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The transportation of cargo is a business that encompasses the entire globe. Various people and businesses need cargo transportation or cargo shipping from one place to another. Cargo business can also be termed as logistics business, logistics business can be local, national or international but the work involved is the transportation of goods and materials. As trade and commerce expands logistics companies are looking to expand network or add capacity to fulfill the needs of businesses the world over. FedEx, DHL and United Postal Services (UPS) are amongst the leading players in the cargo business today and each have their own dedicated cargo planes to transport goods and materials both internationally and locally.
Industries and manufacturers need to send supplies to different corners of the world, while business like auto manufacturers use cargo ships to export vehicles to car markets other businesses with light material use air cargo transportation to send goods and supplies so that the time of delivery is quicker. The cargo business in emerging markets like Brazil, India, Eastern European countries and South East Asia is predicted to grow at a faster rate than developed markets. Thus there lies huge business potential for people and businesses looking to start a cargo business. According to Centre for Asia Pacific Aviation (CAPA) study India is amongst the top 30 countries where the cargo business will see uptrend. The cargo business in India alone is expected to grow by some 20 percent or more in the next decade.
If you are looking to enter or start a cargo business of your own and would like to know the different business models you can create a business from then this article is for you. There are various ways in which you can start your own cargo business, some business models need high capital investment while others can be started with relatively small capital investment. If you are looking at local small scale cargo and logistics business then a road transportation business can be considered. To start such a business you will need to either lease trucks or other cargo transportation vehicles or buy them outright. You should first visit a truck dealer and get quotes on the cost of cargo transportation vehicles. Next you should meet with auto finance companies and see what finance you can get for purchasing of the vehicles. Another option is to lease trucks from a company who deals in trucks leasing. Here too you can get auto finance but you should also check the rate of interest applicable on leased vehicles.
Once your cargo transportation and logistics business is set up you will have to look for business. You also need to decide which region you will operate your business or which sector you will offer services to. Since the cargo transportation and logistics business is a service oriented business you can rake in business only by offering the best services. You can offer to pick up goods from the suppliers point or send your cargo pickup van to pick the goods from the suppliers doorstep.
If you are looking to entering the international cargo business then owning a cargo plane of your own is not something that everyone can do. What you can do is tie up with an international cargo and logistics business and send the goods and material over to them, from there on they will deliver the goods for your clients. For international cargo carriers its not possible to open office in very city of the country they are operating in as this will result in additional operating costs for them. As an alternative business arrangement they appoint authorized cargo collection offices. Your responsibilities will include pickup of goods from either the suppliers doorstep or in the case of documents and sample material being sent people usually come and book cargo at the local office of the company. Thereafter you will have to send the entire parcel and other goods to the local airport where a travel airline company will book the goods and carry it on their flight and deliver the complete consignment to the international cargo carrier. The same cargo delivery business model can be replicated domestically as well.
To meet the demands for food retail business domestic and international cargo business hold much importance. Everyday both the domestic and international market rely on travel and cargo carriers for supply of food that goes for sale in the millions of retail stores and vegetable markets. Fresh fruits and vegetables need to reach international markets within hours of reaching the destination. A food logistics and cargo business can be set up to meet the transportation needs of such businesses. You will need to have cold storage trucks that are fitted with air conditioning on the roof top that keeps the fruits and vegetables fresh in a deep freezer. In such a business you need to keep the cold storage trucks stationed at the airport where cargo planes land, once the fresh fruits and vegetables are out of the airport and into your trucks you will then head straight for the various foods markets, groceries stores and all other super markets that sell retail food. Since reaching each store can be time consuming therefore the air conditioning is need so as to prevent the fruits and vegetables from becoming unfit for consumption.
Air travel companies also do cargo business, in every aircraft there is a large compartment benefit the passenger deck where passenger luggage is stored but there is enough space for the aircraft to carry small to medium quantities of cargo. For the air travel companies this cargo transportation adds up to their revenues. Though air travel companies cannot carry heavy machinery they can surely carry small to medium size parcels and other cargo material that will fit into the cargo space that is available in an aircraft. Again for its cargo business an international or domestic air travel company cannot open a cargo booking office in each city. It therefore appoints authorized agents to book cargo on their behalf. The booking agent needs to have a cargo pickup van or vehicle so that everyday they can pick parcel or other forms of cargo from the suppliers doorstep and have it sent to the travel airline company who will then send the cargo to the booked destination.
Air freight carriers are the complete cargo planes with the most prominent cargo plane makers being Boeing of America and Airbus of Europe. Boeing 777 freighter aircraft and 757-200 freighter aircraft along with the A330-200Fs are amongst the most widely used cargo and logistics planes worldwide. The Airbus freighter version of A380 is also due to be launched soon and can change the way cargo business is done today. The Airbus A380 is the largest commercial air travel plane ever built and with the A380 freighter version cargo businesses can look forward to increased capacity flying long haul non stop.