Air Cargo in the UK

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Air Cargo in the UK

AIR CARGO-UK 1
Introduction
Air cargo industry contains many different organizations that provide shippers through
freight services. These companies particular works in the private sector and operates in
a competitive environment. This way is the fastest way of transporting goods across the
world. It is a major aspect of globalization, as this industry helps the worldwide division
of labor and empowers the set-up supply chains (Yuan, 2010).
In fact, International trade is progressively dependent on the service of Air Cargo. There
are many factors that are continually growing the demand for Air cargo. EUROSTAT
statistics show the data on the importance of Air Cargo activities in global trade and
many types of goods are transported every year (Fu, 2010).
This report will evaluate the commercial air passenger and Cargo services in the UK.
The overall purpose of this report is to assess the present state of the UK’s Air Cargo
industry. This is set to along with views on market trends and factors in order to analyze
the development or restriction areas of the industry, also its contribution to the UK
economy both indirectly and directly. This report will also compare those factors that
drive the industry and affect the growth of Air cargo and the challenges that prevent
developing the industry. We will make recommendations to face these issues.

AIR CARGO-UK 2
Air Cargo UK
The UK is the fifth biggest domestic market after France, Italy, Spain, and Germany and
has the biggest air transport market. The UK handled 230.9mn passengers in 2016.
This includes 210.3mn which is around 91.1% and 20.6mn were domestic which was
controlled by 47 airports in the UK. The 12 busiest passenger routes in the UK each
carried more than 50000 people and connected the regional airport in UK London.
Entire UK airports handled 2250000 tons of freight, which involves 97.8% global and 2.2
percent domestic (Morrell, 2016).
These numbers mirror the essential use of air freight, in particular transporting high
esteem merchandise, for example, pharmaceutical items, hardware, and important
farming produce. These merchandise share for all intents and purpose that a short
transportation time from generation to the end client is basic. With their high normal
esteem, these merchandise motivation a somewhat high capital cost, which can be
limited via air transport in contrast with holder shipping (Air Cargo, 2019).
Factors that help in the development and restrict Air Cargo
There are several points that support for the development of Air Cargo industry such as
most organization are aims to decrease of the inventory cost and seek to adopt just in
time production ways through the utilization of air cargo logistics for transporting the
products and services. This is the fastest and reliable way of transferring goods and
services. According to the market position where goods are perishable this way is the
fastest way to supply the goods (Sales, 2013).

AIR CARGO-UK 3
One more possible demand factor is its declining cost as an outcome of technological
and liberalization progress creates Air Cargo more demanding. As organizations move
their production facilities to an expansion of the business to less labor cost and piece
production into supply chains, for this, companies continuously depending on Air Cargo
logistics (Berger, 2011).
The growing market of E-business also contributes to the increment of transporting the
goods to enter the larger market where national border becomes least essential. Apart
from these general factors, there are some essential factors that drive the demand and
help for the evolution of Air Cargo in the UK (IATA, 2019).
E-Business market trends: E-business is the major demand factor for Air Cargo
development. Many companies develop their websites and sell product and services
through the internet. For this service, the buyer can but products by sitting at home. Due
to the increased demand for this service, many companies are selling the goods
internationally through the websites and send products through Air Cargo (Taneja,
2017).
International Airline Group Cargo which contains the air load arms of British Airways
and Iberia, experienced record business in the run-up to Black Friday 2017, the informal
dispatch of the Christmas shopping season, as retailers looking for speed and
unwavering quality utilized airship cargo to be increasingly coordinated in responding to
a minute ago rises in buyer request, as indicated by a representative. Some noticed a
spike in customer innovation conveyances, especially cell phones, and related
adornments, from Hong Kong to the United Kingdom. Design retailers likewise moved