A Study- Increasing Efficiency in Airline Cargo Operations Using

Smart Devices







by


Rudro Mukherjee


13P037



Under the guidance of

Shri Jayant Mehta
Associate Consultant
Interglobe Technologies




Management Development Institute
Gurgaon 122 001
June, 2014

Page 2 of 29


A Study- Increasing Efficiency in Airline Cargo Operations Using
Smart Devices







by


Rudro Mukherjee


13P037



Under the guidance of

Shri Jayant Mehta
Associate Consultant
Interglobe Technologies




Management Development Institute
Gurgaon 122 001
June, 2014



Page 3 of 29


Certificate of Approval


The following Summer Internship Report titled "ABC ..." is hereby approved as a certified study in
management carried out and presented in a manner satisfactory to warrant its acceptance as a
prerequisite for the award of Post-Graduate Diploma in Business Management/Post-Graduate
Diploma in Human Resource Management for which it has been submitted. It is understood that by
this approval the undersigned do not necessarily endorse or approve any statement made, opinion
expressed or conclusion drawn therein but approve the Summer Internship Report only for the purpose
it is submitted.

Summer Internship Report Examination Committee for evaluation of Summer Internship Report


Organizational Guide : Signature.
: Name
: Designation.
: Address..



Tel No
Email:










Name :
Roll No.

Page 4 of 29


Contents
1 Executive Summary ......................................................................................................................... 7
2 Airline Cargo .................................................................................................................................... 8
3 Key Participants............................................................................................................................... 8
4 Managing Air Cargo Operations Successfully ................................................................................. 9
4.1 Fleet Management and Network Planning .............................................................................. 9
4.2 Operations Management ....................................................................................................... 10
4.3 Capacity Planning and Revenue Management ....................................................................... 10
5 Key Performance Indicators in Airline Cargo Operations ............................................................. 12
6 Challenges in the Airline Cargo Industry ....................................................................................... 14
7 Managing Mobile Workforces ...................................................................................................... 14
7.1 Leveraging Context in Mobile Applications ............................................................................ 14
7.2 Implementing Context Aware Services .................................................................................. 15
7.3 Guidelines and Recommendations ......................................................................................... 15
8 TCE vs. TCO .................................................................................................................................... 16
9 How data-centric handhelds can enable transformation? ........................................................... 17
9.1 Reducing 'latency' between decisions and action .................................................................. 17
9.2 Immediate Parallel notification of team members ................................................................ 17
9.3 Real-time resource management ........................................................................................... 17
9.4 Data in the palm ..................................................................................................................... 17
9.5 Context-aware applications and services ............................................................................... 17
10 Available Cargo Mobile Apps and Latest Technology Trends in Cargo Space ........................... 18
11 Airline Cargo Functions .............................................................................................................. 21
12 Air Cargo Movement Messages ................................................................................................. 22
13 Stakeholders: What do they really want? .................................................................................. 22
14 Mobile App for Consignor .......................................................................................................... 24
15 Mobile App for Freight Forwarder ............................................................................................. 24
16 IT system for General Sales Agent ............................................................................................. 25
17 Mobility Solution for the Customs ............................................................................................. 25
18 Mobility Solution for Ground Handlers ...................................................................................... 26
19 Implementation Challenges ....................................................................................................... 26
20 Conclusion .................................................................................................................................. 28
21 Bibliography ............................................................................................................................... 29

Page 5 of 29


1 List of Figures
Figure 1: Types of Air Cargo Carriers ...................................................................................................... 9
Figure 2 : Dwell Time for Cargo at Airports .......................................................................................... 12
Figure 3: Collaborative Context Aware Workflow ................................................................................ 15
Figure 4: Per cent of installed handheld devices replaced by year ...................................................... 16
Figure 5: TCO of Device Categories over 5 Years .................................................................................. 16
Figure 6: Functional Areas VS Stakeholder Matrix ............................................................................... 21
Figure7: Air Cargo Movement Messages ................................................. Error! Bookmark not defined.
Figure 8: IT Systems for Cargo Stakeholders ......................................................................................... 23
Figure 9: Screen Shot for Consignor App ............................................................................................. 24
Figure 10: Screenshot of GHCargoAPP ................................................................................................. 26
Figure 11: Components of Information Systems .................................................................................. 26


Page 6 of 29


Abbreviations
IATA International Air Transport Association
SITA Socit Internationale de Tlcommunications Aronautiques
GHA Ground Handling Agent
GSA General Sales Agent
HAWB House Air Way Bill
MAWB Master Air Way Bill
DIMM Defined Imaging and Multiple Measurements
TCE Total Cost of Equipment
TCO Total Cost of Ownership
RCMS RFID based Cargo Management System
RFID Radio Frequency Identification
ULD Unit Load Devices
SLA Service Level Agreement
HH/PDA Hand Held/Personal Digital Assistant
CSD Consignment Security Declaration


