International Logistics II

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 Air cargo Transport
International air transport is regulated by:

✓ The Convention for the International Air Transport 1999 "Montreal

Convention".

✓ The Convention on International Civil Aviation 1944 "Chicago Convention".

✓ The Convention for the Unification of Certain Rules for International Carriage
by Air 1929 "Varsovia Convention".

✓ Approved by Legislative Resolution 24819.

✓ The Law of Civil Aviation of Peru and its Regulations, the General Customs
Law and its Regulations, and as noted in the Aviation Regulation of Peru No.
112, known as the RAP 112.

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 Air Freedoms
Airlines must obtain government permission before flying a route.
Routes often require multilateral approval to guarantee traffic rights and
freedoms of the air.

Nine freedoms are guaranteed:

1. The right for a carrier from country A to overfly the territory of a

country B without landing.

2. The right for an airline from country A, to land in the territory of a

country B, without the right to board and drop off passengers, cargo or
mail. For example to refuel.

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 Air Freedoms

3. The right for an airline from country A, to put down passengers,

cargo and mail in another country B.

4. The right for an airline from country A, to collect and deal

passengers, cargo and mail in the territory of a country B, with direction
to the country of origin of the airline.

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 Air Freedoms

5. The right for an airline from country A, to carry passengers, cargo

and mail from a origin point in a foreign country B, to a destination in
another foreign country C.

6. The right for an air transport operator from a country, to make

commercial traffic between two other countries via its territory.

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 Air Freedoms
7. The right for an air transport operator of a country, to make
commercial traffic entirely outside its territory.

8. The right for an air transport operator of a country, to make

commercial traffic in the territory of another country (cabotage).

9. Permission referred to a country's airlines to operate under 7th

freedom from the third state beyond its territory.

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 Air Transport Advantages
For the customer shipper or receiver:

1. Speed (extremely fast).

2. Security (high degree of safety).
3. Time.
4. Frequency.
5. Unlimited destinations (flight network covering the whole
world).
6. Transport capacity.
7. Costs vs. time.

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 Air Load Transport
Advantages:
✓ Speed (time).
✓ Competitiveness: inventory, financing, packaging.
✓ Handling: documentation, insurance.
✓ Market coverage.

Disadvantages:
✓ Capacity.
✓ Bulk cargoes.
✓ Low unit value products.
✓ Dangerous goods.
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 Air Load Transport
➢ International movement (general cargo) progressed
to 12.1% annually. In despite the high volatility of oil
and sea cargo preferences.

➢ Constant investment in air cargo warehouses,

(expansion and improvement).

➢ Terminal investment strengthening the cold chain

(ex. Frío Ransa).

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 Air Load Transport
Air Load - Peru

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 Air Load Transport
➢ IATA considers the load as all the objects that
are airlifted and protected by the Air Way Bill
(AWB).

➢ Except mail and luggage.

➢ They are subject to cargo regulations under

what is known as "Air traffic load“.

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Diagram of International Air Transport

Airline

Importer / Load Ramp

Exporter Agent Agent

Customs Terminal
Agent Warehouse

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 Air Cargo
The load is the set of goods protected by proper
packaging that allows to speed the handling,
loading, unloading or air transport. It is common to
consider as cargo any good, even if it is not
consolidated. Courier, supplies and accompanied
baggage are not considered as cargo.

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 Air Cargo Types
1. General cargo

a) Unitized Cargo: when individual goods are

transported, handled as separate units, bundles,
packages, bags, boxes, drums, tied pieces, etc.
b) A Unit Load: when the goods are placed in boxes,
packages or other items, or unitized cargo grouped
into units as pallets and containers, ready to be
transported.

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 Air Cargo Types
2. Perishable Load: Products whose physical,
chemical or microbiological properties do not
allow it to have a duration in time or in the
environment, such as products of animal and
plant origin in primary state, so they will need
special conditions for preservation (refrigeration,
preservatives, vacuum bags, etc.).

