Mechanisms Used to Enhance Effective and Efficient Airport Cargo Export and Import Operations - Research Paper Example

A report on the Mechanisms used to enhance effective and efficient airport cargo export and import operations: A Logistics Perspective Institution: Date A report on the Mechanisms used to enhance effective and efficient airport cargo export and import operations: A Logistics Perspective INTRODUCTION Cargo management at the airports entails a number of activities such as preparing the cargo shipments, loading, and offloading, and moving the cargo from the storage facilities to its destination. For the outbound cargo, the development requires the consolidation of the cargo, preparing air cargo pallets and containers, conducting inspections and preparing the necessary documents (Dunt, 2013). For the inbound consignment, development entails regulatory and customs procedures together with consolidation. For the transshipment shipment, activities are limited to offloading, consolidating, as well as reloading the cargo (Johnson, and Bade, 2010). At times, it involves a direct transfer between airplanes a process widely known as a tail-to-tail transfer. The activities involved in the handling of imports, exports at the airports can be cumbersome. Thus, the number of tools have to be employed to ensure the process is efficient and effective (Seyoum, 2013). Effectiveness is the ability to deliver the desired results while efficiency is the ability to use minimum resources to achieve a desirable outcome. This research paper will explore the logistics related mechanisms used to improve the effectiveness and efficiency of the airport cargo export and import operations. Mechanisms used to ensure effectiveness and efficiency of cargo operations Types of airports A large percentage of airports handle cargo as well as passengers. There are hardly any cargo airports. The airports that deal with cargo operations can be categorized as either hub or feeder airports, particularly for global operations (Conventz, and Thierstein, 2014). The hub is the prevailing operating model for planned flights, for passengers and cargo. The larger planes are used for long-distance international routes, whereas the smaller aircrafts are used for local origins and destination (Hinkelman, 2007). It ensures that hubs offer regular services to the various international destinations. Hub airports are usually located in or close to the main population center to have considerable amounts of inbound and outbound cargo. This airport also allows for transshipment between local and international carriers as well as connections involving an airline’s domestic with the international services (Horonjeff et al., 2010). The establishment of the hub airports has contributed significantly towards international trade. For example, Dubai is an airport that provides links between Europe and Asia while at the same time acting as a regional distribution center for the Middle East. The hub and the spoke system also act as intermodal connecting sea-air or road-air services. Road- air services involve (road freight services/ RFS) connections where international air transport is connected with domestic road transport linking the hub and feeder airport. In this case, therefore, the road transport section is likened to a programmed air shipment. The consignment is transported using an airway invoice while customs clearance is carried out at the warehouse of the feeder airports’. Through this arrangement, an airfreight carrier can sell its services to airports without landing on those hubs. In the past few years, more airports that focus on cargo as their main business have developed (Johnson, and Bade, 2010). However, most of them are based in Europe especially in the United States. They include FedEx regional hubs, Ohio (Rickenbacker), and UK hub at East Midlands. Designation of an airport as a “tech stop” Originally, during an aircraft landing there were several activities such as re-fuelling, changing the crews together with receiving catering services without transferring the cargo. The airlines now select tech stops depending on their location along the vital air routes. Airports may contend for this business opportunity by charging attractively for fuels and other provisions, and ensuring their crew accommodations are in order (Croucher, 2007). The airports in the United Arab Emirates were formally tech-stops for the Europe and Asia flights. It later developed to a transshipment point for flights between Asia and North America. Dakar in Senegal is currently a tech stop serving flights between North America and Southern Africa. Storage and scanning facilities The storage of the cargo is a major determinant of the efficiency and effectiveness of import and export operations. Even though air cargo do not remain in the landing field for a long, it is essential to offer storage equipments. Imports and international transshipment cargo need bonded facilities. It is also imperative to provide refrigerators for the perishable cargoes. Outbound cargo is supposed to be inspected and thus it is crucial that the airport make X-ray scanners available. As most of the air cargo is usually of low density, the largest amount of the cargo is placed