Air cargo is now a $60 billion plus industry in an airline industry with over $700 billion in annual revenues. | |
During the next 20 years, cargo traffic is expected to more than triple, out-pacing passenger traffic and offering airlines more opportunities to generate new revenue. | |
Many global airlines generate over 30% of their revenue from air cargo. | |
The new air cargo world, uses both dedicated freighters as well as passenger bellies in an almost 50/50 split. | |
The cargo business model and business cycle is very different and distinct from the passenger model, even though they often use the same aircraft. | |
Air cargo is rapidly evolving into a highly specialized business with its own set of rules which are very different from those of the passenger carriers. | |
The air cargo business is rapidly moving away from general cargo in to highly specialized cargo product verticals, each with its own scientific base. | |
This new specialization will transform air cargo into a dedicated business requiring a whole new science and a different set of rules to be built around it. | |
Traditional suppliers to the air cargo industry will need to leverage data analytics and data mining technologies to create bespoke products for air cargo which are distinct from the passenger business | |
The new air cargo professional will need to become a specialist rather than a generalist, as the global air cargo industry moves away from the mass market into highly concentrated micro markets | |
AIRCARGOPEDIA, www.aircargopedia.com, is intended to be a highly specialized e-platform driving this change, showcasing the product and service offerings of game-changing vendors all over the world. At the same time, through this site we intend to build highly researched pages on each and every subject connected to air cargo operations, featuring top quality editorial, along with the offerings of vendors in that space. |
Airline & forwarder branded cargo products.
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More often, recognizing the importance of air cargo, airports are dedicating financial and professional resources to enhancing air cargo. It is important for an airport to develop a marketing plan when pursuing new or improved air cargo service. The ACI-NA Air Cargo Guide, Chapter 2, Developing an Air Cargo Market details the aspects of an air cargo marketing plan. The guide reminds the reader that marketing goes hand in hand with facility development since neither can be done successfully without the other. Both programs need a single focus in order to be successful.
A few of the items needed for a marketing plan and air cargo development as highlighted in the guide include:
An assessment of the regional market area in conjunction with an assessment of an airport’s strengths and weaknesses will be the backbone of the marketing plan. Identify the potential cargo market and the advantages of the airport and region as a location to do business. The items included in a market assessment are discussed in detail under the Explore Air Cargo section. More information regarding SWOT Analyses can be found on the Air Service Explore Page .
Once the market assessment is completed, the airport can set objectives to overcome deficiencies or weaknesses or capitalize on strengths or unique features.
Each strategy should promote an airport and region’s strengths and should be targeted on two primary customers- air carriers (all-cargo and passenger) and air freight forwarders.
The marketing plan should include participation and input from other organizations such as trucking companies, local air cargo associations, agencies such as Customs and Agriculture, state aviation agencies, and local economic development agencies and chambers of commerce. This input helps foster support for the air cargo development efforts as well as the airport overall.
Pursuing new or improved air cargo service requires a thorough understanding of the customer and their needs. A vision of the opportunities available at the airport for a potential new carrier should be communicated and well-designed and cost-effective facilities should be developed to support customer needs. A report can be developed and presented to a carrier to highlight the airport’s benefits. Additional programs can be pursued to raise awareness of an airport’s cargo facilities and competitive advantage. These include:
Chapter 4, Air Cargo Facility Analysis , Figures 1 and 2. Figure 1 outlines the marketing aspects of air cargo facility development while Figure 2 depicts the facility development process.
An example of a strategic plan for air cargo development at the Erie International Airport.
An example of a marketing plan that includes air cargo development.
This checklist describes information provided in typical sections of an Air Cargo marketing plan.
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TRB’s Airport Cooperative Research Program (ACRP) Report 143: Guidebook for Air Cargo Facility Planning and Development explores tools and techniques for sizing air cargo facilities, including data and updated metrics for forecasting future facility requirements as a function of changing market and economic conditions. The procedures included in the report may help airport operators develop effective business plans and make decisions that meet the industry’s current and future technological, operational, and security challenges in a cost-effective, efficient, and environmentally-sensitive manner.
In addition to the report, a CD-ROM contains the Air Cargo Facility Planning Model in a spreadsheet format. This model includes procedures for planning, developing, and implementing air cargo facilities that can be adapted and applied by users to reflect local requirements and development conditions for cargo facilities serving a wide variety of markets, including international gateways, national cargo hubs, domestic airports, and others.
The CD-ROM is also available for download from TRB’s website as an ISO image. Links to the ISO image and instructions for burning a CD-ROM from an ISO image are provided below.
