The paper "Resources Required by Both Airlines and Airports to Handle Cargo Efficiently" is a perfect example of a management assignment. With increased globalization and competition in today business environment, different individuals prefer some freight as opposed to others. Shippers are forced to choose a mode of freight to ensure their goods reach their different destinations safer and quicker. Increased global trade has led to the desire to ensure goods are being delivered at a quicker pace. There are various factors that can influence shippers to use air freight (HLB Decision Economics Inc 2001).
Time management is a very essential factor that influences why shippers prefer air freight. When we focus on speed, it is quite evident that air freight is faster as compared to other methods of shipping. For businesses, time is money and therefore high speed in the air freight. Sea shipment takes a day or more depending on the destination and this is a disadvantage if the cargo being shipped does not reach its destination on time. There are certain types of cargo that are highly suited to be transported by air.
These cargos include; perishable goods such as fruits, emergency medical supplies and flowers. Here, while transporting such goods time is considered to be the prime consideration. The fact that air freight is much faster, it assists in freeing the capital which would otherwise be tied up in the long transit time for goods to reach the buyer destination before the payment can be realized by the dealer (HLB Decision Economics Inc, 2001). Airfreights companies are known to give importance to convenience to their customers. These companies are preferred since they offer different packages depending on the destination and size of cargo to be transported.
With increased competition, nowadays there are increased airlines across the globe making air freight more convenient. With increased partnership and collaboration, airlines accept each other waybills and this, therefore, implies that a shipper can send his shipment to almost every destination using the same air waybill. Therefore network interline facilities and destination is another factor influencing shippers. An insurance premium is another factor that influences shippers. It is quite evident that insurance premiums are lower as the time for cargo transportation is reasonably short.
In additions, airports are areas that are considered to be of high security and therefore low insurance premiums. Reliability is a factor that influences shippers in their choice for freights. Owing to the high cost involved in air flight transportation it this call for maximum utility (McCann, 1998). Further, both the arrival and departure times are reliable and this enables shippers to send their cargo to a different destination on time. Shippers understand that flexibility and high-performance standards in meeting the ever-changing customer needs are offered by airfreights. There are various disadvantages that air freight can offer.
Air transport is considered to be the costliest mode of transport. The cost especially operating cost of aero-planes is very costly and this impact on the world trade based. Additionally, compared to sea freight, air freights have a considerably small carrying capacity. It is quite evident that aero-plane has a smaller carrying capacity and this, therefore, implies this mode of transportation is not suitable for cheaper and bulky cargo. With increased global trade, business people are preferring freights which can carry bulky cargo so as to ensure the availability of their goods especially in the wake of increased competition (McCann, 1998).
In today global trade, businesses are ensuring that they are in a position to minimize any risk involved so as to enhance their performance as well as operations. Air transport is considered to be the riskiest mode of transportation. Evidently, a minor accident may cause loss to the cargo and this can negatively affect world trade. Further, lack of proper servicing of aero-planes expose aircrafts accidents as compared to other types of transportation and this may with time have the cumulative impact on world trade.
Additionally, air transport is affected by weather condition and this may cause a delay in the delivering of goods and this negatively impact on world trade (McCann, 1998).