Each cargo manifest 5. Book a flight

Each international air shipping process has
the following 3 main documental/operational key points that should be
performed.

 

1.     
Outgoing handling

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2.     
Air Transport

3.     
Incoming handling

 

 

1.     
Outgoing handling

Let us review which steps should be applied
if goods are being exported:

 

1.     
Cargo is picked up and a POA is
issued (Proof of Acceptance)

2.     
Cargo is checked, sorted, labeled
and packed according to flight schedule

3.     
Prepare security and customs
declaration and proceed for customs inspection

4.     
Consolidate all air waybills in
one cargo manifest

5.     
Book a flight through the
airline and inform consignee’s forwarder of the incoming shipment

 

2.     
Air Transport

 

There are certain steps to be carried out
while transporting the goods by airplane.

 

1.     
Warehouse procedure for storage
shipment based on the current bookings

2.     
Check goods and documents

3.     
Prepare loading units according
to shipper’s instruction and airport’s rules

4.     
Load onto aircraft by using
ramp loading/transport devices

5.     
Unload from aircraft by using
ramp loading/transport devices

6.     
Breakdown loading units
according to the air waybill (AWB)

7.     
Check incoming cargo against
AWB and cargo manifest

8.     
Arrange warehouse storage and
clear  the manifest

9.     
Dispatch goods through courier
service, trucking company or integrator

 

3.     
Incoming handling

 

Getting cargo by air transportation is
considered as a fastest method to transfer packages. There are the following
steps taken to ensure on-time delivery:

 

1.     
Receiving documents once
notified by the airline and arranging pickup of the docs at the airport

2.     
Transmitting import customs
declaration, proceeding with clearance and getting the customs release note

3.     
Schedule local pick up of the
shipment at the airport

4.     
Arrange release to consignee
with accompanying documentation and obtain Proof of Delivery.

 

 

 

 

3.2 Airports

Although airports have been changing a little in their function over
the last ten years, industrial related-uses remain the majority of North
American airport’s non-passenger-related activity. While every airport is
different in terms of their local economy and infrastructure, this part of the
study explains some common characteristics and movements in today’s Canadian
airports.

 

 

3.2.1       
Airport Categories

 

The airports can be divided in four classes – national, regional,
local, and basic—based on their existing activity levels:

• National – Supports the federal and provincial system by providing
communities with access to national and international markets.

• Regional – Supports regional economies by connecting communities on
interprovincial level.

• Local – Supplements local communities by providing access
primarily to provincial markets.

• Basic – Supports general aviation activities such as emergency
service, charter or cargo operations, flight training, and personal flying.

While airports vary in size and shape across the world, they can be
divided into three categories in commercial aviation: origin/destination (O/D),
hub, and O/D with hub function airports. However, this separation does not
reflect the full picture, since airports have to pass various evolutionary
stages or development phases between being one of those two kinds of airports.

Origin-destination airports

The role of O/D airports is mainly defined as to act as the gateway
to their area, offering an acceptable point of entrance for cargo and travelers
and a reliable point of departure for local shipments and people on their way
abroad. O/D airports always need a certain traffic demand to allow for
efficient and profitable operations. Connection traffic is not so important for
these airports. Consequently, their infrastructure does not provide specific
transfer facilities, and the national carrier has not established coordinated
flight arrivals and departures to facilitate passenger itineraries. O/D
airports are the fundament of any point-to-point air transport. Their focus is
not to provide the more complex transfer operations, which are to a certain
extent independent from the airport’s location.

Timmins could be considered as small O/D airport covering some area
in the radius of 500…700 km.

 

 

 

Hub airports

Airports with strategic economic locations for shipments are
considered cargo hub airports. The Thunder Bay and Hamilton International
Airports for example are hub airports, as the airports serves as a specialized distribution
centres for cargo movement out of Western and Southern Ontario.

 

Origin-destination airports with hub function

International airports with global flight networks are categorized
as O/D airports with hub function. Typically, origin-destination-hub airports
are important distribution centres to which passengers and goods originate or
are travelling to. Airports such as Vancouver International and Pearson
International in Toronto are examples of origin-destination-hub airports, as
they locate in the areas that possess a large population of customers, a
substantial industrial and distribution base, and a financial sector which
relies on the airport for service. Origin-destination-hub airports usually classified
as “international” gateway airports.

 

 

3.2.2 Integrators and
Freight Forwarders

Airports are vital parts in the regional and global supply chain
process, which allow increasing and facilitating cargo delivery from market to
market. Shipping by air is used for products that are perishable, high value,
time sensitive, etc. Generally, such cargo has a higher transportation cost
compared to other methods. Air cargo is used regularly for the delivery of
emergency parts in mining industry where on-site inventories of industrial parts
are low. Other products such as perishable food and temperature-controlled vaccines
also rely on air cargo aircraft to be delivered on a tight schedule. E-commerce
and online shops have further generated new opportunities for the cargo aviation
industry, including a wider range of goods being shipped by air such as
electronics, sporting equipment, clothing and other consumer products to be
delivered “just-in-time”.

There are two main types of supply chains in air-freight logistics
today – Integrated and Freight Forwarding. Let us review them.

