UNIT – III

LOGISTICS MANAGEMENT
INTERNATIONAL AIR TRANSPORT ASSOCIATION [IATA]
The International Air Transport Association [IATA] is a trade association of the
world’s airlines founded in 1945. IATA has been described as a Cartel since, in
addition to setting technical standards for airlines, IATA also organised tariff
conferences that served as a forum for price fixing. IATA states that safely is its
number one priority. The main instrument for safety in the IATA operational
safely is the IATA Operational Safely Audit [IOSA]. IOSA has also been
mandated at the state level by several countries.
IATA members and all industry stakeholders have agreed to the sequential
environmental goals
1. An average improvement in fuel efficiency of 1.5% per annum
2. A cap on net carbon emissions from aviation from 2020
3. A 50% reduction in net aviation carbon emissions by 2050
IATA Operational Safety audit
The IATA Operational Safety Audit [IOSA] programme is an internationally
and accepted evaluation system designed to assess the operational management
and control systems of an airline, IOSA uses internationally recognizes quality
audit principles and is designed to conduct audits in a standardized and
consistent manner. It was created in 2003 by IATA. The programme is designed
to assess the operational management and control systems of airlines. The
companies are included in the IOSA registry for period of 2 years following an
audit carried out by an organisation accredited by IATA. The Auditing
standards have been developed in collaboration with various regulatory
authorities such as
a. Federal Aviation Administration
b. Civil Aviation Safety Authority
c. Joint Aviation Authorities
INTERNATIONAL AIR TRANSPORT – ADVANTAGES AND
CONSTRAINS
Air Cargo Transportation is another term for Air Freight. It is the carriage or the
transportation of goods through an air carrier transport services via air are the
most valuable when it comes to moving express shipments around the globe and
it consists of airmail, air freight and air express. Air cargo also flies in the same
gateway as the commercial or passenger airlines.
Cargo Aircraft
1. It is also known as freight aircraft, freighter airlifter or cargo jet.
2. It is a fixed wing aircraft that is designed or converted for the carriage of
cargo rather than passengers
3. Air craft designed for cargo flight usually have features that distinguish
them from conventional passenger aircraft.
Advantages of Air Transport
1. Speed
This is the main advantage as the greater the distance that needs to be
travelled the more time gain is made, and inaccessible places can be
reached within deadlines. For urgent requirements, there’s no substitute.
2. Safety
Airline companies have great responsibility for cargo that’s being
shipped, and airports have stringent security measures in place to lower
the risk of theft. With air shipping, only minimal handling is essential,
reducing potential damage to goods.
3. Delivery time kept to
Airports are typically located near business centers making the journey to
the final destinations punctual.
4. Arrival and departure times are consistent
Planes fly on average every hour, and the merchant can track the products
transportation to ensure those will be delivered on time.
5. Less reliance on storage facilities
Small businesses benefit from faster delivery of packages resulting in
reduced dependency on warehousing faculties. As cargo can be shipped
quickly this can be a huge advantage for inventory control.
 6. Flexibility for Global shipping
Opening many doors to multiple countries through air transportation
means businesses can serve more customers.
7. Follows the most direct route
Mountains and forests don’t cause obstructions, and customs formalities
can be quickly compiled resulting in route free of obstacles
Disadvantages of Air Transport (Constraints)
1. Cost
As air transport takes much more fuel than other options it is simply more
expensive, and air freight rates can be extremely high.
2. Limitations on size of cargo
Size and weight regulations will impose restrictions on what the merchant
can ship, making this mode of transport unsuitable for bulky goods.
3. Adverse weather conditions
Planes can be grounded and airports shutdown in extreme weather,
delaying shipment for several days and making the service unavailable.
4. Risk
With minor disruptions having a major impact air transport is probably
the most uncertain choice, with the chances of accidents being greater in
comparison to other modes of transportation.
5. Unsuitable for specific products
There is an entire range of items that can’t be transported by air including
explosives, gases, batteries, flammable solids and liquids to name just a
few.
6. Vast investment required
Construction and maintenance of airports takes huge amounts of finance,
alongside training and sourcing experienced and skilled personnel.
7. Environmentally Unfriendly
Compared to shipping goods by other transportation methods such as by
sea
Shipping companies will be able to offer different options for arranging
your air freight delivery including
1. Consolidated Freight - Often referred to as consoles, where one flight
contains consignments from many shippers booked under a single master
air way bill.
2. Direct Services - Where a single shipment is transported in the hold of a
scheduled plane
3. Charter services - Entire freight planes can be commissioned for a single
air freight delivery, but this happens rarely and is extremely expensive

