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Book part
Publication date: 26 September 2022

James Nolan and James Peoples

The continued rise in e-commerce has contributed to recent growth of the air cargo industry. In addition, international demand for low volume-high value products as well as…

Abstract

The continued rise in e-commerce has contributed to recent growth of the air cargo industry. In addition, international demand for low volume-high value products as well as time-sensitive goods continues to enhance demand for air cargo services. This volume consists of 11 chapters exploring whether this transportation sector has positioned itself to successfully take advantage of the economic opportunities associated with changing global demand for goods and demand for timely transportation services. Areas of analysis cover costs and competitiveness, shipper services and air cargo demand, along with international competition and economic development. Employing various empirical techniques and theoretical perspectives, these chapters help the reader to understand the methods by which air cargo companies provide efficient and increasingly affordable services, and also how the use of these services enhances economic growth and development.

Open Access
Article
Publication date: 21 March 2024

Niklas Arvidsson, Howard Twaddell Weir IV and Tale Orving

To assess the introduction and performance of light electric freight vehicles (LEFVs), more specifically cargo cycles in major 3PL organizations in at least two Nordic countries.

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Abstract

Purpose

To assess the introduction and performance of light electric freight vehicles (LEFVs), more specifically cargo cycles in major 3PL organizations in at least two Nordic countries.

Design/methodology/approach

Case studies. Interviews. Company data on performance before as well as after the introduction. Study of differing business models as well as operational setups.

Findings

The results from the studied cases show that LEFVs can compete with conventional vans in last mile delivery operations of e-commerce parcels. We account for when this might be the case, during which circumstances and why.

Research limitations/implications

Inherent limitations of the case study approach, specifically on generalization. Future research to include more public–private partnership and multi-actor approach for scalability.

Practical implications

Adding to knowledge on the public sector facilitation necessary to succeed with implementation and identifying cases in which LEFVs might offer efficiency gains over more traditional delivery vehicles.

Originality/value

One novelty is the access to detailed data from before the implementation of new vehicles and the data after the implementation. A fair comparison is made possible by the operational structure, area of delivery, number of customers, customer density, type of packages, and to some extent, the number of packages being quite similar. Additionally, we provide data showing how city hubs can allow cargo cycles to work synergistically with delivery vans. This is valuable information for organizations thinking of trying LEFVs in operations as well as municipalities/local authorities that are interested.

Details

International Journal of Physical Distribution & Logistics Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 January 2024

Ferhat Caliskan, Yavuz Idug, David M. Gligor, Hasan Uvet, Saban Adana, Hasan Celik and Sedat Cevikparmak

The purpose of this study is to determine the factors that impact the trust of microenterprises in online selling platforms and cargo carriers and examine the consequences of a…

Abstract

Purpose

The purpose of this study is to determine the factors that impact the trust of microenterprises in online selling platforms and cargo carriers and examine the consequences of a lack of trust.

Design/methodology/approach

This study adopts a qualitative exploratory approach and uses grounded theory to generate insights based on interviews with 27 microenterprise owners selling internationally on an online selling platform.

Findings

The results show that a lack of competence, an absence of an integrated claim system and a lack of transparency are the main factors affecting sellers’ trust in online selling platforms. The relationship between the sellers’ intention to continue to use the online selling platform and their trust in the platform was found to be moderated by switching costs.

Research limitations/implications

This study is limited in that the results were mainly based on the sellers’ perspectives although the phenomenon of interest involves various actors. To mitigate this limitation and cross-check the data, the customer reviews and some of the sellers’ account statistics were also analyzed.

Practical implications

This study introduces the sellers’ perspectives on the dynamics of supply chain management in international micro trade. These dynamics provide a guideline for how to build and manage an online selling platform targeting microenterprises.

Originality/value

Unlike previous studies, this study examines online transaction behaviors from the standpoint of sellers, not buyers. Moreover, it is the first study examining the damaged or lost shipments within the context of online transactions in international micro trade.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Case study
Publication date: 13 November 2023

Ann Mary Varghese, R. Sai Shiva Jayanth, Remya Tressa Jacob, Abhishek Srivastava and Rudra Prakash Pradhan

The learning outcomes of this case study are to understand the business model canvas and value propositions and apply advanced business innovation tools in electric vehicle…

Abstract

Learning outcomes

The learning outcomes of this case study are to understand the business model canvas and value propositions and apply advanced business innovation tools in electric vehicle business models; evaluate the current cargo vehicle scenarios at national and global levels and draw out the possibilities and costs for a new player; extrapolate the future scenario of the cargo economy, its electrification and positioning in a business-to-business (B2B) and business-to-customer (B2C) segment, especially for a developing economy; and improve the student’s ability to get organisational buy-in and execute new business models.