on racks, if possible in large and well-aerated warehouses. The storage space must be fitted with loading docks on the landside to help in moving the goods from the trucks quickly. Offices close to the warehouses enable the airlines and consignees receive or deliver cargo and prepare necessary shipping papers, and for the clearance of the import and export cargo (Department of the Army, 1992). The layout of the airport is designed in a manner in which it allows for easier cargo handling. The activities are carried out on the airport against outside the airport borders. The airlines receive and dispatch cargo on the airport. Cargo inspection and scanning are done in the airport implying that the building of the palettes takes place on the airport (Prather, 2011). In addition, forwarders, exporters, and importers opt to conduct their activities outside as this reduces the operational costs and avoid space challenges. At times, they prefer making their pallets and ULD containers before they provide to the airlines, more so especially when they have to maintain low temperatures for the preservation of perishables. However, to do this, forwarders warehouses must be satisfied. As a substitute, more costly full pallet scanners ought to be introduced if there are adequate cargo quantities. Cargo handlers may have shared spaces managed, but, as the need for space increases, new facilities may be required. The space may first be rented out and eventually get their facilities. Various airports have established cargo villages in order to deal with the storage challenges. Cargo villages are sites that have multiple cargo terminals. The community is intended to allow for better harmonization of operations. Another option is to erect a bigger, multi-story warehouse. For example in Dubai both strategies have been used that is, introducing a Mega Cargo Terminal inside the Cargo village (Kim, and Gunther, 2007). Modern Technology Different modern technologies have been introduced to deal with an increase in cargo volume. Large warehouses are fitted with more sophisticated equipment and layouts. This results to a higher throughput per square meter. Integrators or third party consolidators whose volumes can justify their high capital expenditure operate these. The large integrators initiate automation due to their need to control global supply chain, for instance, the DHL hub at Tocumen (Kerr, and Gaisford, 2013). The use of refrigeration is not depended on the type of products only but also the arrangement of the shippers. Flower exporters are a good example of those who like using refrigerators. There are terminals with refrigerators in Quito, but they work separately from the other cargo terminals (Steenken, Voß, and Stahlbock, 2004). There is also a highly automated and probably one of the most sophisticated cold storage in the Dubai Flower Center, which is a multi-storey building situated adjacent to Dubai Cargo Village. It is used in the room together with processing of flowers imported mostly from Africa. Imported goods must pass through customs department especially if they are a transshipment cargo. As some cargo is of high value and are time sensitive, it is imperative to reduce the time needed for clearance by simplifying the procedure involved. Many countries have designed a double track for cargo clearing. They also offer expedited services for express package services making it possible for them to meet stiff delivery schedules as the large shipments are cleared gradually (International Business Publication, 2013). Various key airports in underdeveloped countries usually empty cargo in a span of between few hours and one day (Johnson, and Bade, 2010). More than six hours spent clearing cargo is inefficient and thus attempts have been made to reduce the same to two hours. This is as a result of computerization of airfreight documentation, thus allowing for the submission of Inward General Manifest (IGM) when the airplane departs from the preceding airport. The systems can also be used to track shipments and making sure warehouse space is used efficiently. CONCLUSION There have been significant advancements on cargo practices hence making international trade a successful venture. These include the categorization of airports, invention of technologically advanced equipments for loading and offloading, designing warehouses that are fit for the cargo being shipped, simplifying custom clearing procedures and many others. Although the processes cannot be said to be completely smooth, the logistical mechanisms employed so far has led to more effective and efficient services (Carr, and Bowman, 2010). References Carr, C. and Bowman, R., 2010. US-China Trade and Transportation Infrastructure Challenges: A Strategic Primer for Policymakers, Business Leaders and Academicians. Journal of Transportation Law, Logistics, and Policy, 77(2), p. 131-160. Conventz, S. and Thierstein, A., 2014. Airports, Cities and Regions. Oxon: Routledge. Croucher, P., 2007. Professional Helicopter Pilot Studies. New York: Steve sparrow. Steenken, D., Voß, S. and Stahlbock, R., 2004. Container terminal operation and operations research - a classification and literature review. 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