Cargo operations involve the handling, storage, documentation, security screening, and transportation of air cargo from origin to destination. Key aspects of cargo operations include cargo handling, warehousing, packaging, customs clearance, logistics planning, risk management, tracking, and documentation. The loading process for aircraft involves categorizing and securing cargo according to weight and size restrictions while maintaining balance. Transporting cargo internationally requires booking, documentation, security checks, customs procedures, and monitoring throughout transit.

1. AIR CARGO MANAGEMENT
UNIT NO. 3

2. CARGO OPERATORS

3. Cargo Operations
• Cargo Operations are the hub of the air cargo supply chain and are performed by
hundreds of handlers at thousands of airports around the world. Our vision is to
drive safe, efficient and customer-focusedoperations for the entire air cargo
industry.

4. What is the meaning of cargo operations?
• Cargo operations means activities relating to cargo and passengers and
shall include, but not be limited to, coordination of stevedores and
terminal operators, reporting cargo to relevant customsauthorities and
documentation.

5. key components of cargo operations
1. Cargo Handling: This involves the physical loading, unloading, and transfer of cargo between
different modes of transportation, such as ships, airplanes, trucks, or trains. It includes the use of
specialized equipment and techniques to ensure safe and efficient handling.
2. Warehousing and Storage: Cargo operations may require temporary storage or warehousing facilities
to consolidate, sort, and store goods. This involves proper inventory management, space
optimization, and security measures to safeguard the cargo.
3. Packaging and Labeling: Cargo needs to be appropriately packaged and labeled to protect it during
transit and provide necessary information for handling and identification. Packaging materials and
methods may vary depending on the nature of the cargo and transportation mode.

6. 4. Documentation and Customs Clearance: Cargo operations involve the preparation and
verification of various documents, such as bills of lading, shipping manifests, customs
declarations, and certificates. These documents are crucial for compliance with customs
regulations, ensuring proper documentation flow, and facilitating the movement of cargo
across borders.
5. Transportation and Logistics: Cargo operations include the planning and coordination of
transportation routes, modes, and schedules to ensure timely delivery. This involves
optimizing logistics, selecting carriers, arranging for freight forwarding services, and tracking
the movement of cargo.

7. 6. Security and Risk Management: Cargo operations encompass security measures to protect the cargo from
theft, damage, or unauthorized access. This includes implementing security protocols, conducting
inspections, using surveillance systems, and employing risk mitigation strategies.
7. Tracking and Tracing: Cargo operations involve tracking and tracing systems to monitor the location,
status, and condition of cargo during transit. This enables stakeholders to have real-time visibility and
enhances overall supply chain efficiency.
8.Documentation and Reporting: Accurate documentation and reporting are vital in cargo operations. This
includes recording cargo details, handling instructions, and any incidents or changes that occur during
transportation. Proper documentation ensures transparency, accountability, and effective communication
among the parties involved.

8. Four basic types of carriers.
• 1. Freighter ( all- cargo carriers )
• 2. Express ( Integrator/express carrier )
• 3. Scheduled ( Commercial service passenger airlines)
• 4. Ad-hoc cargo charter carriers

9. Loading Of Air Cargo
• The loading process begins with the arrival of the cargo at the airport.
The cargo is typically delivered to a designated cargo terminal, where
it undergoes a series of procedures before being loaded onto the
aircraft. These procedures include documentation verification,
security screening, and customs clearance. Once these formalities are
completed, the cargo is ready for the loading process.

10. • Before loading, the cargo is categorized
based on its size, weight, and destination.
This categorizationhelps determine the
appropriate loading method and placement
within the aircraft. Larger and heavier items
are usually loaded first, as they require more
space and may require specialized handling
equipment.

11. • Cargo is typically loaded into containers or pallets to facilitate
easier handling and organization. These containers come in
various sizes and types, such as Unit Load Devices (ULDs) or
specialized containers designed for specific types of cargo, such
as perishable goods or hazardous materials. The containers are
labeled with the necessary information, including the flight
number, destination, and handling instructions.

