Air Cargo Industry: Overview, Players, Market Characteristics, and Facilities

AIR CARGO

TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................................2
INTRODUTION..............................................................................................................................1
REPORT..........................................................................................................................................1
1 Overview of the cargo industry................................................................................................1
2 Main players in the cargo industry role, functions and definition............................................2
3 Market Characteristics of cargo industry..................................................................................4
4 Facilities required for efficient cargo operations......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUTION
Air cargo refers to carriage or transportation of the goods through air carrier. It is also
known as air freight. Transport services through the air are considered most valuable when the
express shipments are to be made around world and consists of air mail, air express and air
freight. Air cargo flies in same gateway as passenger or commercial airlines. Present report will
provide the overview of the cargo industry recent trends. It will provide about the contribution of
cargo industry to aviation sectors in revenues, employment, cargo movements and costs. Report
will also provide overview on main players of the industry their roles and functions and market
characteristic of the cargo industry.
REPORT
1 Overview of the cargo industry.
Overview
Despite of being costlier transportation mode increasing demand for the chemicals,
perishables and the valuables and rise in demand for just in time manufacturing processes had
created great demand for the air cargo services. Air cargo is impacted by rise in e-commerce
from the both perspectives of B2C & B2B. Evolving e-commerce had put extra pressure over the
sales channels to make faster delivery and optimum supply chains. Scenario is bringing the
opportunities for 3rd party logistics & the warehousing services for integrating with channels of
air e-commerce. Growth in cross border e-commerce is estimated to boost demand for air cargo
sector.
Cargo tonne kilometres industry wide has declined by 3.3% on year to year basis in
January as compared with 1.4% annual decrease in previous months. Seasonally adjusted air
cargo volume has eased due to softer performance of the Middle east and European countries.
The effect of corona virus will be seen in the coming data as it has caused shutdowns, travel
restrictions, disruptions in supply chains and mounting the economic damages to the countries.
Global operating condition to the cargo business has stabilized due to corona virus (Durak and
Yılmaz, 2016). Following two years of the trade tensions China and US have signed phase 1
trade agreement. This will be decreasing trade barriers between the two countries easing the
pressure over international trade flows.
Contribution of cargo industry
1