Management of Air Cargo (ECAL 103) Project 1: Air Freight Analysis

This project examines the air freight supply chain, specifically focusing on the importation of hand flares into Singapore. The report analyzes the roles and responsibilities of various service providers, including freight forwarders, customs departments, 3PLs, security agents, and cargo handlers. It emphasizes the importance of understanding documentation, storage requirements, and compliance with international regulations, particularly those related to the transportation of dangerous goods. The project details the supply chain process, from packaging and transport to customs clearance and storage, highlighting the need for adherence to IATA regulations and Singaporean government guidelines. The analysis covers the roles of shippers, air carriers, ground handlers, and freight forwarders, and it provides recommendations for improving supply logistics and the efficiency of service providers within the air cargo industry. The report emphasizes the need for proper documentation, security clearance, and the minimization of risks associated with the transportation of dangerous goods.

Running Head: HAND FLARES
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Hand Flares
Name:
Institution:

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Executive Summary
The report evaluates the supply process and activities involved in the importation of hand flares
from overseas into Singapore through air transport. The primary activities in the supply chain
process include transport, packaging, and storage. The report will look into the nature of
documentation and storage requirements to allow for ease in not only compliance but also
reaching the destined market. In particular, the report will evaluate the supply chain process for
transportation of hand flares – commodity - by air. Understanding the functions of service
providers such as freight forwarders, customs department, 3PLs, security agents, and cargo
handlers is important in the air cargo supply logistics. Each of the service providers has specific
function in relation to storage, documentation, cargo handling, taxation, and security clearance. It
is also noteworthy that air cargo industry has individual requirements. The air transport is
another complex sector that attracts high-security surveillance. There exist internationally agreed
regulations meant to ensure the safe transportation of dangerous goods by air. The service
providers are expected to comply with regulations to the letter. The international aviation bodies
have developed technical instructions that guide the service providers in the industry. The
regulations are enforced by governments in close collaboration with the private entities. The
report will have recommendations on approaches to improve the supply logistics and workings
of the service providers involved in the transportation of dangerous goods such as flares in
Singapore.

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Introduction
Supply chain constitutes the various processes between companies involving specific
activities such as manufacturing, planning, procurement, and transportation, among others. The
nature of a particular supply chain varies across sectors. The product is transported from one
destination to the end-user using various channels such as air, rail, road, and seas. The chain
offers one with a map of commodities is likely to move to the point of consumption or other
uses. Air transport is a common mode of transport as it is faster and cost-effective. A transport
plane is a fixed-wing aircraft that used in carrying cargo as opposed to passengers. They are
mostly designed with one or more large doors for purposes of loading cargo. A transport plane
can be operated by cargo airlines or the normal civil passenger airlines. At times, they have
operated the military to ferry equipment necessary for war. Transport planes are normally large
to help carry huge amounts of cargo – for cost-effectiveness. Some of the common features
include high-wing to enable the cargo to sit properly on the ground. They also a high number of
large wheels for ease in landing in unprepared locations. Their significance in cargo
transportation over large distances cannot be underestimated as it could be difficult and costly to
transport huge cargo on normal planes.
The report considers the supply chain processes involved in the explosives sector. It is
noteworthy that governments around the world have developed legislation and regulations that
guide the importation and exportation of explosives. Most of the explosives require one to have a
license or other forms of authority from the respective governments. Their movement either
through the air or by sea requires special arrangement detailing the destination, use, and approval
from the respective authorities. The supply chain for explosives is largely complicated due to the

