AIR AND SMALL

PACKAGE
Third Assignment: 5004 Transportation

High Speed
Quick Service
No Infrastructure Investment
Easy Access
No Physical Barrier
Natural Route
National Defence

AIR FREIGHT: ADVANTAGES OF THE

MODE

Risky
Very costly
Small carrying capacity
Unreliable

Huge investment

AIR FREIGHT: DISADVANTAGES OF

THE MODE

Wide-body jets, narrow-body jets, feeder aircraft are different types of

cargo aircrafts.

ULD (Unit Load Device) Is a pallet or container used to load luggage,

freight, specially designed to fit the belly hold of a jet plane.

The loading of ULDs involves rolling in the container. Number of loaded

containers depends on aircraft size.

ULDs come in two forms: pallets & containers. Pallets are rugged
sheets of aluminium with rims designed to lock onto cargo net lugs.
Containers also known as cans and pods, are closed containers made
of aluminium or combination of aluminium (frame)and Lexan (walls),
which, depending on the nature of the goods to be transported, may
have built-in refrigeration units.

AIR CRAFT CONFIGURATION: TYPES

OF EQUIPMENT

Air freight services vary in relation to weight, size, and type of

package or cargo.
Household goods and organization category have the simplest
and most common type of air cargo service.
There is a support class category that consists of
transportation of things that require overnight delivery by air
freight.
Air cargo services also deals with parcel or ground shipment.
Air freight services also provides integrated cargo services in
combination with other modes of transport.

AIR FREIGHT: DIFFERENT TYPES OF

SERVICES

Chicago convention, Warsaw convention, Montreal convention

provides main regulations on air freight.
IATA (International Air Transport Association)provides
SignificantChanges and Amendments to theDangerous Goods
Regulations.
In addition, specific country related regulations also play
important role in air transport.

AIR FREIGHT: MAIN REGULATIONS

Air freight rates generally range from $1.50$4.50 per

kilogram.
In air transport, prices are calculated basing on the
weight/volume ratio.
1kg = 6000 cubic cm (1:6000)
= 366 cubic inches. (1 lb. = 166 cubic inches)

Including ground handling charges, and fuel surcharge, rates and

pricing varies with different service providers like Federal
express, UPS, Cathay pacific etc.

AIR FREIGHT: RATES, PRICING,

DENSITY

House air-way bill is a necessary documentation in air freight and these are
some of the good packaging requirements.

Use a rigid box with flaps intact

Remove any labels,hazardous materials indicators,and other previous

shipment markings on the box that are no longer applicable

Wrap allitems separately

Use adequate cushioning material

Use strong tape designed for shipping

Do not use string or paper over-wrap

Use a single address label that has clear, complete delivery and return
information

Place a duplicate address label inside the package

AIR FREIGHT: DOCUMENTATION AND

PACKAGING REQUIREMENTS

These are part of Chicago convention and they include transit

rights and traffic rights.
Freedo

Description

m
1st

the right to fly over a foreign country without landing

2nd

the right to refuel or carry out maintenance in a foreign country without embarking or disembarking passengers or cargo

3rd

the right to fly from one's own country to another

4th

the right to fly from another country to one's own

5th

the right to fly between two foreign countries on a flight originating or ending in one's own country

6th

the right to fly from a foreign country to another while stopping in one's own country for non-technical reasons

7th

the right to fly between two foreign countries while not offering flights to one's own country

8th

the right to fly inside a foreign country, continuing to one's own country

FREEDOMS OF THE AIR FREIGHT

9th

the right to fly inside a foreign country without continuing to one's own country

The Air Navigation System (ANS) Plan describes short-term and

medium-term initiatives aimed at meeting customers
requirements.

The ANS Plan can be explained in following sections:

Performance Based Navigation(PBN)

Communications
Surveillance
Air Traffic Management (ATM)
Aeronautical Information Management (AIM)
Aviation Weather

AIR NAVIGATION SYSTEM

Because fuel consumption is roughly proportional to the

aircraft weight and the distance flown, the marginal cost for
carrying cargo is computed based on weight and destination.
In the short run, higher fuel prices are expected to result in
slower growth of air cargo traffic or even in a possible
downturn. Over the longer run, traffic should continue to grow,
but air freight will increasingly be integrated into multimodal
supply chains that provide a better balance between cost and
time.

AIR FREIGHT: FUEL COST

A unit load device (ULD) is a pallet or container used to load

luggage, freight, and mail on wide-body aircraft and specific
narrow-body aircraft.
It allows a large quantity of cargo to be bundled into a single
unit. Since this leads to fewer units to load, it saves ground
crews time and effort and helps prevent delayed flights.
Each ULD has its own packing list so that its contents can be
tracked.
ULDs come in two forms: pallets and containers.

AIR FREIGHT: ULD

A freight forwarder offering a consolidation service, will issue

its own air waybill or bill of lading.
These act as contracts of carriage between the shipper and
the forwarder, who in this case becomes a Deemed Carrier.
The forwarder in turn enters into contracts with one or more
carriers, often using more than one mode of transportation.
A House Air Waybill (HAWB) or Bill of Lading (HBL) could act as
a multimodal transport document.

AIR FREIGHT: BILL OF LADING

Derivatives of non-cargo aircraft, Dedicated civilian cargo aircraft, Joint

civil-military cargo aircraft are different types of cargo aircrafts.

