ACAAP Air Cargo Agents Association of Pakistan Country ... - FAPAA

ACAAPAir Cargo Agents Association of PakistanCountry ReportFor40 th Executive Committee MeetingOfThe Federation of Asia Pacific Air-cargo Association

Air Cargo Agents Association of PakistanReport of the Executive CommitteeFor the year 2012-2013ChairmanRegional Chairman ARegional Chairman BImmediate Past ChairmanMembers ofCentral Executive CommitteeMr. Muhammad Farrukh IqbalMr. Muhammad IlyasKhawaja Azhar SaeedMr. Tahir MalikSyed Musi RazaMr. Mansoor Shahid KashmirwalaMr. Asif NadeemMr. Rehanali RatnaniMr. Tariq HussainMr. Faraz Akram AwanMr. Mohammad Arif NadeemMr. Atif Rashid KhawajaHead OfficeAir Cargo Agents Association of Pakistan305, 3 rd Floor, Fortune Center45-A, Block-6, PECHS, Shahrah-e-FaisalKarachi-75400Telephone Nos: +92(21) 34383501 & 4527911Fax: +92(21) 34383502Email: chairman@acaap.org / Secretary@acaap.orgRegistered with the Ministry of Commerce, Government of PakistanLisence No.15

Economic resilience:Pakistan's economy had, until a few years ago, beencharacterized as unstable and highly vulnerable toexternal and internal shocks. However, the economyproved to be unexpectedly resilient in the face ofmultiple adverse events concentrated.The Asian financial crisis; The global recession asevere drought, flood and earthquakes heightenedperceptions of risk as a result of military tensions withIndia – with as many as 1 million troops on the border, and predictions of impending (potentially nuclear)war; the post-9/11 military action in neighboring Afghanistan, with a massive influx of refugees andterrorists from that country; Despite these adverse events, Pakistan's economy kept growing, andeconomic growth accelerated. This resilience has led to a change in perceptions of the economy, withleading international institutions such as the IMF, World Bank, and the ADB praising Pakistan'sperformance in the face of adversity.Macroeconomic reform and prospectsAccording to many sources, the Pakistani government has madesubstantial economic reforms, and medium-term prospects for jobcreation and poverty reduction are the best in nearly a decade.Government revenues have greatly improved in recent years, as aresult of economic growth, tax reforms – with a broadening of thetax base, and more efficient tax collection as a result of selfassessmentschemes and corruption controls in the Central Board ofRevenue – and the privatization of public utilities andtelecommunications. Pakistan is aggressively cutting tariffs andassisting exports by improving ports, roads, electricity supplies andirrigation projects. Islamabad has doubled development spendingfrom about 2% of GDP to 4%, a necessary step towards reversing thebroad underdevelopment of its social sector.Liberalization in the international textile trade has already yielded benefits for Pakistan's exports, and thecountry also expects to profit from freer trade in agriculture. As a large country, Pakistan hopes to takeadvantage of significant economies of scale. These industries play to Pakistan's relative strengths in lowlabor costs.Growing stability in the nation's monetary policies has contributed to a reduction in money-marketinterest rates, and a great expansion in the quantity of credit, changing consumption and investmentpatterns in the nation. Pakistan's domestic natural gas production, and its significant use of CNG inautomobiles, has cushioned the effect of the oil-price shock. Pakistan is also moving away from thedoctrine of import substitution which some developing countries, dogmatically pursued in the twentiethcentury. The Pakistani government is now pursuing an export-driven model of economic growthsuccessfully implemented by South East Asia.In 2005, the World Bank reported that "Pakistan was the top reformer in the region and the number 10reformer globally – making it easier to start a business, reducing the cost to register property, increasingpenalties for violating corporate governance rules, and replacing a requirement to license every shipmentwith two-year duration licenses for traders”

