Each international air shipping process hasthe following 3 main documental/operational key points that should beperformed. 1. Outgoing handling2. Air Transport3. Incoming handling 1. Outgoing handlingLet us review which steps should be appliedif goods are being exported: 1.
Cargo is picked up and a POA isissued (Proof of Acceptance)2. Cargo is checked, sorted, labeledand packed according to flight schedule 3. Prepare security and customsdeclaration and proceed for customs inspection4. Consolidate all air waybills inone cargo manifest5. Book a flight through theairline and inform consignee’s forwarder of the incoming shipment 2. Air Transport There are certain steps to be carried outwhile transporting the goods by airplane. 1. Warehouse procedure for storageshipment based on the current bookings2.
Check goods and documents3. Prepare loading units accordingto shipper’s instruction and airport’s rules4. Load onto aircraft by usingramp loading/transport devices5.
Unload from aircraft by usingramp loading/transport devices6. Breakdown loading unitsaccording to the air waybill (AWB)7. Check incoming cargo againstAWB and cargo manifest8. Arrange warehouse storage andclear the manifest9.
Dispatch goods through courierservice, trucking company or integrator 3. Incoming handling Getting cargo by air transportation isconsidered as a fastest method to transfer packages. There are the followingsteps taken to ensure on-time delivery: 1. Receiving documents oncenotified by the airline and arranging pickup of the docs at the airport2.
Transmitting import customsdeclaration, proceeding with clearance and getting the customs release note3. Schedule local pick up of theshipment at the airport4. Arrange release to consigneewith accompanying documentation and obtain Proof of Delivery. 3.2 AirportsAlthough airports have been changing a little in their function overthe last ten years, industrial related-uses remain the majority of NorthAmerican airport’s non-passenger-related activity.
While every airport isdifferent in terms of their local economy and infrastructure, this part of thestudy explains some common characteristics and movements in today’s Canadianairports. 3.2.1 Airport Categories The airports can be divided in four classes – national, regional,local, and basic—based on their existing activity levels:• National – Supports the federal and provincial system by providingcommunities with access to national and international markets.
• Regional – Supports regional economies by connecting communities oninterprovincial level.• Local – Supplements local communities by providing accessprimarily to provincial markets.• Basic – Supports general aviation activities such as emergencyservice, charter or cargo operations, flight training, and personal flying.While airports vary in size and shape across the world, they can bedivided into three categories in commercial aviation: origin/destination (O/D),hub, and O/D with hub function airports. However, this separation does notreflect the full picture, since airports have to pass various evolutionarystages or development phases between being one of those two kinds of airports.Origin-destination airports The role of O/D airports is mainly defined as to act as the gatewayto their area, offering an acceptable point of entrance for cargo and travelersand a reliable point of departure for local shipments and people on their wayabroad. O/D airports always need a certain traffic demand to allow forefficient and profitable operations.
Connection traffic is not so important forthese airports. Consequently, their infrastructure does not provide specifictransfer facilities, and the national carrier has not established coordinatedflight arrivals and departures to facilitate passenger itineraries. O/Dairports are the fundament of any point-to-point air transport. Their focus isnot to provide the more complex transfer operations, which are to a certainextent independent from the airport’s location.Timmins could be considered as small O/D airport covering some areain the radius of 500…700 km. Hub airportsAirports with strategic economic locations for shipments areconsidered cargo hub airports.
The Thunder Bay and Hamilton InternationalAirports for example are hub airports, as the airports serves as a specialized distributioncentres for cargo movement out of Western and Southern Ontario. Origin-destination airports with hub functionInternational airports with global flight networks are categorizedas O/D airports with hub function. Typically, origin-destination-hub airportsare important distribution centres to which passengers and goods originate orare travelling to. Airports such as Vancouver International and PearsonInternational in Toronto are examples of origin-destination-hub airports, asthey locate in the areas that possess a large population of customers, asubstantial industrial and distribution base, and a financial sector whichrelies on the airport for service. Origin-destination-hub airports usually classifiedas “international” gateway airports. 3.2.2 Integrators andFreight ForwardersAirports are vital parts in the regional and global supply chainprocess, which allow increasing and facilitating cargo delivery from market tomarket.
Shipping by air is used for products that are perishable, high value,time sensitive, etc. Generally, such cargo has a higher transportation costcompared to other methods. Air cargo is used regularly for the delivery ofemergency parts in mining industry where on-site inventories of industrial partsare low. Other products such as perishable food and temperature-controlled vaccinesalso rely on air cargo aircraft to be delivered on a tight schedule. E-commerceand online shops have further generated new opportunities for the cargo aviationindustry, including a wider range of goods being shipped by air such aselectronics, sporting equipment, clothing and other consumer products to bedelivered “just-in-time”.There are two main types of supply chains in air-freight logisticstoday – Integrated and Freight Forwarding. Let us review them. The Integrated Approach: Delivery from Manufacturer to ConsumerIn an integrated supply chain procedure, a sole company (named”integrator”) is responsible for the product shipment, starting from theshipper and through to the customer.