Page 7 of 29


2 Executive Summary
This report analyses the Airline Cargo Industry and its modus operandi and seeks to propose
mobility solutions for bringing in more transparency, responsiveness and efficiency. The Airline
cargo industry provides a medium for transportation of time sensitive cargo. Rising fuel costs
and increased security threats leading to changes in regulatory policies have led to increased
operating costs and thereby it becomes essential to bring in more efficiency into the cargo life
cycle.
The report starts with an introduction to the airline cargo industry and then introduces the key
participants in the airline cargo life cycle. In the following sections based upon secondary
research the keys to success in airline cargo industry are reported along with the Key
Performance Indicators in the Airline Cargo Industry. Finally the Challenges faced by the airline
cargo industry are listed.
In the following sections based upon secondary research various ideas and suggestions given by
IATA and SITA for incorporating mobility are put forward. The concept of Context Aware System
based upon a SITA whitepaper has been introduced. In the next section the concept of the
advantage of rugged mobile devices has been introduced. The report also includes what mobile
apps and how latest technologies like 3D Imaging and RFID based tracking can be used to bring
in efficiency.
The Recommendations begin with listing the various cargo functions and mapping the same
with the key participants and then figuring out what tasks or issues a participant may face and
how IT can help them? A table has been developed to address the needs of the participants.
Finally the mobility apps have been proposed for each of the key participants.
The report also briefs upon the various implementation challenges that the proposed
Information System would encounter. Bring about new Information System would lead to
changes in the organizational processes and also would require employee skill upgradation.
Two aspects have to be understood very clearly that bringing in efficiency in the Airline Cargo
operations is only possible through the introduction of proper hardware and software platform
together. Also the presence of a number of stakeholders indicates that there is requirement of
seamless flow of information along the full cargo cycle and that is only possible through the
collaboration between various stakeholders and with the support of industry associations.
The report provides an IT road map for developing mobility solutions for airline cargo
operations and seeks to improve operating efficiencies by reducing the bridge between an
incident occurring and taking responsive action.
Page 8 of 29


3 Airline Cargo
The airlines cargo industry plays a very important role in the transportation and delivery of time
sensitive commodities. The cargo includes perishables; high-value and low-weight goods
including fashion apparel, consumer electronics, pharmaceuticals, livestock, human remains
and high-value intermediate goods such as auto parts. With industries now having or operating
in a distributed model to have a cost advantage the airline cargo industry would only grow in
importance. Air cargo traffic, as measured in revenue tonne-kilometres (RTK), is projected to
average 5.0 per cent growth per year over the next 20 years.
1
Globally, more than one third of
the value of goods traded internationally is transported by air. From the point of view of Airline
industry, Air Cargo Services contribute near about 20% of their Indias international Air Trade to
GDP ratio has doubled from 4% to 8% in the last twenty years.
2

Airline cargo operations follow various business models and it is important to note that various
processes involved in the various business models are different and not the same exactly.
International air cargo business is concerned with international flights whereas domestic air
cargo operations are concerned with domestic flights only.
4 Key Participants
4.1 Consignor
Consignor is the party responsible for initiating the shipment of goods. The title of the goods
remains with the consignee until the consignee pays for the goods.
4.2 Consignee
A party named by the consignor in transportation documents as the party to whose order or
consignment will be delivered at the port of destination.
4.3 Freight Forwarder
A shipper is responsible for the logistics aspect of the goods or cargo. This also includes
scheduling, packing, routing, documentation, tracking, customs clearance, client
communications and negotiations.
4.4 Carrier
Cargo itself can be carried either in the belly of the passenger airlines or on dedicated
freighter aircraft. Combination aircraft in commercial aircraft that can be used to carry either
passengers or cargo, and may have a partition in the aircraft cabin to allow both uses at the
same time in a mixed passenger/freight combination.
Also integrated carriers operate their own fleet of aircraft and delivery vehicles providing
overnight, door-to-door service.



1
http://www.boeing.com/boeing/commercial/cmo/air_cargo_market.page
2

http://www.eiciindia.org/frontsite/MOCA%20WORKING%20GROUP%20ON%20AIR%20LOGISTICS%20REPORT.
pdf
Page 9 of 29



Figure 1: Types of Air Cargo Carriers
4.5 General Sales Agent (GSA)
A general sales agent (GSA) is a sales representative for an airline in a specific country or
region. The GSA is responsible for selling all products of the airline in its region which includes
flight tickets and cargo space. Airlines usually employ a GSA in regions that it does not operate
to or from or in a country at lower cost than opening their own offices.
4.6 Ground Handling Agent (GHA)
Ground handling addresses the service requirements of an airliner between the time it arrives
at a terminal gate and the time it departs on its next flight. It is cheaper alternative than
Airlines own ground handling or maintenance capabilities.
4.7 Customs
Customs is responsible for collecting and safeguarding custom duties and controlling the flow
of goods inside and outside the country. Each and every cargo will be examined by the
customs before the shipment is handed over to the Airline. After examination the cargo
customs officer will issue a shipping bill with all details related to the shipment. The cargo
would be loaded in the aircraft under the supervision of the customs officer.
5 Managing Air Cargo Operations Successfully
5.1 Fleet Management and Network Planning
Finding the right aircraft aligned with the business model is a necessary recipe for success in
the airline cargo industry. The chosen aircraft not only meets the business model
requirements but also minimizes the cost of operations and maintenance. To top it the upfront
huge investment required in acquiring the fleet make the choice even more important.
When selecting the routes on which the carrier wishes to operate it is important to decide
whether it wants to be a carrier with a published schedule (Network Carriers) or a chartered
carrier with a flexible schedule. In the first case the carrier first decides on the flight route and
then looks for business along that route whereas in the case of chartered route the carrier first
Air Cargo
Carriers
Combination
Carriers
Conventional
All Cargo
Carriers
Integrated
Carriers
Page 10 of 29