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 Air Cargo Types
3. Fragile (weak) load: consist in products that are
easily to be damaged or destroyed quickly, need
to be handled with extreme care using additional
packing materials (plastic, polyurethane foam,
styrofoam, bands, lashings, plastic or metal,
etc.,); in addition to label the signals or load
handling instructions.

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 Air Cargo Types
4. Valued load: is any containing one or more of the following
items:

✓ Any article having a declared value for carriage of US $ 1,000 per

kilogram or greater value.
✓ Gold in any form, platinum and platinum metals (palladium, iridium,
ruthenium, osmium and rhodium) excluding radioactive isotopes.
✓ Traveler's checks, policies, actions, postage stamps and bank or
credit card ready for use.
✓ Gemstones, diamonds, including industrial diamonds, sapphires,
rubies, emeralds and pearls.
✓ Jewelry and watches made of silver and / or gold and / or platinum.

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 Air Cargo Types

5. Dangerous Cargo: they are substances or objects that

present a risk to health, safety or that may cause
damage to the environment, properties or people. The
term dangerous goods is used in the transport sector and
in the areas of health safety.

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 Products transported by air
Urgents High value Others Restricted
• Perishable: • Precious metals. • Fragile items. • Dangerous
flowers, • Computers and • Human parts. goods.
vegetables, food. spare parts. • Live animals. • Chemical
• Medicines: • Expensive spare • Handicrafts. products.
vaccines. parts. • Textiles, apparel. • Radioactive.
• Spare parts. • Tools. • Aircraft parts.
• Newspapers, • Artworks. • Race cars.
magazines, • Works for
courier, exhibition.
documents.
• Short life items
can be dangerous
items.
• Items to save
human lives.

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Packaging in Air Cargo Transport

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Air Cargo Transport - Packaging
External
protection,
Factors: pressure,
impact,
damage by
Compatibility forklifts.
Absorption of
with
vertical and
packaging
horizontal
material
oscillations.
content.

Problem
Protection of
loss of Mass
commercial displacement.
value.

Internal
General
protection.
susceptibility
Fill, hold,
to damage.
close.

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 Air Cargo Transport - Packaging

Types:

➢ Regular: dealing with shipments Airport – Airport, and

pre- and post-shipment transport is under normal
conditions.

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Air Cargo Transport - Packaging

Types:

➢ Reinforced: under foreseen conditions with difficult

circumstances for pre- and post-shipment
transportation.

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Air Cargo Transport - Packaging
Indelibility:
The paint used must be waterproof and as a general
precaution to moisture.
Location:
Must be able to easily identify the product, it is
recommended to put them on the side or on the top
side of the package.

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Air Cargo Transport – Packaging Materials

➢ Natural: wood and natural fiber textiles

(fumigated wood).
➢ Straw cardboard and fibreboard (corrugated).
➢ Paper and cardboard materials: alone or
combined (plastic, wax).

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Air Cargo Transport – Packaging Materials

➢ Metallic: to transport liquids, powders, crystals,

etc.

➢ Synthetic: plastics used as containers (sacks,

bags, drums).

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Air Cargo Transport – Units

Unitization:
Is the process of consolidation of several units
into a single unit. Material handling cost
decreases as the size of the unit increases.

o Some IATA airline members have made a set

of pallets into a complete structural container.

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Unit Load types according to IATA

Pallets: designed to be Pallet and net: secure

transported by conveyor the cargo transported on
belts in airports and thin pallets, tied around
airplanes. it using elastic belts.
Sizes: 224 x 274 cm /
224 x 318 cm / 244 x
318 cm

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Unit Load types according to IATA

Structural igloos consists

Pallet-net-igloo:
of a structural unit, are
unstructured are called
made of fiberglass or
igloo made of fiberglass
metal.
or light metal).

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Unit Load types according to IATA

Lower hold containers: Thermic units: are built

complex and closed and equipped with
structures. They are thermal controls for
known as medium-sized temperature regulation.
containers for lower hold Made for places with
(warehouse). extreme temperature.

