likely to increase 'share of wallet"
● Relationship collaboration produces efficiencies

Satisfaction vs Loyalty
● Satisfaction does not equal loyalty
● Loyalty is demonstrated by the actions of the customer
● Customer loyalty is the result of a well-managed customer retention programme (they demonstrate higher loyalty to a
● Business)

Customer
● Putting the customer front and center
● Building on the insights gathered about customers, their needs, and stages of the customer journey, airlines can form a
comprehensive revenue strategy that puts the customer front and center.
● " Typically, cargo airlines base revenue-management decisions on flight profitability. They set price
● entry conditions based on expected demand and operating cost—as a basic principle.
● However, airlines may struggle with managing revenue at an account level. For instance, decisions around how to price
a large account's cargo on a high-demand flight-while the same customer also provides volumes on other low-demand
flights-are not so clear cut.
● This is something that passenger airlinês have figured out within their corporate sales programs, essentially looking at
the longer-term customer relationship and the incentives offered, and overlaying that with the predictions generated by
their pricing and revenue-management models for any individual flight.

Customer Service

Customer retention
● Loyalty program for customers.
● Have built a customer rewards program to retain customers and encourage repeat business.
● Reward loyal clients.
● Customer service.
● Make sure of the excellent customer service.
● Free Marketing.

● Employee training.
● Never stop growing.
● Remember where you came from.
● Never forget where you started.
This will help you appreciate how far you have come. Where are you and where do you need to go?

Discussion Point
What is professional ?
Sales development process within your company?
How do your competitors and customers train?

Summary
● Focus on meeting customer needs profitably based on real constraints & opportunities in our operating environment
● Use of the 4Ps/7Ps as a framework to review the key success variables
● Importance of internal marketing on organizational commitment
● Powerful brand delivery can have a significant direct impact on your profits
Conclusion
To conclude, air cargo marketing is:
● Identifying the needs of the shipper and the consignee.
● Developing an efficient & reliable transportation system which can be sold at an attractive price, both for the all and
the customer.
● Optimizing the possibilities for additional revenue from existing schedules and aircraft.
● Delivering added value services
● Communicating the product to the potential buyer

Why choose air cargo?

Commodity Characteristics:
● Perishables and Fast Obsolescence: Goods that spoil quickly or become outdated, like fresh produce,
flowers, seasonal fashions, and high-tech electronics, benefit from air cargo's speed.
● High-Value, Low-Weight Items: Products such as jewelry, pharmaceuticals, and electronics are often
valuable relative to their size and weight, making the secure, quick transport of air cargo ideal.
● Expensive Handling Needs: Goods requiring special handling or fragile items are safer in air transport,
which often has more controlled handling environments.
Operational and Market Advantages:
● Security: Airports have robust security protocols, reducing risks like theft and damage. This makes air
cargo particularly suitable for high-value items.
● Customizable and Paperless Processes: Advances in digitalization allow for seamless tracking and
streamlined, paperless processes, improving accuracy and efficiency for businesses. This can also include
tailored services like temperature control or faster customs processing.
● Flexible Services with High Competition: The competitive air cargo market fosters a range of options and
innovations, ensuring flexibility in services offered by airlines and integrators like FedEx and UPS.
Industry Challenges and Limitations:
● Environmental Concerns: Air cargo has a higher carbon footprint compared to other modes. However, it
can be efficient for goods with limited shelf lives, reducing waste and spoilage.
● Limited Airport Space and Capacity: Some regions face congestion at airports, limiting space for cargo
and requiring businesses to plan logistics carefully, especially during peak seasons.
● Potential Overcapacity: Fluctuations in demand, such as during economic downturns or post-pandemic
recovery periods, can lead to excess capacity. While this might reduce costs temporarily, it also requires
careful load planning by carriers to avoid waste.