TYPES OF AIR CARGO TRANSPORT

1. General Cargo
A general type of load includes high-value goods, such as jewellery,
electronics, machinery, and pharmaceuticals. Although air shipping is
more expensive than sea freight shipping, its security means that air
freight remains the ideal form of transport for high-value package.
2. Special Cargo
Special shipments are those items or goods that require special conditions
for transporting. These goods may need temperature control, protected
easing, or other unique conditions.
3. Passenger Airlines
Although passenger airlines are designed and intended to move people,
they also offer space for sale in their baggage compartments. However,
there are some weight protocols and space limits for cargo being shipped
this way. Nevertheless, this option is still convenient as it has many
destinations and offers a large volume of flights.
4. All-cargo service carriers
These planes carry all sorts of cargo but do not transport people. Because
of this, there are fewer restrictions on the shipments weight and size
compared to passenger airlines.
 5. Integrated express carriers
One of the biggest challenges of air cargo shipping is getting the cargo to
and from the airport. This is why integrated express carriers exist and
come in handy. These cargo carriers will transport the items from the
pickup location to the drop off location. These types of air cargo carriers
mostly rely on hub system that allows them to transport shipment
smoothly.
6. Combination service carriers
These shipping carriers have aircraft for both passengers and cargo

These services are available for shipments traveling via air

1. Express air service
It will be put on a direct flight to its destination. Express is the most
expensive air services.
2. Standard air service
The cargo would likely make stops at one or two airports, where the
cargo either switches planes or other cargo is on/off- loaded. Standard is
the most common air service
3. Deferred Air service
The cargo will make multiple stops along the route to its final destination.
Deferred air service is cheaper than express air services, but still more
expensive than shipping LCL [Less than container load]. An airline
terminal fee will apply when shipping the cargo through air cargo
transportation.
UNIT LOAD DEVICE

A Unit Load Device [ULD] is a container used to load luggage freight and mail
on wide-body aircraft and specific narrow-body aircraft. It allows preloading of
cargo, confidence the containerized load will fit in the aircraft and efficient
planning of aircraft weight and balance and reduced labour and time in loading
aircraft holds compared with ‘Bulk-Loading” single items of cargo or luggage
by hand. Each ULD has its own packing list or manifest so that its contents can
be tracked.
A loaded aircraft cargo pallet secured with a cargo net also forms a ULD, but its
load must be gauged for size in addition to being weighed to ensure aircraft
door and hold clearances. An ULD is either an aircraft pallet and pallet net
combination, or an aircraft container, ULDs are removable aircraft parts subject
to strict civil aviation authorities’ requirements from design, testing, production,
and operations, to repair and maintenance.

An airworthy ULD must be structurally capable of restraining the loads and

providing adequate protection to the aircraft systems and structure during flight.
ULDs are the only aircraft parts that leave the control of the airline and return
after passing through many unregulated hands, as most ULD operations are
outsourced to ground service providers. Together with the increasing demands

for “shipper-build ULD” from shippers and freight forwarders, it has become
critically challenging for airlines to control and supervise the ULD operations.