Help on Burning an .ISO CD-ROM Image
Download the .ISO CD-ROM Image
(Warning: This is a large file and may take some time to download using a high-speed connection.)
Accompanying the report is ACRP Web-Only Document 24 : Air Cargo Facility Planning and Development—Final Report, which reviews the process and information used in preparing the guidebook.
CD-ROM Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.
National Academies of Sciences, Engineering, and Medicine. 2015. Guidebook for Air Cargo Facility Planning and Development . Washington, DC: The National Academies Press. https://doi.org/10.17226/21906. Import this citation to: Bibtex EndNote Reference Manager
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Fly Net Zero is the commitment of airlines to achieve net zero carbon by 2050, bringing air transport in line with the Paris agreement to limit global warming to 1.5°C.
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Shipping by air is a fast and efficient means of transport for goods. Airlines transport over 52 million metric tons 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 $6.8 trillion worth of goods annually, or $18.6 billion worth of goods every day. However, the effects of COVID-19 on the industry dramatically affected the air industry including air cargo. Available cargo tonne-kilometers fell industry-wide by 21.4% year-on-year in 2020 . However, by the end of the year, industry-wide cargo tonne-kilometers had returned to near pre-COVID values. With so much air cargo being shipped worldwide and so many different parties involved in the supply chain, it is important to take a look at cargo handling for air transport.
Cargo handling is the segment of the supply chain which processes goods landside in the cargo facility. From the delivery at the airport of origin until it is ready for loading on the plane, to the unloading at destination and handover to the consignee/freight forwarder, many steps are involved with cargo handling that must be closely followed to ensure shipments are delivered safely and securely. These steps are found in the cargo Master Operating Plan (MOP).
The Master Operating Plan (MOP) describes the key processes and sub-processes involved in transporting air cargo from shipper to consignee in a systematic and harmonized manner. It provides the air cargo supply chain with the first, industry-endorsed, standard description of the end-to-end process for transporting cargo by air.
As a result, the MOP comprises 19 main processes and 78 sub-processes split into five categories of activities as follows:
The primary objective for air cargo acceptance and handling is to ensure that consignments are ready for carriage in compliance with operator and IATA regulations, as well as with export and import rules of the countries through which the cargo will transit. In general, all items to be transported using commercial aircraft must pass through an acceptance process. There are certain procedures that must be followed regardless of the type of cargo. Other procedures may only apply to certain types of cargo.
The section below will provide you a quick overview of some of the key steps of the MOP.
The process of cargo handling begins with booking and planning shipments, there is much to be done before the shipment even leaves the facility. Having a solid plan of action allows for smooth booking and prevents fewer problems further down the chain of events. It is necessary to follow the steps below to book your shipment properly. These activities also include the steps handled by freight forwarders as listed below:
The next step in logistics is how air cargo is received and accepted for transport. This is a multi-step process that includes various stockholders including trucking companies, as well as cargo and ground handling service providers amongst others.
Throughout the shipment process, safety remains a priority for all parties of the air cargo supply chain. For instance, it’s important to ensure clear and correct labeling and identification of packages. In addition, the packages themselves must be suited to the content and be able to protect the goods from any damage.
Let's take a closer look at what happens once the shipment is received by the carrier when it comes to discussing air cargo handling as so much of the preparation for the flight happens there.
Once the freight forwarding truck arrives at the carrier's domain and the truck driver has informed the Cargo Handling Agent of their arrival, the carrier domain can receive the goods. They should have received the following information in advance, which is why filing electronically is always recommended:
Once the information has been received, and the truck has arrived, an unloading slot and position will be assigned to the driver. Different slots are given according to needs, such as dangerous goods, live animals, ULDs, healthcare products, and more.
When accepting shipment as ready for carriage, airport cargo and ground handling personnel must take several steps to meet the requirements to ship goods by air. First, they must verify if the shipments are security cleared. Then they must perform a ready-for carriage check. This entails verifying that all the information aligns with the actual shipment and ensuring all embargoes and operational restrictions are applied. Once everything has been checked, the information is validated against the booking and updated. The primary objective is to ensure the consignments are in compliance with
After accepting shipments ready for carriage, airport cargo and ground handling personnel can prepare the air cargo for flight. The goods in transit must be received and security cleared once again. Goods left on the aircraft that are in transit are considered transit cargo. Cargo and ground handling services must give this transit cargo security checks, including x-ray and Explosive Trace Detection (ETD) screening. A detailed exam of the e-AWB, integrity of the cargo, and piece count is made. Once the pre-plan details are received from the carrier, a build-up plan must be prepared, which indicates what air cargo is to be built for flight, and the information is sent to the warehouse.
