Air Cargo

The air cargo industry includes three types of carriers: integrated carriers, passenger airlines, and conventional all-cargo carriers. A fundamental reason for air cargo's inability to surpass passenger revenues is that air is a premium-cost transportation mode compared to any surface system. A review of the major commodities shipped by air, according to data supplied on an annual basis by the Air Transport Association, gives a good idea of the major markets for air cargo. The air freight rate structure is similar to the passenger fare structure in that there is a normal or basic price applicable to all commodities in all markets. Priority reserved air freight is designed to serve shippers of heavy or bulky freight who need the advantage of reserved space on a specific flight. Container rates are low rates charged by the carriers to shippers using containers to ship air cargo.