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nature of goods. The goods constitute items that are harmful and threatening to the security of a
region. Therefore, additional documents and security clearance constitute part of the
requirement. The importers or exporters need to have the right documents to allow in their
transportation of their goods from one destination to another. Like other developed nations,
Singapore has strict regulations for importers of explosive-related goods. These dangerous goods
cannot be moved without the right documentation from the importer.
The report considers the supply chain process and activities involved in the transport of
hand flares from overseas to Singapore using air freight. Flares are recognized as controlled
items whose importation, export or possession requires a license or permit from authorities in
Singapore. In the case of air transport, the supply process involves movement and clearance at
the airports of entry. A flare produces light or intense heat – mostly used for defensive or
signaling measures by the military or civilian. As controlled items in Singapore, hand flares'
importation may not be easy; hence, it requires one to have the correct and authentic
documentation from authorities. The documents must reflect the manufacture, dates, intended
use, importer, and licenses that are stipulated in the regulations.
Discussion
WesCom Signal and Rescue is a leading manufacturer of reliable and effective
pyrotechnic substances. Headquartered in Havant, United Kingdom, the company is a major
exporter of hand flares across the world (WesCom Signal & Rescue, 2019). The company has
gained a reputation across different nations for adherence and compliance with the established
guidelines on safety and security. Importing the hand flares to Singapore through air freight will
require the importer to make arrangements with the company before receiving goods. The

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importation of dangerous goods is handled delicately to avoid conflicts between nations and
organizations. Southampton Airport is the most feasible place to load the cargo as it is close to
the manufacturer’s headquarters. Cargo planes from the facility can easily move through to
Singapore.
Global supply chain indeed generates both predicted risks that require business operators
to devise appropriate strategies to minimize the adverse effects. According to Lambert (2008),
the risks range from language, organizational behavior, diversity, and social facets, among
others. One needs to realize that the risks vary in regions and the nature of business. The
avoidance of these risks is dependent on the acknowledgment and establishment of appropriate
relationships with the stakeholders (Vamanu, Gheorghe, & Katina, 2016). The stakeholders in
the air cargo industry need to understand the implications of their decisions to the safety, health,
and security concerns in a country. The service providers are required to abide by regulations
stipulated by the Singaporean government. According to Zhao, Zhang, & Guan (2018), safety
assessment models have helped in reducing some of the risks associated with the transport of
dangerous goods by air. It is recognized that sufficient equipment and condition of facilities are
critical factors that influence the safety of the performance of transportation of hazardous goods
by air. Notably, a reliable and stable model guided by resource allocation is a requirement.
Packing
The packaging process is supposed to meet the criteria set to allow for its acceptance in
the destined country. The supply chain process starts at the point of manufacturing. In this case,
WesCom Signal and Rescue is charged with the responsibility of developing products that meet
and satisfy the needs of a client as well as the global regulations on the manufacture of

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explosives. It is expected that the firm has also complied with the European Union regulations
that stipulate specific criteria and standards for manufacture and supply of dangerous goods. The
manufacturer handles the primary activities in the supply chain process, including packaging and
storage before exportation (Richards, 2017). The movement of dangerous goods requires
prioritizing the management approach (Chang, Yeh, & Liu, 2006). The supply management
issues normally emanate from health, safety, and compliance with the established regulations.
Importers are required to make proper arrangements before shipping the goods. The move is not
only meant to satisfy the regulatory requirements but also ensure the minimization of risks to
people and the environment. Packaging goods declared as dangerous necessitates that a trader
works closely with the manufacturer (Bethke, J., Goedecke, T., & Jahnke). The IATA
regulations require one to correctly classify the dangerous goods through appropriate marking,
labeling, and packaging.
Documentation
Air freight involves the movement of goods from one destination to another using an
aircraft. There is an intense growth in the air cargo traffic in Singapore due to appropriate
planning that involves aviation authorities. The country is a major air hub for international cargo
transportation in the Asia-Pacific region (Pedrielli, Chew, Lee, & White, 2016). The movement
of goods through air transport in the country involves several players, including airlines,
contracting carrier, customs, and freight forwarders. The contracting carrier is required to
undertake the necessary documentation from the point of origin to the destination subject to
certain conditions. The customs department has a role in ensuring verification of goods in
compliance with standards, certification, and security clearance (Molero, Santarremigia,