12. • Loading the cargo onto the aircraftrequires the use of ground support equipment, such as forklifts, loaders, and
conveyors.Trained ground handling staffcarefully maneuver the cargo containersfrom the terminal to the aircraft's
cargo hold. The containersare secured in place using restraintsand locks to prevent shifting during the flight.
• Proper weight distribution is crucial for maintainingthe stability and balance of the aircraft.Cargo is loaded
strategically,taking into accountweight restrictionsand aircraftspecifications.This ensures that the center of gravity
remains within acceptable limits and that the aircraftcan maintain its intended performance during flight.
• During the loading process, the cargois cross-checked againstthe accompanying documentationto ensure accuracy
and proper handling. This includes verifying the number of pieces, weight, and any special handling instructions.Any
discrepancies or issues are immediately addressed before the cargois fully loaded.

13. • Certain types of cargo require specific handling procedures. Perishable goods, for
example, may need to be stored in temperature-controlled compartments within the
aircraft. Hazardous materials require compliance with strict regulations regarding
packaging, labeling, and documentation.
• Once all the cargo has been loaded and secured, a final inspection is conducted to
ensure that everything is in order. The cargo hold doors are closed, and the aircraft is
ready for departure. The loading process is completed within a specific timeframe to
ensure that the flight remains on schedule.

14. Transporting air cargo
1.Booking: The process begins with the shipper or freight forwarder making a
booking with an airline or an air cargo agent. The booking includes details such as
the type of cargo, weight, dimensions, destination, and any special requirements.
2. Documentation: The shipper prepares the necessary documentation, including a
commercial invoice, packing list, airway bill (AWB), and any other customs or
regulatory documents required for the specific destination.

15. 3. Packaging and labeling: The cargo must be properly packaged and labeled to meet safety
and regulatory standards. This includes using suitable packaging materials, securing the
cargo to prevent shifting during transportation, and labeling packages with necessary
information like handling instructions, barcodes, and tracking numbers.
4. Security screening: Before being loaded onto an aircraft, air cargo goes through security
screening procedures to ensure compliance with aviation security regulations. This involves
screening the cargo for prohibited items, explosives, or any potential security threats.

16. 5. Customs clearance: If the cargo is being transported internationally, it mustgo through
customs clearance procedures at both the departure and destination countries. This
involves verifying the accompanying documentation, paying applicable customs duties and
taxes, and complying with any import or export regulations.
6. Ground handling: Once the cargo has passed security screening and customs clearance,
it is handed over to the airline's ground handling agents. They handle various tasks,
including weighing the cargo, transferring it to the aircraft, and ensuring proper storage
and loading.

17. 7.Transportation: The cargo is transported on board an aircraft, either as part of a passenger flight (in
the belly hold) or on a dedicated cargo aircraft. During transit, the cargo may be subject to
temperature and humidity controls, especially for perishable or sensitive goods.
8. Tracking and monitoring: Throughout the transportation process, the cargo is tracked and monitored
using various systems, such as barcodes, RFID tags, or GPS tracking. This allows the shipper and the
recipient to have visibility into the location and status of the cargo.
9. Delivery and handling at destination: Once the aircraft reaches the destination airport, the cargo is
unloaded and transferred to the destination terminal. It undergoes another round of handling and may
require customs clearance at the receiving end. Finally, the cargo is delivered to the consignee or
further transported to its final destination.

18. Picking and Sorting Of Air Cargo

19. Receiving and Documentation
• Air cargo shipments are received at the cargo terminal or
warehouse of the airline or handling agent.
• Upon arrival, the shipment's documentation is verified, including
airway bills, commercial invoices, packing lists, and any necessary
customs or regulatory documentation.

20. Weight and Volume Measurement
• Each shipment is weighed and
measured to determine its
actual weight and volume.
• The weight and dimensions are
recorded for accurate billing
and to ensure compliance with
aircraft and loading capacity
restrictions.