acquires the business keeping in view its operational capabilities and then takes the routing
decisions.
Network carriers may operate through many point to point routes but most of them operate
through the Hub and Spoke model. Hub and spoke model involves transhipment where cargo
is unloaded from one aircraft and loaded into another at an interim location. Hub and spoke
model provides the advantage of consolidating freight over a particular route from various
routes but at the same time bring about the operational challenge at the hub and also in Hub
and spoke model the direct route would not be taken.
5.2 Operations Management
The most important part of the airline cargo operations happen on the ground. This is the part
where the airlines can differentiate between their services.
Aircraft handling or ramp handling involves the loading and unloading of cargo into the
aircraft. Skilled loading requires brisk but safe operations so that neither cargo nor aircraft are
damaged and cargo is loaded within minimum time. Training of ground handlers and the use
of appropriate loading equipment is essential. Because the experience in such loading and
unloading equipment can only be gained through frequent use, the airport entity or dedicated
service providers typically provide this service to airlines
Cargo handling or warehouse handling refers to the processes in the warehouse where
shipments are accepted from freight forwarders, weighed and measured, and loaded into
ULDs or onto the pallets. Total quality management and continuous process improvement are
often employed by airlines or their selected subcontractors to reduce the loss of freight due to
damage or pilferage and there by limit costs. Screening of cargo has recently added to the
complexity. Warehousing technologies such as electronic transfer vehicles and automated
stacker systems are often employed to optimize the workflow.
5.3 Capacity Planning and Revenue Management
Cargo airlines offer cargo space in a 3 stage process. The first process involves a bidding
process for the freight forwarders. The capacity allocated during this process is known as
Allocated capacity.
In the second step the some of the remaining available capacity or cargo space is allocated to
large customers at a fixed price. In the last phase the remaining cargo space if available is
made available for booking at least 4 weeks prior to the departure of the flight.
Determining the allocated capacity is not so simple process because for combination carriers
at least some cargo space is reserved for passenger baggage which gets priority over cargo.
Also the amount of fuel for a particular flight is determined by the weather conditions,
Capacity of Aircraft, Route and Distance and maximum payload and hence the total cargo
weight for a flight is not constant and varies.
To top it freight forwarders usually book for more space/weight than they actually use since
most airlines do not charge a penalty for returned space. To counter this airlines allow for
over booking. The determination of the extent of over booking is also essential because due to
less over booking a flight might have to take off without reaching its actual flight cargo
Page 11 of 29


capacity which is known as Spoilage and if it allows for a higher amount of over booking it may
lead to Off-loads. For cargo airlines spoilage is a more serious issue since once the flight takes
off it is a complete loss whereas Off-loads can be accommodated on the next flights.
The most important decision in revenue management is whether to allow for booking when a
request comes in or to wait for the booking up to a later stage when the booking can take
place at a higher price.
Capacity planning in passenger airlines and cargo airlines though offer similarities but there
are significant differences:
For passenger airlines capacity has a single fixed dimension that is the seat but in case
of cargo it is two dimensional that is weight and volume.
Cargo capacity is difficult to determine because of baggage and fuel in comparison to
passenger capacity.
Passengers usually have a fixed flight plan and re-routing is a difficulty but in case of
cargo airlines, it does matter until the cargo reaches the destination within time and
hence the routes can be flexible.
Traffic is not balanced in case of cargo meaning that the amount of cargo travelling
from point A to point B is not the same as that travelling from point B to point A and
there can be significant difference.








Page 12 of 29


6 Key Performance Indicators in Airline Cargo Operations
The aviation logistics in the country today is confronted with a number of serious issues like
inordinate dwell times, missing and non-traceable cargo, damaged cargo, high cargo processing
times and long queues at the cargo terminals, etc.
6.1 Dwell Time
It can be simply put as the time spent in the same position, area or stage of the process. For
Indian cargo services the dwell time is higher than other international airports since the
officially permitted free time is 72 hours.
Airport
Dwell Time - Export
Hours
Dwell Time - Import
Hours
Sharjah 4 4-8
Singapore 3 3-6
Frankfurt 6 NA
Dubai 2-3 2-6
Hong Kong 3-6 4-8
Delhi 36 119
Mumbai 48 96
Chennai 48 72
Hyderabad 12 36
Kolkata 48 72
Bengaluru 36 48
Figure 2 : Dwell Time for Cargo at Airports
However a note of caution should be exercised in drawing any conclusion from the above data
since in most of the other airports the majority of the cargo involves transhipment that is they
do not involve customs checking but in Indian airports it is the other way round with most of
the cargo are for import and hence require custom checking.
6.2 Throughput Efficiency at Cargo Terminals
International standard
3
for throughput efficiency measured in terms of tonnage handled per
sq. Meter is linked to the total volume of cargo handled in that terminal in a year. Here also
the Indian airports are lagging behind.
MIAL
4
in their written submission has attributed the difference in throughput efficiency at
Indian airports and other airports abroad mainly to the fact that in those airports abroad,
processing of air cargo transaction is not carried out at the Air cargo terminal but at the
Agents` facility known as Air Freight Station
5
.
The cargo terminal operator has to make separate space available for customs examination
which takes away more than 30% of effective cargo space. Need for segregation and sorting of

3
Air Freight Market Study, Transport Papers, World Bank, August 2009, Washington DC
4
Mumbai International Airport Limited
5
Not all agents can do this ,These shippers are licenced and bring in built in cargo directly to airport know as
shipper built units (SBU)
Page 13 of 29


cargo and demarcation of areas as per BCAS
6
norms takes away another 10 to 15% of floor
space. These problems are not faced by cargo terminal operators abroad.
6.3 Menace of Missing/Non Traceable Cargo
7

Every year airlines and cargo operators have to pay huge amount of money leading to loss of
revenue due to penalties imposed due to misplaced cargo. The international benchmark for
mishandling rate is 0.015%.
8

In addition to the above key performance indicators, Indian Airlines Cargo operations are
hindered by infrastructural challenges which is not within the scope of discussion in this
document.
6.4 Operational Delay
The time lost by airlines due to operational delays caused due to maintenance activity or
faulty infrastructure or equipment at the airport. Some of the other factors can be Over
booking, delay in custom clearance and unavailability of staff.
6.5 Percentage of Flights Delayed Due to Technical Reasons
The percentage of flights delayed due to technical maintenance activity required by the
aircrafts just before take-off.
6.6 Average Minutes Delay
The average minutes delay is the total delay encountered by the flights due to technical or
other reasons divided by the total number of flights.
6.7 Block Hour
The number of block hours for a given flight is the time from the moment the aircraft pushes
back from the departure gate revenue flight until the moment the aircraft arrives at the arrival
gate following its landing. The number of block hours for an airline for a given period of time is
a measure of the total time that its aircraft was in use during that period. Block hours are the
industry standard measure of aircraft utilization.
6.8 Average block hours per day
It is the number of hours an aircraft is put in use per day.
6.9 Turnaround time of Repair Orders
It is the time between an equipment breakdown and its return to usage after repairs.

