Introduction
It is possible to compare different types of cargo transportation by three key characteristics: the cost of money for transportation, the risks of cargo loss, and delivery time. The method of cargo delivery by plane is usually more expensive, unlike delivery by road, rail, or sea. However, the advantages of this type of transportation will be aspects such as speed and reliability of cargo safety. It is possible to use sea transport, but the time spent on delivery will be disproportionate to the potential profit after the sale of the delivered cargo. Thus, it turns out that in some individual but widespread cases, air transportation remains the only possible way of transportation in the logistics supply chain. However, the air cargo industry faces various difficulties, often manifested in airports’ high costs and complicated technical and infrastructural equipment.
Complex Process
Cargo delivery chains and the processes of moving shipments from the point of departure to the destination are often complex and subject to many regulatory requirements, especially when it comes to international air transportation. As the cargo moves along the delivery chain, it passes through a number of structures with different responsibilities, including aircraft operators, express carriers, postal operators, registered agents, shippers, consignees, transport companies, and ground handling agents (Baker, 2005). An additional complication is that these structures are called differently in different countries or regions in which they are located. All competent authorities responsible for flight safety and aviation safety, crime prevention, and protection of state revenues are interested in ensuring that their rules are observed (Airports Council International, 2003). All parties involved in this complex system share responsibility for ensuring cargo protection and work according to the law.
Air transportation (passengers and cargo) is initially not profitable and has a long payback period, so large commercial structures have no interest in investing in this type of activity. Almost all regional and local airports require significant assets for the restoration and construction of cargo complexes, equipping these airports with the latest models of unique vehicles and special technical means (Airports Council International, 2003). There is a paradoxical situation when one or another airport is forced to refuse cargo service due to the lack of special technical means for unloading, transporting, and handling cargo by specially trained and trained specialists.
When choosing routes for an air carrier, a competent reasoned assessment of existing and prospective cargo flows is the basis of the airline’s commercial activities. The carrier can pre-plan possible revenues considering existing market conditions to obtain the necessary profitability of freight transportation (Cizmeci, 2021). The volume of cargo flows characterizes the concentration of production, economic and social development of the region, population density and the degree of development of the territory, its raw materials, and economic and infrastructural potential (Airports Council International, 2003). Without a comprehensive solution to the air transport industry’s problems, involving the resources of various ministries and departments, research organizations, legislative bodies, and regional and local authorities, it is impossible to expect a significant redistribution of imported air cargo flows and a reduction in the imbalance shortly.
Mechanisms and management methods, mechanisms for adequate diversification of the activities of large passenger airlines with their entry into the air cargo market have not been sufficiently developed for this area. Due to the fact that a high cost characterizes the transportation of goods by air, the only way to minimize costs is to load the aircraft as much as possible, respectively, the more cargo, the greater the profit (Cizmeci, 2021). In these conditions, the correct organization of the logistics system as a whole comes to the fore – it is essential to calculate costs correctly, choose the optimal route and assess the risks arising during cargo transportation (Cizmeci, 2021). Airlines must reconsider their views on the route details and attract competent specialists. The aviation industry is characterized by several systemic problems, among which is an adaptation to the market economy conditions against the background of a shortage of working capital of companies.
In addition, high competition in the global market with little demand in the domestic market affects. It is also worth paying attention to the infrastructure capabilities of airports. To accept large-sized aircraft, the construction of special hangars and reception points is required (Airports Council International, 2003). Implementing this type of activity is a relatively complex and expensive task. Consequently, the capacity of airports to receive a certain amount of cargo is significantly reduced. In addition, the likelihood of developing logistics chains in remote territories and underdeveloped settlements lacking similar technical capabilities is decreasing (Cizmeci, 2021). Thus, from the point of view of logistics, cargo air transportation can be made more accessible by eliminating a lack of necessary capabilities.
Security
Ensuring the safety of air cargo transportation should be considered from the point of view of unauthorized actions aimed at causing harm or damage to the supply chain itself. This directly depends on the presence of illegal concealment in the cargo of weapons, dangerous devices, or material intended for criminal purposes, such as explosive devices, other weapons, or illegal substances (Baker, 2005). The problem with air cargo safety in the supply chain is that after it is loaded onto an aircraft, fully legal and economic responsibility falls on the shoulders of the air transport operator (Baker, 2005). In the supply chain, the main and, at the same time, the most vulnerable link is the air carrier itself.
Accordingly, the main problem of air cargo transportation is the problem of implementing an appropriate level of security. This is reflected in the fact that airports must have certain capabilities that will allow for high-quality inspection of loaded and unloaded cargo (Airports Council International, 2003). In addition, it should be borne in mind that there are problems with the safety of transported materials or goods. Damage can be caused by various factors that will be quite problematic to track down and determine the only source (Baker, 2005). Thus, the air cargo is faced with the problem of ensuring safety since moving cargo over long distances is a remarkable precedent, including multiple risks and difficulties.
Speaking about the technical equipment of the cargo terminal, its functional features should be taken into account. Every operation performed with cargo can be tracked using information technology, so the number of cargo losses is minimized, although there are exceptions. One of the ways to reduce them is to rationalize the movement of cargo flows on the territory of the transit and transshipment warehouse, as well as to increase the speed of processing passing cargo (Airports Council International, 2003). The transit and transshipment warehouse at the airport should be equipped with all necessary equipment and equipment (Cizmeci, 2021). All cargo inspection, processing, packaging, and dispatch processes should be automated, which will significantly reduce the time of movement of the material flow through the cargo terminal.
In addition, the process of unloading and loading operations should be mechanized, which requires maximum safety of the movement of the material flow inside the transit and transshipment warehouse. Thus, the movement of cargo flows in the logistics chain is impossible without the concentration of reserves of resources in certain places for the storage of which the corresponding warehouses are intended (Airports Council International, 2003). The movement of cargo flow through the warehouse is associated with costs, increasing the final product cost. In this regard, the problems associated with the functioning of warehouse complexes significantly impact the movement of material flows in the logistics chain as a whole.
Conclusion
Summing up, it is worth noting that air cargo transportation is a widespread and popular service. Air transport is able to travel huge distances and deliver cargo even to hard-to-reach places, and as a result, expand the territorial boundaries of the business. Currently, the profitability of air cargo transportation is incompatible with the profitability of passengers and business, so much less attention is paid to this area, and much fewer funds are allocated for the development of certain infrastructure. All cargo terminals are located only at large passenger airports since the cargo direction is not a priority for aviation. Thus, there is an increase in the cost of cargo transportation and, as a result, a reduction in the number of consumers of this service. The costs of handling goods in cargo terminals at airports are very high due to the specifics of the development of the aviation business. In addition, problems related to the immediate safety of cargo and flights were highlighted. An airport should have a wide range of technical capabilities for receiving large-sized aircraft. All this significantly reduces the interest in the air cargo industry.
References
Airports Council International. 2003-2004 ACI-NA air cargo facilities and security survey summary. ACI-NA Economic Affairs Department.
Baker, J. M. (2005). National cargo security council.Journal of Commerce. Web.
Cizmeci, D. (2021). Air cargo: Exploring the biggest challenges and hurdles of the industry. Daglar Cizmeci. Web.