Introduction
In the beginning, the aviation promoters wanted to find a way in which they can make good use of the airplane. In 1910, one of them came up with the idea that they can transport packages, thus the air freight business began. According to the records, the first shipment began with the transportation of a bolt of silk in Ohio from Dayton to Columbus. The other shipment was in 1919, from Washington DC to Chicago where they were moving the convertible bomber. The equipment was heavy, therefore the transportation had to be delayed and the plane landed in Ohio. This however did not hinder the freight transportation. In the 1920s, more air freight business was conducted by different airlines. The main objective for the air freight was for business orientation.
The air freight business boomed in 1927 to 1931 where the shipments of goods increased. Some of the most renowned airlines that conducted the air freight business were TWA, American, Eastern and the United (Houston 2011). No cargo airlines began working until the end of the Second World War. In the 1970s, a businessperson named Fred Smith believed that when the passenger and cargo transport is mixed it will not be conducive to the business people. This is because the transported slows down. He went ahead and started the Federal Express in Memphis in 1973. The company began having profits in 1973. In 1983, the company was generating over 1 billion. The transporting systems included the 76 aircraft that had about 39 Boeing.
Impact of air freight
The air freight business has had major effects on the economy. Analysis shows that cargo industry has had a major economic growth by 80 percent, despite recessions and accidents. They transport an estimation of 4 million tons of cargo on a weekly basis by over 220 countries. McKinney has made estimations that 20 percent of the goods that are made will be transported using airlines by 2020 (John, Appold, Mori 2006). An estimate of 5.9 percent will be gained annually for the next 20 years by the Airbus airliners while 6.2 percent of the Boeing airliners.
In the beginning, the air freight business was not serious because most people used the passenger airline to transport their cargo. This problem became worse when the United Airlines began the worldwide air freight services from 1964. This caused people to depend on the United Airlines to carry their goods. Other airlines wanted to start cargo shipment but due to lack of funds, they were unable to do so.
The air freight is very expensive but ensures secure handling of the cargo, faster transportation, it is also flexible thus it can transport goods anywhere in the world (Houston 2011). The air cargo has many benefits, but it also has disadvantages such as accidents. The airfreight business has had a lot of skepticism, due to the dangers of airlines. Some airline companies were becoming bankrupt therefore; they had to close down due to many accidents. An example of this airline was the US Airlines.
Other airlines such as Slick airlines and flying tigers were able to gain some profit out of the business, however due to stiff competition they were not able to continue with the freight business. The other reasons were that the major airlines were able to make more profit due to combination of cargo shipment and passenger transportation.
Conclusion
The air freight services began way before the Second World War in the United States. This was met with a lot of skepticism from people because they doubted the safety of their goods. This caused many investors not to put their money on the air freight business. Throughout the years, the air freight business has generated a lot of improvements in terms of profit. This has brought about economic growth as well as social developments because people get employment.
Reference
Air Freight Industry: Interesting Facts About The History of The Air Freight Industry. (2009). Knowledge base in business.
John D. K, Appold S. J. Mori, M. (2006). The impact of the air cargo industry on the global economy. Calgary, Canada: The International Air Cargo Association.
Houston, F. (2011). The history of air freight. Article dashboard .
