Air Cargo: Aviation Course

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AIR CARGO

AVIATION COURSE
WHAT IS • It is an industry that includes
CARGO? approximately 40,000 forwarding
and logistics firms. Employing
around8-10 million people in 150
countries.
• More than 40 million tons of air cargo (or
air freight), almost anything can be
shipped by air, including letters, packages,
AIR CARGO cars, horses, and construction equipment.
They are placed in the portion of the
aircraft that is not being occupied for
passengers or their luggage.
•Commercial airlines can make from 5 to 10 percent of their
revenue from hauling freight. (Air Cargo is another term for air
freight)
• Packages are shipped on a passenger flight, in the storage area
under the passenger compartment. The freight forwarding
industry represents the second wing of the airline activities.
AIR CARGO IS COMMONLY KNOWN AS
FREIGHT.
• There are many businesses which collect freight and deliver it to the
customer. Aircrafts were first used by carrying mail as cargo in 1911,
but eventually manufacturers started designing planes just for freight.
There are many commercial planes suitable for carrying cargo such as
the Boeing 747, which was purpose built to be easily converted to a
cargo aircraft.
THE USE OF AIRCRAFTS

Upper Deck
Main Deck

Lower Deck
A TYPICAL
SUPPLY
CHAIN
WHY
MANUFACTURING
NEED CARGO
A SUPPLY CHAIN IS A
SYSTEM THAT MOVES
FREIGHT BETWEEN ITS
POINT OF ORIGIN AND ITS
END DESTINATION. 
CARGO AIRLINES ARE AIRLINES MAINLY DEDICATED
TO THE TRANSPORT OF CARGO BY AIR.
HISTORY OF CARGO

• For over a century now, air cargo has played a crucial role in getting
time-sensitive and high-value shipments from one point to another as
quickly as possible. The world’s first cargo flight was in 1910. Since
then, air cargo and private cargo shipping have played a crucial role
in transporting time-sensitive and high-value goods internationally
and domestically.
A CARGO
AIRCRAFT 
• Also known as freight
aircraft, freighter, airlifter o
r cargo jet.
• It is a fixed-wing aircraft that
is designed or converted for
the carriage of cargo rather
than passengers. They
generally feature one or more
large doors for loading cargo. 
A WAREHOUSE 

• Is a building for storing goods. Warehouses are used by manufacturers, importers, 


exporters, wholesalers, transport businesses, customs, etc. They are usually large
plain buildings in industrial parks on the outskirts of cities, towns, or villages.
• Warehouses usually have loading docks to load and unload goods from trucks.
Sometimes warehouses are designed for the loading and unloading of goods directly
from railways, airports, or seaports. 
FACTORS AFFECTING AIR FREIGHT RATES

• Costs of air service


• • Volume of traffic/shipments
• • Seasonal directionality
• • Characteristics of freight
• • Importance of the service
• • Competition
HOW AIR FRIGHT WORS
STAGES OF THE FREIGHT FORWARDING PROCESS

• STAGE 1 – EXPORT HAULAGE


• The movement of items from a shipper’s location to the freight forwarders
warehouse is called export haulage. This usually requires the help of a truck or train
to move them.
STAGE 2 – ITEMS CHECKPOINT

• Immediately following the export haulage stage, freight forwarders receiving the
goods will check to see and ensure everything was transported without incidents.
STAGE 3 – EXPORT CUSTOMS CLEARANCE

• Before items can be shipped off it requires clearance from the country of origin. This
process is performed by customs brokers (Cargo Agent). They are required to
submit details about the cargo and any supporting documents that are needed.
Usually, an agreement is established between the shipper and consignee who is
responsible for this process.
STAGE 4 – IMPORT CUSTOMS CLEARANCE

• Once the shipment arrives, authorities in the destination country are required to
check import customs documents. The secret to this stage is that it can begin before
the cargo even arrives. It is the responsibility of the freight forwarder or nominated
customs broker to perform this clearance by the time the cargo arrives.
STAGE 5 – DESTINATION ARRIVAL AND HANDLING

• This stage involves a number of different processes once the cargo arrives. At this
point, freight forwarders will receive all documents for the cargo, including
outstanding documentation, carrier bills and more. This process is always taken care
of by the freight forwarder.
STAGE 6 – IMPORT HAULAGE

• Almost identical to export haulage, this process transports the cargo from the
warehouse to the destination of the intended receiver. This process can be facilitated
by freight forwarders, or the consignee can choose to collect the cargo themselves.
DOCUMENTS OF FREIGHT FORWARDING
INDUSTRY.
• 1-Ships letter of Instruction for issuing Airway Bill. (used by cargo agent)
• It includes the following information:
• The name of the carrier.
• The name of the shipper.
• The port of shipment.
• The port of arrival.
• The description of cargo shipped.
• The number of package.
• The weight of the shipment.
AIR WAYBILL (USED BY CARGO AGENT)

• It is a contract between the forwarder and the airline comp.


• It includes this information:
• The name of the shipper and his address.
• The cargo agent and its address.
• The airline carrier.
• The port of loading and that of destination.
• The route of the flight.
• Number of package.
• The total weight of the shipment.
AIR CARGO MANIFEST (USED BY CARGO AGENT)

• It is a list that contains all details concerning the goods.


• The name of the shipper.
• The airline carrier name and number of flight.
• The weight, kind and number of the shipment.
• The airway bill number and date of the trip.
It is used for the ground handling charges or if the shipment
is transferred between two airlines companies.
CARGO CHARGE CORRECTION ADVICE (USED
BY AIRLINE COMPANY ONLY)

• It is used if any mistake in pricing or any changes in the details should happen.
• It is sent by the airline comp. to the forwarder.
THE END

•Thank You

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