Doing BusinessThe World Bank (WB) and International Finance Corporation's flagship report Pakistan 85among 181 countries around the globe. Pakistan comes highest in South Asia but also rankshigher than China and Russia which is at 133. The top five countries are Singapore, NewZealand, the United States, Hong Kong and United Kingdom.The Government of Pakistan has granted numerous incentives to technology companies wishingto do business in Pakistan. A combination of decade-plus tax holidays, zero duties on computerimports, government incentives for venture capital and a variety of programs for subsidizingtechnical education, are intended there.The economy todayDue to inflation and economic crisis worldwide, Pakistan's economy reached a state of Balance ofPayment crisis. Pakistan experienced a period of tremendous growth, averaging 7% yearly GDP growth,Due to its large population of 186 million, it was included by the Goldman Sachs Global EconomicsGroup as one of the "Next Eleven (N-11)" – a group of countries with economies that “might have thekind of potential for global impact that the BRICs projections highlighted, essentially an ability to matchthe G7 in size” Since the beginning of 2008, Pakistan's economic outlook has taken stagnation. Securityconcerns stemming from the nation's role in the War on Terror have created great instability and led to adecline in FDI. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf.Combined with high global commodity prices, the dual impact has shocked Pakistan's economy, withgaping trade deficits, high inflation and a crash in the value of the Rupee, for the first time in years; itmay have to seek external funding as Balance of Payments support. Consequently, S&P loweredPakistan’s foreign currency debt rating to CCC-plus from B, just several notches above a level that wouldindicate default. Pakistan’s local currency debt rating was lowered to B-minus from BB-minus. Creditagency Moody’s Investors Service cut its outlook on Pakistan’s debt to negative from stable due topolitical uncertainty, though it maintained the country’s rating at B2.The cost of protection against adefault in Pakistan’s sovereign debt trades at 1,800 basis points, according to its five-year credit defaultswap, a level that indicates investors believe the country is already in or will soon be in default.Economic comparison of Pakistan - Foreign Trade (Pakistani exports)Pakistan is a member of the World Trade Organization, and has bilateral andmultilateral trade agreements with many nations and internationalorganizations.Fluctuating world demand for its exports, domestic political uncertainty, andthe impact of occasional droughts as well flood on its agricultural productionhave all contributed to variability in Pakistan's trade deficit.Pakistan's exports continue to be dominated by cotton textilesand apparel, despite government diversification efforts. Majorimports include petroleum and petroleum products, edible oil,chemicals, fertilizer, capital goods, industrial raw materials, andconsumer products.Pakistan's hard currency reserves have grown. Improved fiscal management,greater transparency and other governance reforms have led to upgrades inPakistan's credit rating. Together with lower global interest rates, these factors

have enabled Pakistan to prepay, refinance and reschedule its debts to its advantage.The EU is the single largest trading partner of Pakistan absorbing overone-third of the exports. The EU accounted for 12.4% of Pakistaniimports and 22.6% of its exports.Exports:Pakistan exports rice, oranges, mangoes,furniture, cotton fiber, cement, tiles, marble, textiles,clothing, leather goods, sports goods (renowned forfootballs/soccer balls), cutlery, surgical instruments, electrical appliances,software, carpets and rugs, ice cream, livestock meat, chicken, powdered milk, wheat,seafood (especially shrimp/prawns), vegetables, processed food items, PakistaniassembledSuzuki (to Afghanistan and other countries),defense equipment (submarines,tanks, radars), salt, onyx, engineering goods, and many other items. Pakistan producesand exports cements to Asia and the Middle East. In August 2007, Pakistan startedexporting cement to India to fill in the shortage there caused by the buildingboom. [83] Russia is a growing market for Pakistani exporters.Since the beginning of 2008, Pakistan's economic outlook has taken a dramatic downturn. Securityconcerns stemming from the nation's role in the War on Terror have created great instability and led to adecline in FDI. Concurrently, the insurgency has forced massive capital flight from Pakistan to the Gulf.Combined with high global commodity prices, the dual impact has shocked Pakistan's economy, withgaping trade deficits, high inflation and a crash in the value of the Rupee, which has fallen in a fewmonths; it may have to seek external funding as Balance of Payments support. Consequently, the EIU hadestimated that inflation should drop back to single digits, and that growth would pick up to over 5% perannum soon. However, the unprecedented floods which encapsulated 20% of Pakistan's land area havecaused a monetary damage estimated to be in excess of $10bn, as a result of which real growth is almostflat and EIU's original targets will have to be revised. Much like previous natural disasters which haveafflicted Pakistan, the floods of 2010 inflicted damage of epic proportions. However, the philanthropicnature of Pakistani people and widespread coverage by a fiercely independent and established media hasproven yet again that Pakistan is an incredibly resilient nation.Aviation IndustryTransportation sector is most important sector of any economy and aviation industry is major part of thissector. In Pakistan the transportation and communication sector holds more than 10% share in GDP(Gross Domestic Production). The aviation industry can affect the other sector of the economy, e.g. theInternational Trade, tourism and socio-economic condition of the country.Historically Pakistan International Airline dominates the major portion of aviation industry. The stateowned PIAC conduct the domestic as well international operations.Pakistan Logistics is focused at state of the art technology and solutions for the logistics sector. Emergingtechnologies in the transportation & allied sectors and aims to focus on the immense potential of thetransportation modes and related services to cater to the domestic and international demand, the newmarkets, trends and innovations in the international transport and logistics industry and in general theopportunities for the region in particular.Competition in Open Blue Skies