6
Bureau of Civil Aviation Security of India
7
Cargo that is found missing at the time of loading of a particular flight and found within 24 hours of departure
of that flight is defined to mean as missing cargo on exports side. On the imports, cargo that is short received
on a flight and arrives on a subsequent flight of that carrier would be treated as missing cargo. Cargo that is
missing at the time of loading (exports) or at the time of flight segregation (imports) and is eventually not
found even up to 21 days of a global tracer having been initiated by the concerned carrier should be treated as
untraceable or lost.

8
www.eiciindia.org/frontsite/MOCA%20WORKING%20GROUP%20ON%20AIR%20LOGISTICS%20REPORT.pdf
Page 14 of 29


6.10 Cargo Load Factor
Load factor is the ratio of cargo ton miles to the available cargo ton .
6.11 Freight or Mail Loaded/Unloaded (total annual tonnes)
Freight or mail loaded or unloaded at the airport, measured in metric tonnes over the course
of a year.
7 Challenges in the Airline Cargo Industry
6.1. Duplication of Documentation
6.2. Practice of tendering Cargo during peak hours brings about a strain on infrastructure and
resources
6.3. Lack of shipment visibility requires constant follow up with carriers, shippers and custodians
resulting in increased communication cost, penalties and delays.
6.4. Regulatory and Procedural Hurdles; Lack of standardization of rules in case of transhipment
6.5. Security Concerns due to terrorist activities leading to higher costs
6.6. High Fuel Prices leading to increased costs
6.7. Upward trend of Operating Costs
6.8. Lack of proper channel for communication between ground handling staff. Currently the
process includes voice based communication channel which can have no audit trail.
8 Managing Mobile Workforces
Mobility Applications would be most helpful for the people whose job requires them to be on
the move. Currently such people workforce does not have access to the right information at the
right time. At the maximum these people currently get instructions via the walkie talkie which
are not reliable. Most of the processes are static done using paper which is an inefficient way of
working.

The solution lies in developing context aware mobile applications. These applications would
deliver the right information at the right time to the right person. So the person does not need
to seek out information for deciding his/her future action but the information itself gets
delivered.
8.1 Leveraging Context in Mobile Applications
Context information is a set of parameters which would help in providing the required
information to a user.
Broadly speaking the context aware parameters can be broadly divided into the following
categories:
9

User context parameters: e.g. profile, department, language, location, time, presence,
etc.
Device context parameters: e.g. type of device, screen size, operating system,
processor power, memory, battery-life, etc.
Asset context parameters: e.g. temperature, pressure, capacity, power, orientation,
next service date, last repair data etc.

9
www.appearnetworks.com/wp-content/uploads/2013/04/SITA-White-Paper-Managing-Mobile-Workforces-
1.pdf
Page 15 of 29


Network context parameters: e.g. wireless radio technology (WIFI, Cellular Networks -
3G Networks), range, quality of service, bandwidth, etc.

Context aware systems must have the ability to collect relevant parameters to determine the
context for a particular user.

8.2 Implementing Context Aware Services
As per the SITA white paper upon which the current section is based:
The technology works by distilling information down to only that which is necessary, using a
collection of web services and similar processes running on a distributed intranet, which needs
to be tightly-integrated with back-end applications and business processing models.

A common backend system needs to be developed to which multiple heterogeneous mobile
systems can connect. Based upon the connecting device and the user using it information or
services would be provided. In an airport the contextual parameters can include location,
time, user role & department, flight number, device type etc.

Mobile middleware services would connect to back-end systems where workforce
applications are deployed to the context-aware platform, enabling a range of wireless
applications to be accessible to different stakeholders. This would enable airport ground
handling operators and other stakeholders escape several manual processes and dependence
on voice communications.


Figure 3: Collaborative Context Aware Workflow
8.3 Guidelines and Recommendations
Though mobile applications can improve existing processes but there are several pitfalls which
can lead to failure. SITA recommends the following for implementing context aware
applications:

Analyse your Business Process
Keep the End users in mind
Page 16 of 29


Leverage middleware to support as many applications as possible
Prove the business case
Think integration
Look at the processing power needed
Look at common-use infrastructure
9 TCE vs. TCO
TCE or Total Cost of Entry is the cost of buying the mobile device whereas TCO or Total Cost of
Ownership is the total cost of using that device which also includes the cost of maintenance
and repair.

Though mobile device seem to provide a lot of advantage by providing people with real time
information and quick response capability but including smart devices without proper thinking
of its cons can lead to increased costs rather than decreased costs over a period of time.

Research shows that the deployment of standard devices available in the market last for about
3-5 years and during this period apart from the initial hardware cost five more overhead costs
come into the picture. They are
Software price or license costs
Application development, testing and deployment costs
Training costs
Operations costs which include maintenance costs
Downtime costs

Research indicates that Downtime costs which results due to loss in productivity due to
hardware replacements is responsible for 64% of the total cost incurred.
10
The study indicates
that standard consumer products have to be replaced 83% of the times compared to devices
specifically designed for Industry usage which require replacement only 18% of times.

