Lecture 4

Lecture # 04
What Is a Stakeholder?
A stakeholder is a party that has an interest in a company and can either affect or
be affected by the business. The primary stakeholders in a typical corporation are
its investors, employees, customers, and suppliers.
Stakeholders in Air Cargo Supply Chain
1. The Shipper
2. The Freight Forwarder
3. The Airline
 Passenger Airline
 Scheduled All Cargo Carriers
 Combination Carriers
 Integrators / Integrated Carriers
4. General Sales Agent
5. The General Sales and Services Agent
6. Air Charters
7. The Ground Handler
8. Road Feeder Services
1. The Shipper
A shipper (also known as a consignor) is a person or a company responsible for
organizing and transporting goods from one point to another.
There are three reasons why a shipper decides to send a shipment by air:
1. Due to an emergency
 Urgently needed spare parts
 Medicines
 Relief goods
2. Perishable product
 Flowers
 Food
 Fashion garments
3. Because of cost
Air freight is economical than sea freight
2. Freight Forwarder
A freight forwarder is a company or person that organizes the transportation of
goods from one place to another on behalf of a shipper.
A forwarder makes money on air cargo by consolidation, basically combining
different shipments to the same destination and optimize chargeable weight and
rates.
Example: Consolidations of various smaller shipments to one destination
 Let us assume that there three customers with different shipments to the
same destination. In this case the forwarder will charge customer A and B:
45 × 2.25 = USD 101.25 each and customer C: USD 75, resulting in a total
revenue of USD 277.50 from the three customers.
 The forwarder will consolidate these three shipments into one shipment and
booking with the airline.
 The forwarder will then make one master air waybill (MAWB) (for the three
customers) of 110 kg (45+45+20).
 If the general rate of the airline for +100kg is USD 1.50/kg, the airline will
bill the forwarder USD 165 and the forwarder will then have USD 112.50
profit (277.5-/-165).
What is master air waybill?
The Master Airway Bill (MAWB) is a transport document used in air shipments,
issued and signed by the air cargo carrier or its agent, often on a pre-printed
carrier's airway bill format. It serves as evidence of the terms and conditions of the
transportation of goods over the carrier's routes(s).
What is a House Airway Bill?
A House Airway Bill (HAWB) is like a contract between the shipping company
(forwarder) and the airline. The forwarder signs it and it lays out the rules for how
the forwarder's part of the shipping process works. It's also proof that the shipment
exists.
What is difference between house air waybill and master bill?

HAWB vs. MAWB: Understanding the Differences
A MAWB is a contract of carriage with the airline, while a HAWB is used for
cargo tracking and control by the freight forwarder. A MAWB is non-negotiable,
whereas a HAWB can be negotiated.
3. The Airline
Air cargo is being transported on different types of aircraft operated by different
kinds of aircraft operators.
 Type of carriers for air cargo :
1. Passenger Airline
2. Scheduled All Cargo Carriers
3. Combination Carriers
4. Integrators / Integrated Carriers
4. General Sales Agent
GSAs, or General Sales Agents, had some good things going for them. They were
willing to put in extra time and use their own networks to find new customers for
the airline. They covered their own costs and earned money through commissions
from the airline, which was a cheaper option for the airline. Plus, since they
worked on short-term contracts, the airline could easily switch to a different GSA
if needed.
5. The General Sales and Services Agent
The GSSA as its name already suggests offers sales services to the airlines. It is not
always limited to sales only. Therefore, the second “s” implies services, like
supervision of cargo, or bookings, accounting, trucking, etc. Basically, all services
that a cargo department of an airline should perform.
6. Air Charters
Manufacturers and suppliers frequently need a special flight or aircraft to perform
an urgent or special delivery. This may require a one-time charter of an aircraft that
will meet the requirements.
Some airlines do not want to invest in their own assets and therefore lease an
aircraft on a short/medium term, which might be several years, also called wet
lease or aircraft, crew, maintenance and insurance (ACMI).
7. The Ground Handler

Ground handling involves accepting cargo into the warehouse from the shipper. It
may also include trucking cargo from the shipper or another airport. The handler
must prepare cargo for shipment by building it into pallets or loading into
containers Unit load devices (ULDs).
8. Road Feeder Services

The road feeding service, or also referred to as trucking, plays an important part in
the air cargo supply chain. Sometimes the freight spends more time on the road
than on a plane or even in a warehouse.

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Lecture # 04

What is difference between house air waybill and master bill?

7. The Ground Handler

8. Road Feeder Services

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