Civil aviation Authority has opened the aviation sector for private investor in order to boost the healthycompetition for better traveling services at low price fares. As a result many private companies makeinduction in to industry.Private companies, Air Blue, Shaheen Air and Royal Airlines, besides PIA is operating on internationalroutes. The Gulf sector is another important and lucrative sector for airlines. The European especially U.Kand North American destination are profit making routes, PIA has made Investment of billion of rupeesfor acquiring the state of the art aircrafts for operations in north American sectors. International routes aremajor area of competition for up coming airlines. The CAA policy regarding the international routes arevery open but require the minimum standards to be met before operating on international routes and musthave experienceOf domestic operations before going to be international.The AirBlue has the share of domestic routes mainly the Karachi-Lahore-Islamabad sector. While RoyalAirline is operating cargo flights and successfully operates on Karachi-Dubai sector.Royal Airline is chain of international airlines and has been registered in Pakistan. It has acquired thelicense for cargo transportation and has planned to conduct domestic operations for passengers also.Air Blue has conducted the operation on Karachi-Lahore-Islamabad sector and is in stage of capturing thedomestic market by offering compatible faresDiscounts are offered on early booking and the E-ticketing is introduced in Pakistan.The major focus is on customer comfort, trained employee, maximum customer satisfaction.Another land mark is innovative e-ticketing technology, through web base technology customer can makereservation on-line 24 hours a days and 7 Days a week. The convenience of air travel reservation by newsystem will enhance the customer satisfaction, and new innovative technologies would encourage otheroperators to introduce similar technologies for its survival in the market.Quality ServicePIA Cargo commenced operations in 1974, with flights to the USA, Europe,and Hong Kong on the B-707 aircraft. PIA Cargo has the unique distinctionof introducing Pakistan's fruits to international markets and pioneered theexports of fresh fruits and vegetables to global destinations. Operating as theair freight division of Pakistan's national carrier, PIA Cargo has achievedrapid growth and reaches out to destinations spanning the globe through itspassenger scheduled flights and freighter services.PIA Cargo earns valuable revenue for Pakistan International Airlines and provides a massive boost toPakistan's wide spectrum of exports. The aggressive growth of PIA Cargo coupled with PIA's rapidlyexpanding passenger operations empowers customers with a range of cutting-edge cargo products andservices. In addition to offering cargo services, PIA Cargo also arranges charter flights to lift meat,livestock and relief goods within and outside Pakistan.A range of commodities across Pakistan as well as a growing list of global destinations. The commoditiesthat PIA Cargo ships run the gamut from edibles such as meat and vegetables, to textiles, paper products,laboratory equipment, and even un-cremated human remains. PIA Cargo also specializes in the uplift of

