• Title/Summary/Keyword: Air cargo market

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A Study of Legal Restrictions on International Air Cargo Services (국제항공화물운송의 법적 규제에 대한 고찰)

  • LEE, Jae-Woon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.69
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    • pp.371-388
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    • 2016
  • International air transport for cargo services is a facilitator for various trade sectors and, by itself, an important service industry. Although international air cargo industry is expected to grow continuously, industry stakeholders complain about legal constraints in the industry and demand more liberalized regime. From its birth at the beginning of the 20th century, the airline industry was tightly regulated by governments with a strong tradition of protectionism. In the past few decades, however, protectionism in the airline industry has steadily declined. Indeed, the airline industry is largely in the process of liberalization. Interestingly, it has been easier to liberalize air cargo service than passenger service. Indeed, states have traditionally shown far more willingness to provide market access for foreign carriers carrying cargo than passengers. Given the impact of air cargo service in a state's wider economy and own characteristics of cargo services (i.e. air cargo traffic is inherently one-way, unlike passenger traffic, which tends to involve round trips), more liberalized approach is necessary for air cargo services. Among three approaches: bilateral, regional (block-based) and multilateral, it is desirable to adopt a multilateral treaty (a new multilateral all-cargo agreement) so as to harmonize and simplify complicated trade regulations on air cargo services.

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Analysis and Prospect of Export Trend of Air Cargo Market before and after COVID-19

  • Kim, Young-Rok;Lim, Jae-Hwan;Choi, Yun-Chul
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.28 no.4
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    • pp.164-170
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    • 2020
  • Recently, the aviation industry faced a major crisis due to the impact of COVID-19. However, despite the sluggish passenger transportation, the cargo transportation sector is relatively maintained or increasing depending on the item. In this study, we will look at the trends before and after COVID-19, focusing on the cargo export field, which is a concern of the aviation industry. First, it analyzes the entire air cargo and then analyzes the trends of each item and country in detail. In particular, it examines the process of changes in air transport costs, which increased significantly immediately after COVID-19, and conducts future trends and prospects in the cargo export field. As a result of the study, some characteristics of air cargo exports before and after COVID-19 were found in an analysis by item and country, and transportation costs varied according to route distance.

A Study on 4PL Development to Improve Air Cargo Process (항공물류 프로세스 개선을 위한 4PL 도입 연구)

  • Na, Hyeong-Seok;Jho, Yong-Chul;Lee, Chang-Ho
    • Proceedings of the Safety Management and Science Conference
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    • 2008.04a
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    • pp.383-387
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    • 2008
  • Nowadays, the tendency of world air cargo is noteworthy and air traffic in terms of cargo throughput will no doubt grow significantly in the new Region, with India and China's booming economy and the upcoming Olympics 2008. For example, in the first 11 months of 2006 cargo traffic was increased by 6.3%. First of all, the market of air cargo in Korea grows very quickly and diversifies. It is an essential factor in the process of development of Northeast-Asia as a hub for Air Cargo logistics. However the process of air cargo in Korea is complex as compared with other north-east asia nations. At the same time, it has many problems and causes inconvenience to owners of freight. This paper investigated the process of air cargo in Korea now and analyzed problems of the process. We emphasize that 4PL is the excellent solution from among many alternatives. It is also worthy of notice that EPCglobal network strengthen the role of 4PL. In conclusion, the 4PL system based on EPCglobal network will result in a good success, so it will raise a prestige of air cargo in Korea to a higher position.

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A Study on the Growth of Air Cargo Volume and the Development Plan for Regional Airport Focusing on Cheonng-Ju Int'l Airport (항공화물 활성화를 위한 정책분석과 지방공항 발전방안 연구: 청주국제공항을 중심으로)

  • Won-Tae Park;Yeon-Young Sung;Sung-Sik Park
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.32 no.2
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    • pp.112-123
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    • 2024
  • Responding to rapid changes of global supply chain and fast increasing air cargo volume and demand for e-commerce market, this paper researched the development plans for regional airport specially focused on air cargo logostics through policy research. According to this research, political implications and development plans for Cheong Ju airport (CJJ) to become a part of global supply chain, a regional air cargo hub. Firstly, it is necessary to increase the length of the existing runway from 2,744m to 3,200m or to develop 3rd runway only for a civil aircraft use. Secondly, it is inevitable to develop new air cargo terminal to handle and export such high value-added products as semi-conductor or rechargeable battery through airport. In addition, facing re-shoring trends among global supply chain, CJJ can increase its air cargo volume and also provide feeder service to Incheon airport, inducing global distribution center near airport site.

