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04_14 - Types of Airlines(TBD)
04_14 - Types of Airlines(TBD)Business Management and Finance Courses » Udemy - International Logistics & Transportation in Supply Chain. 2023-5 |
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| 04 - Air Cargo Udemy - International Logistics & Transportation in Supply Chain. 2023-5 0 00:00,210 --> 00:05,760 As we are learning about Aviation Logistics, there are different ways in which you can move your cargo 1 00:05,760 --> 00:05,970 by 2 00:05,970 --> 00:13,410 air. So the first way is moving your cargo along with the passengers in passenger airlines. As passenger 3 00:13,410 --> 00:17,430 airlines are the company that you see when you book your vacation flights. 4 00:17,520 --> 00:21,960 They are the airline such as Southwest Airlines, Turkish Airlines. 5 00:21,960 --> 00:29,250 These companies even though they exist to move people will offer the sale of space in their belly compartment 6 00:29,310 --> 00:30,240 of the aircraft. 7 00:30,450 --> 00:32,610 So these are the belly compartment of the aircraft. 8 00:32,640 --> 00:34,830 The upper deck is reserved for the passengers 9 00:34,830 --> 00:39,660 and the lower deck that is the belly is for the passenger baggage and cargo. 10 00:39,690 --> 00:45,900 But when it comes to cargo these passenger airlines have many weight restrictions and space limitations 11 00:45,990 --> 00:49,590 as half of the aircraft is only allowed for cargo. 12 00:49,620 --> 00:55,320 And it depends on the luggage as the lower deck is also occupied for luggage. 13 00:55,320 --> 00:58,710 So there are space restrictions and there are height restrictions also. 14 00:58,770 --> 01:06,480 But the passenger airlines are a convenient option due to the number of frequent flights to the destinations 15 01:06,480 --> 01:12,330 as they are so regular due to movement of passengers from one country to another almost daily. 16 01:12,330 --> 01:17,730 So this helps you to move your cargo on regular basis and also urgently. 17 01:17,730 --> 01:22,110 So from this we can say that passenger airlines also carry cargo with them. 18 01:22,110 --> 01:25,620 Don't get confused by the name passenger airlines. 19 01:25,620 --> 01:29,600 Some people may get confused that passenger airlines only carry passenger. 20 01:29,610 --> 01:30,450 This is not true. 21 01:30,510 --> 01:31,680 They even carry cargo. 22 01:31,680 --> 01:37,770 So next time when you travel by air when you are inside this aircraft just have a look what is actually 23 01:37,770 --> 01:40,470 happening outside the outside operations. 24 01:40,560 --> 01:43,950 You may see this kind of ULDs all cargo carriers. 25 01:44,130 --> 01:50,670 Now from the name you already got a slight idea which says that this carriers only allowed to carry 26 01:50,670 --> 01:51,120 cargo. 27 01:51,270 --> 01:53,880 They don't have passenger aircraft in their fleet. 28 01:54,030 --> 02:01,590 And as they are only cargo carriers they have less space and weight restrictions due to the type of 29 02:01,590 --> 02:07,260 aircraft they have in their fleet who are specialized in cargo movement and have a widebody. 30 02:07,500 --> 02:10,010 See just have a look at this picture the aircraft 31 02:10,010 --> 02:12,450 is built for moving heavy cargo. 32 02:12,480 --> 02:16,050 So to move heavy cargo this aircraft should have a wide body. 33 02:16,050 --> 02:23,460 So as this aircraft have a wide body they can carry larger, heavier items such as aerospace, automotive 34 02:23,460 --> 02:24,990 parts and materials. 35 02:25,140 --> 02:31,050 You know there are also charter services in case if there is an urgent bulk cargo to be delivered 36 02:31,050 --> 02:38,550 and the exporter has enough quantity to fill the entire aircraft he can opt for a charter flight. 