Aids to trade

Definition Aids To Trade

There are various obstacles that can hinder the smooth running of trade. The activities that are involved in removing these obstacles are known as aids to trade. Aid for Trade is the new frontier of development assistance, whether it means an increment in official development assistance (additionality) or a significant diversion. The new amounts cited at WTOs 2005 ministerial meeting in Hong Kong up to $10 billion per year from Japan, USA and Europe would represent a tripling of trade-related aid and be close to 10% of total ODA. Aid for trade used to be a very straightforward concept. Most of the rich countries provided a significant portion of their ODA as trade credits, enabling developing countries to purchase goods from the donor on the never-never. It was classic tied aid, from which some unpaid debts are only now being forgiven. Today, aid for trade has a broader definition, although it is not quite clear how broad. Aid has helped to increase domestic export supply capacity and enhance enterprise competitivity. That is clearly aid for trade. But supporting facilitation and infrastructure is arguably part of more general development assistance. In any case, aid for trade now has the characteristics of other kinds of aid, and we should apply the familiar criteria of aid effectiveness. In a recent report on trade-related assistance (What do recent evaluations tell us?), the Development Bba Assistance Committee of the Organisation for Economic Co-

Fy-c 2010-20013

operation and Development (OECD/DAC) finds many familiar problems of aid as it is frequently administered.

Importance : Aids to Trade

The hindrance of place: Goods are produced at few places, but consumed at different places. This geographical distance between a manufacturer and a consumer can be eliminated by transport. The hindrance of persons: There are limited numbers of producers as compared to consumers. These producers and consumers are linked to each other through various intermediaries such as wholesalers, retailers, etc The hindrance of time: There are some products that are produced during a particular season, but are in demand throughout the year. These products are needed to be stored and released at the time of requirement. This obstacle is eliminated by warehousing. The hindrance of finance: There is a time gap between the production and sales of goods. If there is a need for finance to conduct trade activities during this period, it is met by banks. Banks and financial institutions help a businessman by providing overdrafts, loans, etc.

 The hindrance of risk: Risk can be in the form of fire, theft, accidental loss, human error, etc. This risk can be eliminated by insurance companies. The hindrance of knowledge: When a new product is produced, it should come into the knowledge of consumers. This can be eliminated by advertisements and salesmanship.

Definition of Transportation
Transport or transportation is the movement of people and goods from one location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The part of transportation which proves to be as aids to trade for business organization is freight transport.

Freight transport, or shipping, is a key in the value chain in manufacturing. With increased specialization and globalization, production is being located further away from consumption, rapidly increasing the demand for transport. While all modes of transport are used for cargo transport, there is high differentiation between the nature of the cargo transport, in which mode is chosen.

Logistics refers to the entire process of transferring products from producer to consumer, including storage, transport, transshipment, warehousing, materialhandling and packaging, with associated exchange of information.

 This mode of freight transportation or movement of good can be done with the help of these fields of transportation-: Air cargo Sea Port Roadway Railway goods train

Introduction to Air Cargo

In our project we have basically focused on this part of transportation system and we have explained the working and its functioning in a very brief manner. Our field work was related to this topic and we have gone through the complete working of KINGFISHER AIRLINES which is a very premier company of the country in terms of air cargo and passenger service

Why We Use Air Cargo ?

Air freight has become more common for products of high value; while less than one percent of world transport by volume is by airline, it amounts to forty percent of the value. Time has become especially important in regards to principles such as postponement and just-in-time within the value chain, resulting in a high willingness to pay for quick delivery of key components or items of high value-to-weight ratio. In addition to mail, common items send by air include electronics and fashion clothing. The beginning of air cargo system has made possible the delivery of any goods in any part of the world

within a short period of 4-6 days. You can ship just about anything by air. Letters, packages, cars, horses, construction equipment and even other airplanes can be shipped air freight

Types of Goods

Automobiles and Spare Parts Perishable Goods Vaccine Prototypes of Products Documents Cloths Small machinery

Procedure

Types of Customers
There are basically two type of customer ; Walk in customer Permanent customer Walk in customer; They are the customer which directly visit to the counter. They have a direct talk with the manager. From there they get the form in which they need to feel all the detail regarding the product they are sending through air cargo. But they dont receive any benefit which are basically received by permanent customer like discounts, special offers, low carriage price etc Permanent customer They are basically the registered agency. To these agency consumer contact to send his goods to particular place. They collect the goods from consumers place and they have a direct contact with air cargo. As these agency deliver lot of goods through air cargo they get huge corporate discount. These agency charges a little bit of fee for there services. And even they give discounts, less price , special offers to their consumer

Airway Bill (AWB)

Airway Bill (AWB)

Airway Bill is the most important bill in carrying out this entire procedure It Consists of : Shippers Name and Address Consignees Name and Address Issuing Carrier Agent Name and City

Walk-in Customer

/ Permanent Customer

Description about the Product Signature of Issuing Carriers or its Agent

Types of Rates

Different carriers charge different freight charges for transporting goods. The following are the freight rates charged by Kingfisher Airlines. Minimum rate Rs.300 Normal Rate(0 to 45kg)

If weight is between 45 to 100 kg Per kg rate reduces If weight exceeds 100 kg The rate further reduces

Rate List

X-Ray/Security Check

After all the necessary formalities have been fulfilled and the airway bill has been passed, the goods are passed through the X-Ray machine. There are minimum two experts supervising the goods when they pass through the machine. This is done in order to detect whether any objectionable goods are being transported.

Disadvantages

High Cost of Air Freight Dependency on Weather Conditions Time Consuming Security Procedures Prices Increase Drastically with Gradual Increase in Sizes Some carriers do not allow delivery of animals, currency & Valuable items like jewellery, precious stones Risk of goods getting damaged at the time loading and unloading of goods.

Project by: Aditya Jain Anuj Bairoliya Arijeet Gautam Krunal Piyush Jain Q Lee Rannung Uday Vinambra Gupta