Intra-regional Cooperation and Air Cargo Liberalization Policy in Korea, China and Japan (한.중.일의 역내 항공화물운송 자유화정책과 협력중진방안)

  • Lee, Yeong-Heok
    • The Korean Journal of Air & Space Law and Policy
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    • v.22 no.2
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    • pp.135-154
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    • 2007
  • The 3 Northeast Asian countries of Korea, Japan and China have been stricter to each other than to other countries of out-region in air liberalization. The prominent reason of this intra-regional protective policy in air transportation seems to be the difference in competitive strength of their national flag carriers. As the 3 countries realize the importance of their mutual cooperation in the region, since China grows to be one of the leading economies in the world and the intra-regional trade and visitors increase tremendously, they are now taking the policy of intra-regional air liberalization more vigorously than before. Especially air cargo liberalization is easier than air passenger liberalization because they realize that the development of open economy is based on free flow of logistics regardless of the competitiveness of their national flag carriers. As Korea is the leading country in the region to promote air liberalization, this paper reviews the importance and growing trend of air cargo, analyzes current air liberalization policy between Korea, Japan and China and the initial effects of open sky in the routes of Shandung-Korea, and suggests the new policies of air liberalization to promote free flow of air logistics.

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On the effect of Open Sky agreement on Korea-China air transport market (항공자유화 협정이 한 중 시장에 미친 영향에 관한 실증 연구)

  • Joung, Hyun Sook;Kim, In Joo;Lee, Jin
    • Journal of the Korean Society for Aviation and Aeronautics
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    • v.22 no.1
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    • pp.136-144
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    • 2014
  • This paper studied what kind of effects were made through Open Sky agreement on Korea-China air transport market. To analyze the effects on air transport markets brought by liberalization, this paper studied transport volume, number of airlines, passenger and cargo and routes from 2000 to 2012 Korea-China aviation statistics. Liberalization of shandong and Hainan Provinces agreed in 2006 caused significant differences in frequencies, transport volume, and the number of routes for both passenger and cargo services between 2007 and 2008, as well as statistically significant effects. The analysis on the effect of Korea-China Open skies Agreement between 2000 and 2012 was no difference because the global financial crisis in September 2008.

A Study on Development of u-4PL Based Air Cargo Logistics System (항공물류에 적용한 u-4PL 시스템 개발 연구)

  • Li, Guang-Zhu;Na, Hyeong-Seok;Lee, Doo-Yong;Li, Zhong-Shi;Lee, Chang-Ho
    • Journal of the Korea Safety Management & Science
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    • v.10 no.4
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    • pp.181-187
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    • 2008
  • The market of air cargo in Korea grows very quickly and diversifies. It is an essential factor in the process of development of Northeast-Asia as a hub for Air Cargo logistics. But the process of air cargo in Korea is complex as compared with other north-east asia nations and it has many problems and causes inconvenience to owners of freight. We emphasize that 4PL(Fourth party Logistics) is the excellent solution from among many alternatives. The wave of 4PL added to strategic consulting based on new IT techniques, for example RFID, with logistics outsourcing through existing 3PL service is a great issue. It is also worthy of notice that EPCglobal network strengthen the role of 4PL. In conclusion, the 4PL system based on EPCglobal network will result in a good success, so it will raise a prestige of air cargo in Korea to a higher position. This study deals with the new logistics system, air cargo logistics system based on u-4PL system, RFID and EPCglobal network, that will bring many advantages. At the end, we verify the u-4PL air cargo logistics system by simulation tool.