37 02:38,940 --> 02:47,490 And a charter flight means that he will pay the freight for the entire aircraft where only his cargo 38 02:47,520 --> 02:48,120 will move. 39 02:48,150 --> 02:54,450 Another interesting thing to note that this all cargo carriers in their fleet have medium to heavy weight 40 02:54,450 --> 03:01,170 carriers like the Antonov 124 which is a heavy cargo carrying aircraft which can carry project 41 03:01,170 --> 03:05,310 cargoes which are industrial project or for event as 42 03:05,310 --> 03:10,860 shown in this picture. The images here shows that the helicopter is eaten by the VOLGA DNEPR aircraft. 43 03:11,550 --> 03:17,910 So these guys are heavy lifters and are rare so they don't operate on a fixed schedule they operate 44 03:17,910 --> 03:18,870 on charter basis. 45 03:18,870 --> 03:25,560 But this all cargo operators also have aircraft to serve need of basic day to day cargo such as fashion 46 03:25,560 --> 03:29,850 goods which move in Boeing 747, 777. 47 03:29,850 --> 03:38,100 So this operators have fleet to serve the needs of all kind of cargoes from a small box to a satellite container 48 03:38,100 --> 03:39,300 for a space mission. 49 03:39,300 --> 03:45,210 So now as we have discussed about all cargo carriers let's have a look at the fleet of aircraft owned 50 03:45,210 --> 03:52,260 by a all cargo carriers with the name of VOLGA DNPER as VOLGA DNPER has aircraft to match all type 51 03:52,260 --> 03:56,340 of needs to move the cargo from one country to another by air. 52 03:56,430 --> 04:04,470 So here is the fleet of VOLGA DNPER the huge freight aircraft Antonov 124 to move project and huge cargo 53 04:04,500 --> 04:09,060 are the core of this company as they are specialized to move project cargo. 54 04:09,150 --> 04:15,660 The second is illusion seven six which can carry relative heavy and bulky cargo but not as heavy 55 04:15,660 --> 04:16,650 as Antonov can carry. 56 04:16,650 --> 04:23,640 Another interesting thing to note that is this all cargo carrier can go to Antarctica and the Canadian 57 04:23,640 --> 04:30,240 Arctic too as with time this companies are pushing the limits and developing the new capabilities. Now 58 04:30,240 --> 04:37,410 when it comes to moving lighter cargo they have a schedule network from Europe to Japan which operate 59 04:37,410 --> 04:44,460 on pre fixed schedule and can move fashion goods or customer electronics from China to Europe or Europe 60 04:44,460 --> 04:46,410 to Japan on a fixed schedule. 61 04:46,470 --> 04:48,900 You can have a look on the Boeing aircraft over here. 62 04:48,930 --> 04:55,080 So we can conclude by saying that these guys have a one stop solution for all type of cargos as per the 63 04:55,080 --> 04:59,550 size you don't need to charter and Antonov do and know and pay the huge freight amount. 64 04:59,610 --> 05:03,650 If you have a small cargo that can move in scheduled flight of Boeing. 65 05:03,660 --> 05:07,110 So this way is all cargo carriers at a one stop solution. 66 05:07,140 --> 05:13,890 So in the previous flight, we learned about the all cargo carriers who have freighters, who carry 67 05:14,130 --> 05:15,120 only cargo. 68 05:15,150 --> 05:16,860 They don't carry passengers with them. 69 05:16,920 --> 05:18,870 So that is why they are known as freighters. 70 05:18,870 --> 05:25,890 But many airlines who operate globally are a combination carrier as they operate passenger flights, 71 05:25,890 --> 05:30,180 which can also carry cargo and they also own aircraft. 72 05:30,480 --> 05:34,890 We who are freighters, that is the aircraft are specialized cargo carriers. 73 05:34,890 --> 05:39,290 So they have passenger aircraft and freighters in their fleet of aircrafts. 74 05:39,510 --> 05:42,780 So that is why they are known as combination carriers. 75 05:42,840 --> 05:47,160 So when it comes to combination carriers, Europe was the king of the jungle. 76 05:47,640 --> 05:51,630 Who used this model for flying cargo in freighters and passengers. 77 05:51,630 --> 05:53,430 But later they dumped this model. 