Summary Chapter 13: Air Cargo
Air transport is a very vital means of transportation that enables a country to achieve faster growth and development. It is termed as the fastest and the safest means of transportation that helps in generating trade, promoting tourism, and creating job opportunities. In chapter 13 of the book “Air Transportation: A Management Perspective,” it talks about air cargo. Therefore, this paper seeks to give a summary of the chapter and then explain the importance of airfreight in the airline industry.
The chapter distinguishes various types of air cargo, including air express, airmail services, and airfreight. It is noted that air cargo provides the benefits of reliability, speed, reduction of inventory costs and security to the load that is being transported. This chapter is significant for people who want to understand the air transportation concept as well as fleet planning and scheduling. During the early development of air express services, the railway express agency played a significant role in the advancing the air transportation since it was the best way possible to ship goods. This chapter gives different types of carriers that include; integrated carriers, conventional all-cargo carriers, and passenger airlines. Additionally, overnight expenses are described as a concept whose aim was the provision of door-to-door overnight services for packages of small size.
According to Wensveen (2018), the air cargo today has achieved significant growth though it has not attained the status-planned by the pioneers of the air cargo. The chapter explains the expectations of the pioneers in that air cargo in future will be the most significant source of revenue for many airlines. It is noted that the carriage of passengers is the highest form of transportation that generates the enormous amounts of revenues than any other form of transportation. However, air cargo is seen to have an increased growth as it is being used by many companies. Further, many companies are using air cargo services since they are undergoing the benefits of inventory reduction that are offered by air transport.
Moreover, the market for air freight is discussed where there are many important commodities shipped by air, including metals products, fruits and vegetables, tools and hardware, cut flowers, perishable products, and computers among others. Mostly, air transport has been used for commodities that are perishable or whose values are very high. The transportation is charged using different types of rates called airfreight rates, and they include the following; general commodity rates, specific commodity rates, joint rate, speed package service, container rate, and exception rate (Wensveen, 2018). Furthermore, this chapter elaborates various factors affecting the airfreight rates such as the cost of the service, directionality, volume of traffic, characteristic of the traffic, competition, and volume of service.
Importance’s Of Air Freight in the Airline Industries
Transporting goods and services by air has many benefits associated with it. Airfreight as a mode of transport used to transport valuable goods and of low volume. It significantly contributes to the growth of the economy through revenue generation and promotion of trade. It has also added to high productivity jobs hence contribution to public finances. It has led to opening up of new foreign markets for many developing countries. Besides, it has led to increased flexibility in the supply of labor and speeding the adoption of new business practices. Moreover, it has lowered the costs of transportation over long distances thus increasing competition among suppliers as they can reduce their average costs. Significantly, airfreight contributes to sustainable development of a country.
Wensveen, J. (2018). Air Transportation: A Management Perspective. Milton: Taylor and Francis.