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Understanding Air Cargo Handling in the Supply Chain

09/08/2022
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Understanding Air Cargo Handling in the Supply Chain

by Richie
09/08/2022
in Industry, Logistics & Transportation

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Shipping via air transportation stands as a swift and efficient method for moving goods across distances. Annually, airlines transport more than 52 million metric tons of goods, contributing over 35% of global trade value, yet accounting for less than 1% of global trade volume. This equates to a staggering $6.8 trillion worth of goods per year, totaling $18.6 billion each day. The COVID-19 pandemic significantly impacted the air industry and its cargo operations, causing a considerable decline of 21.4% in available cargo tonne-kilometers industry-wide in 2020. However, the industry swiftly recuperated by the year’s end, nearly returning to pre-pandemic levels.

Given the substantial volume of air cargo globally and the diverse stakeholders involved in its supply chain, an examination of cargo handling within air transport becomes pivotal.

Understanding Cargo Handling:

Cargo handling represents the segment of the supply chain responsible for processing goods within the cargo facility from the point of arrival at the airport of origin to their readiness for loading onto the aircraft, and subsequently, unloading at the destination for handover to the consignee or freight forwarder. The cargo handling procedures are outlined within the cargo Master Operating Plan (MOP).

Insight into Cargo Master Operating Plan (MOP):

The Cargo Master Operating Plan (MOP) systematically delineates the core processes and sub-processes involved in transporting air cargo from the shipper to the consignee. It serves as the industry-endorsed standard blueprint for the end-to-end process of air cargo transportation.

Key Components of the Cargo MOP:

Comprising 19 main processes and 78 sub-processes categorized across five key activities:

  • Origin Forwarder
  • Origin Carrier
  • Transport Carrier
  • Destination Carrier
  • Destination Forwarder

The primary objective of air cargo acceptance and handling is to ensure compliance with operator and IATA regulations, along with adherence to export and import rules of countries through which the cargo transits. This process involves standardized acceptance procedures applicable universally, with certain specific procedures tailored for distinct types of cargo.

Key Steps Within the Cargo MOP:

Booking & Planning Shipments:

Initiating the cargo handling process entails meticulous booking and planning of shipments, encompassing various tasks before the shipment leaves the facility. Proper planning mitigates issues down the supply chain, involving steps such as receiving shippers’ requests, verifying security status, planning routing, confirming capacity, and arranging freight pickup.

Receiving and Accepting Air Cargo:

The subsequent logistical step involves the reception and acceptance of air cargo for transportation. This multi-step process involves numerous stakeholders, including trucking companies, cargo, and ground handling service providers. Safety remains paramount throughout, necessitating clear labeling, appropriate packaging, and protection of goods from potential damage.

Detailed Cargo Handling Process:

Upon arrival at the carrier’s domain, following prior information receipt, the cargo is received, and a comprehensive acceptance process ensues, aligning with carrier requirements, local export rules, transit airport regulations, and destination country import regulations.

Preparing Cargo for Flight:

Post-acceptance, cargo handling personnel prepare the air cargo for flight, re-verifying security clearance, conducting cargo checks, and formulating a build-up plan for flight cargo, ensuring compliance with regulations and airline-specific protocols.

Loading and Dispatching Cargo:

Loaded Unit Load Devices (ULDs) are transitioned to a secure flight holding area, adhering to safety protocols and ramp transportation preparations. The transition of cargo from the terminal to the aircraft follows a structured process outlined in the IATA Cargo Handling Manual (ICHM), ensuring adherence to load plans and special cargo arrangements.

Unloading Air Cargo:

The unloading process, comparatively less complex than shipping and loading, mandates compliance with rules and regulations, emphasizing methodical tasks and adherence to ramp safety protocols. This phase involves unloading, shipment check-in, arrival procedures, and subsequent handover to forwarders.

Finalizing Delivery:

The goods, having been collected from the carrier’s domain, progress through various hubs and facilities before reaching the consignee, concluding the supply chain cycle in adherence to the ICHM’s chapters and guidelines.

The Significance of IATA Cargo Handling Manual (ICHM):

The IATA Cargo Handling Manual (ICHM) stands as a comprehensive resource, offering current best practices for stakeholders in the airline industry. It provides a step-by-step guide and requisite documentation, aligning with the Master Operating Plan (MOP), along with additional appendices covering regulations, agreements, and a glossary.

Relevance and Availability:

The IATA Cargo Handling Manual (ICHM) is indispensable for all entities within the air cargo supply chain, from airlines to shippers and cargo agents. It consolidates guidelines and regulations, streamlining operations and ensuring compliance, saving both time and expenses associated with adherence to varied airline-specific instructions.

Accessing Further Information:

For comprehensive and up-to-date guidelines in air cargo handling that encompass the specific protocols of various airlines, referencing the IATA Cargo Handling Manual (ICHM) is paramount. This manual serves as a comprehensive guide to compliance with regulations and the 19-step MOP, minimizing risks inherent in air cargo handling processes.

Discover supply chain logistics news updates on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#AirCargo #CargoHandling #IATACargo #AirTransportation #SupplyChainLogistics #AirCargoHandling #GlobalTrade #LogisticsManagement #MOP #AirCargoHandlingManual #FreightForwarding #CargoTransportation #IATARegulations #SupplyChainManagement #AirCargoIndustry #ShippingSolutions

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