Year 1 2 3 4
Rugged Mobile Computers 3.30% 7.80% 18.20% 55.40%
Non Rugged Mobile Computers 18% 38.50% 82.60% 96.80%

Figure 4: Per cent of installed handheld devices replaced by year

The estimated TCO for the various types of devices as per the study is given below:

Type of
Device
Fully Rugged
HH/PDA
Semi-Rugged
HH/PDA
Durable
HH/PDA
Consumer
Grade
HH/PDA
Five Year TCO $ 12,957.00 $ 14,344.00 $ 19,815.00 $ 21,149.00
Annual TCO $ 2,591.40 $ 2,868.80 $ 3,963.00 $ 4,229.80

Figure 5: TCO of Device Categories over 5 Years

10
http://www.capita-
softwareandmanagedservices.co.uk/software/Documents/TCEversusTCO_RevealingTrueCostHandHeldComput
ing_MotorolaWhitePaper.pdf
Page 17 of 29


The above clearly indicates that rugged mobile devices meant specifically for industrial usage
shows a lower TCO in comparison to standard handheld devices available in the market.
10 How data-centric handhelds can enable transformation?
10.1 Reducing 'latency' between decisions and action
Mobility offers a huge scope to improve efficiency and reduce downtime, delivering real-time
data instead of deferring it into the future. This can be achieved by reducing the time between
decisions being made at the control centre level and their implementation at the operational
level.
10.2 Immediate Parallel notification of team members
Mobility offers an opportunity to inform several stakeholders at once when a decision has
been made or an action needs to be taken.
10.3 Real-time resource management
Context-sensing allows events to be taken into account as they occur depending upon their
urgency and resource needs. So the closest ground handling staffs that have the skill and
equipment to address an issue can be deployed in real-time - greatly increasing flexibility.
10.4 Data in the palm
With internet connectivity and smart applications in place, mobile devices can help to reduce
the use of paper, back-office simple logging activities, human prone error and the time
between an incident and its effects being recorded.
10.5 Context-aware applications and services
Context plays an essential part in any decision-making process. It can be employed at airports
to improve almost all aspects of ground operations - with a host of potential contextual
parameters, including location of a ground handling staff and Unit load devices and other
equipment, as well as passengers and their baggage, maintenance of aircraft or airport
equipment, and worker needs (paperwork, tools, spare parts, etc.).


Page 18 of 29


11 Available Cargo Mobile Apps and Latest Technology Trends in
Cargo Space
11.1 Cargo Apps
Features
Quick Tracking Page
My Shipments
Dimensional Weight Calculator
Metric Conversion

11.2 Korean Air Cargo
Features
Schedule ( Daily and weekly schedule is served)
Flight Operation Status
Booking List (Confirmed List and Waiting List is served)
Tracking
Traffic
o After log-in, check your cargos boarding/delay/offload status from 'On-
board list'. One can also view 'U.S Customs Clearance Status' and 'EU-ICS
Status' with the AWB number.

11.3 SAS Cargo
Features
Allows the user to get status for the following milestones: Booked (BKD), Accepted
(RCS), Departed (DEP), Received (RCF), Hold for Pick up (NFD) and Delivered (DLV)
using the AWB Number.

11.4 Freight Scan
Freight Scan offers a product FS100 which is capable of calculating the dimensional weight
11
of
a package using 3D imaging technology. The weight calculated is mapped to the rates in the
system and total cost is calculated. Compared to the manual process where in it takes an
average of 90 seconds per box, this equipment reduces the average time to 4 seconds per box.

DIMM (Defined Imaging and Multiple Measurements) Technology allows the calculation of
dimensional weight of multiple boxes in a single scan.
Benefits
Increased Operational Efficiency
Improved Dimensional accuracy
Visual record of all packages

11
In case of Airline cargo the higher of the Dimensional Weight which is the Volume and the actual weight of
the cargo is considered.
Page 19 of 29



11.5 RFID Based Cargo Management System (RCMS)
In the airlines cargo life cycle, freight forwarders still use out dated manual processes to
manage the cargo which requires manual data entry into the computer system for each
shipment.
The freight forwarder issues its own Airway Bill which is known as the House Airway Bill and
acts as a contract between the freight forwarder and the shipper. The forwarder then gets
into a contract with the carrier and this is known as the Master Airway Bill.
This RFID based system consists of a hybrid RFID system architecture providing both online
and offline capabilities along with an integrated Cargo In and Cargo Out gateway system.
11.5.1 Benefits of RFID
The solution does not require a line of sight access to be able to read tags.
The tag can trigger security alarm systems if removed from its correct location.
Reader and tag communication are not orientation sensitive.
Automatic scanning and data logging is possible without human intervention
Each tag can have a unique product code like standardised Electronic Product Code (EPC-
code) and still hold more information in an internal memory bank.
Each item can individually be labelled.
Tag internal data can be comprehensive, unique in parts/common in parts, and is
compatible with data processing in ERP system.
System provides a high degree of security and product authentication - a tag is more difficult
to counterfeit than a simple barcode.
The supporting data infrastructure can allow data retrieval and product tracking anywhere
provided the reader is close enough to the tag.
11.5.2 System Design
The RCMS consists of the following components:
RFID Gateway System
Handheld RFID System
Local RCMS Server
Central Database

RFID Gateway System: RFID gateway systems are installed at various checkpoints where RFID
tags can be read, updated and the cargo movements can be tracked.

Handheld RFID System: provides ability to read or update RFID tags on a mobile device. The
device should have capability to store data locally and should get synchronised with the local
database.

Local RCMS Server: Local RCMS server is responsible for processing the data received from
the mobile units and the gateway systems.

Page 20 of 29


Central Database: Stores all the data and gets synchronised with the local database from
time to time.

