Air Cargo Essay

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Air Cargo World INTRODUCTION OF AIR CARGO: Air cargo plays a crucial role in today's world. Whether it's through express shipments providing expedited service, cargo carried in the holds of passenger aircraft linking together businesses across the globe, freighters delivering cargo on high volume trade lanes, or chartered flights providing needed supplies on special service schedules, the air cargo industry serves as a key engine of economic growth and development. It supports trade and investment, promotes connectivity, and improves efficiency and competitiveness. Air cargo represents a relatively small percentage by volume of world trade (less than 10%) - but its significance leaps by value, where it accounts for more than 30% of international trade. In other words, air cargo is oriented towards high value or time sensitive products. For example, the express industry has enabled the widespread adoption of just-in-time practices by many businesses, which saving countless dollars in inventory and logistical costs. That said, air cargo continues to expand its clientele and now serves a diverse range of businesses and consumers. It is interwoven into the fabric of everyday life - business and personal - in many corners of the globe (GACAG, 2011). History of Air Cargo * Since the beginning of air transportation, air cargo has grown largely as an auxiliary to passenger service. As late as 1978, more than onehalf of scheduled air cargo moved in the bellies of passenger aircraft. In the last decade, however, domestic all-cargo carriers (those airlines that carry only goods, not people) have begun to increase their share of the market, Cargo accounts for 11 percent of the total revenues of U.S. commercial air carriers. * In 1980, scheduled air cargo generated over $3 billion in revenues. 1 ‘Air Cargo Statistics, U.S. Scheduled Airlines, Total industry, 1980

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