Air cargo consists of air freight,mail,and several types of passenger service.

Air Transportation

Nature of the Industry

Air travel in the United States grew at a rapid pace until 2001, expanding from 172 million passengers in 1970 to nearly 642 million in 2003. However, over the next 3 years, a combination of factors--including the events of September 11, 2001, and an economic recession--combined to reduce traffic to 1996 levels. Nevertheless, air travel remains one of the most popular modes of transportation.

Airlines transport passengers and freight over regularly scheduled routes or on routes. Several classes of airlines function in the United States. As of 2004, there were 15 major airlines---12 passenger and 3 all cargo--which the U.S. Department of Transportation defines as having operating revenues of more than ＄1 billion. The largest of these, often called the Big Six, generally have a hub and also fly internationally. A hub is a centrally located airport designated by an airline to receive a large number of its flights from many locations, and at which passengers can transfer to flights to any of the locations served by the airline system. In this way, the greatest number of passengers, from as many locations as possible, can be served in the most efficient way with a given set of resources.

In competition with the Big Six are low-cost, low-fare carriers. These carriers have traditionally not used hub and spoke systems and have offered flights between limited numbers of cities. They primarily have focused on flying shorter routes (400 miles or less) and on serving leisure travelers. But some low-fare carriers are expanding their routes to include longer transcontinental and nonstop flights. These moves have helped low-fare carriers expand their customer base to include more business travelers.

Another type of passenger airline carrier is the commuter or regional carrier. As of 2004, there were approximately 75 of these carriers. Regional airlines operate short-and medium-haul scheduled airline service connecting smaller communities with larger cities and with hubs. Some of the largest regional carriers are subsidiaries of the major airlines, but most are independently owned, often contracting their services to the majors. The regional airlines fleet consists primarily of smaller 19- to 68-seat turboprop and 40- to 70-seat jet aircraft. The regional airlines are the fastest growing segment of commercial aviation with I out of every 7 domestic airline passengers flying on a regional airline during at least part of his or her trip.

Air cargo is another sector of the airline industry. Cargo can be carried in cargo holds of passenger airlines or on aircraft designed exclusively to carry freight. Cargo carriers in this industry do not provide door-to-door service. Instead, they provide only air transport from an airport near the cargo's origin to an airport near the cargo destination. Companies that provide door-to-door delivery of parcels either across town or across the continent are classified in the couriers and messengers industry.

Most sectors of the airline industry were in a downturn in 2002, with several passenger airlines having declared bankruptcy and others on the verge of doing so. After 6 relatively successful years in the late 1990s, fueled by an increase in passenger volume and a booming economy, the growth in airline passenger traffic began to slow in 2001, coinciding with the economic recession. After the tragic events of September 11, 2001, passenger traffic dropped steeply, causing airlines to cut flights, lay off workers, and park surplus aircraft. Although passenger volume has since recovered somewhat, the growth rate in the industry will likely continue to be depressed for several years.

As the low-fare airlines continue to compete and gain market share over the higher-cost major airlines, and as passenger traffic remains lower, managing costs has become mor

A．Y

B．N

C．NG

Essay 2 Transportation Decision

Transportation decision consists of the following parts:

1.Selection of the mode is determined by the consideration of distance,cargo weights,linkage,timing and other requirements.Generally speaking,rail has high fixed cost and the relatively low variable cost.It can move heavy,large quantity of cargo in the long distance.But,rail is disadvantaged because of the longer transit time and less frequent service than motor.

Motor carriers such as truck companies offer door-to-door service,that is,the cargo can be shipped from the shipper’s warehouse to theconsignee’s.Trucking fixed cost is the lowest of any carrier,because the equipment is fairly cheap and themotor carriers do not have to invest in the roads on which they run their operations.However,their variable costs are very high.Its expenses include two major components:firstly,the pick-up and delivery costs;secondly,there are gas or fuel costs,labor expenses and toll roads fees to be paid to highway and toll road operators.Therefore,motor transport is good for cargo with small quantity to be shipped within shortvdistances.

Water is the predominant choice of transportation as it has the capacity to take greatest quantity,travel longest distance with lowest cost.Transport by sea accounts for 80% of international trade.The major expenses for water are expenses associated with investment and maintenance of the ships and terminals.For example, a 100000- ton container ship costs US$ 200 million.Terminal associated costs include harbor fees and the cost for loading and unloading the goods.

Transport by air has the highest cost but it is fast with the lowest ratio of loss and damage. If you need to deliver an urgent order,there is little choice but by air.

2.Transport service provider is selected for its experiences,equipment,services and prices.Competitive in the transport industry usually drives the prices down and motivates for better services A company also chooses its transport service provider because of its long-standing business relationship with certain shipping companies.

3.The alternative routing and scheduling is specific for motor only because railway and water have strict route and timetable.

Motor has special advantage in terms of flexibility.It has the ability to load goods at greater frequency,travel through different routes and making deliveries to different locations.

Questions:

56.How is the transportation mode selected？ ()

A.By suppliers.

B.By customers.

C.By consideration of distance,weight,linkage and other requirements.

D.By government requirements.

In international air cargo transportation，()aye rates which are applicable to named types of air cargo．

A．General Cargo Rates

B．Class Rates

C．Bulk Unitization Rates

D．Specific Commodity Rates

A.air transport

B.air freight

C.air delivery

D.plane

（） are the documents used in air cargo transportation.

A．SLI

B．SWB

C．AWB

D．Cargo manifest

The()is the most important document for air cargo transportation．

A．B／L

B．AWB

C．SWB

D．NOR

A．General Cargo Rates

B．Class Rates

C．Bulk Unitization Rates

D．Specific Commodity Rates