Freight Air Transport in the UK industry consists of Other international scheduled cargo transport, scheduled eu cargo transport, other international non-scheduled cargo transport. Agra cori is the organization who used to offer different operate flight service. This report highlights the market analysis so that on the basis of the same the organization can make different long term policy in the organization. As organization is not having any sort of specified cargo service providing facility.
Cargo is generally means a conveying of different good produced in a way that it used to provide commercial gain for the organization. Cargo has variety of the different forms such as Water, Air or Land. In the starting stage cargo was generally a shipload but as time has evolved forms of cargo has also changes the face in the way of rail, vain, truck or inter modal container (Sales, 2016).
Looking at the cargo industry of the UK, it can be easily interpreted that cargo industry is the back born of the UK economy. As this industry used to contribute very positively in the economy. This market used to open up a good sort of the employment opportunity to the employee in the market. Looking at the total size of the market, it has been seen that size of cargo market, it can be said that Air cargo is the biggest market out of all the other cargo market as the stats shows that. Air cargo in the UK has handle 2.6m mt volume of the international freight. This is very good number for the UK. Looking at the Market size of the Air cargo industry it has been find out that Air cargo industry is of £879m. There are 249 business which used to operate in the Air transport industry of the UK and used to provide 3000 employee, employment. Looking at the competition which is offered by the industry, it can be said that it is highly competitive industry. Some of the biggest competitor of are DHL Air Limited, British Airways plc, Virgin Atlantic Airways Ltd and Uniserve (Air Freight) Limited. There are many different type of the product which is offered by the different competitor in the market. Some of the product of the industry are Global cargo transport, EU cargo transport, Non schedule cargo transport, Domestic cargo transport and Domestic & International mail.
Looking at the history of Air Cargo industry, it can be said that industry has mainly seen the growth from the mid of 1970's, as this was the year, when they were free to operate outside the bilateral agreement in the UK (Thalmann. 2017). In the recent times this industry has seen the good amount of the setbacks, big reason behind the same is the Brexit policy in the nation, This has eventually brought the good amount of the restriction on different transportation activity of an organization. Looking at the another aspect of the same is that it has open up the market for many other business also into the business, as it is required for almost all the organization to work from the scrap once again to defend different challenges related to the brexit.
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Air cargo handling operational procedure, is lengthy but on of the secure procedure as compare to the other cargo. Operational process of Air cargo handling is as follows:
- Documentation: This is the initial stage, variety of document are require such as Invoice, Mawb, Hawb, Manifest, COO and packaging list. This step has evolved very frequently in last decade or so due to the increment of digital platform in the organization.
- Packaging: It is the second step in which the packaging of the product are check on the basis of Stability, Possibilities for manipulating, overhang and dimension. Also packaging material quality are also checked. This process has also evolved in the past. As in the starting it was done manually but now it has gone toward good sort of automation in the nation.
- Pick Up: In this step after signing the shipment slip driver used to pickup the package, Drive in return also used to provide name, registration number of vehicle, date and time (Boonekamp and Burghouwt. 2017).
- Export Warehouse: It is the step where warehouse staff used to check outer packaging, Dangerous good requirement, outer dimension and Gross weight. Also, screening of the consignment used to take place.
- Dangerous good declaration: After that authorized authority used to check that the product which is being drawn into the contingent is are not classified under dangerous good category.
- Floor Board tolerance: The amount of weight applied on square meter of space on the freight on aircraft. The amount of chocks mentioned on one chocks is the method of calculation.
Going through the process the thing which has evolved is the usage of different technology in the process of carrying out different operation of the firm. This has eventually helped the company in improving the level of efficiency of operational process for the company.
Supply chain of Air freight organization
Supply chain of past shows that organization has to go through the different process to deliver the cargo to the end consumer in the market. Full description of this supply chain is shown in the Image number one. Image number two used ti shown the supply chain of the Air Cargo company in current scenario or in the future. As Digital technology has brought good amount of the changes in the supply chain of Air cargo company.
There are many different type of the changes has been also brought to the cargo industry of the UK. One of such example is Development of UAV in the freight industry. UAV was the innovative product which is developed by DLR, this will help in delivering the various cargoes weighting up to one ton. Another innovative thing which is brought in the market is used of drone in regular cargo carriage.