78 05:53,430 --> 05:59,550 And today, only Lufthansa is totally committed to the model, along with other Gulf operators like 79 05:59,550 --> 06:02,250 Emirates, Qatar, and Etihad airlines. 80 06:02,250 --> 06:07,650 So now let's discuss a bit about aircraft who carry passenger and cargo together. 81 06:07,650 --> 06:12,720 i.e Boeing 777, which is a widebody aircraft, which makes it excellent to carry 82 06:12,720 --> 06:13,860 weight and volume. 83 06:14,130 --> 06:21,600 So the range of the aircraft is around 10 to 11 hrs with a full load of passengers along with their baggage 84 06:21,930 --> 06:31,710 plus cargo, 20 to 22 tons needs 20000 to 22000 kgs of cargo depending on the volume occupied 85 06:31,710 --> 06:37,830 if the cargo is light in weight but occupies more space, say cotton or any light material that then the cargo 86 06:37,830 --> 06:44,190 weight will be less as the space is occupied and you cannot put up more cargo in to the lower deck of 87 06:44,190 --> 06:44,910 the aircraft. 88 06:45,060 --> 06:48,150 So now you might be thinking the range of the aircraft is only 11hrs 89 06:48,150 --> 06:51,100 what if the flight has to fly for more hours. 90 06:51,150 --> 06:57,780 So in that case, we need to lighter the payload i.e weight pressure of passengers and cargo should 91 06:57,780 --> 06:58,680 be reduced. 92 06:58,800 --> 07:02,910 So I hope you are clear with the concept of combination carrier. 93 07:03,000 --> 07:09,120 So again, revising the concept by saying that they have aircraft who carry passengers and also can 94 07:09,120 --> 07:14,580 carry cargo along with the passengers and they are specialized freighters for getting cargo in their 95 07:14,580 --> 07:15,000 fleet. 96 07:15,420 --> 07:17,820 So that is why they are known as combination carriers . 97 07:19,130 --> 07:24,590 So in the previous slide, as we were discussing about the Boeing 777 and its ability to carry 98 07:24,620 --> 07:27,210 more compared to other aircraft in that range. 99 07:27,230 --> 07:32,480 So this makes Boeing 777 more efficient as it can, getting more cargo. 100 07:32,510 --> 07:40,430 So the freight rate offered to the exporter and the importer when the cargo is moved by a Boeing 777 is low 101 07:40,430 --> 07:43,510 compared to other aircraft as the productivity is more. 102 07:43,550 --> 07:47,180 But that is a disadvantage when it comes to Boeing 777. 103 07:47,450 --> 07:53,360 There is no way in which you can stuff the cargo from the nose of the aircraft, which limits the type 104 07:53,360 --> 07:54,860 of cargo which you can carry. 105 07:55,040 --> 08:01,850 I'm Boeing 777 as incase if there is a long length wise long cargo, it becomes impossible to stuff 106 08:01,850 --> 08:07,370 the cargo inside the aircraft if there is no option for stuffing the cargo from the nose. 107 08:07,460 --> 08:12,380 So this is the disadvantage of Boeing 777, whereas you can stuff the cargo. 108 08:12,380 --> 08:20,090 This is a Formula One car which is going to be stuffed into Boeing 747 as it is achievable most of the 109 08:20,090 --> 08:22,390 cargo from the nose of the aircraft . 110 08:22,400 --> 08:29,060 But when it comes to the operational cost and operational economics, the Boeing 777 has a low operation 111 08:29,060 --> 08:32,870 cost, which makes it a 21st century aircraft. 112 08:33,710 --> 08:41,870 Now talking about some of the major players known as integrators such as FedEx, DHL, U.P.S., TNT, 113 08:42,170 --> 08:49,010 these guys are reliable and powerful with the most number of cargo handled by them around the world 114 08:49,100 --> 08:55,910 as they can deliver goods, documents, door to door and even efficiently as they have their own flight. 115 08:56,120 --> 09:01,880 This way they can check the progress of the movement of cargo and all the information to the customer 116 09:01,910 --> 09:04,100 electronically on their own website. 