special cargo such as relief goods, live animals (sheep, cows, camels, horses), and shipments for cargoaircraft. These commodities are uplifted on leased freighters as and when the need arises.Up Coming ScenarioRecently many developments have been taken place, India has open the air corridor for Pakistani airline,development of new port like Gawadar & Sialkot the rising cost of fuel and heavy taxes of CAA. In allthese threats and opportunities the new and existing airline are going to operate and compete with eachother not solely on price base but on the basis of services standardsThings, however, have started to pick up, the PIA has started operation to India and Far East, and theforeign carriers who closed their Pakistan operations are back. Now the question arises that how newairlines would captured the market, before airlines were sharing domestic market among themselves. PIAwere dominating the market by 75% and rest were enjoyed by other private airlines, in prevailingconditions the new entrance would either gain the share from currently operating airlines or create newcustomer base or combination of both. Let’s see how they survive in cut throat competition.Growth and InvestmentEconomic Survey public administration & defence, and social services, contributed lion’s share of thismodest growth rate. Gross fixed investment declined substantially, from 22.5 percent of GDP to 13.4percent. More importantly the private sector witnessed a significant fall and recorded lowest ratio, thisimplies a significant deterioration in the job creating ability of the economy. While the economicenvironment in Pakistan remained in hospitable for growth and investment, a comprehensive growthstrategy is being evolved, to increase productivity, efficiency, and competitiveness of the economy, and toensure high growth rates that are both sustainable as well as more equitable. In addition, and equallyfundamentally, a pivotal element of the stabilization program included putting in place direct incomesupport measures to protect the poor and vulnerable sections of the population through BISP. Thegovernment is now expanding the social safety net to a broader platform of social development, the scaleof which is unprecedented in Pakistan’s history. Despite negative effects on the economy of a host ofchallenges, especially with regard to growth, when viewed in the global context, Pakistan’s economicperformance has not been out of sync with its peers.Role of Logistics in Trade Promotion with reference to PakistanIn today’s globalized world, whether a country is able to move goods quickly cost effectively and reliablyacross borders largely determines its degree of inclusion in the global markets as trade logistics facilitatetrade. Trade logistics plays a very important role in the volume and value of international trade and poorquality logistics is a key barrier to trade. High quality logistics services improve the competitiveness of acountry’s exports by reducing the cost involved in transporting goods. Across the board, elements of tradelogistics, such as customs procedures, tracking and tracing services, overall infrastructure and logisticscompetence impact trade relatively more than less policy-dependent trade determinants such as distanceand transport costs.Transport which is one of the most expensive components of Trade Logistics, an adequate infrastructureis crucial to facilitate transportation. According to Pakistan Infrastructure Implementation CapacityAssessment, the transport sector inefficiencies are costing economy between 4 to 5% of GDP (Rs. 500 b)each year indicating the need for massive investment in Road, Rail, Air and Sea Ports. Our ranking ininfrastructure under Logistics Performance Index is 120 which is even lower than our overall ranking.Another significant component of logistics services is a well developed information system. Informationflows may be electronic, paper-based or voice based. If economies, and in particular, developingeconomies, are to participate fully in global production and supply of intermediate and finished goods,

their ability to do so will be affected by the standards of their Information and Communication.Technology infrastructure is an important component of trade and transport facilitation. Our state of theart information technology system at the ports helps in tracking the shipments all through arrival tilldeparture, however there is a paramount need for a tracking system to be in place during thetransportation which is the one of the most time consuming elements. Furthermore, indirect costs such astime delays in shipping can take several forms but ultimately they increase the cost to firms that are thenpassed on to consumers. Lower shipping times are associated with higher volumes of trade. Findings of arecent research carried out indicated that every extra day needed to ready goods for import or export mayreduce trade by around 4%. The recent shift from PACCS to WEBOC has intensified the proceduresthereby increasing time to get customs release eventually causing delays in exporting/importing thecargoes. Having talked about the role of logistics in Trade and the situation prevailing in the country, Iwould now like to highlight a few recent opportunities arose that, if tapped well, are likely to open manydoors for our industry, a few challenges being faced and related recommendations.Talking about the opportunities, Government of Pakistan’s recent emphasis on PublicPrivate Partnership Program includes Transport and Logistics as one of the major areas to be worked onas investment in this area would certainly enhance trade. We request theGovernment to take this forward on priority basis and involve private sector extensively in the project asthis is need of the hour.The recent emphasis of our Government on 'Trade not Aid' is likely to open markets forPakistani products to foreign markets. This implies a huge opportunity as successful trade has to bebacked up by strong logistics and urges public and private sectors to look into enhancing logisticscompetency to another level.The recently signed Agreement on Trade in Services by SAARC members is expected to open manydoors not only to facilitate trade among the members countries but the development of infrastructure withspecial emphasis on intra regional connectivity through the construction of road, rail and air networks.Government’s strategy of improving Bilateral Trade with neighboring countries would be a greatopportunity that would not only reduce the trade logistics cost but also decrease the risk element involvedin the transport of perishable cargo due to shorter transit.Now to the challenges and related recommendations, The biggest challenge, I believe, is the provision ofelectricity and gas supply to the industry which is not only paralyzing the entire industry but is also themain hurdle in managing the cold chain logistics that causes huge production losses.Pakistan looses an estimated 40% of its production of fruits, vegetables and dairy products due to the lackof an adequate cold supply chain, according to figures released by the Punjab Board of Investment andTrade. Pakistan gets, on average, only 41% of the international price on its food exports owing to weakcold chains in the country.Limited capacity of ports with regard to space becomes a huge challenge due to the unstable politicalsituations. A couple of days of strike causes huge blockage at the ports resulting in vehicles getting stuckin Karachi and hugely disturbing the import and export logistics flow. There is a paramount need toincrease capacities of our ports.The road infrastructure is to be enhanced with immediate effect in order to ensure smoothTransportation.The fifth challenge pertains to the limited options for inland movement. The domestic railinfrastructure is to be worked on extensively in order for the exporters/importers to have