21. Security Screening
• Air cargo must undergo security screening to ensure compliance with aviation security
regulations.
• The shipment is inspected for prohibited items, hazardous materials, and potential
security threats.
• Screening methods may include X-ray scanning, explosive trace detection, sniffer dogs,
or manual inspection.

22. Identification and Labelling
• Each shipment is assigned a unique identification number or
barcode for tracking purposes.
• Labels or tags with relevant information such as origin, destination,
flight details, and handling instructions are affixed to the shipment.

23. Sorting
• Shipment sorting is done based on various factors, including destination, flight
connections, and urgency.
• The cargo is grouped according to its final destination or transit point.
• Automatedsorting systems or manual processes are used to categorize and organize
shipments for loading onto the appropriate flights.

24. Storage
• If required, cargo maybe temporarily stored in a warehouse or holding area before
being loaded onto an aircraft.
• Proper storage conditions are maintained to ensure the safety and integrity of the cargo,
including temperature control for perishable goods.

25. Build-up and Loading
• Based on flight schedules and destination information, cargo is assembled for specific
flights.
• The cargo handlers arrange and stack the shipments in the aircraft's cargo holds,
considering weight distribution, balance, and any special handling requirements.
• ULDs (Unit Load Devices) such as pallets or containers may be used to consolidate
smaller shipments into larger units for easier loading and unloading.

26. Documentation and Manifesting
• Before departure, a cargo manifest is generated, listing all the cargo on the aircraft along
with relevant details.
• The manifest includes information such as the shipper's name, consignee's name,
description of goods, weight, and number of packages.
• The manifest is provided to the pilot, ground staff, and regulatory authorities for record-
keeping and customs clearance purposes.

27. Transfer and Transit
• In the case of connecting flights, cargo maybe
transferred between aircraft or warehouses during
layovers.
• Transit procedures involve identifying and
transferring shipments to the appropriate
connecting flights while maintaining chain-of-
custody and security protocols.

28. Arrival and Unloading
• Upon reaching the destination airport, the cargo is unloaded
from the aircraft.
• Cargo handlers carefully remove and transport the shipments
to the cargo terminal or warehouse for further processing.

29. Delivery and Distribution
• The cargo is sorted again based on its final destination.
• Delivery orders or waybills are prepared, specifying the recipient's details, address, and
any special instructions.
• The cargo is loaded onto trucks, vans, or other delivery vehicles for transportation to the
consignees or onward distribution centers.

30. Warehousing Of Air Cargo

32. 1. Receiving: The process begins with the receipt of incoming air cargo shipments. These shipments
are typically delivered to the warehouse facility by trucks or other ground transportation. The cargo
is unloaded, and the necessary documentation, such as airway bills, invoices, and customs
documents, is checked and verified.
2. Sorting and Inspection: After receiving, the cargo is sorted based on its destination, type, and any
specific requirements. It may undergo an inspection to ensure compliance with safety regulations,
quality standards, and customs requirements. Damagedor non-compliant cargo may be segregated
for further assessmentor rejection.

33. 3. Storage and Inventory Management:Once sorted and inspected, the cargo is assigneda specific
storage location within the warehouse. It is organized in a manner that optimizes space utilization
and facilitates efficient retrieval. Inventory managementsystems are employed to track and monitor
the movement of goods, ensuring accurate stock records and timely replenishment.
4. Unitization and Packaging: If required, cargo may undergo unitization, which involves combining
multiple smaller items into larger units or pallets for ease of handling and transportation. Proper
packaging and labeling are crucial to ensure the safety and security of the cargo during storage and
subsequent transit.