ULD safety campaign aims to raise industry-wide awareness on these five

central issues

1. ULDs are aircraft parts subject to safety and airworthiness requirements

2. Correct ULD handling contributes to freight safety.
3. Every stakeholder must commit to its safety responsibility and ensure
ULD training requirements are met.
4. Proper ULD handling also reduces costs and improves efficiency.
5. IATA ULD Regulations [ULDR] is an acceptable means to facilitate
industry compliance.
AIRPORT INFRASTRUCTURE
Maintaining and enhancing airport infrastructure is critical, and is one of the
greatest challenges airport owners and operators face. Airports around the world
need to be efficient to stay competitive. They need to identify priorities, assess
costs, and deliver projects on time and budget, while keeping operations
running smoothly.
Great experience leads to client trust
a. Terminal and facilities planning
b. Landside and terminal access design
c. Buildings and structures design
d. Environmental studies and alternatives analytics
e. Airfield lighting
f. Airfield engineering and design
g. Master Planning
h. Airport layout plan development
Infrastructure encompasses all aspects of airfield development including
runways, taxiways, aprons and runaway safety areas. Airport has the state-of-art
design that will meet the expectations of shippers. Improved operations and
assist the merchants to achieve their goals, prompt and safe services will be
provided to fulfill the client expectations and airport needs. The runway must be
upgraded and it must be compliance with Runway Safety Area [RSA] standards.

For landslide there need a planning, design, construction management, and

programme management of –
a. Access roadways
b. Parking structure
c. Mass transit interface
d. Utility infrastructure
e. Access ramps / gates
f. Hangers
g. Facilities
Other Categories
1. Airfield Rubber Removal
This is known as runaway rubber removal, is the use of high pressure
water, abrasives, chemicals and other mechanical means to remove the
rubber from tires that builds up on airport runaways.
2. Air Mall
It is a development and management of retail, food and beverage
concessions at various airports. The stores on Air mall are known for
pricing their merchandise the same as they would at a store in a typical
retail setting. The price may higher than normal prices available in other
places.
3. Hangars
Aircraft hangers provide storage for aircraft to protect them from the
environment and provide increased security. Hangers are also used as
aircraft maintenance facilities while hander come in all sizes and shapes,
they generally fall into three categories.
a. Shade Hangers – it consists of a framework with a roof, but no sides
or doors. They are intended to help protect aircraft from the effects of
the sun, rain and hail.
b. T – Hangars – they are fully enclosed hangers that connect together in
a long row. Each hanger is shaped like a T and interlocks with the
adjacent hangar. This building style conserves space and is generally
only used for the storage of smaller aircraft.
c. Box Hangars – this is also referred as corporate hangars or open-span
hangers. Box hangers are square or rectangular hangars that generally
stand alone and can be constructed to accommodate any size of
aircraft. Maintenance of a hangar generally consists of maintaining the
structural integrity of the building [Walls, Roof, etc.], maintaining the
doors, which can be quite large and complex and may be electrically
or hydraulically operated, and any utility systems in the building.
Poorly maintained hangers can result in displacing tenants and
potentially losing revenue. It is difficult to get government grants to
replace hangars.
 4. Fueling facilities
These are varying from one airport to airport. The size and makeup of the
facility is dependent on the amount and type of fuel sold. The fuel tanks
may be either above ground or underground and may be configured with
credit card readers and hose reels so as to allow pilots to self-fuel their
aircraft. The most common sizes of tanks, being used at general aviation
airports are 10000 to 12000 Gallon tanks [1 Gallon = 3.78 Litres]
5. Landside Infrastructure
Land side infrastructure consists of those facilities that are used to
provide access to the airport by the general public. This includes access
roads, automobile parking lots, parking lot access control systems, and
the lighting systems.
6. Airport – owned utilities
It may be necessary for the airport to own the utilities at the airport and
serve as the vendor of those utilities to airport tenants. This may include
utilities such as water when the airport owns the well supplying water to
the airport, water storage tank, electric power, fiber optic cable system for
internet connectivity.

AIRLINE MARKETING

An Airline Marketing strategy is an overall business plan that aims to reach

prospective consumers and turn them into customers of the services as well as
keep existing customers engaged. This strategy also covers 4p’s of marketing-
product, price, place and promotion.

As in any other industry, airline advertising and marketing strategies revolve

around a value proposition. For example, Ryanair – an Irish Low-cost carrier –
has a value proposition that sounds like this ‘Low fares airline’ and it is
perfectly communicates to the customers what the company stands for and how
it operates.

The high level goal of a marketing and advertising strategy for any airline is to
achieve a winning advantage over competitors by understanding of customers
and adjusting the tactics to meet the needs. Air transportation provides critical
capabilities for a modern economy. Whether it involves passengers or cargo, the
ability to quickly and reliably move valuable resources over great distances
improves the quality of life and standard of living of people across the globe.
The field of aviation logistics is so large that almost any Business organisation
may be viewed as a potential employer.