Multiple options for inland movement. Having various multi model facilities is an important aspect of theTransport infrastructure of a country.To conclude, the growth in Trade and Logistics are directly proportional to each other. Investments inlogistic services and infrastructure can highly enhance trade. In addition it can also guide as to whichinfrastructure investments are likely to bring larger gains.This will benefit countries the most. This brings me to another important aspect which is promotingpolicies to continue to move trade facilitation reforms forward. This reflects the need of having a separateLogistics Ministry on Board to address all these issues with regular participation and support from thePrivate Sector through Public Private Partnership Program.Pakistan is one of the finest producers of cotton, rice, wheat, sugar, various fruits and vegetables and hasadequate resources to transform the raw materials to finished product; the only need is to bring aboutsynergy among the Trade and Logistics for which a platform is needed in the shape of a separate ministryto address all the challenges.Freight Forwarder & Shipping IndustryThere are some various facilities which freight forwarder offers to exporters than they prefer and moveshipment through freight forwarders. The freight forwarders provide Pin to point service, Best possiblefreight rate, Nominated cargo, transportation at POL and POD, Maximum Credit days, Consolidation &De-consolidation cargo, Check and balance system, custom clearance and Procurement Managementthrough all above facility they grape the position in shipping industry and play a major role between theshipping line and exporters.Data Analysis of Pin to point service (Door to door delivery):According to all responded the freight forwarder have capable to provide Pin to Point service from thepoint of production to point of consignee warehouse or directly to retail store. They arrange thetransportation from the exporter ware house to the terminal at port of origin and offer clearing agent forthe custom purpose and also at point of destination they do issue the cargo from shipping line, clear theclearance to custom at the POD and delivered the cargo to consignee door or ware house if the customerrequired and also they entertain their customer when the cargo on board. Freight Forwarders continuouslytracking the cargo and inform to their customer according. As Freight Forwarder have advantage toprovide pin to point service provider and the shipping line have disadvantage they are enable to providepin to point service.The final conclusion are the Freight Forwarder provide reliable , fast and quality base service, FCL andLCL freight, door-to-door service and special assignments and project to exporters.Data Analysis of best possible Freight rate offer to exporters: Currently the exporters required to bestpossible freight rate for their shipment so the question is that who gives best freight rate whether shippingline or freight forwarder. According to RF1 and RS3 normally the larges exporters do business withdirectly to the shipping line, they don't do business with Freight forwarder until or unless their buyer arenot required to use specific Freight forwarder, large exporters give the cargo to the shipping line insteadof Freight Forwarders b/c they cannot offer best freight rate which shipping line offer to large exporters..According to RS4 basically the larges exporters have contribute with the large number of volume onweekly basis in shipping line they have lots of cargo per week so the shipping line have grab the volumethrough offer the cheap freight to large exporters. That's why larges exporters always choose to dobusiness with direct shipping line until or unless their buyer are not bound to specific freight forwarders.The shipping line always gives high freight rate to freight forwarders as compare to larges exporters b/c