Air Cargo Agencies:

● These agencies can either be independent firms specializing in air freight forwarding or departments
within multimodal enterprises that manage air, sea, and land logistics. Air cargo agencies coordinate the
transport, documentation, and logistics for clients needing air freight solutions.
Air Cargo Agents:
● Freight Forwarding (FF) Agents: Freight forwarders organize shipments on behalf of clients, handling
logistics from start to finish. An IATA cargo agent is a specific type of freight forwarder registered with the
International Air Transport Association (IATA) to act on behalf of airlines. These agents facilitate
standardized processes and reliable service for air cargo and ensure compliance with IATA regulations.
● Accredited Agents: Currently, about 4,775 companies of various sizes are IATA-accredited, representing a
large network of reliable agents who meet global standards in air cargo services.
Consolidators:
● Consolidators combine smaller shipments from multiple shippers into a single, larger shipment. This
practice, known as "consolidation," reduces transportation costs and increases efficiency. Once the
consolidated cargo reaches its destination, the consolidator breaks down the shipment for delivery to
individual clients.
Broker and Bonded Warehousing Agent (BBA):
● A BBA often facilitates customs clearance and provides bonded warehousing services. These agents hold
cargo in secured warehouses until duties are paid, ensuring legal compliance while maintaining the
shipment's integrity.
Partners in Air Transport:
● Airlines: Airlines provide the transportation needed to move cargo from one location to another and are
responsible for maintaining aircraft, schedules, and cargo security.
● Ground Handling Companies: These firms handle the loading and unloading of cargo at airports, ensuring
it’s stored safely and transferred efficiently.
● Customs Authorities: Customs authorities regulate the entry and exit of goods across borders, ensuring
compliance with laws and processing duties, taxes, and import/export restrictions.
● Third-Party Logistics (3PL) Providers: Many companies outsource aspects of their supply chain to 3PL
providers, who may handle the warehousing, transport, and distribution aspects of air cargo.

