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Intelligent Transportation System to Enhance the Sustainability of the Air Freight Transport

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Intelligent Transportation System to Enhance the Sustainability of the Air Freight Transport INTELLIGENT TRANSPORTATION SYSTEM TO ENHANCE THE SUSTAINABILITY OF THE AIR FREIGHT TRANSPORT Miquel Angel Piera(a), Xavier Leal (b), Lorenzo Castelli (c) , Dace Aizstrauta (c) (a,b) Logistics and Transport Unit, Universitat Autònoma de Barcelona, Spain (c) DIA. University of Trieste, Italy (d)Sociotechnical Systems Engineering Institute of Vidzeme University of Applied Sciences, Latvia (a)[email protected], (b)[email protected], (c)[email protected], (d)[email protected] ABSTRACT When addressing the transport problem in isolation Cost of transport usually is split into two parts: from production, the object is to obtain the lowest total • Direct Operating Cost: Fuel, crew, vehicle cost of transport. Thinking the production and the depreciation, maintenance, etc. distribution as a linked system, the optimisation goal • Indirect Operating Cost: sales, cargo handling, should balance between production and transport costs, administration, profit, etc. considering the minimization of the total distribution cost (TDC) instead of considering only the With regards to direct operating cost, it is easy to see minimization of the transport costs. that ship transport is much less expensive than airplane In this paper it is presented the commercialization of transport, however for the indirect operating cost, there passenger airline bellies for freight transport purposes are several aspects related to cargo handling, such as under a business model approach. ship mechanized loading and large containers versus some manual air load and balancing operations that Keywords: freight transport booking, turnaround, nowadays increases the air cargo transport cost and business model, air transport logistics. time, but that in a near future “low cost cargo airline” could tackle in a more efficient way without affecting 1. INTRODUCTION safety aspects. From the logistic point of view, Industry is trying Traditional air cargo business must deal with strategic, to devise a goods creation and distribution system that tactical and operational changes in order to give a creates greater value than its costs. Improvements in the proper answer to the growing air cargo expectations. efficiency of the global supply chain are essential to Too many trouble spots should be re-designed not increase the overall levels of demand for Just-In Time considering only logistic at operational level but also (JIT) logistics services. Costs related to inventory (ie. the proper planning of infrastructures in which the non- depreciation, spoilage, obsolescence, good insurances, added-value operations could be removed or minimized. bay hiring cost, etc) plays an important role when designing the supply chain architecture. Since a structural change is inevitable for a competitive, reliable and low cost air cargo it is important to evaluate Air cargo is an important sector of the airline industry. the different emerging scenarios from a sustainability Cargo can be carried in cargo holds of passenger perspective instead of only considering economical or airlines or on aircraft designed exclusively to carry operational aspects. freight. Cargo carriers in this industry do not provide door-to-door service. Instead, they provide only air Based on a deep analysis of Intelligent Transportation transport from an airport near the cargo’s origin to an Systems (ITS) tools in the air cargo sector, developed in airport near the cargo’s destination. Companies that the European FP7 T-Trans project, in this paper it is provide door-to-door delivery of parcels either across presented the development of a technology town or across the continent are classified in the commercialization model for the use of passenger couriers and messengers industry, and are known as aircraft bellies to satisfy cargo industrial purposes, integrators. considering the sustainability aspects of the ITS applications. Cargo airlines can provide a critical link in any supply chain consortium to reduce stocks while reducing Due to the huge number of resources and operators that transport times, supporting different type operations should be properly coordinated, a system engineering “hub and spoke” or providing ad hoc transportation of approach would help to design a methodology focussed freight from point to point. on process simplification, verification and audit, while Proceedings of the Int. Conf. on Harbor Maritime and Multimodal Logistics M&S, 2014 207 ISBN 978-88-97999-39-3; Bruzzone, Del Rio Vilas, Longo, Merkuryev, Piera Eds also meeting increasing security demands. This new 2.1. Actors methodology should tackle air cargo agility, flexibility To deal with a sustainable approach to the use of & adaptability, plus visibility from an integrated passenger aircraft bellies it is essential to understand the perspective considering always the cost and yield role and functionalities of the different actors handling aspects of any decision. the freight in order to remove the non-added-value Section 2 presents the main components to be operations and understanding the value change. considered in the FTB system, while section 3 summarizes the identifier enablers of the business Consigner is the person or company that is physically model. and administratively responsible for shipping the goods. Consigners can either directly contact the Air Cargo Carrier either can pass through a third party provider, 2. SYSTEM DESCRIPTION e.g. the Freight Forwarder. The Air Cargo Carrier who One of the main difficulties to deal with a is providing to both the service plays the central role. competitive and cost effective air transport system rely ion the proper coordination of the different actors, Passenger/Cargo Airlines have contracts with considering the available transport and handling passenger airlines that allow them to ship items via capacities together with the different technologies and passenger service. Passenger flights have such high procedures through which goods should flow. In this frequencies they can offer shipping rates that are section it is described the main components to be competitive to the cargo only airlines. Many may be considered. surprised to find out that even if everyone on board their airplane checked a bag, there would still be a large amount of space in the baggage compartment left unused. That's where cargo makes the airline some extra money. Standard aircraft almost always carry some cargo in the baggage hold - in the aircraft belly. These companies operate passenger services and cargo services simultaneously. These airlines can combine the advantages of destinations and frequencies supplied by passenger services with the benefits of power and specialization of cargo network. Freight Forwarders are persons or companies that organizes shipments for individuals or to get goods from the producer to a market, customer or final point of distribution acting therefore as an expert in supply chain management. Freight forwarders arrange the best Figure 1: Aircargo supply chain means of transport, taking into account the type of goods and the customers' delivery requirements. They In Figure 1 it is summarized the main actors through use the services of shipping lines, airlines and road and which the cargo flows, while in Figure 2 the rail freight operators. In some cases, the freight technologies required for seat booking are highlighted, forwarding company itself provides the service. A most of which should be adapted for freight belly distinction can be made between Forwarder out booking. (expeditor) and forwarder in. The expeditor operates by buying space at the airline’s sales or customer service department, or in case of a foreign airline, to the General Sales Agent. The Forwarder in manages the shipment from its arrival at the airport up to the delivery to the final customer or consignee. Airport Terminal Operator: it provides the required infrastructure to receive the freight form the land side, inspect and pack in ULD’s and send to the air side, and also receive freight from the air side, unpack and forward to the land side after the required administrative processes. Figure 2: Travel Distribution value (Granados et al., 2011) Ground Handling: It is a company, which provides all the services required by the aircraft while it is in the ground for the next fly. Speed, efficiency, and accuracy are important in ground handling services in order to Proceedings of the Int. Conf. on Harbor Maritime and Multimodal Logistics M&S, 2014 208 ISBN 978-88-97999-39-3; Bruzzone, Del Rio Vilas, Longo, Merkuryev, Piera Eds minimize the turnaround time (the time during which separately the steps for booking (see for example the aircraft must remain parked at the gate). (www.calogi.com). Consignee: is the person or company that is physically GSSA: General Sales and Service Agency provides a and administratively responsible for receiving the valuable role in assisting Airline to achieve a cost- goods. effective presence in a market where it may be uneconomical for an airline to maintain its own sales 2.2. Technologies force and premises. The GSSA works on behalf of their In order to evaluate the sustainability of a Freight Airline Principals providing the freight forwarding Transport Booking (FTB) system, it is of outmost community with the full range of cargo services within importance to understand how the booking is performed the specified territory . within the air passenger segment and to establish similarities and differences between air passenger and 2.3. Processes air cargo segment. It is worthwhile
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