the shipping line understand that the cargo which freight forwarder have now from, its possibility to thatparticular cargo will go another shipping line that business are not secure.According to all responded, the exporters who small or medium exporters. They have normal or lowvelum base cargo per week and also they don't have healthy financial position so they prefer to dobusiness on maximum credit basis instead of cash. Normally shipping lines are offer maximum creditdays for that exporter because the possibility of risk are very high that's why the shipping line offer highfreight of those exporters and no give any credit days only doing business on the basis of cash. Theshipping line avoid do handle directly on those exporters.According to RF1 and RF2 the freight forwarder clubs all cargo which comes from the different small andmedium exporters and offers the competitive freight rate accordingly. Freight forwarders takescompetitive freight rate from shipping line on the basis of large volume and grab the exporter's market.That's why Freight forwarder target to all small and medium exporters and generate the heavy volume .Inexporter's side this is one of the best advantage to use of Freight forwarder because small and mediumexporters are enable to take best freight rate from the shipper due to low velum but through Freightforwarder they will enjoy the competitive freight and service. Freight forwarders are entertained to allsmall and medium exporters who have exit e.g. doing business in a bang low or factory. FreightForwarder offer rate high but also offer transportation and credit facility (Maximum days), if exporterrequired custom clearance then also provide.The final conclusion are the some various facility which Freight Forwarder offer to exporters, basically allexporter required best possible freight with efficient services at point of origin and point of destinationwhich Freight Forwarder are able to full feel accordingly and grab the exporter's market.Data Analysis of Nomination shipments:According to all responded when the buyer required to control the supply chains management at point oforigin where shipper are manufacturing goods so the buyer have maintain own supply chain managementthere. They bound to exporter's to use specific shipping line and freight forwarder and also buyer keep incontact to that specific freight forwarder, some time they said to freight forwarder to manage theProcurement, these type shipment always basis on FOB (Collect).According to RF1 & RS3 basically nominated cargos started control of SCM because to local supplierunable to match shipment dates so the participant of SCM involve and monitor supplier's productionaccording the consignee requirement so there after involvement of SCM they are able to control them.Initially the nominated cargo business were not controlled but when the exporter have starting the somedispute regarding the shipment delay, packing ,quality and quantity of the cargo ,also the Freightforwarder issue back dated House bill of lading on request of exporters. so the exporters have taken anadvantage of this and do some miss commitment to buyer then the buyer are most conscious and start theNominated shipment and control SCM.The final conclusion that the big buyer or consignee depend very much to the SCM and they maintainSCM through freight forwarders, the exporters must follow SCM other wise some time the buyer orconsignee claim or cancel the shipment at the last movement. Some time buyer place orders to supplierwith small activity so the freight forwarders club the all small supplier cargo and stuff / load into onecontainer as per buyer instruction. These SCM also provide the inspection service at the supplier warehouse if the buyer is required. All above condition are very to the requirement of buyer if buyer requiredto freight forwarder's agent go to exporters ware house at the time of stuffing of cargo or while they aremanufacturing the shipment then their agent go. It depends all about the need of buyer. This is likely todoing for larges buyer.

