AIR CARGO IS TAKING OFF
Published date | 01 October 1980 |
Pages | 25-26 |
Date | 01 October 1980 |
DOI | https://doi.org/10.1108/eb057138 |
Subject Matter | Economics,Information & knowledge management,Management science & operations |
AIR
CARGO IS
TAKING
OFF
British Airways'
free Distribution
Advisory Service
offers customers
a computerised
link-up with
500
cities worldwide
AIR CARGO has become the lusty
infant of the freight business.
Although barely one per cent by vol-
ume of the total UK exports are sent
by air, this represents more than 17
per cent in terms of value. Last year
less than half a million tonnes of air
cargo passed through London Heath-
row Airport. Small in comparison
with the Port of London's 48 million
tonnes, but supreme in value with
about £11 billion. Air cargo now has
priority in developed countries for all
high-value exports travelling any
reasonable distance. The top of the
list are USA, Japan and U.K. and air
cargo has given Heathrow the title of
Britain's biggest port by trade and the
sixth largest in the world for air cargo.
The freight trade now faces a
decade of innovation to remain com-
petitive and survive against spiralling
fuel costs and decreasing passenger
yields, especially on the North Atlan-
tic.
Combination aircraft now place
far greater importance on the yield
from cargo.
In the belief that if the basic trans-
portation cost was marginal then the
customer was more likely to be satis-
fied with the transaction, it has
become traditional within exporting
industries to place greater importance
on price. Other vital criteria are often
ignored.
The air cargo market has become
highly competitive in recent years
and, as more carriers leave the rate-
fixing guidance of the International
Air Transport Association, newcom-
ers have been bewildered by the vari-
ety of services. Within the U.K. alone
there are 120 cargo agents with more
than 700 offices who will arrange
shipment of freight by air and often
include local collection and delivery
NOVEMBER 1980 25
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