The type of businesses and organisation most likely to employ executives for
communication, consulting, government and military, manufacturing, material
handling, merchandising, retail, software and computer service,
telecommunications and transportation firms, equipment manufacturers and
dealers, print media, public warehouses and wholesale distributors.

Customer Service Standardization in Logistics

Providing excellent customer service is essential to the Long-term viability of

every business. The following are the service provided by the Air Cargo service
Provider globally.

1. 24/7 state of the art Global control center.

2. Unparalleled aircraft real-time monitoring
3. End to End process of preparing and managing a flight.
4. Customer specific web sites
5. In-region Air Cargo representative
6. Information technology support.
7. Central Cargo scheduling for transportation and crew coordination
8. Sales and operations support around the world

In an increasingly complex and competitive air transport cargo and ground

handling market environment, standardization could unlock the potential of the
business. Industry standard simplify common processes and reduce cost and
complexity. They allow airlines to work seamlessly with each other and with
other stakeholders such as airports, ground service providers, cargo agents,
freight forwarders and governments amongst others.

Standards also encourage innovation and provide a better experience for

everyone involved in the air transport supply chain. For example, ground
operations companies have been using a multitude of operational procedures.
Individual airlines have their own unique procedures, which adds substantial
complexity for the ground service providers.

The standards available in the IATA manual provide the air transport industry
with processes, procedures as well as training programs that can be used as a
template and provides a minimum set of safety requirements, regardless of
where the operation is located in the world.

Therefore, companies would have a baseline of operations which would meet

the needs of the vast majority of the players in the air transport supply chain and
which often meet is not surpass regulatory requirements. Ultimately,
standardization improves safety of everyone involved and there can be no
higher calling.

The Organisations ensure and support the standardization of air transport

processes and procedures.

1. International civil Aviation organisation [ICAP]

2. International Air Transport Association [IATA]
3. Airlines For America [A4A]
4. European Aviation Safety Agency [EASA]
5. Airport Service Association [ASA]
6. National Aviation Authorities – DGCA in India
7. Trade Associations and Governmental Organisations

IATA regulations and standards

IATA regulations are based on the recommendations put in place by governing

entities such as ICAO and standards built through industry working groups
populated by member airline delegates and relevant industry associations who
collaborate with IATA. With these association IATA workgroups that help to
establish standards and procedures necessary for the safe and efficient
functioning of the air transport industry, and promote the worldwide
recognition, adoption of an adherence to those standards and procedure Via the
IATA manuals. Their common purpose is to steer the industry, while promoting
the collaboration between airlines and other parties involved in the air transport
supply chain. Those rules and guidelines provided by the IATA manuals are
practical, effective and efficient.

Those are follows

1. Dangerous Goods Regulations [DGR]

2. Lithium Battery Shipping regulations [LBSR]
3. Infectious substances shipping guidelines [ISSG]
4. Perishable Cargo Regulations [PCR]
5. Temperature Control Regulations [TCR]
6. Live Animals Regulations [LAR]
7. Airport Handling Management [AHM]
8. International Ground Operations Management [IGOM]
9. Unit Load Device Regulations [ ULDR]
10.International Cargo Handling Management [ICHM]
11.The Air Cargo Tariff and Rules [TACT]

Users of the IATA manuals include

a. Airlines
b. Airports and Cargo Agents
c. Freight Forwarders
d. Ground Service Providers
e. Logistics Business
f. Manufacturers
g. Trucking companies