Now it is time to move the loaded ULDs to a secure flight holding area while being mindful of all sensitive information such as temperature-controlled and dangerous goods. Ensuring no flights are delayed, the ULDs can be lined up in order, if it is known, to prepare for ramp transportation. All ramp safety protocols must be followed. To avoid accidents being mindful of all ground support equipment during the process of loading and unloading is necessary. This is why proper training in IATA's rules and regulations is imperative for all cargo and ground handling personnel.
At this time, the control of the air cargo passes from the warehouse operator to the ramp handler. The transport of goods from cargo terminal to aircraft is a multi-step process best lined out in the IATA Cargo Handling Manual (ICHM) . After following each of those steps explicitly, you would load the aircraft according to the load plan, making a note of arrangements for special cargo. Once the aircraft is loaded, any discrepancies must be addressed by updating the electronic Flight Manifest. It is now that the aircraft can depart, but the cargo loading procedure is not complete without mailing the flight manifest, loading, and carriage information.
How air cargo is unloaded involves fewer steps for airport cargo and ground handlers than the shipping and loading process. There are still many rules and regulations cargo and ground handling personnel must comply with, however. Following ramp safety protocols while performing tasks in a methodical manner help alleviate accidents and keep aircraft turnaround times in check. According to the IATA Cargo Handling Manual , the following are the specific steps to unloading air cargo:
Once the truck has collected the goods from the carrier’s domain it is transferred to the freight forwarder hub where it’s unloaded and checked. Often before goods are dispatched via a Forwarder Branch Facility before being handed to the Consignee and then they are finally delivered to the final customer. These steps fall under the following chapters of the ICHM where you’ll find more details about each step:
The IATA Cargo Handling Manual (ICHM) is a publication of the most current recommended practices for airline stakeholders to follow. It gives all the required documentation in an accessible step-by-step format. It was developed by an IATA council named the ICHC (IATA Cargo Handling Consultative Council) founded in 2011 by the Cargo Advisory Council (CAC). "The IATA Cargo Handling Manual (ICHM) covers all working instructions door to door, from shipper to consignee, with a strong focus on airport to airport activities where cargo handlers and airlines operate," according to André Majeres, Cargo Mail & E-Commerce Operations Manager at IATA.
The current issue contains 19 chapters in line with the Master Operating Plan (MOP). It includes the most up-to-date regulations regarding cargo handling and 10 appendices to expand on the subject, including a glossary, charts, various agreements, and more.
Anyone in the air cargo supply chain should use the IATA Cargo Handling Manual (ICHM) . This includes airlines, shippers, cargo agents, and many others. It allows you to see where each level of risk exists in the handling of air cargo. This manual meets every airline's guidelines, which is important since too many airports require their cargo handlers to operate under the guidelines of each specific airline. This could mean complying with 100 different working instructions, which is a lot to be expected and is a costly and timely practice. By using IATA's manual for meeting the rules and regulations, you save time and money.
You can find more information about the most up-to-date cargo handling guidelines that are strict enough to cover each airline in the IATA Cargo Handling Manual (ICHM) . In it, you will find everything you need to be compliant with the rules and regulations, and to follow the 19 steps of the MOP to mitigate the risks when handling air cargo.
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The total fee for incorporating the Business in the United States of America - $750. The budget for Liability insurance, permits and license - $25,500. The amount needed to acquire a suitable Office facility in New York City - New York for 6 months (Re - Construction of the facility inclusive) - $250,000.
Create the most powerful grouping of leading and independent air cargo specialists. Partner with our members to reach new heights, and set new standards excellence by jointly developing innovative air cargo products and services. Empower performance and optimize results. Deliver innovative IT tools and applications customized to the needs of ...
ermediate, and long-term implementation. These priorities are designed to meet the needs of the traveling. and shipping constituents in the region. Within the overall plan, the cargo marketing plan is a subset and serves to establish objectives and goals specific to the airport's air cargo business, ensuring part.
Develop a comprehensive business plan for your cargo airline. Navigate the logistics and transportation industry with a strategic roadmap for success. www.thecargoblog.com - The Cargo Blog ... The global air cargo market was worth $864 billion USD in 2020 and is estimated to reach over $1 trillion USD by 2023. Of this total value, roughly 33% ...
picture, on taking up a facilitating role within the cargo hub. "If the air cargo market would be a cake, the individual stakeholders of the cargo chain are very much focused on growing their own slice of the cake. The airport's focus is to grow the cake as a whole - and making it look more appetizing for all". Think global, start local
If you're looking for a cargo airline business plan template that will help you get started, look no further than Cargo Airline Business Plan Template. This easy-to ... The global air cargo market was valued at $145 billion in 2017 and is expected to grow to $208 billion by 2025. This growth is being driven by the continued growth of global ...
