Air Cargo Hub in South East Asia by Using Netscan Model

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Table of Contents

LITERATURE REVIEW3

Overview of Air Cargo Hubs3

Types of Air Cargo4

Benefits of the Development of Air Cargo Hub5

Air Cargo Hub Strategy in South-East Asia6

Hub-and-Spoke Network7

Role of Netscan Model9

Connectivity of a Region through Netscan Model11

Role of Air Cargo Forwarder in Netscan Model12

LITERATURE REVIEW

This chapter presents the significant research that has been carried out in the past, in an attempt to understand the designing of an air cargo hub in South-East Asia by using Netscan model.

Overview of Air Cargo Hubs

Air Cargo transportation has passed through a transition phase after the general trend of liberalizing the market emerged during the late 1970s. When we consider Air Cargo transportation from a closer angle, we can find a major difference between this type of transportation and the passenger businesses (Denstadli and Rideng, P.45). Air Cargo transportation, to a larger extent, is unidirectional and is connected to a trade system that depends on larger models and that are hardly balanced. The nature of Air Cargo transportation is also heterogeneous with materials of varying shape, size and weight. These demand a totally different type of analysis and approach in comparison with the traditional passenger movements. Due to this unique nature of the movement, it often requires different patterns of routes and patterns.

Therefore it requires a diverse network of paths that is; hub-and-spoke networking system. This system was first introduced in the US in the year 1978 with the deregulation of the aviation market (Fuelhart and O'Connor, p.106). Since, then this system of aviation is widely used, as it has proved to be highly beneficial in covering different angles and routes through the hub. There is need for an increase in hub-and-spoke networking systems as they prove to be beneficial for strategic reasons as well as cost-saving. Most of the Air Cargo Hubs have been formulated into hub-and-spoke networks in recent years which has enabled them to make more flights and to various regions than ever before. In the middle of hub-and-spoke networks, hub-airports are located. The hub airports actually function like a hub point between the source and the destination location of the flights.

The Cargo forwarder specializing in providing professional services in planning, project coordination, control and direction in all operations is necessary for national and international transportation of cargo. Similarly the freight forwarder agent if hired will be accountable to resolve all ancillary services related to banking, insurance, government, or others, by any means of transportation or communication path. They play an important task to solve the problems posed by cargo trade. Therefore, hiring such agent for the transportation of goods will be very profitable for us and will help to achieve the competitive advantage in the delivery of goods locally and internationally in the region of South-East Asia.

Types of Air Cargo

Planned

Planned cargo includes deliberate choice by customers to use air freight, in which extra or cheaper expense is negligible. Speed is not considered important in planned cargos.

Regular

Regular cargo caters those goods, where delivery must ...