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Air Cargo II:
Market Characteristics
Dr Narudh Cheramakara
MAY 2016
Volume v. Value (IATA 2015)
• What do you thinks are the products
transported by air?
Cargo Categories (2007)
• Hi-tech products 27%
• Capital equipments 19%
• Apperel, textiles and footwear 17%
• Intermediate products 12%
• Refrigerated foods 5%
Asia to Europe Cargoes
Europe to Asia Cargoes
Why the differences?
Directional Imbalance
• Generally, developing world heading to the developed
world
• The imbalance is vast (i.e. Asia-EU is 75% more than
the EU-Asia)
• Generally Asia to US/EU: Apparels, Telecommunication
• US/EU to Asia: Machinery, Documents
• Latin America – US: Agricultural Products, similar case
to Africa – EU (Particularly Kenya flowers industry)
• Exercise: How to address the imbalance?
• Special handling items?
• What are they?
Special Handling Items
Special Handling Items: Perishables
• Large markets on the Latin America – US and
Africa – Europe
• Flowers export is a significant segment: Kenya
/ South Africa/ Ecuador/ Also Thailand (Mostly
orchids)
• Fruits/Vegs
Special Handling Items: Animal
Transports
• Racehorses (Middle East)
• Farm animals (For
Bleedings purposes)
• Zoo animals (Pandas,
Tigers, ETC.)
• Trans borders
transportation of animals
require complicated paper
works; permits, vet
certificates, quaranteen
etc.
Humanitarian Aids
• UN (World Food Programme) / UNHAS (UN
Humanitarian Air Services)
• Chartered from various operators
• Humanitarian crises (e.g. Africa)
• Natural Disasters (Bring in supplies take ppl
out)
Defence Support
• Civil Air Reserve Fleet (US) FEB 2016
• International Segment - Long Range
• · ABX Air
• · Air Transport International
• · American Airlines
• · Atlas Air
• · Delta Air Lines
• · Federal Express Airlines
• · Hawaiian Airlines
• · Kalitta Air Cargo
• · National Air Cargo Group dba National Airlines
• · Omni Air International
• · Polar Air Cargo
• · United Air Lines
• · United Parcel Service
Modal Choice
• Costs
• Delivery Time (Longer the distance, faster by
air. Short-range shipments are often faster
shipped by trucks)
• Frequencies (Higher the better)
• Security: sea-pirates v. airport heist (2013 50
million USD diamond heist at BRU)
• Quality of Service
BRU diamond heist
• https://www.iata.org/whatwedo/cargo/Docu
ments/cargo-strategy.pdf
• IATA Cargo Strategy

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Air freight course 2

  • 1. Air Cargo II: Market Characteristics Dr Narudh Cheramakara MAY 2016
  • 2. Volume v. Value (IATA 2015)
  • 3. • What do you thinks are the products transported by air?
  • 4. Cargo Categories (2007) • Hi-tech products 27% • Capital equipments 19% • Apperel, textiles and footwear 17% • Intermediate products 12% • Refrigerated foods 5%
  • 5. Asia to Europe Cargoes
  • 6. Europe to Asia Cargoes Why the differences?
  • 7. Directional Imbalance • Generally, developing world heading to the developed world • The imbalance is vast (i.e. Asia-EU is 75% more than the EU-Asia) • Generally Asia to US/EU: Apparels, Telecommunication • US/EU to Asia: Machinery, Documents • Latin America – US: Agricultural Products, similar case to Africa – EU (Particularly Kenya flowers industry) • Exercise: How to address the imbalance?
  • 8. • Special handling items? • What are they?
  • 10. Special Handling Items: Perishables • Large markets on the Latin America – US and Africa – Europe • Flowers export is a significant segment: Kenya / South Africa/ Ecuador/ Also Thailand (Mostly orchids) • Fruits/Vegs
  • 11. Special Handling Items: Animal Transports • Racehorses (Middle East) • Farm animals (For Bleedings purposes) • Zoo animals (Pandas, Tigers, ETC.) • Trans borders transportation of animals require complicated paper works; permits, vet certificates, quaranteen etc.
  • 12. Humanitarian Aids • UN (World Food Programme) / UNHAS (UN Humanitarian Air Services) • Chartered from various operators • Humanitarian crises (e.g. Africa) • Natural Disasters (Bring in supplies take ppl out)
  • 13. Defence Support • Civil Air Reserve Fleet (US) FEB 2016 • International Segment - Long Range • · ABX Air • · Air Transport International • · American Airlines • · Atlas Air • · Delta Air Lines • · Federal Express Airlines • · Hawaiian Airlines • · Kalitta Air Cargo • · National Air Cargo Group dba National Airlines • · Omni Air International • · Polar Air Cargo • · United Air Lines • · United Parcel Service
  • 14. Modal Choice • Costs • Delivery Time (Longer the distance, faster by air. Short-range shipments are often faster shipped by trucks) • Frequencies (Higher the better) • Security: sea-pirates v. airport heist (2013 50 million USD diamond heist at BRU) • Quality of Service