AIR CARGO TARIFF STRUCTURE

A tariff is a concept that encompasses sectoral air cargo rates published by each
carrier and related roles. The rate is the amount charged y the carrier for the
carriage of a unit of weight and may differ from actual selling rates. The rate is
the amount inserted into the air way bill [AWB] and is the basis for discount.
Application of Tariff
1. Applicable rates are the published rates in effect on the date of issuance
of the air way bill by the carrier or its agent
2. The rates covers transportation from airport to airport only
 3. Rates and charges are shown in the local currency of the country where
the transportation commences
4. However, the USD is used in many countries
5. Rates are on the basis of per kg.
6. Rates are applicable only after approval of relevant government
authorities
7. Rates are subject to change without notice
Application of Air Cargo Charges
1. Calculation of charges for all shipments is made by multiplying the
applicable rate per kg/lb by the chargeable weight
2. Both weight [or volume] and valuation charges must be wholly prepaid or
wholly collect
3. The routing of the shipment needs not correspond to the routing on which
the freight calculations are based
a. Every airline have their own yard stick in fixing the rates and
tariffs
b. Airport and storage faculties, handling equipment
c. Industry, country and carrier specific charges fro charges collect,
class rates and dangerous goods
d. Distance of transportation.
Classification of Rate in Air freight
1. Specific commodity Rate
a. They are heavily discounted rates applicable on specific commodity,
between two points. For example Bombay to Paris
b. It is not possible to send goods at these preferential rates to alternative
destination.
c. This is also called as ‘Co-rates’ account for 75% of the cargo carried
out of India
d. This type of rate has done much to stimulate air freight development
and by encouraging quantity shipments has produced cost savings tin
documentation / handling / packaging
e. The rates are market oriented and take into account actual demand
requirements
2. Classification Rates [Surcharges and Rebates]
a. Newspapers, periodicals and books are carried at reduced rates.
Special rates are available or application to the airline
b. Valuable cargo – Gold, platinum, diamond, legal bank notes,
securities share coupons, travelers cheques, are charged at ‘under
100kg’, air cargo rate plus a 100% surcharge
c. For live animals, prior arrangements must be made. Stringent
regulations apply regarding documentation/travel faculties and
conditions. A shipper’s certificate for live animals is required
3. Valuation Charges
A declaration of value must be made. Where goods have declared value
or carriage per kilogram higher than a certain level, a valuation charge
will apply in addition to freight charges
4. General Cargo Rates
These are the basic rates and fall into three categories as below
a. Minimum charges
b. Normal rate – the ‘Up to 100 kg’ rate
c. Quantity rate – applicable on the various minimum quantities called
break points
5. Cabotage
Term used for goods carried when points of origin and destination are
both within the sovereignty of one country, where special non-
international rates may apply. [For Ex] The carriage of U.K. Cabotage
traffic cannot be carried by foreign airlines without special permission.
6. Unit Load Device [ULD] Rates
This applies to any type of container, container with an integral pallet, or
aircraft pallet whether or not owned by an IATA member, and whether or
not considered to be aircraft equipment.
a. Air Craft ULD
Such units are integral part of the aircraft. Aircraft ULDs can be
loaned to shippers and agents for loading purposes provided the
shipper or agent can prove that he is equipped to handle them.
 b. Non Aircraft ULD
They must be registered with IATA and conform to IATA standard
specifications. Non aircraft ULDs in order to be eligible for rating
incentives must be owned by a shipper or agent.
c. Rating of ULDs – Two methods exists. Method A and Method B
Method A –
In order to quality for bulk Unitization rates, the cargo must be carried
from origin to destination in the same ULD. The charge for the
consignment shall consist of a flat minimum [Pivot] charge for a
specified Pivot weight above which an additional charge [Over-pivot
rate] per kilo will apply.
Method B –
Charges are based on actual weight of the shipment, but not less than
the minimum chargeable weight for the particular container used. Tare
weight [weight of an empty vehicle] allowance is applicable. A
discount is also granted under this programme, which refers to each
type of non-aircraft ULD. Discounts and tare weight allowances only
apply when shipments are delivered to the airline packaged in
registered shipper owned, standard size non – aircraft units.
Charges
1. Payment of Charges
a. Paid at the time of dispatch, by cash, cheque or credit card
b. Regular shippers make use of credit facilities, which are usually
available from most major airlines
c. This enables freight charges to be billed for settlement on monthly
basis
2. Charges Forward
a. Goods dispatched to most countries may be sent ‘Charges forward’,
i.e. cartage, export fees and freightage payable by the consignee
b. Good cannot be sent if the charges even partly prepaid and partly
forward
 c. Charges forward are not available on domestic routes, when all
charges must be prepaid
d. The service is not available for perishable goods or like animals.
3. Disbursements
a. Most airlines will charge 10% with a basic minimum fee for collection
from a consignee of any disbursement shown on the air way bill.
b. Disbursements will not usually exceed the freight charges shown on
the air way bill
c. When the issuing carrier cannot collect the amount from the
consignee, it will be charged to the shipper or agent.
4. Perishable Cargo
a. Prepaid freight is charged for the perishable cargo.
b. Cargo subject to regulations relating to carriage of dangerous goods
must be offered separately and clearly indicated in the shippers’
declaration.
c. All these air freight rates exclude customs clearance charges, road/rail
collection, distribution, warehousing, demurrage etc.