The growth of firms such as Purolator, UPSand DHL and their steadily complex air cargo supply chain schemes are examplesof such an approach. The integrators have compound logistics patterns, ensuringa single entity is responsible for the shipment from pick-up through todelivery using internal means of transportation: cars, trucks, aircraft. The Dispatch Approach: Market to market shippingIn a freight forwarding process, the functions of some marketplayers such as courier companies and 3PL are deeply integrated in the movementof goods. Generally, a freight forwarder set up the pick-up, customs processing,warehousing, consolidation/deconsolidation and delivery of the shipment using localtrucking companies and other freight operators.
Air shipment in this case, is justfirst part of the supply chain process. The dispatch approach can ship cargo intwo ways: through a freight operator (i.e.
Cargojet), which operates solely withfreight and have their own fleet of cargo aircrafts; and combination carriers(i.e. Lufthansa) which carry shipments on cargo airplanes or in the belly ofpassenger aircraft.
Figure 5Historically, integrated carriers focused on the movement of postitems and small packages. However, the movement of mail has been decreasingover time. Now, integrators can process almost any shipment and freightforwarders can offer some services that were previously only available fromintegrated carriers. General Aviation Airports: A National Asset,Federal Aviation Administration, May 2012.
Economic advantages of AirfreightAir cargo transport enables nations, regardless of their geographiclocation, to efficiently connect to distant markets and globalsupply chains in a speedy and reliable manner. This is vital for implementingbest international business practices, including just-in-time inventorymanagement and build-to-order production.Air cargo services are a tremendous enabler for economicprogress in developing countries, since they connect marketsacross continents. High value electrical components and perishable productssuch as food and flowers are transported all over the world, providingsteady employment and sustainable economic growth to regions thatbenefit from such trade.
Air transport plays a pivotal role for Small Island DevelopingStates (SIDS), Landlocked Developing Countries (LLDCs) and Least Developed Countries (LDCs),allowing them to overcome infrequent boat services or poor infrastructure for ground transportation.Air cargo service routes are regarded as regional lifelines forthese areas.Aviation’s speed and reliability are also a key factor in thedelivery of urgently needed assistance during emergencies caused bynatural disasters, famines and wars. Air drops are among the firstresponses of aid agencies to stem humanitarian crises. Air cargo also playsa vital role in the rapid delivery of medical supplies and organsfor transplantations worldwide.
According to the Air Transport Action Group (ATAG), the largesteconomic benefit of increased air cargo connectivity lies in its impact on thelongterm performance of the wider economy through enhancement of theoverall level of productivity. It opens up new markets, boostsexports and at the same time increases competition and choice in the homemarket from foreign-based producers.3.2.3 The Airport – Tenant RelationshipIn its roles as public land owner, the airport has a vested interestin ensuring that assets are put to their optimal use while balancingenvironmental considerations. Throughout this juggling act, airport operatorsmust respect both the long-term perspective of the Airport Master Business Planand the users’ more immediate needs and expectations of fair treatment. Airportoperators must determine whether they desire to lease directly to the airlinesand other cargo users, or to introduce a developer into the airport’sdevelopment process. Ultimately, airports must consider all options whenformulating the planning, construction, marketing and operations of cargo andits related businesses.
Today, airlines come in a broad range of operational configurations.Air transport of cargo typically occurs in one (or more) of four ways: thebelly of passenger aircraft, in combi-aircraft, via integrated carriers, or inall-cargo aircraft. In developing its physical infrastructure, airportmanagement must evaluate the needs of each type of cargo operator. The abilityto attract and maintain cargo operations is directly related to an airport’sability to address individual airline requirements with planning flexibilityand financial responsiveness. Despite extraordinary market share gains by integrated carriers,freight forwarders continue to be critical for effective goods movement by air– especially for international transport. While the relationships betweenforwarders and airlines have been notably strained at times, there is still anobvious interdependence acknowledged by both parties. While freight forwardershistorically have been perceived as little more than a travel agent forfreight, many of today’s more sophisticated forwarding companies operate vasttrucking fleets, and a few command scheduled charter flights with cargo airlinepartners.
Although many forwarders may choose to locate on less expensiveproperty off-airport, recent security concerns have elevated the perceivedvalue of an on-airport operation. While some forwarders are whollyniche-oriented, even the largest companies have departments dedicated tospecific geographic areas or industries, including dedicated computer,pharmaceutical, chemical and automotive divisions. While forwarders serve exporters, customs brokers cater to the needsof importers. Many freight forwarders and integrators may include customsbrokerage functions; it is also common for these industries to have agencyagreements with independent brokers. For both forwarders and brokers, successis increasingly dependent on their ability to integrate their own systems withthose of shippers, carriers, forwarders, and federal inspection agenciesworldwide.
Recognizing that rapid clearance of goods is among their mostcritical functions, brokers play a crucial role in the cargo delivery chain.While electronic tracking and clearance systems have reduced the need forbrokers to physically maintain offices on the airport premises, frequentcomplications suggest that proximity to the airport and federal customs is desirable.