Shipping and Global Trade
Air freight is a fast and efficient means of transporting goods in global trade. Airlines transport over 52 million metric tons of cargo annually, accounting for more than 35% of global trade by value but less than 1% by volume. This equates to $6.8 trillion worth of goods each year, or $18.6 billion worth of goods daily. However, the impacts of COVID-19 significantly affected the air freight industry.
The available cargo tonnage per kilometer across the industry declined by 21.4% year-on-year in 2020. However, by the end of the year, industry cargo ton-kilometers nearly returned to pre-COVID levels. With many air shipments being transported worldwide and various parties involved in the supply chain, it is essential to examine cargo handling for air transport.
Cargo handling is part of the supply chain that deals with ground freight at the shipping facility. From delivery at the origin airport until it is ready for loading onto the aircraft, to unloading at the destination and delivery to the consignee or freight forwarder, there are many steps in cargo handling that must be closely followed to ensure shipments are delivered safely and securely. These steps are included in the Main Operating Plan (MOP).
What is the Main Operating Plan for shipping?
The Main Operating Plan (MOP) outlines the primary and subprocesses involved in the transport of air cargo from shipper to consignee in a systematic and coordinated manner. It provides the air freight supply chain with the first standardized industry-approved description of the overall process for transporting goods by air.
As a result, the MOP consists of 19 main processes and 78 subprocesses divided into five categories of activities as follows:
- Origin Forwarder
- Origin Carrier
- Transport Carrier
- Destination Carrier
- Destination Forwarder
The primary goal of accepting and handling air cargo is to ensure that shipments are ready for transport in accordance with operator regulations and the International Air Transport Association, as well as the export and import rules of the countries through which the shipment will transit. Generally, all items transported using commercial aircraft must undergo an acceptance process. Certain procedures must be followed regardless of the type of cargo, while others may apply only to specific types of goods.
The section below provides a quick overview of some key steps in the MOP.
Booking and Planning Shipments
The cargo handling process begins with booking and planning shipments, and there is much to do before the shipment leaves the facility. Having a solid action plan allows for smooth booking and minimizes problems in the sequence of events. It is essential to follow the steps below to properly book your shipment. These activities also include steps handled by freight forwarders as outlined below:
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- Receiving shipper requests and verifying security status
- Receiving shipper cargo information
- Planning direct routing or consolidation
- Requesting capacity against freight forwarder or carrier inventory
- Confirming capacity
- Arranging cargo pickup
How Air Cargo is Received and Accepted for Shipment
The next step in logistics is how air cargo is received and accepted for transport. This is a multi-step process that involves various contributors, including trucking companies, as well as ground handling and shipping service providers, among others.
Throughout the shipping process, safety remains a priority for all parties in the air cargo supply chain. For example, it is crucial to ensure that packages are clearly and correctly labeled and identified. Additionally, the packages themselves must be suitable for their contents and capable of protecting the cargo from damage.
Let’s take a closer look at what happens once the carrier receives the shipment, particularly regarding air cargo handling, as much preparation for the journey occurs there.
Receiving Shipments at the Carrier Facility
Once the shipping truck arrives at the carrier facility and informs the cargo handling agent of its arrival, the carrier facility can receive the goods. They should have received the following information in advance, which is why electronic registration is always recommended:
- Electronic air waybill information
- Electronic waybill information for consolidated shipments
- Truck number and type (if applicable)
- Estimated arrival time (if known)
- Security inspection requirements (if known/available)
Upon receiving the information and the truck’s arrival, unloading slots and positions will be allocated for the driver. Different slots are assigned based on needs, such as for hazardous goods, live animals, ULDs, healthcare products, and more.