 

The Integrated Approach: Delivery from Manufacturer to Consumer

In an integrated supply chain procedure, a sole company (named
“integrator”) is responsible for the product shipment, starting from the
shipper and through to the customer. The growth of firms such as Purolator, UPS
and DHL and their steadily complex air cargo supply chain schemes are examples
of such an approach. The integrators have compound logistics patterns, ensuring
a single entity is responsible for the shipment from pick-up through to
delivery using internal means of transportation: cars, trucks, aircraft.

 

The Dispatch Approach: Market to market shipping

In a freight forwarding process, the functions of some market
players such as courier companies and 3PL are deeply integrated in the movement
of goods. Generally, a freight forwarder set up the pick-up, customs processing,
warehousing, consolidation/deconsolidation and delivery of the shipment using local
trucking companies and other freight operators. Air shipment in this case, is just
first part of the supply chain process. The dispatch approach can ship cargo in
two ways: through a freight operator (i.e. Cargojet), which operates solely with
freight and have their own fleet of cargo aircrafts; and combination carriers
(i.e. Lufthansa) which carry shipments on cargo airplanes or in the belly of
passenger aircraft.

 

Figure 5

Historically, integrated carriers focused on the movement of post
items and small packages. However, the movement of mail has been decreasing
over time. Now, integrators can process almost any shipment and freight
forwarders can offer some services that were previously only available from
integrated carriers.

 

General Aviation Airports: A National Asset,
Federal Aviation Administration, May 2012.

 

 

Economic advantages of Airfreight

Air cargo transport enables nations, regardless of their geographic
location, to efficiently connect to distant markets and global
supply chains in a speedy and reliable manner. This is vital for implementing
best international business practices, including just-in-time inventory
management and build-to-order production.

Air cargo services are a tremendous enabler for economic
progress in developing countries, since they connect markets
across continents. High value electrical components and perishable products
such as food and flowers are transported all over the world, providing
steady employment and sustainable economic growth to regions that
benefit from such trade.

Air transport plays a pivotal role for Small Island Developing
States (SIDS), Landlocked Developing Countries (LLDCs) and Least Developed Countries (LDCs),
allowing them to overcome infrequent boat services or poor infrastructure for ground transportation.
Air cargo service routes are regarded as regional lifelines for
these areas.

Aviation’s speed and reliability are also a key factor in the
delivery of urgently needed assistance during emergencies caused by
natural disasters, famines and wars. Air drops are among the first
responses of aid agencies to stem humanitarian crises. Air cargo also plays
a vital role in the rapid delivery of medical supplies and organs
for transplantations worldwide. According to the Air Transport Action Group (ATAG), the largest
economic benefit of increased air cargo connectivity lies in its impact on the
longterm performance of the wider economy through enhancement of the
overall level of productivity. It opens up new markets, boosts
exports and at the same time increases competition and choice in the home
market from foreign-based producers.

3.2.3  The Airport – Tenant Relationship

In its roles as public land owner, the airport has a vested interest
in ensuring that assets are put to their optimal use while balancing
environmental considerations. Throughout this juggling act, airport operators
must respect both the long-term perspective of the Airport Master Business Plan
and the users’ more immediate needs and expectations of fair treatment. Airport
operators must determine whether they desire to lease directly to the airlines
and other cargo users, or to introduce a developer into the airport’s
development process. Ultimately, airports must consider all options when
formulating the planning, construction, marketing and operations of cargo and
its related businesses.

Today, airlines come in a broad range of operational configurations.
Air transport of cargo typically occurs in one (or more) of four ways: the
belly of passenger aircraft, in combi-aircraft, via integrated carriers, or in
all-cargo aircraft. In developing its physical infrastructure, airport
management must evaluate the needs of each type of cargo operator. The ability
to attract and maintain cargo operations is directly related to an airport’s
ability to address individual airline requirements with planning flexibility
and financial responsiveness.

Despite extraordinary market share gains by integrated carriers,
freight forwarders continue to be critical for effective goods movement by air
– especially for international transport. While the relationships between
forwarders and airlines have been notably strained at times, there is still an
obvious interdependence acknowledged by both parties. While freight forwarders
historically have been perceived as little more than a travel agent for
freight, many of today’s more sophisticated forwarding companies operate vast
trucking fleets, and a few command scheduled charter flights with cargo airline
partners. Although many forwarders may choose to locate on less expensive
property off-airport, recent security concerns have elevated the perceived
value of an on-airport operation. While some forwarders are wholly
niche-oriented, even the largest companies have departments dedicated to
specific geographic areas or industries, including dedicated computer,
pharmaceutical, chemical and automotive divisions.

While forwarders serve exporters, customs brokers cater to the needs
of importers. Many freight forwarders and integrators may include customs
brokerage functions; it is also common for these industries to have agency
agreements with independent brokers. For both forwarders and brokers, success
is increasingly dependent on their ability to integrate their own systems with
those of shippers, carriers, forwarders, and federal inspection agencies
worldwide. Recognizing that rapid clearance of goods is among their most
critical functions, brokers play a crucial role in the cargo delivery chain.
While electronic tracking and clearance systems have reduced the need for
brokers to physically maintain offices on the airport premises, frequent
complications suggest that proximity to the airport and federal customs is desirable.