Professional Documents
Culture Documents
A Management Perspective
John G. Wensveen
2015
978-1-4724-3681-8 (paperback)
978-1-4724-3678-8 (hardback)
8th edition
Overview
Introduction
Historical Overview
Air Cargo Today
The Future
The Market for Air Freight
Types of Air Freight Rates
Special Air Freight Services
Factors Affecting Air Freight Rates
Introduction
Carrying cargo has been far more important than
carrying passengers for almost every mode of
transportation ever used by humankind
The only exception so far has been aircraft:
Many people believe that aircraft will always be primarily
passenger carriers.
Others believe that aircraft will be carrying more cargo
than passengers as the 21st century progresses
Historical Overview
There are three separate elements of air cargo
servicesair mail, air express, and air freight
Air mail is mail transported via aircraft
Air express refers to small packages that usually have a
higher priority of carriage than air freight
Air freight and air express are difficult to distinguish, but
freight usually involves the transport of bulky goods
Historical Overview
Air Express:
Air express service was inaugurated at Hadley
Field near New Brunswick, New Jersey, on
September 1, 1927, by National Air Transport, a
predecessor of United Airlines, created
specically for the purpose of carrying air express
On April 17, 1973, Frederick W. Smith began his
Federal Express operations at 13 airports ;
Smiths concept
was to provide a door-to-door overnight service
for small packages
Operationally, Fred Smith revolutionized the air industry
by introducing the hub and- spoke system, routing all
Courtesy Ashgate
Publishing |
packages
and aircraft through a hub in Memphis
www.ashgate.com
Air Freight:
If we accept the original denition of air freight as trafc
carried in all-cargo aircraft, then the birth of air freight
operations would date back to 1931 when Transcontinental
and Western Air began overnight air freight service between
New York
and Kansas City
Air freight received a big boost at the end of World War II with
two landmark decisions by the Civil Aeronautics Board (CAB)
The rst, in April 1948, legitimized air freight forwarders as middlemen
between shippers and airlines, giving them the right
to consolidate individual shipments and tender them to the airlines
at the carriers volume rates
The second CAB decision gave operating rights to three all-cargo
carriers: Slick, U.S. Airlines, and Flying Tiger
Historical Overview
Types of carriers:
Integrated carriers:
Also called express carriers, operate door-to-door freight transportation
networks that include all-cargo aircraft, delivery vehicles, sorting hubs,
and advanced information systems
These carriers operate their own aircraft to ensure adequate capacity and
service reliability
Combination carriers:
Combination carriers transport both passengers and cargo
These carriers primarily offer point-to-point service on a wholesale basis,
relying on freight forwarders for pickup and delivery, sales
to shippers, and customer service
All-cargo carriers:
Operate a variety of cargo-only services
Some provide point-to-point service for air freight forwarders,
either as common carriers or under guaranteed-space agreements
The Future
Although air mail was the rst of the air cargo
products,
it now accounts for less than 7 percent of the
revenues
for cargo carried by the worlds airlines
Two primary factors influence freight growth:
Economic growth
Rate levels
Unpredictable
Infrequent
In excess of local supply
Seasonal
Chapter 13 Checklist
You Should Be Able To:
Distinguish between air-express, air freight, and air mail services
Discuss the role of the Railway Express Agency in the early development of
air-express service in the United States
Describe the concept of overnight air express as established
by Federal Express
Describe the role of air freight forwarders in the air freight business
Explain why the arrival of jumbo jets in the early 1970s proved
to be both a boon and a bane for the cargo business
Dene the three types of air cargo carriers and give examples of each
Compare and contrast the role of air cargo today and in the future with the
carriage of passengers and other modes of transportation
Discuss the market for air freight in relation to the type of commodity
carried and demand and distribution problems
List some of the special air freight services provided by the carriers
Discuss several types of air freight rates and factors affecting them