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News / We have to figure out how to process air cargo the same way as a holiday suitcase

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In the final article of his two-part series, Stan Wraight asks how the airfreight industry can work towards the 48-hour cut in transit times, an initiative launched by IATA in March.

So can IATA make this happen, or can it at least push in the right direction? Do IATA members really take its initiatives and wishes into account when cargo is internally discussed, strategies set, product portfolios created, budgets for processes get approved, investments calculated?

Take a bird’s eye view of that ...

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  • Naresh

    June 16, 2014 at 1:58 pm

    A very interesting article. However, while the premise that air cargo dwell time should be and can be reduced is very much true and while there is merit in the argument that what works for passengers should work for cargo, in reality, it is a bit more complex.
    For one, on the passenger side, no airline books a transit passenger with a connecting time of upto 4 days, which is the free period some airports provide. No arrival passenger sits and waits at the airport of destination for upto 7 days before he decides to go home. No passenger will accept being bumped off fro flight to flight just because some other higher yielding fellow traveller was placed on priority by the airline.
    Unfortunately, archaic rules and the anxiety of airlines to fill up the ever increasing capacity also play a part in the long dwell times.

  • Michael Kusuplos

    June 16, 2014 at 2:07 pm

    Where is the 1st part?

  • Dave Ambridge

    June 16, 2014 at 4:02 pm

    Again Stan makes some very good points. We have freight ready to collect within 2 hours of a passenger flight arriving but the AVERAGE dwell time in our building is 2.5 days. Why is that? Agents blame Customs and Customs say it’s not them. If we had global E-AWB and global Advanced Customs Clearance, obviously based on risk assessment, we could remove 48 hours very easily. We don’t want to invest and build huge Cargo Terminals just because of Import Storage. We’d rather build smaller, more efficient TRANSIT SHEDS, as we used to call them and save money.

    Why do Agents expect to deliver Cargo for Export 2 days ahead of the flight? To save 1 cent a kilo on the rate? Again it makes no sense really.

    If we actually knew what the CUSTOMER wanted, as FX, DHL, UPS, TNT does then we could offer the different service levels based on Customer desire and needs. It’s only then that we can really make the changes we so badly need to stop Modal shift, and yes that includes to the Integrators who all carry huge volumes of Cargo that long ago they never did.

    Food for thought I hope?

  • Peter Walter

    June 19, 2014 at 5:23 am

    I fully agree with Stan but lets not forget that this suitcase is accompanied by an on board courier (i.e. the passenger). Which is about the most expensive form of cargo transport you can get.
    The integrators continue to have the upper hand as they at least control all the processes from end to end. For mixed carriers – where numerous parties get involved it’s far more complex. I doubt the e-awb will make a huge difference. Particularly as long as forwarders at both ends continue to use airline ground handling agent’s warehouses as free storage sheds.

  • Enno Osinga

    July 10, 2014 at 9:38 am

    First of all it should be noted that it is not a problem to get Cargo delivered as fast as baggage. If you look for example at the dedicated Flower facilities at Schiphol this happens all the time. Secondly those forwarders that have invested in air side facilities at Schiphol find that they have Cargo available in their warehouse within 2 hours of arrival. Our current analysis shows some influencing factors. The Airlines have an SLA with the handling companies to have Cargo available within 9 hours. Based on that there is no need to speed it up. They can get quicker availability but at a price, but then there needs to be demand for that product. Also we find that a significant part of the Cargo that arrives at the weekend is not collected until Monday morning because the consignees do not want it earlier. Once again in a very recent round table with all the partners of the Air Cargo Chain we discussed further improvement of the Airport process. Yes it can and must be done but the need for speed is a selective need only and certainly not the only priority.

  • Peter Walter

    July 10, 2014 at 2:22 pm

    These are all excellent points that Enno has made.
    Perhaps it’s time to re-examine the true average dwell times and just how much they can or should be reduced. We have to remember that while carriers, handling agents and forwarders operate on a 24×7 basis – not everyone in the supply chain does.

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