11.5.3 Process
A RFID-embedded tag is attached to each shipment following the arrival of the shipment. A
RFID tag has 240 bits of memory, which stores the information required for identifying and
processing the shipment. A number of RFID gateways with fixed RFID readers and antennas
are installed at checkpoints inside the warehouse. During the cargo incoming process, the
cargo items are carried into the warehouse storage area. When the tagged cargo items go
through a RFID gateway, RF signals are received by the reader and a series of tag-reading
events are sent into the Cargo Progressing Module. The contents of the tag are then read
and processed by the system. After all items from the same shipment are received, the cargo
processing module sends a notification to the flight-planning system to generate a flight
plan. At this point for every HAWB a MAWB is generated and stored in the database. When
the cargoes are ready to be loaded into the carrier, they exit from the warehouse through
the RFID gateway once again. During this time, the tags are updated with MAWB data and
the checked out items are sent to airport terminals for loading onto the corresponding
planes. The local databases get updated automatically throughout the process and are
synchronized with the central database at regular intervals.
Findings from the study
12
indicate that using the system can lead to an average saving of 15-
30 minutes per shipment.
11.6 Wearable Computing Findings at SITA Lab
Wearable computing is the next big thing around the corner. With the introduction of Google
Glass though only available to limited number of people wearable computers have become a
reality.
The two main advantages for wearable computing is that it allows the user to remain hands
free and also in case of Google glass it helps to have a visual inspection of the problem at
hand. A person sitting at the control centre connected to the host can see what the host is
doing and can help the host out.
SITA has developed an app called SWIFT Boarding which allows the agent to secure scan the
boarding pass and check the passport details simultaneously.
BAE systems has developed an Google glass app which allows the user to snap pictures and
record audio reports which are then geo tagged and uploaded to a server. The same can then
be shared with others leading to quick data collection and response.


12
http://www.iaeng.org/publication/IMECS2012/IMECS2012_pp278-283.pdf
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12 Airline Cargo Functions
Airline cargo functions can be broadly classified under the following heads:
1. Cargo Reservation and Space control
2. Cargo Warehousing
3. Cargo Departure Processing
4. Cargo Arrival Processing
5. Cargo Revenue and Operations
Let us try and map the various functions with the stakeholders involved:


Figure 6: Functional Areas VS Stakeholder Matrix

Exporter/shipper is one who is having a valid license to export cargo ships the cargo. Shipper
hand overs the cargo to air cargo agent who is an authorised IATA agent holding a valid
permission to cart the cargo. The agent takes the full responsibility of the cargo once the
shipper hands over the cargo. The agent does the packing and labelling for the cargo. The agent
makes the reservation for the cargo on the carrier depending upon the routings and agreement
with the carrier. Agent approaches the airline for the carting order either directly or through
internet. Once the carting order is obtained, the agent files the shipping bill with customs with
all relevant detail of the shipment. After filling the shipping bill, the agent files a gate pass entry
for the cargo with airport authority custodian of the cargo, where the cargo will be deposited.
The agent will offload the cargo at the customs examination area, where customs will check the
said goods as per shipping bill. Once the legal formalities of customs completed, the agent will
approach the airline to hand over the cargo and AWB.The airline officials will receive the cargo
from the agent, airline officials will scan the cargo, they check the NOPC and weight matches
the AWB.The cargo will be deposited in allotted area of the concerned airline. The airline checks
the reservations of the cargo, and same been automated in the system. The airline will manifest
& and same will under signed by the customs official-export freight officer. Once the manifest is
over the cargo will be loaded in the pallet /container under the supervision of customs. The
airline official will obtain flight rotation number (general manifest number) and the cargo will be
escorted from the bonded area to ramp area under the supervision of customs and airline
security official. Once the cargo is loaded inside the aircraft, the flight is departed in the system
after the take-off of the flight. The FFM is generated from the system. The airline at destination
receives the FFM message, based on the message the airline files EDI (electronic data
interchange) with customs to have record of the cargo coming inside the port. Before the cargo
lands the airline takes IGMNO (import general manifest no).The cargo is offloaded under the
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customs official, same escorted to the bonded area. The airline will deposit the cargo to the
custodian (airport authority).The airline will send cargo arrival notice to the notify in the AWB
or to the agent who is in the face of airway bill. The agent will come and collect the AWB, by
paying the delivering charges once the do is obtained; the agent approaches the customs to
clear the cargo. The customs examine the cargo, as per terms the duty will be charged for the
goods. The agents approach the custodian, for the release of the cargo. The custodian will issue
gate pass to agent to take the cargo out. The agent finally takes over the cargo and handover
the cargo to the consignee.
13 Air Cargo Movement Messages
Cargo Interchange Message Procedures is used as a standard for electronic exchange of cargo
information between various participants including carrier, freight forwarders, and ground
handling agents, Customs and other parties. This includes booking information, MAWB, HAWB,
flight manifest data, shipment status, customs information, and more.
Some of the important messages are given below:

