How do They Make Money Please?

[wannabe-aviator]

Dear All

I was wondering if someone can be kind enough to explain to me how a cargo Operaor makes its Money (Please dont tell me they get paid to carry cargo).

A Passenger Airline has seats onboard sells those seats to consumers and they get the money from selling those seats, How does a cargo operator gets its clients from and how to they fill thier aircrafts full of cargo to get thier money.

I hear there are dedicated cargo Airlines but how does AIR Blog Gets his plane filled, I only ask due to a research Assignment, any information and leads is much appreciated, I thank you vey much in advanced and I look forward to your informative replies.

Yours Truly
Wannabe

[banana head]

Please don’t tell me they get paid to carry cargo

Boy you are an innocent one ‘wannabe-aviator’.
Of course they get paid to carry cargo! If you want to post a letter you stick a stamp on it, yeah? By doing so you are paying for the transportation of said letter. In much the same way cargo shipping agents charge to move boxes, whether by road, rail, sea or for that matter air.

Now might I kindly suggest you spend some time learning to spell before you take on such a dizzying task as a .....research Assignment .... for whatever economic qualification you hope to achieve.

I haven't laughed so hard in ages.......

[vincent van gogh]

Hé Banana Head,

Why posting a reply like this, can't you give a normal answer.
This is a good way of showing new people to the forum how it works here.

vincent

[faraaz]

well, i don't think they carry cargo as a charity do they??:yuk:

what sort of research project is this for? KS3?

[too_sleepy]

Hi
Reading between the lines this gentleman is looking for information on where these operators source cargo contracts. The comment 'Please dont tell me they get paid to carry cargo' is an admission that he knows this already, but where does this cargo come from and where might he begin to source this work. I doubt this is for a research assignment.
wannabe-aviator, a search on Amazon will offer you a number of books on airline operations and business models for setting up your own cargo operation. Alternatively get a copy of Airline sim.

[barit1]

Why not encompass other transport modes (ship, barge, lorry, rail) as well? How do THEY get paid?

[WHBM]

It's all part of the world of commerce and shipping, and there are several different arrangements. The approach really came from the shipping companies and built up over many decades there.

At the centre is often a business called a "Freight Forwarder" (look for them on the web), sometimes also called a "Freight Consolidator". These are office-based businesses, often with several offices strung round the world, and sales teams who know the market and who is sending what where. They pull together the shipper (sending the goods), the carriers (airlines, but often surface arrangements to/from the airport as well), and all the paperwork and customs clearance, which for international freight is in itself a substantial task. They negotiate with shipper and carrier for who will pay what, handle the payments, and take a percentage or similar as their fee.

Forwarders decide whether to use the underfloor capacity of scheduled passenger carriers (the No 1 method overall), regular freight carriers like FedEx or UPS, or a dedicated freight aircraft, which are often hired on a one-off basis for particular loads.

Freight is a very different operation from passenger, among the most obvious being that freight only goes one way whereas passengers tend to go home again and so the loads on passenger flights balance out in the long run in both directions, unlike freight which makes getting sensible moneymaking loads in both directions more difficult.

Always glad to write a line for those interested.

[Sans Anoraque]

If I had 'inside' information on the workings of the air freight industry, I might be tempted to read the sentence in red at the bottom of this page first.

Even though its grammar is almost as bad as the poster's!

[African Tech Rep]

Not correcting WHBM – just a clarification a Forwarder forwards and a Consolidator consolidates – of course some do both.

Here’s a method – I have a consignment to ship (I really do – it’s going to be by sea) – I have to “hire” a container which my freight won’t fill – so I can get a Consolidator to try and find someone to share my container – normally my forwarder will help.
If I wanted the freight to move by plane the forwarder would check it’s size and contents (Dangerous Goods ?) – if it’ll fit in a lower hold they contact the airlines who do the route and book space – if it can’t be carried in the lower holds they’ll contact a Scheduled Freight outfit and book space on their flight – if there is no scheduled freight outfit that does the route or it’s a “special” (oversize / explosives etc) they’ll contact “Ad Hoc” freighters who’ll do a special flight just for you.
If you need a special “ad hoc” flight you’ll be booking the plane – so a Consolidator will be a good idea as he might be able to find someone to share the cost – if he can it’ll change from the cost of a big house to the cost of a small one.

One thing you can be sure of = it ain’t cheap.

Oh if you book an ad hoc flight you’ll be charged [normally] for getting the plane back home as well.

[wannabe-aviator]

Dear All

Many thanks for all the information so far some has been excellent many thanks to WHBM and African Tech Rep, as for those who have given nothing but sarcastic and negative replies for you I have nothing but pitty as its people like you that makes the world of Aviation seem such a harsh world when it doesnt need to be.
As for those suggesting I have a financial motive for this topic I think you have been reading too many conspiracy theories as I am sure if I had the money to operate a cargo outfit I would not be spending my time on PPRUNE,so please refrain from making such amusing claims.
I thank those of you mature enough to give me some very usefull information and I look forward to getting more information from those aviators who are care enough to give a mature answer.

yours truly
Wannabe

[WHBM]

wannabe-aviator :

Don't be put off by those who make comments on your writing style. I believe you come from Brasil, and I can assure you that you most certainly write better English that any of the detractors here could write in your own Portugese language.

[Sans Anoraque]

Fair enough, I shall retract my snide remarks at your grammar, wannabe. Your English was good enough that I assumed you were an native English speaker.

BTW, I wasn't insinuating you had financial motives. I was insinuating you might be a terrorist. So that's OK then.