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Air Cargo Operations - AVMG 4200 > Module 9-15 Quizzes > Flashcards

Module 9-15 Quizzes Flashcards

1
Q

Which global freight forwarding companies are typically in the top five performers, by tonnage handled?

A

DB Schenker
UPS Supply Chain Solutions
Kuehne + Nagel
DHL Global Forwarding
DSV

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2
Q

What was the size of the global logistics market in 2017 and what percentage was comprised by air freight?

A

5 trillion at 2%

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3
Q

What percentage of time does a shipment by air freight actually spend airborne?

A

10%

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4
Q

Which document attest to the correctness of the description, quantity, and value of goods shipped into a country?

A

Customs import declaration

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5
Q

What are the roles of a freight forwarder?

A
  1. Organize the safe, efficient, and cost-effective transport of goods by the best mode
  2. Act on behalf of shippers, importers, and exporters
  3. Prepare all required transportation documents
  4. Accept responsibility for goods shipped
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6
Q

What explains the air cargo industry’s lack of a universal standard for electronic documents?

A

There’s a not a universal electronic standard for customs documents

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7
Q

Which international conventions set the rules and regulations for carriage of people and cargo, and the documentation required?

A

Warsaw 1923, Montreal 1999

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8
Q

What are the roles of a ground handling agent?

A
  1. receiving and preparing shipments
  2. unloading and loading aircraft
  3. verifying/forwarding required documents
  4. build-up and breakdown of pallets and containers
  5. weighing shipments
  6. providing temporary warehouse storage as required
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9
Q

Which type of logistics provider did manufacturers turn to when outsourcing their transportation, storage, and handling requirements?

A

2PL

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10
Q

Which type of logistics provider integrates directly into their customer’s supply chains, providing customized logistics solutions?

A

3PL

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11
Q

Which air cargo document provides the individual breakdown for each part of a consolidated shipment?

A

House Waybill

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12
Q

What IATA initiative has standardized the transmission of cargo transportation documentation in electronic form, as of 2019?

A

eAWB

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13
Q

Which air cargo document
constitutes the contract of carriage between the shipper and the carrier
(airline)?

A

Air Waybill

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14
Q

Which type of logistics provider coordinates the “best” solution over the customer’s entire supply chain?

A

4PL

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15
Q

What service does the DHL no longer provide because of legal requirements on percentage of ownership?

A

domestic

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16
Q

What is the potential annual saving in shipment costs for Amazon by taking direct control and operations of transportation of shipments?

A

$2 billion

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17
Q

What system of distribution did FedX perfect that flies packages to a central location for sorting and then flow back out to their destination for delivery?

A

hub and spoke

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18
Q

What are the main U.S. hubs for FedEx, UPS, and DHL?

A

Memphis, Louisville, and Cincinnati/Kentucky

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19
Q

The DHL was founded in 1969 as a document shipment company but whom was it acquired by in 2009?

A

the Deutsche Post

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20
Q

What was UPS first founded as in 1907 before expanding into “time-definite-package” service and the supply chain freight business?

A

private messenger services

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21
Q

What are the four key elements of the Integrated Carrier business model?

A
  1. door-to-door service
  2. fast and reliable tracking
  3. end-to-end shipment tracking
  4. guaranteed delivery time
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22
Q

What were the three largest air cargo carriers by schedule FTK in 2018?

A

FedEx, Quatar, and UPS

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23
Q

What are the key advantages of using a hub and spoke network of air transportation?

A

fewer flights required and less fuel consumed

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24
Q

What was FedEx first founded as in 1971?

