Cargo Business and Supply Chain Course
Cargo Business and Supply Chain Course
Development
and
Supply Chain
Management
Course contents
• Human needs
• Air Freight overview
• Cargo Supply Chain
• Freight Forwarding, Customs Brokerage and Logistics
• Master Operating Plan
• Law and Regulations
• Air Cargo Management
• Air Freight Rates
• Air Cargo Handling
• Aircrafts ULD Types Aircraft Fuselage and ULD Loading
• Aircraft Bulk Loading
• Aircraft Weight and Balance
Factors behind Freight Transport Demand The future of trade - WTO Public Forum.mp4
Economy
International Spatial
Agreements Structure
Strategic
Technology
Alliances
Safety and
Packaging and
Environmental
Recycling
Policies
Source: [Link]
Factors behind Freight Transport Demand The future of trade - WTO Public Forum.mp4
Factor Rationale
General derived demand impact. Linked with the GDP. Function of the structure of the
Economy
economy in terms of resources, goods, and services.
Industrial location Effect on ton-kms and on modal choice.
Effect on ton-kms. Function of international trade structure. Containerization and
Spatial structure
intermodal transportation.
Both concerning trade and transportation. Economic specialization. Increased trans
International agreements
border traffic. Simplified custom procedures.
Decreased inventories. More shipments. Smaller line hauls. Shift to faster and more
JIT practices and warehousing
reliable modes. Use of 3rd party logistics providers.
Strategic alliances Between carriers, shippers and often producers and retailers. Lower distribution costs.
Packaging and recycling Increased transportability of products. Lower freight density. Reverse distribution.
Increased competition, level of service and lower costs. Growth of intermodal
Regulation and deregulation
transportation.
Large and volatile cost components, specifically for energy intensive modes. Preferred
Fuel costs, taxes and subsidies
mode or carrier.
Infrastructure and congestion Efficiency, operating costs and reliability.
Safety and environmental policies Operating speed, conditions and costs. Capacity and weight limits.
• Water
• Rail
• Air
• Pipeline
Highway Mode
Strengths Weaknesses
• Flexibility to pick up and • Not the fastest
deliver where and when • Not the cheapest
needed
• Often the best balance
between cost/flexibility and
delivery reliability/speed
• Can deliver straight to the
customer (increasing)
• Can be available 24/7
Water Mode
Strengths Weaknesses
• Highly cost effective for • Limited locations
bulky items • Relatively poor delivery
• Works best for high reliability/speed
weight-to-value items • Often limited operating
• Most effective when hours at docks
linked into multimodal
system
Air Mode
Strengths Weaknesses
• Quickest delivery over • Often the most
longer distances expensive, particularly
• Can be very flexible on a per Kilogram basis
when linked to highway
mode
• Works best for low
weight-to-value items
Rail Mode
Strengths Weaknesses
• Highly cost effective for • Limited locations, but
bulky items better than for water.
• Can be most effective • Better delivery
when linked into reliability/speed than
multimodal system water
Technological Breakthroughs
• Standardized containers for ease of transfer
• “Roadrailers,” etc.
• Multimodal solutions
– Ship Truck Train Truck ?
Logistics
The management of the flow of goods between the
point of origin and the point of consumption in
order to meet some requirements
1. Flow of information
2. Handling
3. Production
4. Transportation
5. Inventory
6. Packaging
7. Transportation
Handling System Modern tools which is an essential
includes: element in storage and transport
throughout the warehouse
Order Processing
Flow of Information
Warehouse
Warehouse
Print Copies
Billing Invoice
Delivery order,
Container Guarantee
Customs Brokerage
A corporation, partnership, and association must have
a licensed Customs Broker to transact Customs
Brokerage Business at the Bureau of Customs .
Contacts trucker to
Contacts OFF to pick up shipment -
arrange transport own/external
Outbound Freight company Trucker
Shipper
Forwarder
1 HA HA
1
WB WB
2 Ba Ba 2
3 3
4 HA
4
WB MAWB MAWB HA
WB
5 HA Main Hub Destination Origin Main Hub 5
WB
مركز الوكيلMAWB مطار مطار مركز الوكيل
HA
WB
6 MAWB 6
الرئيسي الوصول القيام الرئيسي
MAWB وكيل HA وكيل MAWB
7 خدمة
WB
خدمة
7
جمارك MAWB جمارك
HA HA
8 WB WB
8
Bd P9,P10, Bd
9 HA
P11,P12, HA 9
WB WB
Bf P13 Bf
10 10
P14.P15 P7.P8
P16,P17,P18,P19 P1,P2,P3,P4,P5,P6
Master Operating Plan /
FORWARDER PART
ORIGIN ACTIVITIES
FORWARDER
Master Operating Plan /
CARRIER PART
ORIGIN ACTIVITIES CARRIER
TRANSPORT ACTIVITIES
CARRIER
DESTINATION ACTIVITIES
CARRIER
Master Operating Plan /
FORWARDER PART
DESTINATION ACTIVITIES
FORWARDER
Master Operating Plan
Law
and
Regulations
• The International Civil Aviation Organization is a specialized agency of the United Nations.
It codifies the principles and techniques of international air navigation and fosters the planning
and development of international air transport to ensure safe and orderly growth. Its
headquarters are located in the Quartier International of Montreal, Quebec, Canada.
• The ICAO Council adopts standards and recommended practices concerning air navigation, its
infrastructure, flight inspection, prevention of unlawful interference, and facilitation of border-
crossing procedures for international civil aviation. ICAO defines the protocols for air accident
investigation followed by transport safety authorities in countries signatory to the Chicago
Convention on International Civil Aviation.
