Logistics and Supply Chain Management

Running head: LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Logistics and Supply chain (Air Cargo)
Name of the student
Name of the university
Author Note:

2
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Table of Contents
Literature Review............................................................................................................................3
Introduction..................................................................................................................................3
Modern Air Cargo........................................................................................................................3
Analysis of the Air Cargo Market...............................................................................................4
Market volume of Air Cargo.......................................................................................................5
Impact of Cargo Operations on Departure and on-time performance.........................................5
Choice of Airport.........................................................................................................................6
Factors Influencing choice of Airport..........................................................................................7
Law and Regulations of Air Cargo..............................................................................................8
Conclusion...................................................................................................................................8
References......................................................................................................................................10

3
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Literature Review
Introduction
Air Cargo can be defined to as any kind of property that is carried by an aircraft. The air
cargo facility is the fastest and the most reliable way to transport products from one place to
another within a very little time. The presence of specialized cargo airlines has been instrumental
in the rise of the following industry (Merkert and Alexander 2018). Though, the growth of the
industry in the last few years have been not as anticipated, the future of air cargo is predicted to
be bright. The following report is based on the assessment of the global Air Freight management
system and the process on how it works. The report explores the different perspectives of the Air
Cargo system and explores on the analysis of the cargo operations and the factors that have a
clear influence on the choice of the airport. The report has also provided a detailed and compact
analysis of the market of Air Cargo in which the different factors related to the following have
been explained in a proper and effective manner. However, the most important factor that has
been analyzed in the following report is the locational choice and the choice of the airports by
the service providers of Air Cargo.
Modern Air Cargo
Air Cargo is one of the most important and swift source of modern freight movement. In
spite of its smooth accessibility and swift transportation facility, the following sector has not
been a primary source of business operations. The industry has shown either a negative or
gradual growth since its inception (Merkert and Alexander 2018). However, the slow rise of the
industry in the last few years have compelled the management of the business organizations to
try out Air cargo facilities. The modern day air cargo system is ruled by the presence of specific

4
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
and dedicated Cargo aircrafts. Apart from the dedicated set of cargo aircrafts, the passenger
aircrafts are also utilizing their belly space to carry cargo and other goods to ensure healthy
revenue. Reports suggest that almost 50% of the air cargo is carried by the passenger airlines
globally. The presence of multinational companies like Fed Ex, DHL, TNT, UP’s have changed
the way the cargo is transported across the globe. The emergence of the dedicated air cargo
service provider companies in the last few years have helped in the growth and expansion of the
business enterprises. Companies like Boeing have pushed the production of aircrafts like 767P
ordered by Air Cargo movement companies. The increase in the rise of the orders indicates the
increase in the service of the Air Cargo facilities globally.
Analysis of the Air Cargo Market
Air cargo market is seen to be consisting of the revenue that is generated by the
transportation of goods through air. The units of volumes are generally measured by freight ton
kilometers. The value is represented by the revenue obtained by the revenue obtained by the
different kind of the Airline companies. The Air Cargo Sector has grown at a moderate pace in
the historic period overall. However, the uneven growth of the following sector and the
popularity restricted to the Asia-Pacific zone of the globe has limited its growth overall. A
revenue share of around $116,423.4 million in the year 2017 was considered in the calculation of
the revenue growth. The huge figure indicated a growth of close to 5% in the years in between
2013 to 2017. As mentioned earlier, the Asia Pacific region is the leading area of global air
freight business and most of the cargo movement which accounts for 43% of the total movement
around the globe is carried out in this particular area. The largest growth in this sector can be
seen in China and India (Matsumoto and Domae 2018). These two countries accounts for a large
portion of the total air cargo share. The level of volume consumptions have also seen a decent