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Aragonés-Beltrán, & Pastor-Ferrando, 2017). The International Enterprise (IE), Singapore, under
the ministry of trade, is charged with the responsibility of documentation and statistical analysis
for purposes of policy-making. Again, the movement of controlled goods such as hand flares
requires the security agents for clearance in conformity with the established laws. The
documentation and handling services are also undertaken at the point of entry.
Storage and Handling Requirements
Once the goods enter the country, some companies are involved with the handling
functions. The primary terminal operators in Singapore include SATS, Swissport, and CIAS. The
principal activities for these agents include but not limited to unloading, transportation between
terminals facilities, and storage on behalf of the airlines (Christopher, 2016). For ease in
handling activities, it is essential for the importer to have the right documents including contract,
freight bill, receipt, certificate of insurance, evidence of handling instructions, and customs
declaration. It is noteworthy that the European Union has specific guidelines on the movement of
dangerous goods (Barone, 2016). The Europa website has details on the requirements that guide
traders while referring to the Singapore Trade Classification, Customs, and Excise Duties
expectations. The essence of this entity is to ensure that traders are fully guided in their actions
when intending to export or import goods into the country.
Air Cargo Service Providers
It is worth looking at the roles and responsibilities of the various air cargo service
providers. The movement of cargo starts with the shipper, either manufacturer or individual. The
shipper can take the goods directly to a client or utilize the services of a third-party logistics
(3PL) provider (Abbasi & Nilsson, 2016). Typically, a freight forwarder assumes the duty by

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ensuring proper arrangements before shipping goods to the destined region. Freight forwarders
act as intermediaries where they make arrangements to have the goods transported with great
ease. The customer demands and nature of consignments informs the choice of the cargo service
providers. The freighter airliners move goods from one airport to another (Das & Widjaja, 2017).
The cargo services may differ significantly depending on scope and size. The providers require
specific documentation for all goods transported to another destination (Lai et al., 2019). The
transport of dangerous goods such as hand flares demands special arrangements are owing to
strict regulations in different countries. The importer has to make available all licenses and
permits as well as other applicable documents before gaining acceptance to ship the goods.
Trade Net is an essential body in Singapore that enables parties to exchange information
in real time. The customs department and other government agencies use the information
available to ensure compliance with health and safety regulations (Government of Singapore,
2019). The government agencies work closely with private actors in air logistics to monitor the
movement of goods. The integration of importers and relevant agencies helps in better
processing of procedures in a way that allows logistics communities and traders to meet their
obligations. Moreover, airlines in Singapore have established a set of rules that guide the
handling of dangerous goods. The handling procedures are meant to guarantee that the
movement of the hazardous goods follows the International Air Transport Association (IATA)
regulations (International Air Transport Association, 2007). The move is meant to reduce risks to
crew, passengers, and the environment. Besides shipper's declaration and air waybill, it is
necessary for an importer to make advance arrangements for handling consignment of dangerous
goods.

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Again, elaborate supply logistics strategies make it practical for importers to get their
products in good time. The government, in close collaboration with the airline operators and
other relevant stakeholders, has been making proper arrangements to improve supply process
through intermodal transportation. Intermodal transportation is efficient, economical, and
environmental-friendly (Bhattacharya, Kumar, Tiwari, & Talluri, 2014). Business operators
benefit from the consolidation of suppliers. As such, the move has lessened time taken to
transport products from one place to another. Companies benefit from a cost-effective means of
transport due to flexibility. Experts consider that efficiency in the movement of goods has
resultant economic benefits. It is noteworthy that the transport sector is a critical pillar in the
supply chain (Konings, Priemus, & Nijkamp, 2008). Moreover, intermodal rates bring along
various alternatives that allow users to explore cheaper options.
Analysis
The air transport industry has a number of actors throughout the supply chain all through to the
destination area. The service providers are guided by certain procedures and regulations that
differ across countries. In Singapore, the movement of goods through air transport has to adhere
to the IATA regulations as in other countries. The service providers involve private and
government entities such as customs, security, and freight forwarders, among others. The
movement of dangerous goods such as hand flares is restricted in Singapore with the importer
required to possess a license or permit. The air freight operators are guided by the IATA
regulations in handling and storage of such goods (Konings, Priemus, & Nijkamp, 2008).
Therefore, it is prudent to have knowledge on the documentation required to ensure the
successful completion of the exercise. The principles of freight transport management and

