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Combined freight and express train: evolutions, strategies and prospects

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  1. Document management is a SUPPORT process!
  2. About the author
  3. Key concepts
  4. Assets & Critical
  5. Conclusion

Due to its importance and its ripple effect that it has on some economies like tourism, the aviation sector plays a leading role in the economy. Passenger transport contributes to this effect but it is not limited to air freight and generates a quarter of income of air transport. Its progression is faster than the passenger.

The air cargo per ICAO refers to the cargo except against payment of the post. The IATA defines freight transport as consisting of all goods, except luggage. The two definitions differ, but illustrate the fact that air cargo is, in fact, a separate activity which, due to the evolution of international trade will create more and more opportunities to integrate the carriers.

Two types of cargo are distinguished here: the combined freight and express cargo. The combined freight is the traditional form of air cargo transportation: airlines carry cargo in the same aircraft as that of the passenger. Freight forwarders are agents and intermediaries between shippers and the airlines who are responsible for transporting the goods from air transport.

The airline deregulation in the late 1970s permitted the arrival of a new form of freight, known as the express freight. In this case, the same company (often called "integrator") provides all the benefits of transportation.

These companies compete directly with airlines and freight forwarders in the air cargo market. In this report it will be seen how they dramatically changed the organizational model of air cargo in its entirety including the recent creation of channels by major cargo airlines.

It is interesting to study the evolution of air cargo, freight strategies and combined freight and express their outlook to determine which one will dominate this market.

It should be noted that the all-cargo airplanes did not exist at that time, freight was transported in the hold, combining flights and cargo and passengers. The increase in passenger flights in terms of volume and destinations has therefore also been accompanied by an increase in freight transport.

But the airlines saw freight then only as a secondary product, to use in a meaningful way the remaining space in the holds.
It was not until the 70s that they have considered a profit center in its own right, given the outlook for international trade.

In addition, increased international trade, increasing the need for transport of goods, combined with the changing needs of logistics firms worldwide, enhances the transport demand. Indeed, new production processes (Toyota, for example) require, by managing in-time exchange (now much more common among firms), an increase in the quality of services offered by carriers.
This change in demand has not been an immediate response from the airlines, which could then initiate a process of vertical integration in the supply chain to improve their level of service.
This need for integration was fulfilled in the 80's by a new player: the express freight (or integrator), which fits better than the freight demand combined with ever more flexible.

The trend has greatly influenced the development of air cargo and logistics in general, until now. Its main features are an increased importance of information management, and even more flexible offer.

Tags: Combined frieght cargo- evolution, strategies and prospects

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