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Unit Load types according to IATA

Isothermic units: the insulating properties limit the

outdoor heat/cold and the interior, without
mechanical tools of temperature control.

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Major airlines
✓ Italy: Alitalia Team
✓ France: Air France
✓ Germany: Lufthansa
✓ Netherlands: KLM
✓ Spain: Iberia Líneas Aéreas de España
✓ England: British Air Inc.
✓ USA: American Airlines, Delta Airlines
✓ Korea: Korean Air Cargo
✓ Russia: Aeroflot
✓ China: Hong Kong Dragon Airlines
✓ Japan: Japan Airlines

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Major aircraft manufacturers
✓ Boeing
✓ Bombardier
✓ Airbus
✓ General Dynamics
✓ Embraer
✓ Cessna
✓ Tupoleve
✓ Dassault Falcon
✓ Indonesian aerospace

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Aircraft Types
Passengers
All aircraft liner, have space for carrying cargo. In these types of aircraft
passengers always have priority over the loads.

Load / Cargo
Dedicated exclusively to freight. They are specially designed for this
type of transport: reinforced structures, anchors, special access gates.
They can carry up to 150 tons.

Convertibles
By transforming a portion of the aircraft can be converted to cargo or
passenger transport.

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 Aircraft Types
Passenger (PAX)
Main deck

Lower deck

Freighter

Main deck
Lower deck

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Aircraft Types
Boeing B-747 Airbus 380 Antonov

Beluga Boeing B-747

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Types of Airlines

Regional
Average and low operating aircraft capacity, short air routes / low demand or
high frequencies. Generally they perform domestic flights.

Network
They operate with a large fleet with many types of aircraft, from small regional to
transcontinental. Combines long distance flights with medium and short
distance, depending on the model of distribution centers or hubs. Most of the
flag traditional airlines are included in this type.

Large Scale
Perform long flights between the main international airports in the world. Their
fleets are characterized by large capacity aircraft.

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The Interline Agreements
The interline cargo transportation is controlled by the
Interline Traffic Agreement - IATA Cargo or by the
agreements concluded between the carriers on a bilateral
basis.

The agreement is accepted by all IATA member airlines

and is also subject to certain conditions for non-IATA
members wishing to join it, basically to cargo handling
procedures according to the IATA resolutions.

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Air Cargo Transport Services
1. Regular

➢ Are provided in certain areas through its network of

scheduled routes with fixed itineraries.
➢ Task is carried by the members of the International Air
Transport Association (IATA) and others.
➢ Almost all IATA members or not, have signed agreements
on mutual acceptance of shipments and their
documentation.

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Air Cargo Transport Services
1. Regular

➢ The document is the air waybill (AWB) - a copy is kept by

the air carrier for accounting.
➢ Freight transport can be pre-paid (prepaid) or paid on
arrival (COLLECT) or on delivery (COD).
➢ Under COD, usually transported in convertibles or single
charge services, depending on the route and aircraft
availability.

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Air Cargo Transport Services
2. Leased or Charter

➢ Is the business of renting an entire aircraft (i.e., chartering)

as opposed to individual aircraft seats (i.e., purchasing a
ticket through a traditional airline).
➢ It has regular or periodically itineraries.
➢ It is possible in some areas, partial charters, at lower
rates.
➢ It is possible that the load is held a few days, to
consolidate with others and get better rates.

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Air Cargo Transport Services
Why it is desired use a Charter?

1. Urgent shipments.
2. Heavy loads.
3. Voluminous cargo.
4. Civil wars or restricted access.
5. High-value cargo.
6. Manufactured products just in time.
7. Dangerous load.

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Air Cargo Transport Services
Points to consider when a charter contract is
made:
Appropriate Pallets or ULD's, nets, origin &
destination handling, local store and destination,
palletizing, all necessary staff and everything
relevant to the operation.

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