1. Temperature Control
● Temperature-Sensitive Packaging: Use insulated packaging, cold packs, dry ice, or gel packs to regulate
temperature. Some perishable items, like seafood or pharmaceuticals, may require specific temperature
ranges.
● Refrigerated Cargo Facilities: Some airlines and airports have refrigerated or temperature-controlled
storage areas. Ensure these facilities are available at both origin and destination points.
● Temperature Data Loggers: Data loggers monitor and record temperature fluctuations, ensuring
compliance and providing proof of temperature stability.
2. Proper Packaging and Insulation
● Robust, Leak Proof Packaging: Use packaging that prevents leaks, especially for liquids. High-quality,
crush-resistant materials should be used for protective purposes.
● Separation of Items: If shipping mixed perishables, separate items that emit gasses, such as fruits, from
sensitive items like flowers to prevent spoilage.
3. Choice of Carrier and Route Planning
● Airlines with Expertise in Perishables: Choose airlines experienced in handling perishable shipments to
minimize transit risks.
● Direct Flights: Opt for direct flights or routes with minimal layovers to reduce the risk of delays and
potential spoilage.
● Real-Time Tracking: Many carriers offer real-time tracking so you can monitor your shipment’s location
and estimated arrival time.
4. Regulations and Documentation
● Compliance with IATA Perishable Cargo Regulations: Ensure that the shipment complies with
International Air Transport Association (IATA) regulations for perishable goods, including special labeling
and handling instructions.
● Customs Requirements: Some perishables, like agricultural products, may require specific documentation
and permits. Familiarize yourself with import/export regulations at the shipment’s destination.
5. Time Sensitivity
● Prioritize Urgent Handling: Mark the shipment as "perishable" or "priority" to ensure it’s given precedence
throughout handling and transport.
● Quick Customs Clearance: Partner with an agent or consolidator who can expedite customs clearance, as
delays can spoil sensitive goods.
6. Insurance and Risk Management
● Insurance for Perishables: Consider specialized insurance coverage that includes protection for
temperature excursions, delays, or mishandling, as perishables are highly susceptible to loss and damage.
● Backup Plans: Have a contingency plan in place if delays occur, like alternative storage or transportation
options, to mitigate risks.
7. Environmental Considerations
● Sustainable Packaging: Some customers may value eco-friendly, recyclable packaging, especially if you’re
shipping high volumes regularly.
● Optimized Routes: Whenever possible, use routes with lower carbon emissions to balance out the
environmental impact, especially if air cargo is a regular part of logistics.
Proper handling, efficient logistics, and careful planning are crucial when shipping perishables, as a single delay
or temperature excursion can lead to significant losses.
What are the documents required for air cargo shipping?
General Cargo Shipping Documents:
● Shipper's Letter of Instruction (SLI): An authorization document issued by the exporter to their agents or freight
forwarders, providing instructions for shipment.
● Commercial Invoice: A document detailing the sale transaction between the exporter and importer, including
descriptions, quantities, and prices of goods.
● Packing List: A detailed list of the items in each package, including dimensions, weight, and packaging type.
● Air Waybill (AWB): A contract between the shipper and the carrier that outlines the terms and conditions of the air
transport of goods.
● Cargo Manifest: A comprehensive list of all cargo being transported, including details about the consignor, consignee,
and description of the goods.
● Billing Invoice: A document that outlines the costs associated with the shipment, including freight charges and
additional fees.
Specific Requirements for Special Cargo:
For Live Animals (AVI):
● Shipper's Certification: A document certifying the shipper's compliance with regulations for shipping live animals.
● Waybill: Specific to the transport of live animals, detailing their journey and handling instructions.
● Captain Notification: Notification to the aircraft captain regarding the presence of live animals on board.
● CITES Documents: If applicable, permits for the transportation of endangered species under the Convention on
International Trade in Endangered Species.
● Live Animal Acceptance Checklist: A checklist to ensure all requirements for transporting live animals are met.
● Health Certificates: Issued by a veterinarian, confirming the health status of the animals being shipped.
● Serological Tests: Testing certificates for diseases (e.g., anti-rabies for dogs and cats, Newcastle disease for poultry,
myxomatosis for rabbits).
For Perishable Goods:
● Temperature Control Documents: Information about the temperature requirements during transport.
● Certificate of Origin: May be required for some perishable goods to verify where they were produced.
For Dangerous Goods:
● Dangerous Goods Declaration: A specific form indicating the nature of the hazardous materials being shipped,
including handling and emergency procedures.
● Packing Instructions: Detailed packing requirements to ensure safe transport.
● Safety Data Sheets (SDS): Documentation providing information on the hazards and handling of dangerous goods.
Other Considerations:
● Permits Required by National Authorities: Any additional permits or licenses mandated by local regulations.
● Information on Sedatives or Tranquilizers: If animals are administered sedatives or tranquilizers, details must be
provided.
Make sure to check with the airline and relevant authorities for any specific documentation that may be required based on the
cargo type and destination.

