Overview of Air Cargo Research Assignment Paper

Overview of Air Cargo
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Contents TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc485036204 \h 3Introduction PAGEREF _Toc485036205 \h 4Historical Background of the Air Cargo PAGEREF _Toc485036206 \h 5Current State of Air Cargo PAGEREF _Toc485036207 \h 6Current Aviation Related Activities in Air Cargo PAGEREF _Toc485036208 \h 8Air Cargo Security PAGEREF _Toc485036209 \h 9Factors Affecting Air Freight Rates PAGEREF _Toc485036210 \h 10Demand PAGEREF _Toc485036211 \h 10Time and Temperature for the Case of Sensitive Cargos PAGEREF _Toc485036212 \h 11Volume and the Weight of the Freight PAGEREF _Toc485036213 \h 11Recommendation PAGEREF _Toc485036214 \h 12References PAGEREF _Toc485036215 \h 13
Abstract
This paper reviews an overview of operations of air cargo since it was invented and was first used in 1910 to move cargo. The advent of air cargo boosted international business as it made transport reliable and quick. In the early 1970s, the airline that was capable of transporting all cargo was established with the argument that it was inefficient to carry both the passengers and the freight in a one airline as compared to servicing them separately. The Airline industry in the United States is made up close to 3,000 companies that produce total annual revenue of $120 billion. Some of the major airlines in the United States the Delta, United and American and also other cargo and courier companies like UPS and FedEx. This paper will also look into the current status of air cargo and other air cargo related activities. The Asia- North America and the Europe-Asia markets are also projected to grow slightly faster than the growth rate in the entire world. Another important issue that should be noted is that the growth rate in both Europe and North America is currently below the world’s average growth rate.
Introduction
Ever since the advent of airline transport, it has led to the improvement of both transport industry and the trade across different countries in the world. As a matter of facts, the airline industry has led to the expansion of international trade due to the availability of quick and safe transport that is capable of carrying both passengers and their freights. In the early 1970s, the airline that was capable of transporting all cargo was established with the argument that it was inefficient to carry both the passengers and the freight in a one airline as compared to servicing them separately. The Airline industry in the United States is made up close to 3,000 companies that produce total annual revenue of $120 billion. Some of the major airlines in the United States the Delta, United and American and also other cargo and courier companies like UPS and FedEx. There are so many players that make it to be highly concentrated with close to 90% the revenues that are generated from the airline industry comes from the top ranked 12 companies. The federal government has categorized airlines as National, Major and/or Regional. The airline industry in the United States mainly depends on the state of the U.S economy that affects air travel by consumer passengers and businesses. In addition to that, considering the fact that costs are fixed, the profitability of different companies is mostly determined by fuel...