A successful cargo business plan encompasses various essential components that lay the foundation for the company's growth and development. These components include: Executive Summary: A concise overview of the entire business plan, highlighting the company's mission, goals, and unique selling propositions (USPs).
Here are some key aspects to consider in terms of operations and logistics: 1. Aircraft Selection: The first step in setting up an air cargo business is to select the right aircraft for your operations. Consider the type and size of cargo you plan to transport, as well as the distance and frequency of flights.
When starting a cargo airline business, it's essential to carefully consider the routes you will operate on. Conduct thorough research on the cargo airline industry to identify profitable and underserved routes. Analyze market demand, competition, and potential growth opportunities to make informed decisions.
A strategy is a plan of action for an organization to follow in order to achieve a long-term business goal. With a clear strategy, an organization can gain advantages by focusing its direction and refining its scope in an ever-changing environment. ... Air Cargo Business Development Diploma. This virtual diploma gives in-depth exploration of ...
Page 1. COMPETITIVE ANALYSIS: This section of the business plan should demonstrate your knowledge of your competition, including their strengths and weaknesses, what they are offering in the target markets and how you will compete with them. Provide a thorough analysis of the key competitors in the markets you are targeting including topics ...
The air cargo business plan contains an overwhelming amount of detail and must be structured in a clear and concise format. In today's financial world, a shorter business plan is often more important than a lengthy one. Examples of mistakes often associated with clarity are: unclear and overoptimistic, too detailed, too much useless ...
How To Download Air Cargo Logistics and Transportation Business Plan PDF and Doc (With financial analysis) P.S: We can also tailor the business plan to your name, business size, capital requirements, and more to fit your direct needs. Call or message +234 701 754 2853 for inquiries.
A complete management team, covering the elements of administration, aviation, and finance, is being assembled. This team brings together a wide range of skills and backgrounds covering the key areas needed to form, launch, and operate the airline, and from a range of national origins. 6.3 Management Team Gaps.
Air cargo is now a $60 billion plus industry in an airline industry with over $700 billion in annual revenues. During the next 20 years, cargo traffic is expected to more than triple, out-pacing passenger traffic and offering airlines more opportunities to generate new revenue. Many global airlines generate over 30% of their revenue from air cargo.
6 Air cargo and e-commerce enabling global trade March 2019 Air cargo responding to the e-commerce challenge: the industry action plan Strengthen safety and security for air cargo and airmail Safety and security must be further enhanced with stronger collaboration and compliance with programs
Air Cargo Committee members. We believe the Air Cargo Guide is an ideal instrument to expand the knowledge base of interested air cargo professionals at airports and throughout the industry. With this resource, we believe airports can benefit, and in so doing enhance local and regional economies through growth in their supply chain and trade-
Marketing Plans are essential to airports interested in pursuing new or improved air cargo service. A good marketing plan establishes objectives and goals specific to the airport's air cargo business, ensuring participation in future growth opportunities. The following topics are key components of a marketing plan: Market Research and Analysis
The ACI-NA Air Cargo Guide, Chapter 2, Developing an Air Cargo Market details the aspects of an air cargo marketing plan. The guide reminds the reader that marketing goes hand in hand with facility development since neither can be done successfully without the other. Both programs need a single focus in order to be successful. A few of the ...
Read Free Online. Buy Paperback: $64.00. TRB's Airport Cooperative Research Program (ACRP) Report 143: Guidebook for Air Cargo Facility Planning and Development explores tools and techniques for sizing air cargo facilities, including data and updated metrics for forecasting future facility requirements as a function of changing market and ...
This chapter identifies air cargo operators, top North American air cargo airports, and trends affecting the industry since its peak in 2000. 2.1 Air Cargo Industry Business Models The air cargo industry is comprised of four basic types of carriers. The dominant carriers of U.S. domestic cargo are integrated carriers
Shipping by air is a fast and efficient means of transport for goods. Airlines transport over 52 million metric tons 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 $6.8 trillion worth of goods annually, or $18.6 billion worth of goods every day.
2023. 2025 BUSINESS PLAN3.1. During 2019, the Ofice of Internal Oversight (OIO) made an evaluation of results-based m. nagement (RBM) in ICAO. The purpose of the evaluation was to assess the application of RBM in the Organization, identify and learn lessons in implementing various aspects of RBM, including results-based planning, budgeting, mo.