117 09:04,130 --> 09:09,290 Another benefit of this, guys, is that they operate closely with the government customs who checks 118 09:09,290 --> 09:12,920 the cargo, leaving the said country or coming inside the country. 119 09:12,920 --> 09:20,050 And as we all know, why is customs set up at the airport or sea port to avoid terrorism smuggling, so 120 09:20,300 --> 09:24,890 checking of cargo and the documents of a said cargo is very important. 121 09:24,890 --> 09:31,370 And this process of physically checking the cargo and checking their documents and tallying the cargo 122 09:31,370 --> 09:35,090 and the documents is time consuming, which may lead to delays. 123 09:35,300 --> 09:41,720 But when it comes to the integrators, these guys are the first one to work closely with custom in major 124 09:41,720 --> 09:49,190 destinations due to the volume of cargo they have, which ensures the need for having onsite customs clearance 125 09:49,190 --> 09:51,950 as most of the cargo is with the three integrators suggest. 126 09:51,950 --> 09:57,440 FedEx and DHL Customs give priority to the cargo moving by this integrators. 127 09:57,920 --> 10:05,300 So when it comes to moving of cargo with FedEx and DHL or some major integrators, that is on onsite 128 10:05,300 --> 10:11,540 customs clearance, which is in the presence of customs officers, which speeds up the process of clearance. 129 10:11,540 --> 10:18,230 And another advantage of booking your cargo with this integrators 130 10:18,230 --> 10:24,860 is that they have a wide network across most of the countries, which helps in many ways, like monitoring 131 10:24,860 --> 10:27,390 of your goods in the importing country. 132 10:27,410 --> 10:30,780 Once you have exported you are worried about your cargo right. 133 10:30,800 --> 10:32,320 What will happen to your cargo? 134 10:32,330 --> 10:34,100 Whether my cargo has reached or not? 135 10:34,100 --> 10:40,400 So as this integrators have adopted technology really well, it becomes very simple to track your cargo. 136 10:40,400 --> 10:47,660 So from having a faster process and a good tracking system, integrators have an edge over these small 137 10:47,870 --> 10:53,480 custom brokerage firms as they have to present the cargo and document to the custom rather than having 138 10:53,480 --> 10:55,460 a customs clearance officer on site. 139 10:55,490 --> 11:01,820 You know, these guys have facilities for everything from warehousing to transportation, from picking 140 11:01,820 --> 11:03,590 up your cargoes, from a said location. 141 11:03,710 --> 11:08,630 It's just that they charge you for all these services they provide, but they do it in an efficient 142 11:08,630 --> 11:08,930 way. 143 11:08,960 --> 11:16,610 I'm not saying that a small custom broker is bad to employ it depends on the rate which these integrators 144 11:16,610 --> 11:18,410 offer for custom clearance. 145 11:18,500 --> 11:25,100 And this small custom brokerage firm offers you need to compare the rates as the transportation cost is very 146 11:25,100 --> 11:28,430 important when it comes to moving your cargo from one country to another. 147 11:28,430 --> 11:31,820 So higher the transportation costs, the lower the profit will make. 148 11:32,120 --> 11:36,380 So it is very important to be calculative and also it is very important. 149 11:36,380 --> 11:40,610 Do not compromise with these services as if you compromise with this service. 150 11:40,640 --> 11:45,290 There are chances that you may miss the flight due to delayed customs clearance. 151 11:45,290 --> 11:51,800 So now, as we are discussing about the advantages of shipping your cargo directly with this integrators, 152 11:51,800 --> 11:57,050 you might be thinking, what about trucking my goods from my factory to the airport of origin? 153 11:57,050 --> 12:01,310 That is the airport from which you are going to export your cargo. 154 12:01,310 --> 12:06,650 And what about trucking from the destination airport to your Importer's factory? 