How can an airline's cargo division develop high yield services in a rapidly growing market, without having direct
control over its Channel in that market?
1. Partnerships and Alliances:
Collaborate with Freight Forwarders: Establish strategic partnerships with freight forwarders and logistics companies that
have established networks and relationships in the target market. This can help leverage their expertise and reach.
Code-Share Agreements: Form alliances with other airlines for code-sharing agreements, expanding the cargo network and
offering more routes to customers without needing to control the channel directly.
2. Value-Added Services:
Customs Clearance and Compliance Services: Offer additional services like customs brokerage to streamline the shipping
process for customers. This adds value and can justify higher pricing.
Insurance and Risk Management: Provide cargo insurance options to customers, ensuring their goods are protected, which
can attract higher-value shipments.
Real-time Tracking and Visibility: Implement technology that allows customers to track their shipments in real-time,
enhancing transparency and building trust.
3. Customer Segmentation:
Target Niche Markets: Identify and focus on high-value niche markets (e.g., pharmaceuticals, perishables, luxury goods) that
require specialized handling and can command premium pricing.
Tailored Solutions: Develop customized service offerings for different customer segments, catering to their unique needs,
such as temperature-controlled shipments for pharmaceuticals.
4. Dynamic Pricing Strategies:
Utilize Yield Management Techniques: Implement dynamic pricing strategies based on demand fluctuations, capacity, and
other market variables. This helps maximize revenue during peak times while remaining competitive during slower periods.
Bundle Services: Create bundled service packages that provide comprehensive solutions at a premium rate, appealing to
customers seeking convenience.
5. Brand Positioning and Marketing:
Strong Brand Presence: Invest in marketing and branding to position the airline as a reliable and premium choice for cargo
services, emphasizing service quality, reliability, and speed.
Leverage Digital Marketing: Use digital marketing strategies to reach potential customers in target markets effectively,
including social media campaigns and targeted ads.
6. Investment in Technology:
Digital Platforms: Develop or enhance digital platforms for booking, tracking, and managing cargo shipments, making the
process more user-friendly and efficient.
Data Analytics: Utilize data analytics to understand market trends, customer preferences, and operational efficiencies. This
can help in tailoring services and improving profitability.
7. Training and Development:
Employee Training Programs: Invest in training for staff to enhance customer service skills and knowledge of cargo
handling, improving customer satisfaction and loyalty.
Customer Education: Provide educational resources to customers on the benefits of using high-yield services and how to
optimize their shipping processes.
8. Feedback and Continuous Improvement:
Gather Customer Feedback: Regularly solicit feedback from customers to identify areas for improvement and new service
opportunities. This can help refine service offerings and better meet customer needs.
Benchmarking Against Competitors: Continuously monitor competitors’ offerings and market trends to stay competitive and
adapt to changing customer demands.

How necessary is advertising in the air cargo market?

1. Building Brand Awareness:
Visibility: Advertising helps establish a cargo airline's brand in a competitive marketplace. With many players in the industry,
effective advertising can differentiate a company and make it more recognizable to potential customers.
Trust and Credibility: Consistent branding and messaging through advertising can build trust and credibility, which are
crucial when businesses rely on air cargo for shipping valuable or sensitive goods.
2. Targeting Niche Markets:
Specialized Offerings: Air cargo services often cater to specific niches, such as perishables, pharmaceuticals, or dangerous
goods. Advertising can effectively communicate specialized services to target customers in these segments.
Education on Unique Services: It can help educate potential customers about unique offerings, such as
temperature-controlled transport, express services, or customs support.
3. Enhancing Customer Relationships:
Direct Communication: Advertising campaigns can serve as a direct communication channel with customers, allowing the
airline to share updates, promotions, or new services.
Customer Engagement: Engaging advertising can foster loyalty by keeping existing customers informed and engaged with
the brand.
4. Promoting New Services and Innovations:
Launching New Offerings: When launching new services or features, advertising is essential to inform the market and attract
interest from potential users.
Highlighting Innovations: Promoting advancements such as technology upgrades, tracking systems, or environmentally
friendly initiatives can attract customers looking for modern solutions.
5. Competing in a Crowded Market:
Standing Out: In a market with numerous carriers, effective advertising is crucial for standing out. Compelling messaging can
highlight unique selling propositions (USPs) that appeal to customers.
Responding to Competition: Advertising can help a cargo airline respond quickly to competitive pressures, maintaining or
increasing market share through strategic campaigns.
6. Generating Leads and Driving Sales:
Lead Generation: Targeted advertising can drive inquiries and interest, leading to new business opportunities and revenue.
Promotion of Special Offers: Advertising can effectively promote seasonal promotions, discounts, or bundled services to
attract customers looking for value.
7. Supporting Digital Transformation:
Online Presence: As digital platforms become increasingly important, online advertising helps enhance an airline's digital
footprint, attracting customers who prefer digital engagement.
Social Media Engagement: Engaging in social media advertising can create a direct line to potential customers, fostering
interaction and community building.