34. 5.Documentationand Customs Compliance: Warehouse personnel ensure that all necessary
documentation, including customs declarations, export permits, and compliance certificates,
are accurately prepared and attached to the respective cargo. Compliance with customs
regulations and security protocols is crucial to prevent delays and ensure smooth movement
through the supply chain.
6.Security Measures: Air cargo warehouses employ various security measures to safeguard the
stored goods. These may include surveillance systems,access control mechanisms, fire
suppression systems,and strict adherence to security protocols outlined by regulatory bodies
and airport authorities.

35. 7. Order Fulfillment and Dispatch: As per customer orders or shipping instructions, the warehouse
staff retrieves the requested cargo from the storage location. The cargo is verified, packed, and
prepared for dispatch. Documentation is reviewed again to ensure accuracy, and necessary transport
arrangements are made to transfer the cargo to the airport or designated transport hub.
8. Reporting and Record-Keeping: Throughout the entire process, proper record-keeping is
maintained, documenting the movement, storage, and handling of the cargo. These records are vital
for traceability, quality control, billing, and compliance purposes.

36. Operations at Cargo Airlines
1.Fleet and Aircraft: Cargo airlines operate a fleet of aircraft specifically designed for cargo
transportation. These aircraft can range from converted passenger planes to dedicated freighters.
Dedicated freighters are purpose-built cargo aircraft with large cargo holds and specialized equipment
for loading and unloading cargo. Some cargo airlines also use passenger aircraft for cargo operations by
removing seats and using the main cabin for cargo storage.
2.Network and Routes: Cargo airlines establish a network of routes connecting various destinations
worldwide. The selection of routes depends on factors such as demand for cargo transportation,
economic considerations, trade patterns, and operational feasibility. Major cargo airlines often have
extensive global networks, with scheduled flights to major cities and cargo hubs around the world.

37. 3.Cargo Handling: Cargo airlines have dedicated cargo facilities at airports known as cargo terminals or
warehouses. These facilities are equipped with infrastructure and equipment necessary for efficient cargo
handling. Upon arrival, cargo is unloaded from the aircraft and transported to the cargo terminal. At the
terminal, it undergoes sorting, inspection, documentation, and sometimes customs clearance procedures.
The cargo is then loaded onto outbound flights or stored in the warehouse until it can be transported to its
final destination.
4.Special Cargo Handling: Cargo airlines deal with various types of cargo, including general cargo,
perishables (such as fruits, vegetables, and flowers), live animals, dangerous goods, pharmaceuticals, and
oversized cargo. Each type of cargo requires specific handling procedures and facilities to ensure its safety
and integrity during transportation. Cargo airlines have specialized teams trained to handle different types
of cargo,and they comply with international regulations and industry standards for handling such goods.

38. 5.Tracking and Documentation: Cargo airlines employ advanced tracking systems to monitor the movement
of cargo throughout the transportation process. This allows customers to track their shipments and provides
real-time updates on the status and location of the cargo. Cargo airlines also manage extensive
documentation, including air waybills, customs declarations, and other necessary paperwork for
international shipments.
6.Ground Support and Logistics: Cargo airlines work closely with ground handling agents, logistics providers,
and customs authorities to ensure smooth operations. Ground handling agents assist in aircraft servicing,
fueling, loading, and unloading cargo. Logistics providers help with the coordination of transportation,
warehousing, and distribution of cargo beyond the airline's network. Cargo airlines also collaborate with
customs authorities to ensure compliance with customs regulations and facilitate the clearance of cargo at
international borders.

39. 7.Charter Operations: In addition to scheduled flights, cargo airlines often provide charter services to
accommodate specific customer requirements. Charter operations involve the exclusive use of an
aircraft for a specific cargo shipment or project. These charters can be for oversized cargo, time-
sensitive shipments, humanitarian aid, or other specialized cargo transportation needs.
8.Safety and Security: Cargo airlines prioritize safety and security throughout their operations. They
adhere to stringent safety standards set by aviation regulatory bodies and continuously invest in
maintenance, training, and technology to ensure the airworthiness and reliability of their aircraft.
Security measures are in place to prevent unauthorized access to cargo and protect againstpotential
threats such as theft, terrorism, or smuggling.