A

overnight express service for letters and small passengers

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25
Which Combination airline relied on freighter capacity the most in 2016?
Korean Airlines
26
What is the key distinguishing factor between Combination airlines and Passenger airlines?
Combination airlines operate freighter aircraft as division or subsidiary of parent airline
27
What is the key distinguishing factor between Passenger airlines and Combination airlines?
Passenger airlines rely on belly capacity for cargo vice freighter aircraft
28
What are the disadvantages of combination airlines compared to passenger airlines?
1. potential overcapacity in periods of low demand 2. greater cost of operating freighter aircraft
29
What percentage of cargo was carried in the belly cargo space of all passenger and combination airlines in 2016?
49%
30
What is the key distinguishing factor between Combination airlines and Passenger airlines?
Combination airlines operate freighter aircraft as division or subsidiary of parent airline
31
What are the disadvantages of belly cargo carriage by Passenger airlines?
1. limited overall size and space that drive carriage to smaller express shipments 2. cargo must be handled at the passenger gate within a 30-minute turnaround window 3. routes are driven by passenger vice cargo demand
32
What are two advantages of passenger airlines utilizing belly cargo space?
1. global networks and millions of daily departures create wide range of opportunities for shippers 2. marginal cost to belly-cargo as most of cost sunk in transporting passengers
33
What are four advantages of Combination airlines?
1. Can deliver to locations not well-served by passenger flights 2. Supplement airline cargo capacity passenger belly capacity is exceeded 3. Can operate from cargo terminals, vice only passenger gates, for more efficient handling 4. Can respond to demand fluctuations by adding or discontinuing service as required
34
Which Combination airline relied on passenger belly capacity the most in 2016?
Air France-KLM group
35
What is the percentage of Combination carriers and Passenger carriers (respectively) in the Top 25 cargo carriers by FTK for 2019?
48% / 16%
36
What percentage of global scheduled FTKs was provided by Combination carriers (passenger and freighter aircraft) in 2016?
55%
37
The COVID-19 pandemic has reduced passenger air travel by nearly 80%, from July 2019 to July 2020. What accounts for the increase in air freight rates by nearly 30% generating near record highs in revenue?
reduction of system capacity to meet current demand due to loss of belly-cargo space
38
What are the three types of all cargo (dedicated) carrier business models?
Scheduled, Charter, ACMI
39
How are All-Cargo (Dedicated) carriers similar to Integrated carriers?
they use freighter aircraft to move cargo
40
What is the industry breakdown of international and domestic traffic generated by the All-Cargo (Dedicated) carriers?
12.4%, 3.8%
41
Why are All-Cargo (Dedicated) carriers more negatively affected by the directional imbalance of traffic?
carriers can't compensate with the loss of revenue with passenger traffic in weak sectors
42
How do scheduled All-Cargo carriers provided service?
through pre-planned routes and departure times
43
What are the key factors that impact a cargo airline’s decision on the location of a hub?
1. central location to minimize total transportation costs 2. strong connection to feeder air service and other modes of transportation 3. proximity to manufacturing and consumption centers
44
What year did Amazon begin its 10-year agreement to provided CMI service with Amazon Air?
2016
45
Under what business model does Atlas Air provide All-Cargo service to Amazon?
CMI
46
What does the ACMI model stand for?
Aircraft, Crew, Maintenance, Insurance
47
By what means does the majority of All-Cargo traffic move by?
international, long haul routes
48
By what mean do scheduled All-Cargo carriers provide service?
pre-planned routes and departure times
49
By what means do charter All-Cargo carriers provide service>
on demand, contracted basis
50
What is one “targeted” marketing channel that can be used to position your cargo services in the minds of shippers?
trade shows/cargo exposition
51
What is the “Residual Ratemaking Methodology” primarily based on sharing development risk with?
airline tenants
52
In 2009 _____ automotive group build a new plant in western Georgia just 50 road miles away from KATL. A major consideration for this location was the “supply chain/logistics effect” and the availability of JIT cargo flow operations. As a direct result, _____ added additional flights into KATL, and _____ began daily dedicated air freight flights- resulting in over _____ dollars annual economic impact!
Kia, KAL, ASIANA, 4 billion
53
What is the logistics/supply chain routing factor described as the “gateway” concept and the unitization of mixed denser/lighter individual air freight shipments?
economies of consolidation
54
What methodology uses risk assessment/risk management approach to resolving the high loan rate/low ROI paradox of modern air cargo development?
residual ratemaking methodology
55
What is the logistics/supply chain routing factor described as the awareness of shippers and forwarders about the availability of the air freight mode?
Service Market Information
56
What are the two key principles the plan must focus on when setting objectives for the air cargo development?
capitalizing on unique strengths & deficiencies over which the airport has influence
57
What is the shipment characteristic most closely associated with air freight?
value density
58
The two primary targets to attract to the airport under the Cargo Marketing Plan are?
air carriers & air freight forwarders
59
What category of initial marketing forms can be described as “centered on a social gathering.”?
cooperative
60
What are the two forms of initial marketing programs?
cooperative & informational
61
The “Modern Air Cargo Development Paradox” can be resolved through the use of...
risk assessment/risk management
62
Who is the primary target of the services offered by the Cargo Marketing Plan?
shippers
63
What are the two most promising “Air Cargo Development Strategies”?
third party, joint venture approaches
64
How has the economic impact of air cargo operations at an airport changed in the last two decades?
local, regional
65
What is the data format best represented by complex textual descriptions?
qualitative data
66
What are the two types of forecast model error?
accuracy and bias
67
Which of the two forecast models is described as "width of the forecast error"?
accuracy
68
Describe the Planned Activity Level.
The development of planned capacity improvements based on actual infrastructure investment triggered by realized demand, not just forecasts.
69
What are the two factors used to forecast "unserved demand" levels?
total freight demanded & total capacity already available
70
What are the three forecasting model types under the two "main forecasting approaches"?
Trend Econometric Judgemental
71
What are the three types of data formats?
qualitative quantitative metric
72
Why are accurate freight forecasts necessary?
Short term revenue/cost planning & longterm infrastructure/capacity planning
73
Describe the Time-series forecasting model type.
The model that relies on the historical data of a single variable to predict itself.
74
What data do air freight forecasts require in order to make their models?
carriers, shippers, and general economic activity
75
What is the demand for cargo infrastructure capacity typically modeled as?
dependent demand
76
Which of the two types of forecast model error is described as the “consistently positive or negative displacement of the average forecast error"?
bias error
77
What main forecasting approach uses causal factors and independent variables to predict future levels of an effect or dependent variable?
econometric forecasting models
78
What data format is easily represented by discrete numerical values?
the quantitative format
79
What core principle is the Planning Activity Level based on?
That the Master Plan Forecast is a “preliminary” document and not to be actually implemented as planned
80
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Air Cargo Operations - AVMG 4200 (7 decks)

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