ASSIGNMENT -3 (Classroom Activity)- 09 Nov 2020

Air Logistics ID-105614

INSTRUCTIONS

1. Read the article and answer the questions given against each article.
2. Class room activity, should be submitted by 02:45 PM on LMS. No submission
would be accepted after the due time.
3. Total marks 04 to be added against Assignment-3

NAME : wahaj hafeez

SID :61578

Answer #01

As COVID 19 was making its destruction over whole globe thousands of casualties were
taking place the economy and trends of buying changed ,during the lock down people
where home locked and they where un-able to just go outside and shop, from that time
there is an emergency in Ecommerce business.

As people always want their commodity to reach on time the air freight service is also in
mood of emergency, Air transport being very costly way to transportation but air transport
has played a very vital role either it is perishables, chemicals, valuables ,B2B or B2C the
demand is climbing day by day ,as sales increased it opened the gate way for3pl logistics
services which provided the whole set of thing under one roof either its warehousing mode
of transportation and much more .

Whenever there is an emergency the giants of that particular industry show up and make
the situation in their favor likewise the leading player Amazon did and provided list of
services to their customer.

If we see around the globe North America is fastest growing market and Asian pacific is
sharing the largest share North America registered significant growth rates in 2018. In terms
of freight-ton-kilometer (FTK), North America grew by 6.4% in 2018, when compared to
2017, followed by Latin America (5.9%), which is significantly higher than the global average
(3.5%).

The industry of air freight is dominated regionally by some players such as FedEx
Corporation, has a footprint and air cargo hubs in major gateways. Additionally, the
company acquired regional express players to further increase its service range

In order to go cost sufficient the companies have to implement fuel efficient solutions,
adopt new technologies, good storage facilities, Special economic zones (SEZ), free trade
zones (FTZ), and the bonded warehouses are keen to handle inbound and outbound logistic
services

Answer#02

As we know air transportation only share of world trade in goods is only 2% measured by
weight but more than 40% by value. For international operations, freight can account for
45% of the revenue of a regular airline. If we elaborate and look into the key factors the air
cargo industry it is time sensitive as because of perishable items and time bound to
production and distribution on a lower level. A niche market also exist which covers the fast
delivery process but it may cost more than the normal one.

The five services operation

Dedicated cargo operators:

Dedicated Cargo’ airlines operate on a very different business model from that of their
passenger counterparts. Outside of the higher priced ‘integrated’ cargo airlines like FedEx,
UPS and DHL, most freighter operators transport general cargo with very little pricing power

Combination services 

These carriers have aircraft for both passengers and cargo. Some familiar combination
carriers are airlines Emirates and Lufthansa.

Passenger operators

There are the companies that transport people from one place to another. Examples would
be Delta, American Airlines, or Southwest.

Even though they are designed and intended to move people, they will offer space for sale
in the luggage compartment. There tend to be weight and space limits for cargo travelling
this way. However, this option is a convenient one thanks to the many destinations and
volume of flights

Air freight integrators 

Often one of the challenges of air cargo is getting the shipment to and from the airport. This
is where integrated carriers come in handy. These carriers will transport the shipment from
the door of the pickup location to the door of the drop off location.

Specialized operators 

These planes carry all kinds of cargo but do not transport people. Because of this, there are
fewer restrictions when it comes to weight and size of the shipments.
It is common practices by the airlines as they convert old wide body aircraft into cargo
aircrafts. The overall cost is low, pilots are available easily, and parts are available. Air freight
industry have changed the dilemma as you can get whatever you need even it is off season
for that commodity such as fresh produce grown on the southern hemisphere available in
the northern hemisphere during winter, or merchandise purchased online and shipped
promptly by air transport or a computer manufacturer depending on the global shipment of
various components in the manufacturing and assembly processes. As we can now predict
that time base competition has ensure us that air cargo have good future for air transport
industry