Different Laws and regulation
There are many different type of regulation through which organization has to compile the operation of the business in a long run. Some of the regulation regarding different aspect of Air cargo organization are as follows:
- Security training: IATA used to set up the different regulation regarding security of Air carrier in the nation. Aviation and transportation Security Act ATSA, is first such type of regulation. This act used to contain very basic provision regarding cargo screening, inspection and different sort of security measure in an organization (Baxter, Srisaeng and Wild, 2018). Transportation Security Administration used to relied known shipper concept which used to restrict the organization to ship different product from unknown sources of an aircraft. National Intelligence Reform Act of 2004 is another act which looks at provision establishing a pilot program for evaluating the development.
- Dangerous goods training: CAA are the regulator who used to make different laws and legislation regarding Dangerous good transportation in the nation. Supplier of the dangerous product require to have a label of hazardous product and chemical on the dangerous product of the company. Also it is bind by the law to every manufacturer to promote the instruction through which user can use the dangerous product in the nation. Principle which used to govern the classification of different type of labeling supply in the nation is the Hazard Information and Packaging for Supply, Regulations 2009 (the 4 rules). Current situation shows that CAA used to receive around 600 dangerous good incidents report in a year.
- Custom: Custom is generally the charge which has to paid by the exporter and importer and collected by the government of the respectively industry in the market. Custom duties are the HS code specific. Duties rates in the market generally used to range between 0 to 14 percent (Morganti and Browne. 2018). The Taxation (Cross-border Trade) Act 2018 (Appointed Day No. 7 and Transitory Provisions) (EU Exit) Regulations 2020 · 2020 No. 97 (C. 10) used to govern the different sort of the custom duty in the nation.
- Loading of freight: There are many different regulator who used to govern the Loading of freight on the cargo. Generally this regulator has make different regulation about the weight of the product can be loaded and also different packaging of the organization is compiling with the different laws and regulation or not before loading of different product on the cargo.
Specialized handling element
- Dangerous product: All the organization has to take variety of different security measure before transporting of dangerous product in the nation. Organization has to make sure that they are checking that there is proper labeling and guiding instruction are prescribed on all the dangerous product. Also, there are many different precautions which are also taken by internal staff, such as wear protective equipment, and metropolitan fire departments often have a response team specifically trained to deal with accidents and spills. For example Not having label on the Dangerous product will eventually create the situation in the organization in which they will feel difficult to segregate different product accordingly.
- Pharmacy: In the case of transporting the pharmacy for the organization, company has to make sure that temperature is the biggest factor which need to be consider. This eventually means that the cold chain supply of the organization is never be brokered by the organization. Transportation company has to make sure that they used to maintain 55 to 77 degree Fahrenheit to ensure good amount of product stability in the nation (Mangan. 2019). To handle the Pharmacy product organization has to look at the packaging of the pharmacy product in the market. For example: Keeping pharmacy in cold chain will help the company in enhancing level of efficiency in the long run.
- Live stock: In the case of livestock transportation, thing which has to be consider by the shipment organization, is that they have to make sure that they are checking the health of the different animal. Also, they have to make sure that transportation of different live stock by the organization is done by considering variety of the different paper in regards of the ownership of the live stock (Chandra. and van Hillegersberg. 2019).
- Perishable good: At the time of transportation of different perishable good in the nation, organization has to make sure about the packaging status of the different perishable product in the market. As this type of the goods can be impacted by many different factor.
After going through the report it has been concluded that Air cargo is the biggest cargo industry market. As it used to see larger number of the consumer in the market, as compare to the other cargo industry firm. After that the report conclude that there is huge change in the operational procedure of the past supply chain of Air transport industry and future Air transport industry. Reason behind the same is identified that occurrence of different digital technology in the nation. After that the report concludes that there are many different type of regulation attached with the current and future regulation. In the end the report concludes the different precautions which are taken by the organized at the time of handling different type of specialized cargo element in the organization. As there are many different type of cargo which has to be managed by the organization.
- Sales. M.. 2016. Air Cargo Management: Air Freight and the Global Supply Chain. Taylor & Francis.
- Thalmann. P.. 2017. The dynamics of freight transport development: a UK and Swiss comparison. Routledge.
- Mangan. J. and McKinnon. A.. 2019. Review of trends in manufacturing and global supply chains. and their impact on UK freight. Future of Mobility.
- Boonekamp. T. and Burghouwt. G.. 2017. Measuring connectivity in the air freight industry. Journal of Air Transport Management. 61. pp.81-94.
- Sales. M.. 2016. The viability of air freight. In Air Cargo Management (pp. 38-45). Routledge.