40. Operations At Freight Forwarders
Freight forwarders play a crucial role in the global logistics industry by coordinating the movement of
goods from one location to another. They act as intermediaries between shippers and various
transportation providers, ensuring the smooth and efficient transportation of cargo. The operations at
freight forwarders involve several key activities, including:
1.Freight Booking: Freight forwarders receive inquiries and requests from shippers regarding the
transportation of their goods. They negotiate rates with carriers and book cargo space on ships,
airplanes, trucks, or trains, depending on the mode of transportation chosen.
2.Documentation:Freight forwarders handle the extensive paperwork and documentation required
for international shipments. This includes preparing bills of lading, commercial invoices, packing lists,
export/import licenses, customs declarations, and other necessary documents to ensure compliance
with local and international regulations.

41. 3.Customs Clearance: Freight forwarders assistshippers in navigating the complex customs clearance
process. They work closely with customs brokers to ensure that all necessary customs documentation
is completed accurately and submitted on time to facilitate the smoothmovement of goods across
borders.
4.CargoConsolidation: Freight forwarders often consolidate smaller shipments from multiple shippers
into larger containers or consignments to optimize shipping costs and improve efficiency. This involves
coordinating the collection and consolidation of goods from different sources and arranging for their
transport to the designated destinations.

42. 5.Transportation Management: Freight forwarders oversee the transportation of goods from the point of
origin to the final destination. They arrange for the pickup, transportation, and delivery of cargo using
various modes of transport, while ensuring timely and secure movement throughout the supply chain.
6.Supply Chain Visibility: Freight forwarders provide shippers with real-time visibility and tracking of their
shipments. They leverage technology and communication systems to keep shippers informed about the
status and location of their cargo, helping them plan and manage their inventory and distribution processes
effectively.
7.Insurance and Risk Management: Freight forwarders offer insurance services to protect shippers' cargo
against loss or damage during transit. They assess the risk associated with each shipment and advise
shippers on appropriate insurance coverage options.

43. 8.Freight Rate Negotiation: Freight forwarders have expertise in negotiating favorable rates with
carriers and service providers on behalf of their clients. They leverage their relationships and industry
knowledge to secure competitive pricing and favorable terms for shipping services.
9.CustomerService: Freight forwarders provide customer support and act as a point of contact for
shippers throughout the shipping process. They address any inquiries, concerns, or issues that arise,
offering proactive communication and personalized assistanceto ensure a positive customer
experience.
10.Compliance and Regulatory Knowledge: Freight forwarders stayup to date with the latest
regulations, trade agreements, and compliance requirements governing international trade. They
provide guidance to shippers regarding documentation, customs procedures, trade restrictions, and
any other legal or regulatory considerations relevant to their shipments.

44. What Is The Air cargo acceptance basic
rating principle?
The air cargo acceptance basic rating principle refers to the fundamental guideline used by airlines or
air cargo carriers to determine the rates or charges for accepting cargo shipments.
1. Weight: The weight of the cargo is a crucial factor in determining the rate. Generally, carriers have
specific weight categories or bands with corresponding rates. Heavier cargo will typically incur higher
charges due to increased fuel consumption and handling requirements.
2. Volume: The volume or size of the cargo also affects the rate calculation. Airlines mayhave
restrictions on the maximum dimensions of cargo that can be accommodatedin their aircraft. If the
cargo exceeds these limits, it may require special handling or even dedicated space, resulting in higher
rates.

45. 3.Density: The density of the cargo is calculated by dividing the weight of the cargo by its volume. It
indicates how much space the cargo occupies in relation to its weight. Higher density cargo takes up less
space and is generally more cost-effective to transport, whereas lower density cargo that occupies more
space may be charged at a higher rate.
4.Special Handling Requirements: Certain types of cargo may have unique handling requirements, such as
perishable goods, hazardous materials, or oversized shipments. These specialized handling needs can
involve additional costs and may result in higher rates.
5.Distance: The distance between the origin and destination of the cargo shipment is another important
factor. Carriers often have different rate structures based on geographic zones or regions. Longer distances
generally incur higher charges due to increased fuel consumption and transportation costs.

