OPERATIONS INVOLVED IN AIR CARGO
RAJIV BABU CHINTALA
IMPORTANCE OF AIR CARGO INDUSTRY
The Air Cargo Industry acts as an engine of
growth for the air transport sector and economic
growth. Aircraft carry 2% of international trade
by volume, but 40% by value.
Growth of Air Cargo industry is directly related to
Vital to development of Global Economy.
Key to on-going success of Globalization.
GROWTH OF AIR CARGO INDUSTRY
De-regulation and liberalization of air Transport
Global interdependence helped by world trade
agreements (thru WTO) or increasing regional
accords such as EU, NAFTA, ASEAN, etc.
International production and sales of goods and
New inventory management concepts such as
“Just-in-Time” and “Zero” stocks.
Since 1970, The Air Cargo market has doubled in volume
over ten years and is expected to continue growing at an
average annual rate of 6.5 per cent over the next two
decades. Boeing forecasts that 60 million tones of cargo will
be transported by air in the year 2017, thus tripling 1977
The past trends show that cargo traffic growing faster than
passenger traffic. Within the cargo traffic, the international
component increasing faster than the domestic
According to ICAO “Outlook for Air transport to the Year
2015”, the international cargo traffic likely to increase by
5.8 per cent per annum.
In the past, the growth in air cargo had been faster than the
growth in passenger traffic. The trend has changed. In recent
years Passenger traffic, both international and domestic
increasing at a higher rate than the Cargo traffic.
According to AAI forecasts, the Passenger traffic is likely to
increase by 18.8 per cent per annum during the Eleventh Five
Year Plan (2007 to 2012), where as, Cargo traffic is likely to
grow only by 11.4 per cent.
International Cargo Traffic likely to
grow at the rate of 9.8 per cent while
the Domestic Cargo Traffic expected to increase by 8.4
STEPS INVOLVED IN AIR CARGO
Source of Cargo
Shipper (or Consignor) – the one who requests service in transporting
the cargo (source node of the supply chain)
Freight forwarder (or forwarder) –the forwarder typically arranges for
the transportation of cargo from the shipper’s warehouse, delivers (or
has a contractor deliver) it to the departing airport, prepares the
necessary paperwork, picks up at the arriving airport, and delivers (or
contracts for the delivery) to the consignee.
Carrier – The firm who provides the air delivery of cargo from the origin
airport to the destination airport. There are primarily two classes of
carriers: cargo carriers that primarily carry cargo and freight (e.g.
FedEx, DHL), and combination carriers that carry both passengers
and cargo that is stored in the bellies of aircraft (e.g. Korean Air,
Ground Handler – An agent at an airport that physically handles the
freight; this usually refers to whenever freight is
loaded, unloaded, transferred, stored, retrieved,
broken down, or consolidated.
Consignee – The receiving party that the
goods are sent to (sink node of the supply chain).
I) Transshipment of cargo from a
gateway airport to an inland airport
Import the cargo
File application and avail for transshipment permit.
Transport to transshipment warehouse of the domestic
carrier under the Customs preventive escort.
Acknowledgement of goods by the customs officer
Execution of bond with the domestic carrier
Preparation of EGMs by domestic carrier on receipt of
Copies of EGMs sent to customs at the destination
Checking at the destination airport with reference to
ii) Transshipment of cargo received at an
airport in India from an airport abroad to an
Receipt of cargo to be transshipped at an airport
Storage of transshipment cargo under Customs
supervision by the concerned airline
Cargo transfer manifest is required to be presented
in triplicate to the Customs.
Loading of cargo in the aircraft is undertaken under
the Customs supervision
iii) Movement of export cargo from an inland airport to an
airport abroad through an Intermediate airport in India
Filing shipping bills
Assessment of goods at the domestic airport
Safety Assurance by furnishing bonds at domestic airport
The domestic carrier is to carry cargo only under E.G.M. duly certified by
At the gateway airport, transportation of the cargo received to the
The domestic carrier presents the EGM copies to the officer in-charge of
Storage of goods in transshipment warehouse
Filing cargo transfer manifest to the Customs by the domestic carrier
Transportation of goods in closed trucks under Customs supervision to
the warehouse of foreign airlines
Reconciliation of records by officer in-charge on the basis of EGM
Endorsement evidencing receipt of cargo and subsequent export on the
copies of EGM brought by domestic carrier from the originating airport
Air Freight- Services and Pricing
Deferred (3-5 business days)
Door to Airport
Door to Door
ASSOCIATIONS OF AIR CARGO
Ministry Of Civil Aviation