AIR FREIGHT FORWARDER [Air Freight Forwarding]

This is a type of freight forwarder who specializes in Air Cargo and who
performs consolidation of consignments in its own name. Forwarder are vital
for international airlines. Forwarders book cargo space on planes more than any
other supply chain partner. According to the ‘International Federation of Freight
Forwarders Associations [FIATA], more than 80% of international air cargo
activity can be attributed to forwarders.

Air freight forwarding is the process of organizing and planning the transport of
freight one point to another by air. While freight forwarders don’t physically
move the cargo, they do assist in every facet of the shipment, simplifying the
process and taking on the burden of communicating between all of the people
and moving parts that are typically involved.
a. Packaging
Freight forwarder routinely help businesses package and prepare products
for export. This task has varying degrees of complexity, based in on a
product’s final destination. Packaging for shipping within the country
may be simpler than packaging products for extended transportation,
where items may be shipped in large cargo containers, and may be loaded
and unloaded multiple times along route. Items may also be stored in
environments of extreme high and low temperature, and they can
experience volatile whether that can jostle the freight ships. Furthermore,
air-shipped items often require lighter-weight packaging, to keep costs
down.
b. Labeling
Freight forwarders help businesses correctly label packages, to make sure
they contain the following information.
a. An itemized list of products in the shipping container
b. Any hazardous items
c. Country of origin
d. Correct weight, reflected in pounds and kilograms
e. Port of entry details
f. Any details required in the language of the destinations country
c. Documentation
a. Bill of Lading – this is a contract between the owner of the goods and
the carrier. There are two types of BoLs – A non-negotiable ‘Straight’
BoL, and a negotiable ‘Shipper’s’ BoL. The latter BoL can be bought,
sold, or traded while the goods are in transit. The customer usually
needs an original document as proof of ownership, to take possession
of the goods.
b. Commercial Invoice – the invoice is the bill for the goods, presented
from the seller to the buyer, often used to determine the true value of
goods when assessing the amount of customs duty.
c. Certificate of Origin [CoO] – this is signed statement identifies the
origin of the export item.
 d. Inspection Certificate – this document may be required by the
customer to certify that the goods have been inspected and tested and
the quality of the goods is deemed acceptable.
e. Export Packing List – the detailed packing list itemizes each item in
the shipment, the type of packaging container used, as well as gross
weight and package measurement.

Exports and Imports Special Charges

1. Fuel surcharges – This is a fee assessed by a carrier to account for

regional / seasonal variations in fuel costs. A fuel surcharge is most often
seen in air carrier too, that helps to protect the carrier from the volatility
of fuel prices.
2. Security surcharges – Only applying to air freight, this surcharge covers
additional security measures mandated by the airport authority.
3. Container freight station / terminal handling charges – Terminal handling
charges is an essential part of the shipping process and it can’t be ignored.
This charge is an aggregation of cost associated with the terminal
provider’s property. The costs covered include assess, equipment use, and
labour.
4. Airport transfers – This is a fee charged for transferring documents to
third party on behalf of a customer.
5. Customs Brokerage – the charges for the customs broker is a professional
who provides expert services by arranging the customs clearance process
during a shipment. The customs broker ensured that a shipment meets all
standards and regulations for the import or export of goods.
6. Pickup and Delivery – freight quote that includes service of picking cargo
up at shipper’s premises and delivering it at consignee’s premises.
7. Cargo Insurance – it is a type of policy that protects a buyer or seller of
goods that are being transported through the air. It reimbursed the insured
for items that are damaged, destroyed, or lost and shipment delays.
8. Accessorial Charges – Advance notification, Bill of Lading [Correction
Charges], Lift gate, Re-classification, Re-delivery, storage, Truck
 Arrangement, ULD arrangements, like all extra services provided from
origin to destination.