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operations in handling flares as a cargo are largely different in comparison to transport of
passengers.
In the contemporary business environment, sustainability has become a topical issue in
most functions in a company. The essence of sustainability is to ensure businesses thrive
profitably in a competitive environment (Richards, 2017). There has been great pressure from
stakeholders, including clients, communities, and stockholders to enhance sustainability within
the supply chain. It is also noteworthy that there has been increased focus on supply chain due to
its significance in the overall performance of a company. A functional regulatory environment in
a particular jurisdiction recognizes the need for firms to have positive effects in the investment
climate (Richards, 2017). The processes are also designed to incorporate good business practices.
The Singaporean government has closely worked with the IATA and airlines to ensure that the
transportation of goods is safe and efficient. Supply logistics involved in the transport of
dangerous goods involve various stages right the point of manufacture. The main activities
include storage, handling, packaging, and eventual transport. It is upon the shipper to ensure
compliance with the established regulations.
A sustainable supply chain requires that the stakeholders work in close cooperation by
making available all the necessary documentation. It is expected that the shippers of dangerous
goods have a prior understanding of the regulations as it is difficult to store or handle such items
past the airport illegally. A number of tools and resources have been created to ensure shippers
generate code of conduct (Konings, Priemus, & Nijkamp, 2008). In turn, this assists companies
to prioritize the value chain in a manner that helps in better identification of opportunities and
threats toward sustainability. By leveraging these opportunities, companies make the right steps

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to enhance baseline supplier performance. In the same vein, it is critical to generate compliance
standards that reflect the goals, values, and culture within an organization.
The consignees in Singapore will require the shipper to produce showing the
manufacturer, intended use, and customs declaration, among other requirements. The storage
requirements are such that one needs to make arrangements with the 3PLs to ensure safe
handling of goods. The destination, Singapore, has its own regulations that guide the handling of
the goods (Pedrielli, Chew, Lee, & White, 2016). The shippers have the responsibility to ensure
that the right materials meet the quality standards in set in the country. It also noteworthy that the
process is created in a manner that allows effective monitoring and evaluation of adverse effects
to the supply communities. Over time, the process is required to be adjusted toward the required
sustainable interventions. The assessment creates the foundation for the future programs as well
as effective engagement with stakeholders in the future. Shippers can also develop and replicate
similar programs in other segments for the overall benefit.
The government can introduce changes that may result in denial of entry or detention of
goods. The implementation of changes in the supply chain process is not easy but need to remain
a progressive process. Through regular assessment and evaluation, companies can make
significant gains in the sustainability goals within the supply chain (Abbasi & Nilsson, 2016).
The need for sustainability is not a largely new concept though it has been fully appreciated in
the air transport logistics. It is prudent for firms to embrace measures that promote sustainability
for the future growth, goals, and profitability. Overall, the movement of hand flares, restricted
items in Singapore, through air transport should be done in a manner that complies with all
established regulations.

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Conclusion
Effective air cargo logistics has excellent significance in air transport activities.
Singapore needs to continuously integrate the supply chain process in a manner that enables
close cooperation between the major operators, including shippers, airlines, and freight
forwarders. This form of strategic alliance is instrumental in improving the speed with which
clients get their products. In the case of dangerous and restricted goods, the airlines and customs
department should work in close collaboration with other international bodies. The move will
help in minimizing cases of transportation of illicit goods or tax avoidance. It is also prudent to
work on ways to increase responsiveness and flexibility to reduce administrative costs. Sharing
of information between the various actors is essential to enhance transparency as well as help in
streamlining good business practices. The government should also support TradeNet with
resources to allow ease in the processing of documents. The move is instrumental in expediting
clearance of cargo as well as payment of taxes and other relevant fees. Better transport services,
efficiency, and convenience in supporting economic activities within a region. It is upon the
Singapore government to work closely in encouraging users to adopt intermodal transportation.