1. What is your opinion of the impact of Personal Selling by the airlines' cargo sales staff?
1. Building Strong Relationships:
Trust and Credibility: Personal selling fosters trust between sales representatives and customers. Face-to-face interactions
help create personal connections, which can enhance customer loyalty and long-term relationships.
Understanding Customer Needs: Sales staff can gather valuable insights about customers' specific needs and preferences
through direct communication, enabling them to tailor services accordingly.
2. Effective Communication:
Complex Information Conveyance: Air cargo services often involve complex logistics and regulations. Personal selling allows
sales staff to explain these complexities in detail, ensuring customers understand the services offered and how they meet
their needs.
Real-time Feedback: Direct interactions provide an opportunity for immediate feedback, allowing sales staff to address
concerns, answer questions, and clarify any misconceptions.
3. Customization of Services:
Tailored Solutions: Personal selling enables cargo sales staff to propose customized solutions based on the unique
requirements of individual clients, such as special handling for sensitive or valuable goods.
Adaptability: Sales representatives can adapt their offerings on-the-spot based on customer reactions or needs expressed
during conversations, improving the likelihood of closing a sale.
4. Competitive Advantage:
Differentiation from Competitors: Personal selling can set an airline apart from competitors who may rely solely on digital
marketing or impersonal communication. The personalized approach can be a compelling selling point.
Local Market Knowledge: Sales staff often possess in-depth knowledge of local markets, helping the airline tailor its
approach and services to meet regional demands effectively.
5. Long-Term Customer Retention:
Customer Loyalty: Building relationships through personal selling can lead to higher customer retention rates. Customers are
more likely to return to an airline that understands their needs and offers consistent, reliable service.
Repeat Business: Personal connections encourage repeat business, as satisfied customers may be more inclined to continue
using the same airline for future shipments.
6. Cross-Selling and Upselling Opportunities:
Expanding Service Usage: Sales staff can identify opportunities for cross-selling or upselling additional services, such as
insurance, expedited shipping, or specialized handling, increasing overall revenue per customer.
Bundled Solutions: Personal interactions allow for the effective promotion of bundled service packages that might appeal to
specific customer segments.
7. Market Intelligence Gathering:
Competitive Insights: Sales representatives are often in the field and can gather intelligence about competitor offerings,
pricing, and market trends, which can inform strategic decision-making.
Feedback Loop: Direct customer interactions provide a valuable feedback loop that can guide product development and
service enhancements.

2. Should airlines have their own Sales force?

Advantages of Having an In-House Sales Force:
Direct Customer Relationships:
Personal Touch: An in-house sales force allows airlines to build strong, personal relationships with customers, enhancing trust
and loyalty.
Understanding Needs: Direct interactions can provide valuable insights into customer needs and preferences, leading to
better-tailored services.
Control Over Sales Strategy:
Alignment with Company Goals: An internal team can ensure that sales strategies align closely with the airline's overall
business objectives, marketing campaigns, and brand messaging.
Immediate Adaptation: In-house sales staff can quickly adapt to changes in strategy or service offerings, ensuring a unified
approach to the market.
Better Knowledge of Products and Services:
Expertise: Sales staff can develop in-depth knowledge about the airline’s specific services, capabilities, and logistics
processes, allowing them to communicate effectively with customers.
Customization: They can offer customized solutions based on a thorough understanding of the airline’s offerings.
Market Intelligence:
Feedback Loop: In-house sales teams can gather valuable market intelligence and customer feedback, which can inform
product development and marketing strategies.
Competitive Insights: They are well-positioned to identify competitor actions and market trends, enabling proactive
responses.
Cross-Functional Collaboration:
Internal Coordination: An in-house sales force can work closely with other departments, such as operations, marketing, and
customer service, fostering collaboration and improving service delivery.
Disadvantages of Having an In-House Sales Force:
Cost Considerations:
Fixed Costs: Maintaining a dedicated sales team involves ongoing costs, including salaries, training, and benefits, which may
be challenging for airlines operating on tight margins.
Resource Allocation: The investment in an in-house team may divert resources from other critical areas, such as operational
improvements or technology enhancements.
Market Dynamics:
Industry Changes: In rapidly changing markets, an in-house sales team may struggle to adapt quickly compared to
outsourced sales solutions that can be scaled up or down based on demand.
Niche Markets: For airlines focusing on specific niche markets, it may be more efficient to collaborate with established freight
forwarders or logistics partners who have the necessary expertise and customer base.
Potential for Overlap:
Redundancy: If the airline already partners with freight forwarders or logistics companies, having an internal sales force may
lead to overlapping efforts, causing confusion for customers.
Diluted Focus: Internal sales teams might become too focused on existing clients rather than exploring new business
opportunities.