155 12:06,650 --> 12:13,580 So the answer to all this is that involving an agent, an agent who can book space on the airlines like 156 12:13,580 --> 12:18,290 DHL, FedEx, etc., and also make sure that the cargo at Origin. 157 12:18,610 --> 12:20,950 Trucking the cargo to the destination. 158 12:20,950 --> 12:25,060 And the agent who does all this arrangement is known as a freight forwarder. 159 12:25,600 --> 12:29,020 The one who assistant customs clearance is a customs broker. 160 12:29,110 --> 12:32,680 So typically this to players you may contact. 161 12:32,890 --> 12:39,220 One is a freight forwarder to book your space with airline and trucking company and a customs broker 162 12:39,250 --> 12:44,800 who files your document with customs and before the customs do customs duty to the government. 163 12:44,860 --> 12:50,710 But what if I tell you that DHL has a global freight forwarding and Customs clearance service too 164 12:50,980 --> 12:56,620 One that very simple process where just one player who is a giant in that business is handling the movement 165 12:56,620 --> 12:57,460 of your cargo. 166 12:57,490 --> 13:01,840 So let's have a glance on their website for a better understanding of their business. 167 13:01,870 --> 13:07,500 So this is the website of DHL, which is the logistics service provider who owns their own aircraft, 168 13:07,500 --> 13:11,630 who also has freight forwarding solutions, logistic solutions. 169 13:11,650 --> 13:18,310 You can get quote online for they are freight rate, so they can be your freight forwarding agents to as 170 13:18,310 --> 13:20,620 they are accredited agents of IATA 171 13:20,740 --> 13:24,580 When it comes to ocean freight, they also can provide the ocean freight if you want to move your cargo 172 13:24,580 --> 13:31,120 by sea mode of transport road freight for the movement of cargo from your factory to the airport and from 173 13:31,120 --> 13:33,010 the airport to the importers. 174 13:33,010 --> 13:33,610 warehouse . 175 13:33,850 --> 13:35,190 Also customs clearance. 176 13:35,200 --> 13:41,500 So till now, you have a slight idea about the air carriers like DHL, FedEx and the players who are 177 13:41,500 --> 13:44,160 involved in this business of aviation logistics. 178 13:44,200 --> 13:49,210 We will get more and more deeper into the industry and understand the operations. 179 13:49,240 --> 13:51,300 Before that, we have to clear the fundamentals. 180 13:51,310 --> 13:51,530 Right. 181 13:51,550 --> 13:58,390 So coming back to our discussion on integrators, they have worked really hard when it comes to adapting 182 13:58,480 --> 14:02,230 the electronic system, even when it comes to DHL freight forwarding. 183 14:02,320 --> 14:08,920 They have a reliable I.T. solution which keeps a tracking of your cargo from your factory to the Importer's 184 14:08,920 --> 14:09,310 warehouse. 185 14:09,340 --> 14:15,100 So from this chapter, we can say that we learned about different, different airlines and their operations, 186 14:15,100 --> 14:20,050 the way in which they operate, how you can move your cargo in a passenger aircraft. 187 14:20,050 --> 14:21,490 You can chartering aircraft. 188 14:21,490 --> 14:26,920 If your cargo is very heavy in case of a small cargo, you can move it by a passenger aircraft. 189 14:26,950 --> 14:32,590 Also, we learned about integrators who are a one stop solution provider for movement of cargo from 190 14:32,590 --> 14:34,990 your factory to the Importer's warehouse. 191 14:35,020 --> 14:41,590 We discussed about the all cargo carriers so I hope your doubt related to movement of cargo by air 192 14:41,680 --> 14:42,810 are very much clear. 193 14:42,820 --> 14:45,550 If you have any doubts, you can send me a message across. 194 14:45,550 --> 14:47,290 I will be really happy to help you. 195 14:47,980 --> 14:48,300 Doubts. 196 14:48,340 --> 14:48,730 Thank you. | ||||
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