• The Air Navigation Commission (ANC) is the technical body within ICAO. The Commission is
composed of 19 Commissioners, nominated by the ICAO's contracting states, and appointed by
the ICAO Council.[3] Commissioners serve as independent experts, who although nominated by
their states, do not serve as state or political representatives. The development of international
Standards And Recommended Practices is done under the direction of the ANC through the
formal process of ICAO Panels. Once approved by the Commission, standards are sent to the
Council, the political body of ICAO, for consultation and coordination with the Member States
before final adoption.
• ICAO is distinct from other international air transport organizations, like the International Air
Transport Association (IATA), a trade association representing airlines; the Civil Air Navigation
Services Organization (CANSO), an organization for Air navigation service providers (ANSPs); and
the Airports Council International, a trade association of airport authorities.
IATA: International Air Transport Association
• IATA stands for International Air Transport Association. It is a private organization (trade association) promoting
cooperation among the world's scheduled airlines to ensure safe, secure, reliable and economical air services,
i.e. it offers consulting services to the airline industry.
• Around 275 airlines are associated with it. The services provided by IATA include fleet and sales planning, cargo
security, capacity management, airport operations management, aviation security, airspace planning etc.
Furthermore, it also offers revenue management and pricing, billing, financing, accounting, and currency
clearance services.
Headquarter
• It is headquartered in Montreal, Canada. It has its executive offices in Geneva Switzerland.
History
• IATA was formed in April 1945 in Havana Cuba. It was the replacement of the International Air Traffic
Association which was formed in 1919 at The Hague.
• At starting IATA has 57 airlines from 31 countries but at present time there are almost 250 airlines are
associated with it.
Goals of IATA
• 1) Safety: Safety is main priority of IATA. It provides a safety instrument called IATA Operation Safety Audit
(IOSA). It is also mandated at the state level by several countries. Aviation posts 2012 the safest year ever. In
2014, IATA set up a special panel to track aircraft in flight in real time.
• 2) Security: Security is a very important issue after the tragedy of 9/11. So, it follows a set of rules to ensure
security.
• 3) Simplifying the Business: This program was launched in 2004. This initiative was introduced to facilitate the
passengers, including electronic tickets, bar coded boarding pass, fast travel initiative and many other things.
*TACT Rules
*TACT Rates
*DGR
*LAR
*AHM
*PER
*TCR
*ULDR
*IGOM
*ICHM
*lithium Batteries Guidelines
*Infectious Substances Shipping Guidelines
• TSA : The Transportation Security Administration (TSA)
is an agency of the U.S. Department of Homeland
Security that has authority over the security of the
traveling public in the United States. It was created as a
response to the September 11, 2001 attacks.
• DFT : The Department for Transport (DfT)
is the government department responsible for the
English transport network and a limited number of
transport matters in Scotland, Wales and Northern
Ireland that have not been devolved.
• LBA : The Luftfahrt-Bundesamt (LBA, "Federal Aviation
Office")
is the national civil aviation authority of Germany
headquartered in Braunschweig.
ACC3
• ‘Air Cargo or Mail Carrier operating into the
Union from a Third Country Airport’.
• It is required by the European Union (including
Iceland, Norway and Switzerland) for carriers to
fly air cargo into or through the EU.
• By 1st July 2014, carrier stations in third countries
must have an Security Validation in order to
acquire or maintain their ACC3 designation.
• This validation needs to be reissued every five
years
EU 1082 / 2012 6-C3
VALIDATION CHECKLIST FOR ACC3
• Part 1: Identification of the entity validated and the
validator
• Part 2: Organisation and responsibilities of the ACC3 at
the airport
• Part 3: Security programme of the air carrier
• Part 4: Staff recruitment and training
• Part 5: Acceptance procedures
• Part 6: Database
• Part 7: Screening
• Part 8: High risk cargo or mail (HRCM)
• Part 9: Protection
• Part 10: Accompanying documentation
• Part 11: Compliance
RA3
• Third Country Regulated Agent
• An RA3 is a cargo-handling entity located in a
third country that is validated and approved as
such on the basis of an EU aviation security
validation
• An RA3 must ensure security controls, including
screening, are applied to all EU/EEA bound
consignments and protected from interference
• Based on the prerequisites as stated in EU
185/2010
EU 654 / 2013 6-C2
VALIDATION CHECKLIST FOR THIRD COUNTRY EU AVIATION
SECURITY VALIDATED REGULATED AGENTS RA3
• Part 1: Identification of the entity validated and the
validator
• Part 2: Organization and responsibilities of third country
EU aviation security validated regulated agent
• Part 3: Staff recruitment and training
• Part 4: Acceptance Procedures
• Part 5: Screening
• Part 6: High-Risk Cargo or Mail (HRCM)
• Part 7: Protection of secured air cargo and mail
• Part 8: Documentation
• Part 9: Transportation
• Part 10: Compliance
1 2 3 4 5
Known/Account Consignors Unknown Consignors
Security Control
Airline
Security Control
IOSA Standard Manual
IOSA : IATA operational safety audit
Vision
C2K defines quality standards for the supply chain, is improving the efficiency of
the air cargo industry, improving customer Service and reducing costs to all
participants by implementing a program of agreed business and automation
standards, which are measurable and lead to quality competitive performance.
Mission
C2K is a self funded non-profit interest group sponsored by IATA, with the mission
to create and implement a quality standard and management system for the
worldwide air cargo industry.
Cargo 2000 C2K
The three phases of Cargo 2000
Chain
Monitoring level Visual Representation
definition
Active Container
Active Container
Pacive Container
Styrofoam with inner Container Cryonic Container
Perishables Handling
Aircrafts ULD Types
Aircraft Fuselage
and
ULD Loading
Upper Deck
Main Deck
Lower Deck