Figure 7:Cargo Movement Messages

14 Stakeholders: What do they really want?
In the above matrix the functional areas represent a whole gamut of activities.IT can help in
automating some of the processes and mobility would enable them to have access to
information and status updates on the go.
14.1 Consignor/Consignee
The consignor would like to book for his/her cargo. He would also like to get status updates
about his/her cargo. Any delay or change in the initial plan would be made known to the
party.
Earlier we also saw that misplaced cargo and lost cargo are a huge menace. The concerned
party would like to have access to a portal to track for the reimbursement/damages paid for
loss /misplacement for cargo which can be done through a claims system.
Status Meaning
BKD Shipment status when it is booked on a flight
RCS Shipment status when the shipment is delivered to the GHA by the freight forwarder
PRE on pre-manifesting the shipments the status displayed against the shipment
MAN Manifested shipment loaded and assigned to the flight.
DEP On flight departure the status of shipment on the flight.
ARR Shipment status on flight arrival
RCF Shipment status when confirm received from the incoming flight
NFD Status of the shipment on notification to the consignee / Broker
AWD Handover of AWB document to the consignee.
DLV once shipment is collected by consignee and end of shipment lifecycle.
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14.2 Freight Forwarder
The freight forwarder has to book the space for cargo on the carrier. The freight forwarder
either contacts the General Sales Agent for a carrier in that region or else it contacts the
airline carrier directly.
The freight forwarder also has the responsibility of handling over the cargo after packaging to
the airport custodian controlled warehouses.
14.3 General Sales Agent
The General sales agent handles the overall sales of the airlines cargo space in that region
over various routes.
14.4 Customs
The customs needs information of all the cargo that is about to depart or arrive on a
scheduled flight. They randomly check few boxes in the consignment. They also ascertain the
fact that various custom duties, taxes etc. are paid and the cargo is ready to be loaded onto
the carrier.
14.5 Ground Handling Agent
The Ground Handling Staff are the most relevant stakeholders for a mobility solution as such is
the nature of their job that they have to perform their job on the move. They need to identify
the correct cargo and also receive instructions from the control centre. They are also
responsible for the build-up of the Unit Load Devices.

Figure 8: IT Systems for Cargo Stakeholders
Stakeholders Tasks/Problems or Issues Faced How can IT help?
Booking with Freight Forwarder Cargo Booking Module
Cargo Tracking Cargo Tracker Module
Missing Cargo Damages Missing Cargo Claims Portal
Cargo Space Booking Cargo Booking + AWB Generation
Misplaced Cargo Misplaced Cargo Notifier
Metric Conversion/Cost Metric Conversion/Cost Calculation Module
Sales Report Report Generation
Analytics/Most Profitable Route Analytics
Incoming/Outgoing Cargo Details Customs Notifier System
Cargo/Consignment Checking
Shipping Bill Generation
Cargo Identification RFID tracker based System/Bar code Scanner based
ULD Build Up ULD Build Up Module
Communication/Notification Task Assignment Module/Task Notifier
Cargo PreManifest/Manifest Manifest Generation Module
Flight Load Planning Load Planner
SLA Breach SLA Breach Notifier
ULD Management ULD Management Module
Carrier
Consignor
Freight Forwarder
General Sales Agent
Customs
Customs Clearance Module
Ground Handling
Agent
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15 Mobile App for Consignor
The Consignor is provided with a platform wherein
he/she can book for a shipment with freight forwarder.
The freight forwarder provides the consignor with a
unique identification number. When the freight
forwarder books space for the cargo on an airline
corresponding to the unique identification number
(HAWB) a Master Airway Bill number (MAWB) is
generated. The consignor can use either of the unique
numbers to track his/her cargo.
Against each of the shipment there would be a shipment
status column indicating the current status of the
shipment. The consignor is also provided with the
intended flight plan for the cargo. Any change or
progress in the shipment process is notified to the
consignor.

Other Features:
Customizable Home screen showing the current status of all on going shipment.
Language support
Metric conversion and cost calculation app
Facility for reimbursement of misplaced or damaged cargo
The consignor also is provided to select the priority or the date by which he/she expects the
consignment to be delivered.
Special cargo handling for perishable goods or temperature sensitive goods.
Provided cloud storage of all relevant documents related to a shipment.
May provide facilities like Insurance etc.
16 Mobile App for Freight Forwarder
The freight forwarder essentially takes ownership of the shipment once he takes it over from
the consignor. The freight forwarder based upon the schedule of the flights of the carrier and
space availability reserves space for the cargo with the carrier.
Also for every shipment if it involves transhipment it would include a number of connecting
flights and hence the chance of misplacing increases. Once a shipment arrives at a particular
airport and the barcode is scanned it current location gets updated and if that current location
does not match original flight route a message or notification is sent to both the carrier and the
freight forwarder to take corrective action.
Some of the Freight Forwarders are also involved with door to door deliveries and the mobile
app should be able to generate on a day to day basis a plan to deliver the same to various
locations and assign the personnel the same based upon their availability. The system should
also highlight the priority of each of the deliverables and schedule the plan as per the priority.

Figure 9: Screen Shot for Consignor App

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17 IT system for General Sales Agent
The GSA for a region manages the sales for the space for a particular carrier. Since mostly
routine customers (Freight Forwarder) would approach the GSA for cargo space there should be
a module to handle customers and run a loyalty program for the same.
The IT system for GSA would help to generate reports based upon the sales data and the same
can be used to generate monthly sales reports. The main use of this data would be to use this
data for analytics. It can help them to answer questions like: Which is the busiest route and in
which time of the year? This kind of question can help the GSA to pass this information to the
carrier and can help in scheduling of flights accordingly.
Other Features:
Multiple currency support
Cloud storage of documents and reports
Credit Control and Payment module
Customer Profile Management
18 Mobility Solution for the Customs
The Customs needs to be informed beforehand the details of the incoming/outgoing cargo
information. This system would provide the information to the customs department. It would
allow customs staffs to be assigned for checking of the consignment.
The current process of consignment checking involves the custom asking randomly for a few of
the packages in the consignment to be opened for checking. The App should be able to
randomly generate package number for the customs officer for checking. The same upon being
checked and verified would be updated on the system. Upon clearance of the consignment
after payment of the custom duty tax would enable the generation of the shipment bill.
Consignment Security Declaration is a document used by the regulators which entails an audit
trail giving information of who all has secured the cargo along the supply chain. IATA has given a
standard format for the CSD document. The app should generate the e-CSD as per the IATA
standard and thus would be able to reduce paperwork and provide all information at the click
of a button to the user.
The App should be able to identify regular consignors and see the content of their last
shipments so as to minimize the time for checking. Similarly new shippers with dubious identity
the app should raise an alert.