Accepting Shipments as Ready for Transport
When a shipment is accepted as ready for transport, airport cargo and ground handling staff must take several steps to meet air cargo shipping requirements. First, they need to verify that the shipments have been cleared for security. Then, they must conduct a readiness check for transport. This involves ensuring that all information matches the actual shipment and that all operational bans and restrictions are applied. Once everything is verified, the information is validated against the booking and updated. The primary goal is to ensure compliance with:
- Carrier requirements
- Local export rules and regulations
- Airport (or airports) transit rules and airspace regulations (if applicable)
- Import regulations in the destination country
Preparing Cargo for the Flight
After accepting the shipments as ready for transport, airport cargo and ground handling staff can prepare the air cargo for the flight. Transiting goods must undergo security clearance again. Goods left on board the transiting aircraft are considered transiting shipments. Ground handling and shipping services must conduct security checks on transiting goods, including X-ray inspections and explosives trace detection (ETD). A detailed examination of the e-AWB, cargo safety, and piece count is performed. Once the carrier receives the pre-plan details, a build plan must be prepared, indicating the air cargo to be built for the flight, and the information is sent to the warehouse
Sending Shipments to the Flight
It’s now time to transfer the loaded ULDs to a secure air cargo area, taking into account all sensitive information such as temperature-controlled hazardous goods. To ensure that flights are not delayed, ULDs can be lined up in order, if known, in preparation for ramp transport. All ramp safety protocols must be followed. To avoid accidents, it’s essential to consider all ground support equipment during the loading and unloading process. This is why proper training on IATA rules and regulations is critical for all cargo and ground handling personnel.
At this point, control of the air cargo shifts from the warehouse operator to the ramp handler. The transfer of cargo from the loading station to the aircraft is a multi-step process best outlined in the IATA Cargo Handling Manual (ICHM). By explicitly following each of these steps, you will load the aircraft according to the load plan, noting special arrangements for specific shipments. Once the aircraft is loaded, any discrepancies must be addressed by updating the electronic flight statement. The aircraft can now depart, but the loading procedures are not complete without sending the flight statement and loading and transport information by mail.
How Air Cargo is Unloaded
Unloading air shipments involves fewer steps for airport cargo and ground handling compared to the loading and shipping process. However, there are still many rules and regulations that cargo and ground handling staff must comply with. Following ramp safety protocols while performing tasks systematically helps mitigate accidents and keep aircraft response times under control. According to the IATA Cargo Handling Manual, here are the specified steps for unloading air cargo:
- Unloading and sending the shipment to the warehouse
- Inspecting shipments
- Receiving shipments
- Delivering shipments to freight forwarders
What Are the Final Steps Before Delivery?
Once the truck collects the goods from the carrier’s area, they are transported to the freight forwarder’s center, where they are unloaded and inspected. Often, goods are sent through a freight forwarder branch facility before being delivered to the consignee and ultimately to the end customer. These steps fall under the following sections of the ICHM, where you can find more details about each step:
- Arrival of the shipment at the shipping center
- Transfer of the shipment within the shipping center
- Loading the truck and producing the operational sheet
- Delivery, obtaining proof of delivery, and concluding the cycle
What is the IATA Cargo Handling Manual?
The IATA Cargo Handling Manual (ICHM) is a publication that outlines the latest recommended practices for stakeholders in the airline industry to follow. It provides all the required documentation in a step-by-step accessible format. It was developed by the IATA Council known as the ICHC (IATA Cargo Handling Council), which was established in 2011 by the Cargo Advisory Committee (CAC). “The IATA Cargo Handling Manual (ICHM) covers all work instructions from door to door, from shipper to consignee, with a strong focus on airport-to-airport activities where cargo handlers and airlines operate,” according to André Magirès, Operations Manager for Cargo and E-commerce at IATA.
The current edition contains 19 chapters aligned with the Main Operational Plan (MOP). It includes the latest regulations regarding cargo handling and 10 appendices that expand on this topic, including glossaries, charts, various agreements, and more.
Who Needs the IATA Cargo Handling Manual?
Anyone in the air cargo supply chain should use the IATA Cargo Handling Manual (ICHM). This includes airlines, shippers, freight forwarders, and many others. It allows you to understand the risk levels associated with handling air cargo. This manual complies with the guidelines of each airline, which is important since many airports require cargo handlers to operate according to specific airline guidelines. This may involve adhering to 100 different work instructions, which can be expected frequently and can be costly and time-consuming. By using the IATA Manual to meet regulations, you save time and money.
For more information, visit our website at Badr International Shipping and read various articles that benefit you in the shipping field from all perspectives.