The Effect on Air Transport Sector by Korea-China FTA and Aviation Policy Direction of Korea (한·중 FTA가 항공운송 부문에 미치는 영향과 우리나라 항공정책의 방향)

  • Lee, Kang-Bin
    • The Korean Journal of Air & Space Law and Policy
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    • v.32 no.1
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    • pp.83-138
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    • 2017
  • Korea-China FTA entered into force on the 20th of December 2015, and one year elapsed after its effectuation as the FTA with China, our country's largest trading partner. Therefore, this study looks at the trends of air transport trade between Korea and China, and examines the contents of concessions to the air transport services sector in Korea-China FTA, and analyzes the impact on the air transport sector by Korea-China FTA, and proposes our country's aviation policy direction in order to respond to such impact. In 2016 the trends of air transport trade between Korea and China are as follows : The export amount of air transport trade to China was 40.03 billion dollars, down by 9.3% from the last year, and occupied 32.2% of the total export amount to China. The import amount of air transport trade from China was 24.26 billion dollars, down by 9.1% from the last year, and occupied 27.7% of the total import amount from China. The contents of concessions to the air transport services sector in Korea-China FTA are as follows : China made concessions to the aircraft repair and maintenance services and the computer reservation system services with limitations on market access and national treatment in the air transport services sector of the China Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. Korea made concessions to the computer reservation system services, selling and marketing of air transport services, and aircraft repair and maintenance without limitations on market access and national treatment in the air transport services sector of the Korea Schedule of Specific Commitments of Korea-China FTA Chapter 8 Annex. The impact on the air transport sector by Korea-China FTA are as follows : As for the impact on the air passenger market, in 2016 the arrival passengers of the international flight from China were 9.96 million, up by 20.6% from the last year, and the departure passengers to China were 9.90 million, up by 34.8% from the last year. As for the impact on the air cargo market, in 2016 the exported goods volumes of air cargo to China were 105,220.2 tons, up by 6.6% from the last year, and imported goods volumes from China were 133,750.9 tons, up by 12.3% from the last year. Among the major items of exported air cargo to China, the exported goods volumes of benefited items in the Tariff Schedule of China of Korea-China FTA were increased, and among the major items of imported air cargo from China, the imported goods volumes of benefited items in the Tariff Schedule of Korea of Korea-China FTA were increased. As for the impact on the logistics market, in 2016 the handling performance of exported air cargo to China by domestic forwarders were 119,618 tons, down by 2.1% from the last year, and the handling performance of imported air cargo from China were 79,430 tons, down by 4.4% from the last year. In 2016 the e-commerce export amount to China were 109.16 million dollars, up by 27.7% from the last year, and the e-commerce import amount from China were 89.43 million dollars, up by 72% from the last year. The author proposes the aviation policy direction of Korea according to Korea-China FTA as follows : First, the open skies between Korea and China shall be pushed ahead. In June 2006 Korea and China concluded the open skies agreement within the scope of the third freedom and fourth freedom of the air for passenger and cargo in Sandong Province and Hainan Province of China, and agreed the full open skies of flights between the two countries from the summer season in 2010. However, China protested against the interpretation of the draft of the memorandum of understanding to the air services agreement, therefore the further open skies did not take place. Through the separate aviation talks with China from Korea-China FTA, the gradual and selective open skies of air passenger market and air cargo market shall be pushed ahead. Second, the competitiveness of air transport industry and airport shall be secured. As for the strengthening methods of the competitiveness of Korea's air transport industry, the support system for the strengthening of national air carriers' competitiveness shall be prepared, and the new basis for competition of national air carriers shall be made, and the strategic network based on national interest shall be built. As for the strengthening methods of the competitiveness of Korea's airports, particularly Incheon Airport, the competitiveness of the network for aviation demand creation shall be strengthened, and the airport facilities and safety infrastructure shall be expanded, and the new added value through the airport shall be created, and the world's No.1 level of services shall be maintained. Third, the competitiveness of aviation logistics enterprises shall be strengthened. As for the strengthening methods of the competitiveness of Korea's aviation logistics enterprises, as the upbringing strategy of higher added value in response to the industry trends changes, the new logistics market shall be developed, and the logistics infrastructure shall be expanded, and the logistics professionals shall be trained. Additionally, as the expanding strategy of global logistics market, the support system for overseas investment of logistics enterprises shall be built, and according to expanding the global transport network, the international cooperation shall be strengthened, and the network infrastructure shall be secured. As for the strengthening methods of aviation logistics competitiveness of Incheon Airport, the enterprises' demand of moving in the logistics complex shall be responded, and the comparative advantage in the field of new growth cargo shall be preoccupied, and the logistics hub's capability shall be strengthened, and the competitiveness of cargo processing speed in the airport shall be advanced. Forth, in the subsequent negotiation of Korea-China FTA, the further opening of air transport services sector shall be secured. In the subsequent negotiation being initiated within two years after entry into force of Korea-China FTA, it is necessary to ask for the further opening of the concessions of computer reservation system services, and aircraft repair and maintenance services in which the concessions level of air transport services sector by China is insufficient compared to the concessions level in the existing FTA concluded by China. In conclusion, in order to respond to the impact on Korea's air passenger market, air cargo market and aviation logistics market by Korea-China FTA, the following policy tasks shall be pushed ahead : Taking into consideration of national air carriers' competitiveness and nation's benefits, the gradual and selective open skies shall be pushed ahead, and the support system to strengthen the competitiveness of air transport industry and airport shall be built, and entry into aviation logistics market by logistics enterprises shall be expanded, and the preparations to ask for the further opening of air transport services sector, low in the concessions level by China shall be made.

