Airfreight

Globally, the dominant air cargo flows are in three main markets:–Asia-North America,–North America – Europe, and–Europe-Far East. The line – haul combination carriers tend to focus their cargo operations on international gateway airports, allowing consolidation or break-out loads to be transferred between long-haul and short-haul services. The gateway airport is an international airport which is the first point of arrival or the last point of departure in a state for international air services. The integrated carriers usually focus the operations at cargo hubs that do not have very high volumes of passenger traffic. Airfreight markets are changing due to the economic growth pattern of developing countries that are accelerating past that of the already industrialized economies. The main influences behind these trends are:–the primary influence of the world economic activity;–impact of the range of services in the express and small package market;–deregulation and liberalization;–national development programs;–stream of new air-eligible commodities;–the growth of e-commerce. The deregulation of air freight rates provides the shippers with a greater choice among carriers concerning rates, consequential damage, and excess value charges. Under CAB regulation of air freight, all-cargo operators were unable to generate reasonable profits with the result that the quantity and quality of service were deteriorating. By air, the freight can be carried to longer distances because surface modes could not be used to support the carrier’s operation. Integrated carriers offered multimodal services that take advantage of the distance, cost, and time trade-offs that are offered by different modes. In the European and Asian markets, the integrated carriers have recently increased the size of their international operations. In fact, within Europe, it is estimated that the integrated carriers now perform most of the total intra-European RTKs. As such competition from surface modes has had and will continue to have, a downward impact on air-freight growth rates. This factor, along with a relatively low overall economic growth rate, explains low average long-term growth rate for air freight. Airfreight is a more expensive mode of carriage of goods than other modes and will be used when the value per unit weight of shipments is relatively high and the mode of delivery is an important factor. Thus it can be said that transport costs can comprise a small proportion of the revenue associated with the products. The advantages offered to the shippers through movement by air include speed, particularly over long distances, lower risk of damage, security, flexibility, accessibility for customers, and good frequency for regular destinations. For integrated operators, the guaranteed delivery and the facility to track consignments gives customers additional advantages over standard air-freight carriage. These superior qualitative differences give rise to higher rates for integrated services. When it comes to shorter distances, air transport faces stiff competition from surface modes and combined road and sea services. The demand for Air-freight changes according to the season, and this is taken into account by carriers supplying airlift capacity.


Trends in the shipping industry

The major factor that protected the shipping industry against the destructive trends of 2016 was a dramatic fall in the price of oil and its products in that year. But experts believe that in 2018, as the second consecutive year, we will see a steady increase in the price of oil and its derivatives. An increase in oil prices in 2018 had increased the price of the bunker for ships. In addition to that by 2020, more ships are expected to invest in installing of exhaust gas cleaning systems or switch to a low- sulphur compliant bunker. This issue is particularly important in deliverable ships in this year and beyond. This is sure to increase the ships’ capital or operational cost. The positive effects were expected to continue in 2018, pointing to lifting the sanctions of Iran and its positive effects on the transportation of oil and its products. Another issue that needs to be addressed in this context is farmers and rural people’s consumerism, and urbanization, which affects demand for energy. Studies reveal that consumer demand is rising in most developing countries. Therefore, this is expected to have a direct impact on the transportation of crude oil and its derivatives. Cost of adapting the shipping industry to meet the requirements for reducing the sulphur content of marine fuels by 2020 will be about $60 billion. Ports are vital links in the shipping chain. In this regard, the improvement of infrastructure and productivity of them is very important, and today the port the industry faces many challenges that are reflected in the shipping community. As such hundreds of huge container ships have entered the global fleet in recent years so that many ports in the world could not have afforded to give service to them. According to Ports & Maritime Organization’s directorate of Strategic Studies and Investigations Centre, the Challenges of Ports in 2018: In 2018, ports and port operators will face the challenge of the operational complexity of very large ships, which require centralized management, limited space activities, continuous pressure on enhancing safety and security in and around the port, and accepting green technology (for example, facilities of converting ships’ sludge), and so on; in the supply chain, these issues should be taken into consideration in the scope of ports.


