| University | Singapore University of Social Science (SUSS) |
| Subject | LOG355: Air Freight Management |
Case Study (Individual Assignment)
Access Freight Services (S) Pte Ltd is an international freight forwarding company with many overseas offices around the world. The company handles few key accounts in Singapore sending airfreight shipments to Chennai, Mumbai, Bangalore, Hong Kong, Taipei, Bangkok, New York, Sydney, Manila, Kathmandu, and other destinations.
Figure 1
| Contents – Computer Parts
Dimension per carton – 50 x 40 x 40 cms Weight per carton – 25 kgs 30 cartons per shipment – 750 kgs |
| Frequency – 3 shipments per week (2, 4 and 6) |
Access has been sending air freight shipments from Singapore to Kathmandu using Deccan Airways via Delhi for the past nine months and the details of the shipments as shown in Figure 1. Based on the current arrangement, cargoes will be loaded into one container for loading onto the aircraft for onward forwarding to Delhi. Upon arrival at Delhi, the whole container will be transferred to the export terminal for the next connecting flight to Kathmandu as shown in Figure 2.
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Figure 2
| Departure | Connecting Point | Final Destination | Aircraft Type | Airlines |
| Singapore – Daily | Bangkok – Daily | Kathmandu | A330 | Bangkok Airlines |
| Singapore – 2,4,6 | Direct | Kathmandu | A320 | SIN Airways |
| Singapore – Daily | Delhi – Daily | Kathmandu | A330 | Deccan Airways |
Deccan Airways offers the best air freight rates to Kathmandu as compared to other airlines as shown in Figure 3. The current selling rate to the customer is $3.10 per kg and the contract for this rate will be valid till 31 December 2020.
Figure 3
| Destinations | Rates (Inclusive of FSC & ISS) | Aircraft Type | Airlines |
| SIN/BKK/KTM | $3.00 per kg | A330 | Bangkok Airlines |
| SIN/KTM | $2.90 per kg | A320 | SIN Airways |
| SIN/DEL/KTM | $2.70 per kg | A330 | Deccan Airways |
Assuming that you are the Operations Manager and you have just received an e-mail from Deccan Airways that they will be downgrading their daily flights to Delhi from A330 to B737-900 with effect from 1 Sept 2020. As an Operations Manager, you foresee that there will be many problems ahead after the downgrading of the flights as there are limited alternatives as shown in Figure 2.
The Managing Director wants you to analyze the above issues and offer solutions for the smooth operations and profitability of this route.
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