Basic understanding of Air Cargo and impact due Covid-19

1. AIR CARGO LOGISTIC
MANAGEMENT-
BRIEF INSIGHT Faisal Bashir Arsalan
Saeed Faizan Haider
Hira Yasmeen
Maimoona Malik
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2. Air Cargo Logistic Management
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Introduction
• Air cargo is a highly diverse operation
• Air Cargo Operations are complex
• Regulatory requirements
• With limitations, manage all forms of consignments
including personal belongings, gifts and donations,
product samples or equipment and even live animals
• Speed and time are the two differentiating factors
• Safety and reliability

3. AIR CARGO SUPPLY CHAIN
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4. Economic Benefits
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• Tremendous enabler for economic progress in developing
countries
• Connects distant markets with speed and reliability
• Extremely pivotal for implementing best international business
practices including :-
– Just-in-time inventory management and build-to-order
production.
• Small Island Developing States (SIDS), Landlocked Developing
Countries (LLDCs) and Least Developed Countries (LDCs)
• Increased connectivity has improved the quantum of overall
productivity
across the globe

5. Present Situation
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• Hard jolt to every industry including the Aviation Industry
• Air Cargo did not get any dent
• Picked up growth during COVID-19 pandemic
• Commercial sector yet to take three years (2023) to restore its pre
COVID economic state
• Spike observed in the requirement of medicines, accessories and
medical equipment
• Need of the hour was to make rush orders on ‘TIME’
• Initial blow of deadly virus was sufficiently contained with the efficiency
of Air
Cargo
• Air Cargo turned out to be the best solution, both in terms of Speed and
Time

6. Cargo market demand ‘Rise and Fall’.
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7. Importance of Air Cargo
 Air cargo logistics industry is responsible for transporting more than
35 per cent of the value of total global trade.
 Air cargo helps to streamlines economic prosperity for almost every
country.
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Introduction to the World of Air Freight (Rise and Fall)

8. • Why has air cargo logistics become so vital around the world?
• Security
• Environment
• COVID 19 (Decline in CTKs, where the markets for air freight
contracted by 9.7 per cent)
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Introduction to the World of Air Freight (Rise and Fall)

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10. • Air transport is the driver of world trade and e-
commerce
• With passing time, requirement has only increased
• Responsible for trillion of worth trade globally
• Cargo aircrafts generate a big amount of revenue for
airlines
Aircraft Requirement, Trend and Aircraft Demand

11. • Business of building new aircraft is in demand
• The new aircraft market is worth $180–$210 billions per year
• ‘Reach’ to difficult places has also increased the demand for smaller
cargo
aircraft
• Major cargo carriers like FedEx, DHL have a major fleet of
smaller cargo aircraft in addition to bigger aircraft
Aircraft Requirement, Trend and Aircraft Demand
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12. Aircraft Requirement, Trend and Aircraft Demand
• Trends show Hub and spoke concept improved trade numbers (in terms
of Load
Capacity and Revenue)
• Increased demand is the result of short haul professional trips, cargo
movement ands leisure flights
• Production rate of both commercial and cargo aircraft had gone very high
before
COVID-19 pandemic

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14. COVID 19 Dilemma
• COVID-19 a truly global issue
• Downfall of cargo industry
• Questions on the future revenues of Air
Cargo
Continued 14
Steps To Recover Out Of The COVID 19 Dilemma

15. Global air cargo capacity declined 29% last week compared to last year
Continued 15
Steps To Recover Out Of The COVID 19 Dilemma

16. Steps To Recover Out Of the COVID 19 Dilemma
To introduce new processes and steps that could be taken to
the groundwork for the Cargo industry to begin to return to pre-
COVID-19 levels.
• These are slow and well organized steps as many players in the
Cargo
industry have been facing difficulties for survival
• Data driven enterprise should be implemented
• Automate physical processes and facilities
• Increase cargo inspections and cross border control protocols
• Update technological capabilities to enhance flexibility in operations

17. 
How to Develop Air Cargo Market in Pakistan?
Continued 1

18. What Can Be Done ?
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Better Logistic Management System
• Digitalization (Social Media Platforms)
• Block Chain Technology
• Vast channels of approaching
• Single platform for communication
Better Infrastructures
• Higher flexibility
• Improving safety, security, reliability and sustainability
• Increased traffic growth

19. Big Market Outreach
• High rate of export
• Product makers and suppliers can access international market together
Development Of Cargo Terminals
• Better airport layout
• Better airport design can handle up to 100,00 incoming passengers and
cargo
• Linking to intercity, suburban and metro system
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What Can Be Done ?

20. Change In Tariff Policy
• Mean tariff was decreased to 8.9% from 23.1 % in 2014.
• Increased in tariff to 11.9% in 2019
• $23 billion worth decline in exports
• Tariff Policy must be reconsidered
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What Can Be Done ?

21. Conclusion
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• Proven to be an instrumental economic enabler
• Globalization demands economic handshakes
• Enhanced Global economy
• Increased trades raised demands for cargo aircraft
• Hub and spoke concept improved trade numbers (Capacity and Revenue)
• Air Cargo’s ubiquity in natural disasters, famines and wars is unique (COVID-19
– a real
life example of global outbreak)
• Vital role during COVID19 in rapid delivery of medical supplies and critical life
saving equipment especially ventilators
• Future of air cargo is very promising despite present economic stalls across the
globe

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