Intelligent Transport System

Intelligent Transport Systems (ITS) is one that has the potential to help manage traffic flows, reduce congestion and tailpipe emissions, and improve road transport safety. ITS is based on information and communication technologies applied to road transport infrastructure through dynamic message signage and intelligent vehicles. For example; ITS may feature highway and motorway signage, which can have congestion and accident monitoring, reporting equipment and messaging updated remotely or automatically, as well as electronically managed road toll stations. However, ITS currently poses significant costs to implement; a 2004 study by the Department of Transport estimated set-up costs of at least $16 billion with further operating costs of $3-8 billion for a 6.4 million km road network. The Department of Transportation (USDOT) has also investigated the use of ITS to reduce congestions and wasted fuel. They estimated that up to 2.8 billion gallons of fuel are wasted annually due to motorists stuck in traffic queues and that this figure can be drastically reduced along with associated GHG emissions. The consumption of energy and emissions from road infrastructure operation is dominated by electricity consumption for street and traffic lights (up to 95% in Sweden for illuminated roads). This proportion is likely to be lower in countries with greater daylight hours and will also depend on the proportion of road illumination on different parts of the road network (e.g. close to 100% for urban roads and lower values for highways/motorways). The relative importance of lighting in the overall infrastructure impact in terms of GHG emissions is also highly dependent on the local electricity generation mix. The impact of energy consumption on GHG emissions attributable to maintaining and operating road transport infrastructure has prompted the publication of guidance in the United Kingdom to aid decision making on street lighting and road maintenance. This guidance encourages decision-makers to implement technological advances that require lower power inputs or provide brighter lighting with reduced energy consumption and introduce consideration of carbon emissions in any decision making the process. Various studies have been carried out to investigate lighting schemes along different routes and the patterns of use. The study finds that significant capital and emissions savings can be achieved by adjusting the hours in which lighting is used.






Role of Logistics

Logistics is an important element of competitiveness. Its commercial deals with other countries are increasingly dependent on its logistical organization. Indeed, any policy of export promotion cannot give the expected results if the logistics costs remain very high. These costs do not affect only the competitiveness of the local exporters, but they are also on the base of the relocation decisions of the MNCs trying to move outside of their original countries. Thus, the logistics influences all the economy and seems to be a powerful determinant of the FDI in the host countries. A well-organized logistic function must be necessarily supported by the new information and communication technologies (ICTs) becoming indispensable for its functioning. They represent a crucial tool for command and control which helps companies to reduce the costs and increase the productivity and especially to have the best information at the right time for the good actor. This opinion demonstrates that the accelerated development of cooperative relations between a supplier and his customer, taking into consideration the information management in real-time, requires strong expertise in the field of the ICTs. But, he underlines at the same time the risk represented by the speed of the innovations and the size of the budgets provided for investment in the domain. Following these technological evolutions is an obligation, not a choice that obliges the receiving countries to provide constant investments in the area. ICTs can be considered as the first support of the functioning of the logistics. They provide an innovative solution for better management of the supply chain and bring many advantages in terms of safety, service quality and control. Also, they facilitate the exchange of information and data between different actors and accelerate the achievement of operational tasks. In this case, ICTs will develop the joint work of various logistics troupes. Indeed, they facilitate the partnership relations through better coordination of actors and stronger engagement of different parties in the relationship. ICTs also improve collaboration through the implementation of joint activities, regardless of hierarchical organizations and affiliations with such services or such divisions. Strong expertise in the field of ICTs is reflected in a stronger relationship between the supplier and its customer. Supervision and improvement of the quality of the chain connecting the producer to the consumer help companies to achieve “zero defects” for products and services. Indeed, starting from a simple relationship between a seller and a buyer, it becomes possible to share complete systems of exchanges at the level of all the logistics functions, from the engineering to the distribution through inventory management. The strong integration of ICTs in the trade of goods and services between the various links in the supply chain increases the role of the Electronic Data Interchange (EDI) which increases rapidly.


Globalization of logistics

The global logistics environment brings out the increasing complexity and several important parameters shaping the global environment. The change in these parameters is breathtaking and is driving increasing complexity in the logistics ecosystem. We have labelled these changes as “trends”, in that they continue to re-shape the logistics landscape, and provide a shifting set of environmental risks and limitations that either constrain decisions or present opportunities which nimble enterprises can exploit quickly. We begin by describing the major trends that are impacting organizations and follow up with some of the key strategies that successful organizations are applying to cope with or even exploit these trends. Key Trends Impacting Global Landscape Overall top logistics and supply chain trends. We have grouped the top six trends into two sets of related forces, network and external forces. The External forces bring out the changes that are not occurring within the network but are driven by other non-network elements over which organizations have little to no control.

  1. Globalization of logistics networks is increasing. During the process of expanding their global footprint, global networks are fraught with challenges due to government regulatory forces, channel fragmentation, and poor logistics infrastructure. Increasing the risk of supply chain disruption from any number of possible nodes along the supply chain further complicates the logistics environment.
  2. One of the most critical concerns on the horizon for global organizations is the impending talent shortage in global supply chains. This will occur not just in manual processes (truck drivers, warehouse workers, material handling, expediting), but also in managerial capability (buyers, planners, analysts, schedulers, warehouse supervisors, and distribution managers). Supply chains cannot operate without people, yet organizations are recognizing that they face critical shortfalls in the number of unfilled job requirements and the shortage is growing with every day.
  3. The volatility of the ecosystem is now important. Volatility is the major shift in the customers demand volume, product or service mix, government regulations, new competitors, substitute products, short product life cycles, and requirements for rapid network nodal changes and redesign. The transformation of enterprises is now in trend as organizations are continuously adapting and re-inventing their operating model in the face of continuous global change. The speed and scale of this change are unparalleled in the last decades.


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