SHIPMENT PLANNING

1. Shipping by air is a fast and efficient means of transport for goods.

2. 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.
3. This is equivalent to $638 trillion worth of goods annually, or 18.6 billion
dollars’ worth of goods every day.

Step – 1 – Booking and planning shipments

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 problems. It is
necessary to follow the steps below to books the air cargo properly.

1. Receive shippers’ request and check the security status

2. Receive shipper freight information
3. Plan the routing – direct or consolidation
4. Request capacity against forwarder or carrier inventories
5. Confirm capacity
6. Arrange pick up of freight
7. Picked up from the shipper

Step: 2 – Cargo is received and accepted for shipment

1. This is multi-step process that includes various stockholders including

tracking companies, cargo and ground handling services providers
amongst others.
2. Safety remains a priority for all parties of the air cargo supply chain.
3. It is important to ensure clear and correct labelling and identification of
packages.
4. The packages themselves must be suited to the content and be able to
protect the goods from any damage.
Step 3 - Receive shipments into carrier domain

1. Once the freight forwarder 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 filling electronically is
always recommended.
2. Electronic air waybill information
3. Electronic house waybill information for consolidated shipments
4. Truck number and Type
5. Estimated Arrival time
6. Security screening needs

Step 4 – Accept shipments as ready for carriage

1. When accepting shipment is ready for carriage, airport cargo and ground
handling personnel must take several steps to meet the requirements to
ship goods by air.
2. First, they must verify if the shipments are security cleared.
3. Then they must perform a ready-for carriage check.
4. Once everything has been checked, the information is validated against
the booking and updated.
5. The primary objective is to ensure the consignments are in compliance
with
a. Carrier requirements
b. Local export rules and regulations
c. Rules and regulations of the transit airports and air spaces
d. Import regulations of the destination country.

Step: 5 – Prepare Cargo for Flight

1. After accepting shipments ready for carriage, airport cargo and ground
handling personnel.
2. The goods in transit must be received and security cleared once again.
3. Goods left on the aircraft that are in transit are considered transit cargo.
4. Cargo and ground clearing must give this transit cargo, security checks,
including X-Ray and Explosive Trace Detection [ETD] screening.
5. 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.

Step: 6 – Send shipments to Flight

1. Move the loaded the ULD to a secure flight holding area [temperature-
controlled / dangerous goods]
2. Ensuring no flights are delayed, the ULDs can be lined up in order, if it is
known, to prepare for ramp transportation.
3. All ramp safety protocols must be followed
4. To avoid accidents being mindful of all ground support equipment during
the process of loading and unloading is necessary
5. The control of the air cargo passes from the warehouse operator to the
ramp handler
6. The transport of goods from cargo terminal to aircraft is a multi-step
processes.
7. Once the aircraft is loaded, any discrepancies must be addressed by
updating the electronic flight manifest.