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The Revision of Transit Clause in the Institute Cargo Clauses (협회적하약관(ICC)상 운송조항(Transit Clause)의 변천과정에 관한 연구)

  • Lee, Jay-Bok
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.43
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    • pp.337-370
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    • 2009
  • The Joint Cargo Committee of International Underwriting Association of London (IUA) and Lloyd’s Market Association (LMA) have issued the revised version of Institute Cargo Clauses A, B, C, Institute Cargo Clauses (Air) and their accompanying War and Strikes Clauses. The Institute Cargo Clauses ("ICC") were last revised in 1982. Following a two year long consultation process, the latest edition of the ICC clauses became available to the Market on 1st January 2009. The overall result of the amendments to the 1982 ICC has been to create clearer policies that are more favourable to the Assured. Exclusions have also been amended to the advantage of the assured. The Transit Clause has seen a large revision, again more favourable to the Assured. The insurance now attaches within the warehouse or place of storage when the goods are "first moved$\cdots$ for the purpose of the immediate loading into or onto the carrying vehicle or other conveyance for the commencement of transit" whereas previously the insurance would not attach until the goods left the warehouse. Furthermore, the insurance now terminates on completion of unloading from the vessel at (rather than delivery to) the final warehouse or at a warehouse prior to the destination named in the contract of insurance which the Assured or their employees elect to use either for storage or distribution.

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Evaluating Level of Quality for the Skyteam Cargo Services (스카이팀 카고의 서비스 품질에 대한 평가)

  • Na, Ji-Eun;Park, Yong-Hwa;Yun, Sin
    • Journal of Korean Society of Transportation
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    • v.29 no.6
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    • pp.75-83
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    • 2011
  • This research explores the relative importance of factors and service items that influence the air cargo service quality for provision services by the Skyteam Cargo in the Korean market. In general, the Skyteam Cargo provides a package of services which are different functions and operations of service such item as Equation Heavy (heavy and large express freight), Equation (small express freight), Variation (special freight), and Dimension (general freight). To carry out the research, the expert questionnaire survey, the Analytic Hierarchy Process (AHP) analysis had adopted to evaluate the level of quality for the provision air cargo operation services by the Skyteam Cargo at Incheon International Airport. Based on an expert survey and the AHP, five core service factors, namely, infrastructure as installed facilities, reliability, promptness, efficiency, and safety are defined.