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19 Mobility Solution for Ground Handlers
The app for the ground handling staff should indicate
an itinerary of his/her day, of various tasks to be
done at various time of the time. There should be a
notification area where in any updates or alerts from
the control centre can be conveyed. On the home
screen the locator (GPS) should identify the location
of the person within the compound and the same
should be available to the other Ground handler staff
and the control centre.
The ULD manager should indicate the status of the
ULD devices and their location. Also damaged ULDs
which require maintenance should be updated.
The cargo identifier should be able to use
technologies such as bar code scanner or RFID
scanner to identify the cargo.

A current Google goggles like APP which when pointed towards a bar code would show all the
relevant details can work both with smart phones and wearable device like Google glass.
20 Implementation Challenges
An Information System Change would bring several challenges. An Information System consists
of 5 components:
Hardware /
Infrastructure
Changes in Hardware or Completely new Hardware needs to be
developed
Software
New Software or Applications needs to developed for the
Changed/New Hardware Platform
Data
Whether Data would be easily available for the new IS or can old data
can be migrated from the Legacy Systems to the New IS
Processes New IS would warrant changes in the existing processes
People Users need to be trained for using the New IS
Figure 11: Components of Information Systems
Each of the above components would present a different set of challenges when developing an
Information System. In this section we try to bring up the challenges in terms of the above
components of the recommended systems in this report.
20.1 IS for the Consignor:
Hardware/Infrastructural Challenges: In this case every consignor or shipper is an
independent entity and device used him would be his choice. The cost would be borne
by the consignor or shipper himself.

Figure 10: Screenshot of GHCargoAPP

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Software: Though there are no hardware challenges as such but there can be a variety
of devices used of different operating systems or screen size and hence the app
should be available for all existing platforms like IOS or Android or Windows.
Data: This app would be an add-on app for the consignor and data should be available
in the existing systems but migration needs to be done for data.
People: No such issues, as it would be a simple app and hence users should be able to
use on their own.
20.2 IS for Freight Forwarder:
Hardware/Infrastructural Challenges: No such issues even though freight forwarders
might not be quickly making a move to the mobile platform from the desktop
platform.
Software: Should be a platform independent and device independent app.
Data: Freight forwarders would be having relationships with several cargo carriers and
hence the Information System solution should be able to connect to several back end
system for booking of cargo space and to showing timings of scheduled flights.
Processes: Freight forwarders are governed by the IATA guidelines and hence the
processes should remain contact and if any change has to be approved by the IATA.
People: Minimal training might be required.
20.3 IS for the GSA
Hardware/Infrastructural Challenges: The GSA would mostly be provided a mobile
device by the carrier.
Software: Should be a platform independent and device independent app.
Data: Historic Data has to be made available to the GSA because such data would help
the GSA decide on monthly targets and hence migration should be done.
Processes: No such change would be there in the working of the GSA
People: Minimal training to help the users set up notifications and generate reports.
20.4 IS for the Customs
Hardware/Infrastructural Challenges: Who would provide for the hardware cost? The
government needs to be involved and the advantages should be listed so that they
may finance the project.
Software: Should be a platform independent and device independent app.
Processes: Some of the processes which till date take place through paper and manual
processes would get changed to an electronic format.
People: Training of the customs staff would be required.
20.5 IS for the GHA
Hardware/Infrastructural Challenges: The GHA are generally service providers and
they need to be convinced to move to this new platform based upon data
communications. Also proper hardware for reading and updating RFID tags need to be
developed. Since GHA would work in harsh conditions there is the need for the rugged
mobile devices and devices with high battery durability.
Software: Should be a platform independent and device independent app.
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Data: No Data issues since currently the GHA do not have a online platform.
Processes: Some of the processes which till date take place through paper and manual
processes would get changed to an electronic format. Reporting and communication
would also take place through the device.
People: Training of the GHA staff would be required.
21 Conclusion
The above recommendations would provide an integrated solution throughout the cargo
spectrum .All the above systems would be connecting to a single back end. The login features
would be based upon the profile of the person. Depending upon the profile the person would
get access to only that information which he/she requires and the rest would be screened from
the user. The applications must be providing multilingual features and cloud storage for the
documents. Depending on the device characteristics the application would provide access to
features.
Two other important aspects that need to be kept in mind are that bringing in efficiencies in
airline cargo operations through IT would involve designing fast responsive systems which also
involve the hardware aspect of it. The second part that needs to be kept in mind that there are
several participants involved in the cargo life cycle and a uniform IT system can only be made a
reality through collaboration between companies and with the backing of regulatory bodies.
__________________
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22 Bibliography
Ministry of Civil Aviation, Govt. Of India. (2012). Air Cargo Logistics in India.
Motorola. (n.d.). TCE versus TCO: Revealing the True Costs of Hand-held Computing .
Online Articles by SITA
http://www.sita.aero/content/mobility-will-transform-operational-environments
http://www.sita.aero/content/Airport-analytics-See-bigger-picture
http://www.sita.aero/content/the-rise-nfc
http://www.sita.aero/content/wearable-computing-airports-sita-lab-reports-findings
http://www.pcmag.com/article2/0,2817,2423316,00.asp
http://asms-pro.com/Modules/SafetyAssurance/ListofAirlineKeyPerformanceIndicators.aspx
http://analysis.telematicsupdate.com/fleet-and-asset-management/how-telematics-keeps-
cargo-management-track
https://www.abiresearch.com/market-research/product/1005960-cargo-container-security-
and-tracking/
http://ops.fhwa.dot.gov/freight/intermodal/freight_tech_story/freight_tech_story.htm
http://www.spacedaily.com/reports/BAE_Systems_announces_mobile_app_for_Google_Glass_
devices_999.html