46. 6. Service Level: Different service levels or options maybe available, such as expedited delivery,
priority handling, or specific time-definite services. The level of service selected by the shipper can
impact the rate, with faster or more premium services typically commanding higher charges.
7. Market Demand: The current market demand for air cargo services also plays a role in the pricing.
During peak seasons or when capacity is limited, carriers may increase their rates to reflect the higher
demand or limited availability.

47. AIRWAY BILL(AWB)

48. What is an air waybill?
An air waybill, also known as a consignmentnote,
dispatch note or waybill, is a contract between the
shipper and the carrier. It provides key information
for the shipper and is also used for tracking the
shipment and contains barcodes to identify the
shipment electronically.

49. Who can issue an air waybill?
The carrier of the air shipment issues
an Air Waybill upon receiving goods
that have cleared the customs
formalities. The shipper receives it and
sends it through their bank to the
consignee, if the transaction is under a
Letter of Credit.

50. How to issue an Air Waybill?
An AWB has the following steps involved in applying and issuing:
• The carrier of the air shipment issues an Air Waybill upon receiving goods that have cleared the customs
formalities.
• The shipper receives it and sends it through their bank to the consignee, if the transaction is under a Letter
of Credit.
• When goods reach their destination, the consignee (agent) receives the shipment and collects a copy of
the Air Waybill.
Issuing an AWB was paper-intensive and required manual efforts, which made way for an e-Air Waybill (e-
AWB) in 2010 by IATA. From January 1st 2019, the electronic Air Waybill (e-AWB) has become the default
contract of carriage for air cargo shipments.

51. What is the use of an Air Waybill?
This single-page legal document holds a lot of important information that helps in both domestic as
well as international shipping. Following are the function it serves:
• An AWB acts as a contract of carriage between the shipper and the airlines
• It is a proof of shipment
• It acts as an air freight bill
• It acts as a legal document that contains information about both the parties involved
• It guides the carrier in dispatching the shipment correctly
• It also works as a customs declaration document

52. What is the format of an Air Waybill?
• The IATA (International Air Transport Association) standardizes two key formats in which an Air
Waybill can be issued:
• Airline-specificAWB
• This format contains information about name of the airline, logo, address of the headquarters and
Air Waybill number.

53. • Neutral AWB
• This format has the same format as mentioned above, without the details about airlines.
• There are 8 different color codes in which Air Waybills can be issued. Each of the colors has specific significance:
• Green: This is the original copy that remains with the carrier (issuing authority).
• Pink: This is also considered the original copy and it remains with the consignee of the shipment.
• Blue: Also considered original, this copy or an Air Waybill is given to the shipper.
• Brown: This is a duplicateof the Air Waybill thatis used as a receipt or proof of delivery in the process of
commute.
• White: This copy is also kept by the shipper and gets used for various purposes.
There is a unique 11-digit number assigned to each Air Waybill. This code is unique and indicates the information in
the following sections:
• The first three digits give informationabout the carrier
• The next seven digits are the serial number of the bill issued
• The last digit is the checksum digit which is calculated by dividing the serial-number digits by 7.

54. What are the types of Air Waybill?
• House Air Waybill (HAWB):
When the freight forwarder receives export goods from the exporter, this bill is issued by them to the
exporter. In this document, the shipper is the exporter and the consignee is the importer.

55. Master Air Waybill (MAWB)
• The air cargo goes through custom checks and once all the customs formalities are
completed and the cargo is transferred to the main carrier, Master Air Waybill is issued
to the freight forwarder. In this document, the freight forwarder is the shipper and the
person who receives the shipment before the consignee at the destination port is called
the consignee. This person then makes the final delivery.