Early air mail and airlift logistics aircraft, Civilian cargo/freight aircraft,
Light aircraft, Military cargo aircraft are some of the examples.

As said earlier, Unit Load Device (ULD) is container used in air freight
and of two forms, pallets type(LD7, LD8, LD11), and container
type(LD1, LD2, LD3-45, LD6, LD8, LD11)

ULD pallets are rugged sheets of aluminium with rims designed to lock
onto cargo net lugs. ULD containers, also known as cans and pods, are
closed containers made of aluminium or combination of aluminium
(frame) and Lexan (walls), which, depending on the nature of the
goods to be transported, may have built-in refrigeration units.

AIR FREIGHT: EQUIPMENT

Post offices offer mail-related services such as acceptance and

delivery of small packages, weight depending on the
specifications of each country.

A courier is a person who delivers small packages and mostly

owned by private companies.

An unmanned aerial vehicle (UAV), commonly known as a drone

and also referred by several other names is an aircraft without a
human pilot aboard. These are also used by e-commerce
companies to deliver small packages to customers.

These three play a major role in transit and delivery of small

packages.

SMALL PACKAGE: ROLES OF POST OFFICE,

COURIERS AND OTHER PROVIDERS

Advantages are: The postage is low

Simplicity
Globalization
All the small products can be delivered (except
prohibited goods)

Disadvantages are: It is slow

There is always a delay for post to deliver the goods
Sometimes, the package may be returned or
missing during transit.

POST OFFICE: ADVANTAGES AND

DISADVANTAGES

Advantages of courier services include greater security and

greater care with your package because less people are
involved in the delivery process.
The disadvantages of courier services are higher costs and
less resources because of the smaller company size.

COURIER: ADVANTAGES AND

DISADVANTAGES

Advantages are: low cost

low risk
Operational hours
Accuracy
Deployment

Disadvantages are: limited abilities

Take over by recipient

DRONES: ADVANTAGES AND

DISADVANTAGES

Technology and resources are major equipment for small

package transport.
Types of items to transport and the geographical area to serve,
package size and content, biohazardous, chemical or
perishable items, a dependable vehicle based upon the
services offered, permits and licenses, insurance, independent
contractors, reliable method, are various equipment needed
for transit and delivery of small package.

SMALL PACKAGE: TYPES OF

EQUIPMENT

The rates in transit of small package depends upon the weight

of the package and distance of the destination from origin.
It also offers express service and registered postal/courier
services with extra cost and faster delivery.
Subtle goods which require special packaging also demands
extra rates on the special packing equipment.

SMALL PACKAGE: RATES

BOL for small package is also called way bill. A waybill is a

document issued by a carrier/post office/courier giving details
and instructions relating to the shipment of a consignment of
goods.
Typically it will show the names of the consignor and
consignee, the point of origin of the consignment, its
destination, and route.
These typically contain "conditions of contract of carriage"
terms on the back of the form. These terms cover limits to
liability and other terms and conditions.

SMALL PACKAGE: BOL

Post offices and courier services are major freight forwarders

of small packages.
They may use either persons or drones for delivery depending
on the resources and technology available with them.
Post offices are mostly owned by governments of nations and
courier services are mostly owned by the private companies.

SMALL PACKAGE: FREIGHT

FORWARDERS

Small carton boxes, envelopes, poly-ethylene covers, vacuum

sealers, shrink wrappers, strapping equipment, and package
sealers are various kinds of equipment used for small
package.

They may also use light metal containers of small size for
delivery with the help of drones.

SMALL PACKAGE : EQUIPMENT

Depending upon the size and weight of the shipment, the

container can be selected for the small packages.
Standard sized equipment is available with the carriers and
they vary from carrier to carrier.
The cost of delivery also varies depending on the type and
size of equipment chosen for packaging.

SMALL PACKAGE: CARRIER

EQUIPMENT (ULD)

The advantage of both Intermodal Transport is given by the

most efficient combination of multiple transport modes,
optimizing lead times, reducing inventory costs and keeping
the level of freight costs under control. This combination
results in increased environmental sustainability, reducing the
transportation carbon footprint.
Intermodal allows shippers to cut transportation costs without
sacrificing service. LTL is used to asses intermodal
transportation.

SMALL PACKAGE: INTERMODAL

a. Airlines: most of the airlines provide small package transport

facilities basing on their available resources.

b. Post: All post offices provide small package transport facility

with their standard and specific rates.

c. Bus: Small package transit by bus depends on the usage of the

vehicle by different carriers and service providers.

d. Courier: Now-a-days, courier is the most reliable source for small

package transit and delivery.

e. Less Than Truckload Rates LTL: weight, density, distance, base

rates, and minimums decide
the
LTL rates of different service
providers.

SMALL PACKAGE:SERVICE
PROVIDERS

A bill of lading is firstly a receipt: the carrier acknowledges

that the goods have been received for carriage. But it is also
evidence of the contract of carriage. The contract commences
at the time the freight space is booked. The subsequent issue
of the bill of lading confirms this and provides evidence of the
contract, even though it is signed by only one party: the
carrier or its agents.

A bill of lading is also a transferable document of title. Goods

can be delivered by handing over a bill of lading provided the
shipment was consigned 'to order' and all the subsequent
endorsements are in order.

SMALL PACKAGE: BILL OF LADING