39. Air Transport

[MUSIC] Welcome back to our lecture on Air Transport.
Upon completion of this lesson, learners should be able to describe the characteristics of freight movement via air transportation and discuss the trends and fit of freight movement via air.
Air transportation is the top choice for time sensitive freight such as emergency medical supplies or critical spare parts. Air cargo may move on carriers that exists solely to move freight, and have air fleets to do so in an efficient manner with cargo taking up the entire space of the plane. Passenger airlines also operate cargo divisions which allows freight to be transported in the cargo bay of a passenger aircraft.
Examples of air cargo carriers that don’t carry passengers include Atlas Air, and Polar Air Cargo, as well as carriers who are more known for their expertise in parcel movements such as FedEx, DHL, and UPS.
The picture depicts the insides of an air cargo carrying aircraft. Freight flows from manufacturing centers to markets or population centers. Therefore air carriers charge quite aggressively on the head hall or out bound trip with generous discounting available on the back hall or return trip in order to entice volume to get greater utilization and revenue from the less occupied return vehicle.
Of course there are number of products that don’t make sense for air transport including oil, hazardous materials, lumber, low cost commodities, etc.
Air transportation is an important option for companies with small expensive products and products with short life cycles. Air transport assists in maintaining lower inventories and quick response to changes in customer demand. Freight costs while relatively high, may provide an opportunity across the supply chain to reduce inventory as there is less inventory or less inventory flowing through time through the pipelines through the extended supply chain flows. The more expensive the inventory, the more attractive air becomes. Global trade, e-commerce, and the growth of supply chain efficiency and streamlined inventory initiatives have contributed to an increase in demand for air shipment. E-commerce in particular has led to increased demand for air parcel shipments of finished products. International air transportation is projected to continue growing with companies like UPS, Amazon, S.F. Express, etc continually adding capacity to their air fleet.
In addition to finished goods, air freight is also a good fit for movement of small and expensive semi-finished products and components where large shipments may entail high inventory values, security risk etc., traveling by ocean, traveling by air, the quantity can be tailored, assisting and managing overall pipeline inventories.
In this lesson, we described the characteristics of freight movement via air transportation and discussed the trends and fit of freight movement via air. Thank you for watching and we’ll see you on the next lesson. [SOUND]

Jim Rohn Sứ mệnh khởi nghiệp