latest trends in air freight.pptx

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  • 7/27/2019 Latest Trends in Air Freight.pptx

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    Latest Trends in Air

    Freight

    International and

    Domestic

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    Agenda

    Typical Air freight forwarding process

    Air Freight Market

    Top Players

    Growth Forecast

    Latest Trends

    International

    Accumulation of unexpected events

    Increasing airline consolidation

    Boost in e-freight and cargo 2000 sector

    Tightened security requirements

    Wide body aircraft

    Domestic

    Summary

    References

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    10/31/2013 3

    Cargo Collection

    DocumentChecked

    Confirmation ofshipping fees &

    shipping address

    Bill of entryprepared andsubmitted tocustoms and

    excise

    Booking oncarrier

    Pre-Advice toconsignee and

    broker

    CustomsClearance at Port

    of entry

    Air Freight

    Forwarding Process

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    International Growth Trend

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    Players

    India has 52 players

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    Expected Growth Trend

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    Domestic Growth Over The Years

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    Domestic Expected Growth Trend

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    Accumulation of unexpected events

    September 11

    The earthquake in Japan

    Revolutions in the Middle East

    The Eurozone crisis Fuel costs

    Unexpected events have wrought havoc on the airline industry in general and the air

    freight in particular. Some of the noteworthy events that agitated the air transportindustry are:

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    Increasing airline consolidation

    There is an increasing trend of airlines consolidating in the current economic

    environment.

    Air Transport Services Group Inc. is merging its Air Transport International and Capital

    Cargo International Airlines subsidiaries following the loss of its dedicated air-cargo

    business for DB Schenker, a German logistics company that bases its U.S. operations in

    Freeport, N.Y.

    Another recent merger was that of Great Wall Airlines Company with China Cargo

    Airlines in 2011

    LATAM Airlines Group formed out of LAN Airlines of Chile and TAM Airlines of Brazil in

    2010. The group is currently headquartered out of Sao Paolo, Brazil

    Continental merged into United Airlines in 2010

    List of airline mergers in the US(includes passenger and cargo):

    http://www.airlines.org/Pages/U.S.-Airline-Mergers-and-Acquisitions.aspx

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    e-freight

    e-freight aims to take the paper out of the air cargo supply chain and replace it with cheaper,

    more accurate and more reliable electronic messaging. The project is an industry-wide

    initiative involving carriers, freight forwarders, ground handlers, shippers and customsauthorities.

    Each air cargo shipment carries with it as many as 30 paper documentsenough to fill 80

    Boeing 747 freighters every year.

    E-freight engages the entire cargo supply chain to put in place standards that remove paper

    documents from the process of shipping air cargo, from origin to destination. The documents

    are replaced with the exchange of electronic data. The first phase of the project focused onbuilding an e-freight network. In 2011, the attention turned to building up e-freight volume

    over this network with a target of achieving 10% e-freight penetration on live e-freight trade

    lanes.This target was exceeded with the achievement of 11.1% efreight penetration. The

    Global Air Cargo Advisory Group (GACAG), a unified voice for the cargo industry that includes

    IATA; FIATA (International Federation of FreightForwarders Associations); TIACA (the

    International Air Cargo Association); and the Global Shippers Forum, is taking the lead in

    supporting e-freight adoption across the industry.

    In 2012, IATA is focusing on mobilizing airlines to adopt the e-Air Waybill (e-AWB), a catalyst

    for achieving e-freight.

    The IATA Board of Governors has set a 2012 target of 15% e-AWB global penetration.

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    cargo 2000

    Cargo 2000 claims itself as the Quality organization of the Air Freight industry

    VISION STATEMENT

    C2K defines quality standards for the supply chain,

    improving the efficiency of the air cargo industry, improving

    customer service and reducing costs for all participants

    through implementation of a program of agreed business

    and automation standards which are measurable and

    promote quality competitive performance.

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    Tightened security requirements

    If you're exporting consignments by airfreight, your forwarder or small-parcels operator

    will need to comply with government-regulated security requirements. Security measuresin the UK are regulated by the Aviation and Maritime Security Act 1990. This means that all

    airfreight consignments must either be screened or originate from a Department for

    Transport (DfT) accredited known consignor before being loaded onto an aircraft.

    IN the US, The Transportation Security Administration (TSA) is responsible for ensuring thesecurity of all modes of transportation, including cargo placed aboard airplanes and

    particularly focuses on passenger-carrying planes.

    TSA worked closely with Congress for more than six months to significantly strengthen

    security in air cargo through the 9/11 Bill, which was signed into law on August 3, 2007.

    100 % screening of narrow body aircraft by TSA from 2008 onwards

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    Wide body Aircraft

    %F

    leet

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    1970 1991 2003

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    Domestic

    Air cargo represents about 10% of the airline industrys revenues. As 35% of the value of

    goods traded internationally is transported by air, air cargo is a barometer of global economic

    health.

    The fortunes of the transport and logistics industry are closely connected to the economic

    cycle. When economic activity is buoyant, demand for transport and logistics services is

    equally strong. Consumer and business demand for goods and services inevitably translates

    into higher demand for transport and logistics services.

    The fortunes of the transport and logistics industry are closely connected to the economic

    cycle. When economic activity is buoyant, demand for transport and logistics services is

    equally strong. Consumer and business demand for goods and services inevitably translates

    into higher demand for transport and logistics services

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    Projected Growth Rates

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    Per Capita trips

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    Projected Air trade to GDP

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    Growth in GDP of India sets a pace for higher air cargo movement

    Government has increased ceiling for foreign direct investments (FDI) in air transport services

    Non-scheduled air-transport services:It includes operations by non-scheduled airlines, chartered carriers

    and cargo airlines. FDI of up to 74 per cent and investment of up to 100 per cent by NRIs is allowed through

    the automatic route.

    Foreign airlines cannot invest directly or indirectly in non-scheduled and chartered airlines, but they caninvest up to 74 per cent in cargo airlines in India

    Summary

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    References

    http://www.oliverwyman.com/4482.htm

    http://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-company

    http://www.iata.org/about/Documents/annual-review-2012.pdf

    http://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdf

    http://www.boeing.com/commercial/cargo/01_02.html

    www.crisilresearch.com

    www.isiemergingmarkets.com

    http://www.oliverwyman.com/4482.htmhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdfhttp://www.boeing.com/commercial/cargo/01_02.htmlhttp://www.crisilresearch.com/http://www.isiemergingmarkets.com/http://www.isiemergingmarkets.com/http://www.crisilresearch.com/http://www.boeing.com/commercial/cargo/01_02.htmlhttp://www.fta.co.uk/export/sites/fta/_galleries/downloads/logistics_report/LR12_web.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.iata.org/about/Documents/annual-review-2012.pdfhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.nglog.com/resources/blog/air-freight-industry-trends-ngl-and-cleveland-research-companyhttp://www.oliverwyman.com/4482.htm
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    Thank You !