1. Where Are You and Where Do You Need to Go?

Current Position:
Skills and Experience: Assess your current skills, experience, and accomplishments. For example, as a business administration
student with experience in project management and customer service (like your role as a barista), you may have strong
interpersonal skills and a foundational understanding of business operations.
Networking: Consider your professional network and relationships within the industry. Have you made connections with
professionals in air cargo or logistics?
Knowledge Base: Evaluate your knowledge of the air cargo industry and its dynamics, including market trends, customer
needs, and competitive landscape.
Future Goals:
Professional Development: Identify specific areas for growth, such as advanced sales techniques, understanding logistics
software, or mastering data analytics.
Career Aspirations: Define your long-term career goals. Do you aim to work in sales, operations, or management within the
air cargo industry? Consider what roles or positions align with your interests and skills.
Networking Expansion: Plan to expand your professional network by attending industry events, joining relevant
organizations, or connecting with alumni from your university.

2. What Is Professional?
Professionalism encompasses several key aspects:
Conduct and Etiquette: Adhering to industry standards, including appropriate behavior, communication, and dress code.
Skill Competence: Demonstrating expertise in your field through continuous learning, training, and practical application of
knowledge.
Responsibility and Accountability: Taking ownership of your tasks and decisions, meeting deadlines, and delivering quality
work.
Integrity: Maintaining ethical standards and transparency in your interactions with colleagues, clients, and stakeholders.
Collaboration: Working effectively in teams, valuing diverse perspectives, and contributing to a positive workplace culture.

3. Sales Development Process Within Your Company

The sales development process in an airline's cargo division typically involves several stages:
Lead Generation:
Identifying potential customers through market research, networking, and referrals.
Utilizing digital marketing strategies to attract interest from target segments.
Lead Qualification:
Assessing the potential of leads based on specific criteria, such as budget, shipping needs, and company size.
Prioritizing leads that align with the airline’s offerings and can yield high returns.
Engagement:
Contacting qualified leads through personalized communication (calls, emails, or meetings) to introduce the airline’s services.
Understanding customer needs and challenges through effective questioning and active listening.
Proposal Development:
Creating tailored proposals that address the customer’s specific requirements, showcasing relevant services and pricing
options.
Collaborating with internal teams to ensure that proposed solutions align with operational capabilities.
Closing:
Negotiating terms and conditions, addressing objections, and finalizing the agreement.
Ensuring a smooth transition from the sales process to service delivery.
Follow-Up and Relationship Management:
Maintaining communication with customers post-sale to ensure satisfaction and address any issues.
Seeking opportunities for upselling, cross-selling, or expanding service offerings to existing customers.

4. How Do Your Competitors and Customers Train?

Competitor Training:
Internal Training Programs: Competitors may have structured training programs for their sales teams, focusing on product
knowledge, customer engagement techniques, and industry trends.
Workshops and Seminars: Participating in industry workshops, seminars, and conferences to stay updated on best practices
and emerging technologies in air cargo.
Mentorship: Implementing mentorship programs where experienced sales professionals guide newer team members, sharing
insights and strategies.
Customer Training:
Webinars and Tutorials: Offering customers webinars or tutorials on using the airline's services effectively, such as booking
processes or tracking shipments.
Onboarding Programs: Providing onboarding programs for new customers to familiarize them with the airline's offerings,
policies, and procedures.
Continuous Education: Sending newsletters or updates about new services, industry trends, and best practices in logistics
and supply chain management.