AIR FREIGHT CONSOLIDATION

There has been a substantial development of airfreight consolidation over the
years. Freight forwarder [agent] has a contract with an airline on specified flight
to provide consolidated cargo for allocated Cargo hold space which he
undertakes to fill. The consolidated consignment may involve up to thirty
consignments including differing consignees and consigners. The agent is able
to charge an inclusive rate, which is much lower than consignment sent as an
individual parcel.
Details of the Scheme as
a. It is particularly attractive to exporter who dispatches small consignments
b. The agent usually takes care of documentation
 c. Airline is able to concentrate on providing a quality airfreight flight
service and becomes less involved in marketing the service involving
contact with individual shippers.
d. It enables the airline to plan ahead since consignment collection is duty of
the freight agents.
e. It permits the shipper to avoid the minimum freight rate regulations found
in the airline [IATA] approved rate structure.
f. Packing cost is substantially reduced.
g. Consolidated consignments tend to result in quicker customer clearances
h. Encourages use of ULDs
i. Its general competitiveness and favourable quality of service facilities the
development of international trade
CUSTOMS CLEARANCE AND AIR CARGO COMPLEX
Customs clearance involves the preparation and submission of documentation
that is required to export or import your goods into or out of a country. Customs
clearance is a crucial part of your cargo shipping from Point A to Point B
seamlessly across the world. Customs clearance takes less than 24 hours,
however, there are times where it can take several days or weeks for goods to be
inspected.
Before shipping various goods, a shipper may wonder what customs clearance
means and how it’s relevant to their shipping options. Every international ocean
freight shipment must meet the quota of customs clearance in each country.
Customs clearance is a necessary procedure in permitting goods that are
transported to a country through an authorized customs broker. Within this
process, there’s also information regarding shipments with imports and exports
with parties involved in the process.
A customs broker is an agent for importers that assist importers with the
transaction of their customs business. These agents are authorized by tariff laws.
A customs broker is either a private individual or firm that are licensed by
the Government of the concern nation.
Paperwork Verification
A customs officer verifies that the paperwork completed for shipments are
correct. International shipments must have commercial invoices. Once the
paperwork is verified, the document will list a shipper and contact info of the
receiver. The shipment will also include the export date and airway bill number.
Customs Officer Check
A customs officer will see what fees may be applied to a shipment. Depending
on the type of goods, their value, and laws that the importing country enforces.
If the value of goods surpasses a tax bracket, the officer will check to see if
taxes and duties have been paid.
Payments, Tax, Duties
If there are outstanding taxes and duties, customs will ask that they are paid.
There are two options for payment, with one being DDU (Deliver Duty Unpaid)
and the other being DDP (Deliver Duty Paid). As a result, if a shipment is
marked as DDP, then a payment of taxes and duties were paid for. These
services may be offered at a fixed price when you pay for a label. This process
can be expensive as brokers are independent with differing fee charges.
Brokerage, storage, late payment, and various fees may apply which will affect
the total shipment fee.
Release of Shipment
Once taxes and duties are paid, shipments are released. From this point, if
paperwork, duties, and taxes are handled properly then the goods should be
shipped to their destination.

GLOBAL LOGISTICS
Global logistics connects critical components of the supply chain from a
product’s point of origin to its point of consumption—to ensure timely and
efficient distribution of goods from producers to consumers. The global
logistics market size reached US$ 5.2 Trillion in 2022. The global logistics
industry facilitates this worldwide flow of goods.
Global logistics is the process of managing the flow of goods through the
supply chain, from the place where they are made to the place where they are
consumed. It might involve shipping seeds and fertilizer to a grain farmer,
sending harvested grain to a processing mill, trucking flour to an industrial
bakery, sending containers full of loaves of bread to a distribution center, and
then delivering them to restaurants. Global logistics involves the movement of
goods—by truck, train, ship, or plane—as well as preparation, packaging and
storage of goods in distribution centers and other logistics real estate facilities.
Global logistics requires close and intricate collaboration between a hosts of
business partners. Shipping companies, airlines, railroads and trucking
companies move goods. Global delivery services manage the movement of
goods. Logistics real estate companies own and operate facilities that are
essential nodes for transport, management and storage, while a host of service
providers provide the software, security, labour and business intelligence that
keep the global logistics system working. Leading global logistics companies,
provide efficient logistics real estate solutions around the world.
Growth in global logistics is fuelled by three fundamental trends: increasing
consumption, rising e-commerce and ongoing reconfiguration of the supply
chain to move goods more quickly and efficiently. The enduring strength of
these trends across the world means is an indication that global logistics will
continue to play an essential role in the world economy.
Time, cost and quality are key drivers of success in global logistics. As a
consequence, location is a leading consideration. Other considerations include
cost and availability of suitable labour; presence and reliability of essential
business partners; geopolitical and geographic risk and stability. Because global
logistics connects critical components of the supply chain—from a product’s
point of origin to its point of consumption—to ensure timely and efficient
distribution, location is a key success factor for distribution centers, transport
hubs, terminals and other infrastructure. Typically, the most functional and
compelling infrastructure is located near or adjacent to highly trafficked
transport routes and dense population centers to serve large numbers of
consumers.