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1 – 10 of over 3000The question of the role to be played by air freight in international distribution systems has always been controversial. Airlines have been only too willing to extol what are, by…
Abstract
The question of the role to be played by air freight in international distribution systems has always been controversial. Airlines have been only too willing to extol what are, by now, the wellāknown benefits of air freight: that it can reduce packing, insurance, inventory and warehousing costs, and allow for comparatively riskāfree test marketing. However, within the distribution industry, whilst the usefulness of air freight for emergency and perishable shipments is not in doubt, there is still concern over the high levels of air freight rates compared to those of surface transport, the often poor standards of air freight ground handling, and the limited speed and service advantage which air transport holds over surface operators on short haul routes.
Ching-Cheng Chao, Fang-Yuan Chen, Ching-Chiao Yang and Chien-Yu Chen
The e-freight program launched by the International Air Transport Association (IATA) has gradually become a standard specification for international air freight operations. This…
Abstract
The e-freight program launched by the International Air Transport Association (IATA) has gradually become a standard specification for international air freight operations. This study examined critical factors affecting air freight forwardersā decision to adopt the IATA e-freight using a technology-organization-environment model with air freight forwarders in Taiwan as the base. Our findings show that āinformation technology (IT) competenceā, ātrading partner pressureā, āgovernment policyā and ācompetitive pressureā all have significant positive effects on air freight forwardersā decision to adopt the e-freight and the top three factors among these are āgovernment fundingā, āgovernmentās active promotionā and āgovernmentās requirement of electronic air waybill (e-AWB)ā. Finally, this study proposes strategies that can encourage air freight forwarders to decide on e-freight adoption for the information of relevant oK regyawniozradtison International Air Transport Association (IATA); IATA e-freight; Technology organization environment model; Air freight forwarder
Joseph Schwieterman and Euan Hague
This study develops a method for categorizing airports based on the amount of cargo each airport handles in relation to its passenger traffic. Such a categorization allows for…
Abstract
This study develops a method for categorizing airports based on the amount of cargo each airport handles in relation to its passenger traffic. Such a categorization allows for systematic comparisons of airports largely specializing in cargo with those that have more balanced freight/passenger roles. The results show that cargo-focused hub airports (i.e., major cargo-handling airports that handle little or no passenger traffic) in the continental United States shoulder a growing burden in freight movement. One of the most successful of these, Chicago Rockford International Airport, has risen to become the 15th largest airport with respect to domestic cargo shipments on the US mainland, while Texas's Fort Worth Alliance Airport and Seattle's Boeing Field also rank among the top 50. A considerable amount of volatility, however, has accompanied the evolution of this specialized grouping of airports over the past 20 years. Presently, among the 100 airports on the U.S. mainland handling the most domestic freight, cargo-focused hub airports serve only a secondary role, handling less than 5% of domestic air freight shipments as measured by weight. Most major hubs operated by air-freight integrators, such as those developed by FedEx and UPS at Memphis, TN, and Louisville, KY, respectively, are at mixed-purpose airports that have a greater balance of passenger and freight activity. The findings point to some of the unique challenges facing airports that specialize in the movement of freight.
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Jian-yu Fisher Ke, Robert J. Windle, Chaodong Han and Rodrigo Britto
The purpose of this paper is to propose that transportation modal mix in global supply chains is a result of the strategic alignment between industry characteristics and supply…
Abstract
Purpose
The purpose of this paper is to propose that transportation modal mix in global supply chains is a result of the strategic alignment between industry characteristics and supply chain strategies.
Design/methodology/approach
Using annual US trade statistics and manufacturing industry data for the years 2002-2009 between the USA and its top 12 Asian trading partners, this study applies various regression methods to examine key factors associated with the transport modal decision.
Findings
The results show that industry characteristics have an impact on the transportation modal mix in global supply chains. Manufacturing industries use more air freight and less ocean freight when facing positive sales surprises, high-monthly demand variation, a high-contribution margin ratio, a high cost of capital, and increased competition.
Practical implications
The findings provide important insights for logistics managers and freight forwarders. While transportation cost remains an important concern, a logistics manager must also consider non-cost factors such as competition, working capital, and demand uncertainties in their modal decisions. Freight forwarders should be supply chain solution providers who consider all of these industry factors and suggest a proper mix of transportation modes for their customers.
Originality/value
This study is among the first efforts to examine the impact of industry characteristics on the transportation modal mix in global supply chains. This study first develops a theoretical framework for the modal choice decision for international transportation movements and then, using an extensive and innovative data set, provides new findings regarding current air freight practices in global supply chains.