Case overview/synopsis

LoadExx is a fully electrified electric cargo service focusing on logistics in Kolkata, a metropolitan city in the eastern part of the country. The service of LoadExx commenced in January 2021 in the B2B segment after overcoming its then issues of driver hesitancy and customer anxiety and financial issues to adopt electrified cargo systems. The conundrum faced by LoadExx in its commencement thus had been solved under the able guidance of its owner Amit Arora. The case study was positioned four months after the commencement of LoadExx. To gain market power and traction, Arora and his team came up with the idea of market expansion. However, the current conundrum was whether LoadExx would enter the B2C segment in its current location or expand with the same business model to other parts of the country. The expansion was to be implemented in the immediate future to retain its rarity and reduce the imitability of the business model of LoadExx. This case study details the logistics and market operations of the cargo sector, especially electric cargo, in a developing economy, especially India. A teaching note supplementing the “Cracking the conundrum of e-cargo logistics: curious case of LoadExx” case study has been provided.

Complexity academic level

This case study is designed for undergraduate and postgraduate students and senior management professionals in executive education programmes undertaking courses in logistics management and supply chain operations and related cargo logistics courses. This case study denotes integrating key processes from end-users and gaining the trust of drivers, thereby showing the perspective of the plight and conundrums of a cargo aggregator working in the B2C segment. This case study could be used to discuss concepts related to not-for-profit firms, aggregators, policymakers and think tanks.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 9: Operations and logistics.

Details

Emerald Emerging Markets Case Studies, vol. 13 no. 3
Type: Case Study
ISSN: 2045-0621

Keywords

Book part
Publication date: 26 September 2022

Zoe Laulederkind and James Peoples

This chapter investigates productivity and cost patterns in the all-cargo US air transport sector. We empirically test the productivity growth influence of changes in unexplained…

Abstract

This chapter investigates productivity and cost patterns in the all-cargo US air transport sector. We empirically test the productivity growth influence of changes in unexplained technology, air operations movement characteristics, and factor input prices. Findings show productivity trends depicting negative growth for the 1993–2001 sample, then shifting measurably such that productivity trends depict positive growth for the 2002–2014 sample. The post 2001 growth was fueled by changes in unexplained technological advancements. We interpret this finding as an indication of the importance of technological innovation as a performance enhancer in this transport sector. Findings also reveal a lack of productivity change associated with changes in input prices and movement characteristics. We interpret input price findings as indicating increases in factor input prices such as wages and fuel prices are commensurate with enhanced labor and fuel productivity. The movement characteristic findings are attributable to a lack of sustained increases in load factors, stage length, network size and carrying more volume over the network (density).

Book part
Publication date: 26 September 2022

Darren J. Prokop

Alaska is the largest state by land area in the United States. It is also the most diverse in its climate and topography. This chapter will examine the geographic and operational…

Abstract

Alaska is the largest state by land area in the United States. It is also the most diverse in its climate and topography. This chapter will examine the geographic and operational features that make Alaska a unique environment for air cargo logistics. Some of these features sustain its competitive advantage in international air cargo activity. In particular, Ted Stevens Anchorage International Airport (ANC) is a major air cargo gateway for Asia trade with the contiguous United States. An overview of the airport's exclusive air cargo transfer operations will be discussed. Alaska is also one of the least populous states, with about half of the population living in and around the Anchorage area. Due to this, towns and villages ranging from the temperate Alaska Panhandle to well above the Arctic Circle remain dependent on commercial air cargo activity. The federal air cargo program known as Alaska Bypass will be examined as remaining both unique and necessary for the state's socio-economic development.

Details

The International Air Cargo Industry
Type: Book
ISBN: 978-1-83909-211-4

Keywords

Book part
Publication date: 26 September 2022

James Nolan and Zoe Laulederkind

Cargo tariffs are agreed through the IATA machinery, and in theory approved by governments….the IATA Tarff Coordination Conferences still agree cargo tariffs on over 200,000…

Abstract

Cargo tariffs are agreed through the IATA machinery, and in theory approved by governments….the IATA Tarff Coordination Conferences still agree cargo tariffs on over 200,000 separate routes. But these tariffs bear little relevance to what is actually charged in the marketplace.” (Doganis, 2002)

“The stipulations ICAO standards contain never supersede the primacy of national regulatory requirements. It is always the local, national regulations which are enforced in, and by, sovereign states, and which must be legally adhered to by air operators making use of applicable airspace and airports……ICAO is therefore not an international aviation regulator, just as INTERPOL is not an international police force. We cannot arbitrarily close or restrict a country's airspace, shut down routes, or condemn airports or airlines for poor safety performance or customer service. Should a country transgress a given international standard adopted through our organization, ICAO's function in such circumstances…….is to help countries conduct any discussions, condemnations, sanctions, etc., they may wish to pursue, consistent with the Chicago Convention and the Articles and Annexes it contains under international law.” (ICAO, 2021)

In spite of being a growing liberalized global industry served by many firms, much of the international air cargo sector operated as an admitted cartel from 1999 through 2006. Partly due to the way the cartel was discovered, it seems very little empirical analysis to date has been done about the case. We use publicly available airline data to examine whether a diligent antitrust authority could have identified cartel/collusive behavior using established empirical methods. Our findings point to a regulatory failure in an industry whose long-standing business practices effectively “slipped through the cracks,” failing to protect the many shippers of air cargo.

