latest trends in air freight.pptx
TRANSCRIPT
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Latest Trends in Air
Freight
International and
Domestic
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Agenda
Typical Air freight forwarding process
Air Freight Market
Top Players
Growth Forecast
Latest Trends
International
Accumulation of unexpected events
Increasing airline consolidation
Boost in e-freight and cargo 2000 sector
Tightened security requirements
Wide body aircraft
Domestic
Summary
References
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10/31/2013 3
Cargo Collection
DocumentChecked
Confirmation ofshipping fees &
shipping address
Bill of entryprepared andsubmitted tocustoms and
excise
Booking oncarrier
Pre-Advice toconsignee and
broker
CustomsClearance at Port
of entry
Air Freight
Forwarding Process
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International Growth Trend
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Players
India has 52 players
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Expected Growth Trend
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Domestic Growth Over The Years
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Domestic Expected Growth Trend
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Accumulation of unexpected events
September 11
The earthquake in Japan
Revolutions in the Middle East
The Eurozone crisis Fuel costs
Unexpected events have wrought havoc on the airline industry in general and the air
freight in particular. Some of the noteworthy events that agitated the air transportindustry are:
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Increasing airline consolidation
There is an increasing trend of airlines consolidating in the current economic
environment.
Air Transport Services Group Inc. is merging its Air Transport International and Capital
Cargo International Airlines subsidiaries following the loss of its dedicated air-cargo
business for DB Schenker, a German logistics company that bases its U.S. operations in
Freeport, N.Y.
Another recent merger was that of Great Wall Airlines Company with China Cargo
Airlines in 2011
LATAM Airlines Group formed out of LAN Airlines of Chile and TAM Airlines of Brazil in
2010. The group is currently headquartered out of Sao Paolo, Brazil
Continental merged into United Airlines in 2010
List of airline mergers in the US(includes passenger and cargo):
http://www.airlines.org/Pages/U.S.-Airline-Mergers-and-Acquisitions.aspx
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e-freight
e-freight aims to take the paper out of the air cargo supply chain and replace it with cheaper,
more accurate and more reliable electronic messaging. The project is an industry-wide
initiative involving carriers, freight forwarders, ground handlers, shippers and customsauthorities.
Each air cargo shipment carries with it as many as 30 paper documentsenough to fill 80
Boeing 747 freighters every year.
E-freight engages the entire cargo supply chain to put in place standards that remove paper
documents from the process of shipping air cargo, from origin to destination. The documents
are replaced with the exchange of electronic data. The first phase of the project focused onbuilding an e-freight network. In 2011, the attention turned to building up e-freight volume
over this network with a target of achieving 10% e-freight penetration on live e-freight trade
lanes.This target was exceeded with the achievement of 11.1% efreight penetration. The
Global Air Cargo Advisory Group (GACAG), a unified voice for the cargo industry that includes
IATA; FIATA (International Federation of FreightForwarders Associations); TIACA (the
International Air Cargo Association); and the Global Shippers Forum, is taking the lead in
supporting e-freight adoption across the industry.
In 2012, IATA is focusing on mobilizing airlines to adopt the e-Air Waybill (e-AWB), a catalyst
for achieving e-freight.
The IATA Board of Governors has set a 2012 target of 15% e-AWB global penetration.
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cargo 2000
Cargo 2000 claims itself as the Quality organization of the Air Freight industry
VISION STATEMENT
C2K defines quality standards for the supply chain,
improving the efficiency of the air cargo industry, improving
customer service and reducing costs for all participants
through implementation of a program of agreed business
and automation standards which are measurable and
promote quality competitive performance.
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Tightened security requirements
If you're exporting consignments by airfreight, your forwarder or small-parcels operator
will need to comply with government-regulated security requirements. Security measuresin the UK are regulated by the Aviation and Maritime Security Act 1990. This means that all
airfreight consignments must either be screened or originate from a Department for
Transport (DfT) accredited known consignor before being loaded onto an aircraft.
IN the US, The Transportation Security Administration (TSA) is responsible for ensuring thesecurity of all modes of transportation, including cargo placed aboard airplanes and
particularly focuses on passenger-carrying planes.
TSA worked closely with Congress for more than six months to significantly strengthen
security in air cargo through the 9/11 Bill, which was signed into law on August 3, 2007.
100 % screening of narrow body aircraft by TSA from 2008 onwards
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Wide body Aircraft
%F
leet
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1970 1991 2003
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Domestic
Air cargo represents about 10% of the airline industrys revenues. As 35% of the value of
goods traded internationally is transported by air, air cargo is a barometer of global economic
health.
The fortunes of the transport and logistics industry are closely connected to the economic
cycle. When economic activity is buoyant, demand for transport and logistics services is
equally strong. Consumer and business demand for goods and services inevitably translates
into higher demand for transport and logistics services.
The fortunes of the transport and logistics industry are closely connected to the economic
cycle. When economic activity is buoyant, demand for transport and logistics services is
equally strong. Consumer and business demand for goods and services inevitably translates
into higher demand for transport and logistics services
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Projected Growth Rates
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Per Capita trips
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Projected Air trade to GDP
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Growth in GDP of India sets a pace for higher air cargo movement
Government has increased ceiling for foreign direct investments (FDI) in air transport services
Non-scheduled air-transport services:It includes operations by non-scheduled airlines, chartered carriers
and cargo airlines. FDI of up to 74 per cent and investment of up to 100 per cent by NRIs is allowed through
the automatic route.
Foreign airlines cannot invest directly or indirectly in non-scheduled and chartered airlines, but they caninvest up to 74 per cent in cargo airlines in India
Summary
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References
http://www.oliverwyman.com/4482.htm
http://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-company
http://www.iata.org/about/Documents/annual-review-2012.pdf
http://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdf
http://www.boeing.com/commercial/cargo/01_02.html
www.crisilresearch.com
www.isiemergingmarkets.com
http://www.oliverwyman.com/4482.htmhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdfhttp://www.boeing.com/commercial/cargo/01_02.htmlhttp://www.crisilresearch.com/http://www.isiemergingmarkets.com/http://www.isiemergingmarkets.com/http://www.crisilresearch.com/http://www.boeing.com/commercial/cargo/01_02.htmlhttp://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.oliverwyman.com/4482.htm -
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