Air Cargo: Development, Factors, Comparison, and Challenges

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Logistics and supply chain management
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Introduction
The demand for air cargo has increased with the increase in industrialization and
globalization in the recent past years. Business people need to export goods to other countries or
to import goods to their own country. Air transport is the best way for business men who need
their good transported fast, air transport can also handle good that need to be transported under
controlled temperatures. The industry is however faced by a number of challenges such as
competition, security among others and tend to differ from one country to another. this paper
will discuss the development of air cargo in the United Kingdom, factors that help or restrict air
cargo development in united kingdom, comparison between air cargo growth in the United
Kingdom and other hubs specifically Hong Kong, challenges that prevent further development of
air cargo and the recommendations.
Development of air cargo in the United Kingdom
The leading cargo airline in the United Kingdom is Cargo Logic Air which was
established in the year 2015. It has its headquarters based near Heathrow Airport in London; its
primary operations are in Stansted Airport in London. This cargo airline connects companies in
the United Kingdom with markets in middle-east, Europe, Asia Pacific, and America. Cargo
Logic Airs is also using modern Boeing which has a capacity of 747 passengers and has a new
advanced generation 747-8F which can carry a total weight of 139 tones. It uses the most recent
technologies to enable its capabilities of cargo carrying. Cargo Logic Air has highly trained
professionals who work closely with customers in a variety of critical industries.

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Factors that are helping or restricting air cargo development in the United Kingdom
Environmental issues
Environmental factors have an effect on market activities as well as operational
expenditures, under the circumstances such as workers strikes, war, epidemics, and
psychological rivalry, for this reason, there is less demand making it difficult for air transporters
to operate in such an environment. This forces the bearers to reduce their cost while management
cost increases, however, these regional factors can work to the favor of air transport for instance,
when laborers of a seaport are on strike, the next option for transporting is air, in this case air
transporters raise their prices due to the increase in demand.
Economic conditions
Financial conditions rightfully influence market activities, in lambasting economies,
airship cargo management demand increases more than the limit leading to increase of charges.
Once more, financial decline comes along with decrease in demand. Transporters reduce
expenses to cater for the space that could have gone empty. Lack of enough finances also limits
the development of the industry at large because it becomes difficult to improve their technology
which could help them reduce their cost of operation.(Zhang, Hui, Leung and Cheung, 2017).
Cost of operation
Operation expenses differ and change from time to time, the cost of fuel is the main
expense of air transport, recently, the prices of fuel have gone down and are expected to remain
so for some time. The air transport customers expect a reduced price on the rates because of the

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reduced cost of fuel. There are many other operating expenses such as stopping charges, safety
determinations, landing charges, and taxes among others. Some terminals have additional fees,
giving an example of Heathrow in London who projected to increase their charges in order to
deal with pollution.
Perishable cargo
Transporters have been using the ocean to transport good that require controlled
temperature and using air to transport goods that can get spoiled within a short period or those
that need to be transported fast. However, increasing availability of the temperature- controlled
ULDs have actively changed that as customers with good that need to be carried under controlled
temperatures and within a short period can use air transport. Ocean cargo charge more for
perishable commodity, this gives airship cargo an advantage to transport for the customers.
Weight and size
The weight of the load determines the possible outcome of certain unplanned flights; the
transportation cost depends on the weight, the size must also be considered, good that have less
weight but very large, occupy space that could be used to transport other goods thus reducing the
income. Aircraft must, therefore, come up with a way to charge products depending on their
weight and size. The airship cargo industry is remarkably complicated, setting prices that are
focused and of benefits needs scrutinizing several changing factors.
Premium and value- add services
One of the advantages of airship cargo is the ability to offer quality management at an
increased price, unlike the ocean cargo where every delivery is allocated to the correspondent.
Airship cargo can establish different levels approximating depending on stuff managements such