18 Sept 2013

Air Cargo Marketing in Nigeria

This involve the market process and methodology in air cargo business. Embodied in this process are market elements which include structure, conduct and performance.
Elements of the structure in air cargo business include physical attributes of the cargo market. For instance the visible characteristics at the cargo terminal of M.M. International Airport in Lagos. Terminal market is the type of market for air cargo business. This is the platform for mainly international trade. The market activities constitute significant economic characteristics which also influence the behaviour and performances of air cargo firms.

There are companies, industries and agencies that make up the market structure. Examples are as follow:
Cargo handling companies- These companies are directly or  indirectly involved in cargo import and export at the terminal. Nigeria Handling Aviation company(NAHCO), SAHCOL, DHL, Swift freight and the likes are a few example of these companies.
Cargo Airline Industries- These are the major player in the market. They are responsible for cargo movement by air (Export and Import) to and fro the terminal. Market interaction  amongst Cargo airliners is highly competitive whilst the relationship between cargo handlers and airliners is an imperfect one. Example of these airline companies, just to mention few are Ethiopia cargo, Emirate cargo, Qatar cargo , British Airways cargo and the likes. More so, there are ones that operates at hubs within the country; E.g.  Air Nigeria and Arik airline.
Operations and conducts are regulated by authorized bodies ( Customs, Nigeria Civil Aviation Authority, Federal Airport Authority and the likes)  in the market which in turn affect performances of participants in the market. The performance type in Air cargo business is a relative one.
There are restrictions of  cargo import and export at the terminal by some of the authorized bodies. For instance, example of uncontrolled exports are mostly agricultural products ; cocoa, rubber, cotton, palm oil, palm kernel, groundnut, cassava, kola nuts, flowers and etc. While, controlled and monitored export goods include the following: crude oil, endangered species( flora and fauna), works of arts and artefeacts. Likewise, on the other hand, there are restrictions on imported goods. These restrictions are contained in Nigeria Customs rule and regulations. Example of imports are general goods, personal effects, pharmaceuticals and consumables( NAFDAC certified), etc. More so, there are also restrictions on wears and furniture.

Participants:  A few of the air cargo companies mentioned earlier also act as market participants at the terminal market. Some of these companies are Ground Handling Agents (GHA) to foreign cargo Airlines. For instance, NAHCO PLC is a GHA to Ethiopia cargo, Emirate cargo, Qatar cargo and British Airways cargo.  Further Participants in the market include the following:
Agencies- There are several agencies at the terminal:
   Government Agencies:  Some of these agencies generate revenue for government, while some are to enforce and regulate business activities at the terminal. The relevant ones at the port include- Nigeria Customs, Corporate Affairs commission, Nigeria Export promotion council, Federal Airport Authorities of Nigeria and the likes.
General Sales Agents: These are licensed airline agents acting on behave of foreign cargo airlines. They provide general service and documentations as regards generation of cargo movement. Examples are Merchant Express GSA to Cargolux, Pathfinder GSA to British Airways cargo, NAHCO plc also act as GSA some local and foreign airlines.

Freight Forwarders. These are agents of shippers and consignees (owners of goods being exported or imported). Example; Custom licensed Agents(ANCLA). They provide logistic, documentation services, clearing and forwarding of cargo to and fro the terminal. This group also play vital role in air cargo business and services...

1 comment:

Anonymous said...

Thanks for sharing

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