Details

The International Air Cargo Industry
Type: Book
ISBN: 978-1-83909-211-4

Keywords

Book part
Publication date: 26 September 2022

Adedotun Joseph Adenigbo and Olayemi O. Simon-Oke

The increasing growth in global trade is promoting economic diversification through efficient air cargo logistics. The overdependence of Nigeria on mono-product export, mainly…

Abstract

The increasing growth in global trade is promoting economic diversification through efficient air cargo logistics. The overdependence of Nigeria on mono-product export, mainly crude oil, hinder the successful implementation of economic diversification policy. However, air cargo export plays a significant role in any successful economic diversification policy. Despite the importance of air export of cargo to the economy, literature is scarce on the role of air cargo export in economic diversification studies. This chapter assesses the performance of air cargo export by highlighting its inherent opportunity to support economic diversification in Nigeria. The analysis draws on air cargo export data by volume, types, and airline market share in Nigeria. Regression analysis established a significant relationship between Nigeria's gross domestic product (GDP) and air cargo export. Johansen cointegration test showed that both short and long-run cointegration exists between air cargo and GDP in Nigeria. An increasing trend in Nigeria's air cargo export volume indicates the significance of air cargo export to support economic diversification policy in Nigeria. Airlines market shares have British Airways, Virgin Atlantic, Emirates, and Saudi Air dominating the exportation of cargo in Nigeria. Agricultural products dominate the air cargo export with 34.6% volume, followed by manufacturing products (23.6%). An all-inclusive policy that promotes international trade for the economic emancipation of Nigeria through diversification into agriculture and manufacturing sectors is necessary.

Details

The International Air Cargo Industry
Type: Book
ISBN: 978-1-83909-211-4

Keywords

Book part
Publication date: 21 October 2019

Wouter Dewulf, Hilde Meersman and Eddy Van de Voorde

Air cargo was traditionally considered as a by-product of passenger air transport. However, in the last decade a defined strategy for air cargo has gained a key position in the…

Abstract

Air cargo was traditionally considered as a by-product of passenger air transport. However, in the last decade a defined strategy for air cargo has gained a key position in the strategies of most combination airlines, contributing largely to the cash and profit levels of these airlines. The global air cargo industry is nowadays a mature industry with over 60 billion USD in direct revenues. The strategic context is, therefore, far beyond the basic entrepreneurial framework in which an emerging and young industry tends to operate. This chapter aims to gain an enhanced insight into the strategies of airlines that transport cargo, either in the bellies of passenger aircraft or in full-freighter aircraft. A Cluster Analysis generates a typology of seven representative clusters of air cargo operators’ strategy models. The typology proposes a spectrum of strategies for air cargo, ranging from the cluster group “Carpet Sellers” up to the “Cargo Stars” cluster. While the former tend to be the small airlines or all-cargo carriers which barely manage to cover their costs with their revenues, the latter are profitable, very large globally operating airlines that focus on both passengers and cargo with passenger and freighter aircraft. Within this spectrum there are five other main strategy groups: the “Basic Cargo Operators,” the “Strong Regionals,” the “Low Cost Low Yielder,” the “Large Passenger Wide-body Operators,” and the “Premium Cargo Operators.” Our findings suggest the existence of superior strategy models that could be defined as “winning strategies” that differ according to airline size.

Details

Airline Economics in Europe
Type: Book
ISBN: 978-1-78973-282-5

Keywords

Book part
Publication date: 12 January 2012

Nam-Kyu Park, Daniel S. H. Moon and Chae-Kwan Lim

The aim of this chapter is to identify factors that have been affecting the increase of transhipment (T/S) cargoes of the port of Busan and to explore how these factors can be…

Abstract

The aim of this chapter is to identify factors that have been affecting the increase of transhipment (T/S) cargoes of the port of Busan and to explore how these factors can be utilised more effectively to attract and increase T/S cargoes through the development of a port choice model using the technique of system dynamics (SD). To clarify the reason why T/S cargoes have increased in the port of Busan, several steps have been taken as follows.

The first step was to design a quantitative model to explain the development of T/S cargoes during the last decade. The second step was to define dependent and independent variables for multiple regressions after testing variable significance. For this, data collection and the accuracy of validation have been achieved by using the direct interview procedure involving experienced experts from both Korean and foreign shipping companies. After validating the model with the collected data, the final step was to find variables that confidently explain the model.

It is found that two variables are clearly identified as core factors that describe well the development of T/S cargoes in the port of Busan: ‘Mohring effect’ and total cost. Further, it is strongly recommended, through this empirical study, that an incentive scheme be changed to the way in which more feeder vessels rather than mother vessels can reduce their direct costs to call at the port of Busan.

Based on regression analysis, it is also found that the sensitivity model for transhipment cargo is useful for dynamic forecasting in changing the cost factor and Mohring factor with time-series technique.

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