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1 – 10 of over 2000
Book part
Publication date: 26 September 2022

Chunyan Yu and Li Zou

This chapter investigates the effects of economic development, FDI, trade barriers, product characteristics, and air transport network connectivity on both air trade and air cargo

Abstract

This chapter investigates the effects of economic development, FDI, trade barriers, product characteristics, and air transport network connectivity on both air trade and air cargo demand. The analysis applies gravity model and estimates the air trade and air cargo demand models using seemingly unrelated regressions based on data for the air cargo markets between the United States and its top 61 trading partner countries during the 2004–2019 period. By developing and incorporating “investment distance” as a determining factor in the estimation of air trade, our study fills the gap in literature and sheds light on the importance of air cargo transport in enabling and facilitating the rapid growth of global value chains in recent decades. The results suggest that higher level of FDI between the US and its trading partner countries helps stimulate air trade. Moreover, we also develop several network centrality metrics and examine their relationship with regional air connectivity, which in turn has a positive impact on air cargo traffic. Further analysis using Granger causality tests provides strong evidence supporting the importance of air cargo services as an engine for economic growth and international trade in a dynamic global economic landscape.

Details

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

Keywords

Book part
Publication date: 26 September 2022

Milan Janić

Supply chains deliver goods and services between shippers and receivers, covering collection, transportation, distribution as well as their handling and storage in between. In…

Abstract

Supply chains deliver goods and services between shippers and receivers, covering collection, transportation, distribution as well as their handling and storage in between. In particular, transportation services are carried out by different transport modes. In some modern supply chains, different categories of air cargo carriers – combinations, freighter-only, and/or integrators – provide critical transport services.

This chapter develops a methodology for estimating the performance of supply chains served by an air cargo carrier network. The methodology is based on indicators of infrastructure use, technical/technological level, operational factors, economic factors, and environmental performance. This proposed methodology is applied to estimate performance of supply chains served by an integrated air cargo carrier – FedEx Express – operating a single hub in the US domestic air network. Results indicate that the methodology may be useful for estimation of overall supply chain performance under the condition that relevant data are available.

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: 31 May 2016

Matteo Balliauw, Hilde Meersman, Evy Onghena and Eddy Van de Voorde

Existing studies about airline productivity and cost competitiveness are focusing on combination carriers, transporting both passengers and cargo in the same aircraft and with the…

Abstract

Existing studies about airline productivity and cost competitiveness are focusing on combination carriers, transporting both passengers and cargo in the same aircraft and with the same inputs. Scientific research about the cost structure and productive performance of all-cargo carriers is very limited. However, the importance of air cargo and express transport in our globalized economy, the high volatility of all-cargo carriers (especially since the 2008 economic crisis), and the success of integrators show the need for more scientific attention to this industry. This chapter aims at benchmarking the productivity and cost competitiveness of US integrated and non-integrated cargo carriers, based on total factor productivity and unit cost competitiveness analyses. The results unveil a positive correlation between productivity on the one hand and the size of the carrier and its average stage length on the other hand, indicating economies of scale. Correcting the results for such factors beyond managerial control and input prices allows us to measure the impact of the crisis and the consequences for the management of the individual carriers.

Details

Airline Efficiency
Type: Book
ISBN: 978-1-78560-940-4

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

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.

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

Dermot P. Coates and Conor Kelly

Since 2000, the value of aircraft assets imported to – and exported from – the Irish economy has increased significantly. In each case, these figures represent a marked rise over…

Abstract

Since 2000, the value of aircraft assets imported to – and exported from – the Irish economy has increased significantly. In each case, these figures represent a marked rise over a 17-year period. This gives rise to some simple questions: what are the dynamics that give rise to a small, open economy's demand for aircraft assets on this scale? Indeed, is it merely a reflection of our island location or is there something more at play? And can we comment on the role of the air cargo industry in this demand? Ireland's growing aircraft leasing industry is internationally orientated with Ireland emerging as an important hub for this industry. A recent industry estimate noted that nine of the world's 10 largest aircraft leasing companies are located in Ireland with the number of aircraft managed in Ireland at 3,500 (or 50%) of the entire global fleet of leased aircraft. This, in part, is an important contributor to this demand for aircraft assets. The objective of this research is to examine the flow of imports and exports of aircrafts to, and through, Ireland using Eurostat's International Trade in Goods Statistics (ITGS) dataset. The authors also use the International Trade in Services series in the Balance of Payments in order to consider the value, and relative scale, of the services provided by air freight operators in order to provide some context to the role of the air cargo sector.

Details

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

Keywords

Article
Publication date: 30 August 2013

Chalermkiat Singhaseni, Yue Wu and Udechukwu Ojiako

In order to hedge against fluctuation in actual “show” for air freight services, cargo airlines engage in the allocation of more space capacity than they actually have. This…

2258

Abstract

Purpose

In order to hedge against fluctuation in actual “show” for air freight services, cargo airlines engage in the allocation of more space capacity than they actually have. This practice can lead to overbooking of capacity which can incur costs to the airline when a cargo does show that is larger than predicted. In this study, the authors set out to model an optimised value for air cargo booking which is tested against five different cargo case‐representative scenarios. The paper aims to discuss these issues.

Design/methodology/approach

The methodology which is primarily discursive utilises a synthesis of existing literature to develop a model to replicate the overbooking problem.

Findings

This paper finds that the optimised value of cargo size may not necessarily depend on the probability of actual “show”. Instead, this variation appears dependent on a random demand for larger sized cargo, and thus, price.

Practical implications

The model which is developed serves as a potential framework for airlines to avoid uncertainty associated with cargo capacity spoilage and overbooking.

Originality/value

In this study, the passenger overbooking model under the cancellation and no‐show problems in the static single leg case was adapted for use during the modelling of air cargo overbooking.

Details

International Journal of Physical Distribution & Logistics Management, vol. 43 no. 8
Type: Research Article
ISSN: 0960-0035

Keywords

Book part
Publication date: 6 June 2023

Henry Vega and Kenneth Button

Air freight transportation is an increasingly important element in the production supply chains of both developed and less-developed countries. This chapter looks at the…

Abstract

Air freight transportation is an increasingly important element in the production supply chains of both developed and less-developed countries. This chapter looks at the particular features of air freight transportation that pertain to the developing world. In doing this, it is borne in mind that much of the trade involves international interactions with developed countries and this affects the technology and costs involved. The markets for the transportation of flower products is given particular attention.

Details

Airlines and Developing Countries
Type: Book
ISBN: 978-1-80455-861-4

1 – 10 of over 2000