The Air Cargo Industry: Problems

The Air Cargo Industry Name Institution Indeed, the world of today is changing. People run businesses, travel and tour various parts of the world; this globe-trotting resulting in the need to ferry goods to different destinations all around the world. In the past, air cargo shipping has been an essential sector in the aviation industry that has seen many businesses prosper, and facilitated major cultural exchanges all around the world. However, this industry has been on the downfall most recently, with many challenges they are struggling with. This paper gives a brief overview of the problems this industry faces. First and foremost, air travel and transport altogether are known to be the most expensive means of travel in the world. This is major as a result of the high fuel prices. Research has shown that the aviation industries spend a fortune on the fuel they use to operate the cargo systems. For example, in the United States of America, the rise in fuel costs which cannot be covered up leads to escalating surcharges on the carrier fee. Not only does this make the cost of cargo shipment too expensive for the customers to bear, but also makes the company spend too much money on production cost despite the relatively low returns; this sees the industry declining. (DDC FPO, 2012) It has been notable in the recent past that the cargo shipment has been a way of smuggling goods, drugs, and even firearms to various countries (Harrington). In Dubai, in the United Arab Emirates, the international airport reported human and drug trafficking as a major threat. This caused major airports and even international carrier groups to put in place measures like a thorough screening of cargo. This not only delays the shipment process but also makes it expensive for the companies to acquire the necessary screening equipment that is not cheap. No customers would want their property to be delayed on these grounds, hence opting for alternative shipment methods. Just like any other business venture, the air cargo industry is also directed by the government policies put in place. More often than not, we tend to think that these policies are harsh towards the businesses we operate. These policies may come in the name of environmental implementation; anti-idling and other emission regulation measures brought by the state and county governments affect the industry. The taxes imposed on these shipments are usually higher than those imposed on the regular ...