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Xu Zhang and Hans-Joachim Schramm
This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and…
Abstract
Purpose
This paper presents an overview of the recent development of Eurasian rail freight in the Belt and Road era and further evaluates its service quality in terms of transit times and transport costs compared to other transport modes in containerised supply chains between Europe and China.
Design/methodology/approach
A trade-off model of transit time and transport costs based on quantitative data from primary and secondary sources is developed to demonstrate the market niche for Eurasian rail freight vis-a-vis the more established modes of transport of sea, air and sea/air. In a scenario analysis, further cargo attributes influencing modal choice are employed to show for which cargo type Eurasian rail freight service is favourable from a shipper's point of view.
Findings
At present, Eurasian rail freight is about 80% less expensive than air freight with only half of the transit time of conventional sea freight. Our scenario analysis further suggests that for shipping time-sensitive goods with lower cargo value ranging from $US1.23/kg to $US10.89/kg as well as goods with lower time sensitivity and higher value in a range of $US2.46/kg to $US21.78/kg, total logistics costs of Eurasian rail freight service rail is cheaper than all other modes of transport.
Practical implications
As an emerging competitive solution, Eurasian rail freight demonstrates to be an option beneficial in terms of transport cost, transit time, reliability and service availability, which offers a cost-efficient option enabling shippers to build up agile and more sustainable supply chains between China and Europe.
Originality/value
Our study firstly provides a comprehensive assessment of present Eurasian rail freight including a thorough comparison with alternative modes of transport from a shipper's point of view.
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Air freight is often used in the transport of goods between the United Kingdom and Western European destinations despite a well developed, competitive and generally much cheaper…
Abstract
Air freight is often used in the transport of goods between the United Kingdom and Western European destinations despite a well developed, competitive and generally much cheaper road groupage (consolidation) industry. In particular, until 1980, express road services with fast delivery times comparable to air do not appear to have made much impact on shippers. This paper examines some of the possible reasons for the continuing existence of a reasonably high level of demand for air freight to Western Europe from the United Kingdom. Air freight appears to be used mainly for the sake of urgency which is usually associated with transit time. This paper examines some of the other factors which may be taken into account by shippers when deciding between air and surface transport.
Sheelagh Matear and Richard Gray
Examines the factors which are important in the choice of freightservices for both shippers and freight suppliers and explores whetherthe service choice decision is based on…
Abstract
Examines the factors which are important in the choice of freight services for both shippers and freight suppliers and explores whether the service choice decision is based on different sets of criteria for the two groups and further, whether freight suppliers use different criteria in selecting sea and air transport services. Principal components analysis is used to elicit the factors important in freight service choice. Carrier timing and price characteristics are more important for freight shippers while performance and schedule are more important for freight suppliers purchasing sea services and a combination of schedule and space is more important for freight suppliers purchasing air services. Discusses strategic implications for marketing.
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Reports on an investigation of the buying behaviour of air freightforwarders and tests the validity of one particular model of buyingbehaviour. The dominant buyclass in freight…
Abstract
Reports on an investigation of the buying behaviour of air freight forwarders and tests the validity of one particular model of buying behaviour. The dominant buyclass in freight forwarding is seen to be a modified rebuy and the model is seen to be appropriate. The significance of service rather than price is again noted as a factor for business exploitation.
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One of the most difficult dilemmas facing industry today is the increasing cost of distribution. This is true for both incoming and outgoing supplies. The major trends in the last…
Abstract
One of the most difficult dilemmas facing industry today is the increasing cost of distribution. This is true for both incoming and outgoing supplies. The major trends in the last decade have been: the increase in industrial and consumer purchasing power; rapidly developing technology which has given rise to economies of largeāscale production; and there has been an increasing significance placed upon manufacturing productivity improvements. These trends have resulted in lower production costs; the need for geographically wider markets; and the acquisition of those management skills that are necessary to support such developments. In the last few years certain management emphasis has been placed upon minimising the rapid upward trend in administration and distribution costs. These have often more than offset any cost reduction achieved in production, with the result of a marginal price increase to the final customer. Those fields in which most advances have been made are automatic data processing and machine accounting. But the highest cost increases have often occurred within the physical distribution system. Since international marketing has developed to satisfy the extensive industrial and consumer needs, it is imperative that management realise the impact of distribution costs upon both inputs to the manufacturing process and the final product or services which they offer. The need has, therefore, arisen for senior management to tackle these problems, and air cargo distribution has recently begun to be considered, and will be increasingly important in the future.