The following causes are which we discuss above, the buyer prefer to nominated cargo and the other handfreight forwarder have also earned good profit and in USA 90% shipment through freight forwarderbecause there are most of discrepancy come if they do direct to exporters and according to nominatedcargo it is reduce the risk of payment, this type of shipment are very favorable for the freight forwarderand shipping line.Data Analysis of Transportation facilities:According to RS3 & RS4 the shipping line never offer transportation at point of origin exporter factory toterminal and point of destination to buyer ware house or retail store, this is one of disadvantage ofshipping line and the freight forwarder take an advantage through offer the transportation to the exportersto buyer or retail store.The final conclusion that a strong freight forwarding industry is imperative if the country is to capitalizeon emerging opportunities as well as enhancing the efficiency of valuable industries. The increasingcomplexity of global trade practices comprising multi-modal transportation, cargo consolidation atregional hubs, distribution at destinations and multiple documentation have increased the importance offreight forwarder (intermediaries providing logistics) solutions.Data analysis of credit day's facility: According to RF1 & RF2 normally freight forwarders gives 15 to 45days credit days to all exporters and 45-to 60 to large exporters but they always cross the credit days thanthey paid. The shipping line offer only 12 to 15 credit days to exporters and freight forwarders. FreightForwarder have high risk for payment side from small exporters but due to maximum credit days theexporters are interested to do business with them because the shipping line never offer to credit days forall exporters only offer to large exporters for 12 to 15 days.The final conclusion that the credit days are also main tools of the freight forwarders to grab the exportersand directly impact to the shipping lines. The shipping line avoids offering credit days for small andmedium exports.Data analysis of Consolidation and De- consolidation cargo: The second positive tools of freightforwarders that they target to small industrial customers those have small cargo not equal to full containerso the freight forwarders are making one container to club the all small cargo and also charge fee on thebasis of cargo volume not full of container at point of origin and also the same facility provide at point ofdestination and distribute the cargo according to their buyer, this process called consolidation and deconsolidationof cargo.Basically consolidation shipment mean the one container have stuff goods with the two or more exportersand de-consolidation mean that consolidate container de-stuff at port of discharges accordingly anddeliver to the actual buyer ware house or door. The small exporter are required to consolidated cargobecause they don't have large volume to export and due to small cargo they can't book the one containerof particular shipment so they go to freight forwarder who provide fast, reliable and cost effective serviceof consolidation and de-consolidation shipment from Pakistan to around the global.Check and Balance System (Buyer feel comfortable): According to RFI, RF2 normally the larges buyer,departmental store e.g. World Mart, IKEA, who do trade all over the global they manage supply chainmanagement at point of manufacturing place where the goods produces so through supply chainmanagement the buyer are full satisfy the quality of goods but in this process can't complete without theinvolvement of freight forwarder because these activity can perform and control by freight forwarderbecause shipping line never do, so on the basis of check and balance system freight forwarder take anadvantage and grab the market of exporter's and highly involve is this trade.

Air Cargo Agents Association of Pakistan(ACAAP)Air Cargo Agents Association of Pakistan (ACAAP), the only Government Registered NationalAssociation of Air Cargo Agents/ Air Freight Forwarders throughout Pakistan.ACAAP was formed in 1984 and was registered with the Ministry of Commerce Government of Pakistanin 1993 and was reregistered in 2007 as per the rules of Trade Organizations Ordinance 2007 bearinglicense no.15.The National Association ACAAP has its own identity; ACAAP has two regions all over Pakistan.Region “A” and Region “B”.Region “A” consist of provinces of Sindh and Baluchistan while Region “B” consist of Punjab andKhaiber Pakhtoon Khwa formerly known as NWFPHead office of ACAAP is situated at Karachi while in Region “B” it has its Regional office at Lahore anda Zonal office at Sialkot.The Secretary General looks after the affairs of ACAAP at Head Office, Karachi while Regional andZonal Secretaries are responsible for Regional and Zonal affairs in coordination with Head Office.REGISTRATION OF ACAAPA team of dedicated senior Cargo Agents invited all Air Cargo Agents throughout the country to obtainmembership so that interest of Air Cargo Industry could be looked properly.Each year elections of ACAAP are held on all Pakistan basis for the selection of Chairman for a period ofone year and CEC members for a period of 2 years. CentralChairmanACAAPRegionalChairmanRegion‘A’RegionalChairmanRegion‘B’AirCECMember1CECMember2CECMember3CECMember4CECMember5CECMember6CECMember7CECMember8CECMember9CECMember10CECMember11CECMember12Cargo Agents Association of Pakistan (ACAAP) is a Sole Representative Body of IATA Air CargoAgents who are providing services to Shippers (Exporters) all over Pakistan.

Being totally professional body, the main objective and vision of ACAAP is to promote and developinfrastructure to develop Air Cargo Industry in Pakistan and safeguard the rights and privileges of IATAAir Cargo Agents in general and specially its Members.To achieve the objective, Air Cargo Agents Association of Pakistan has already taken up variousinitiatives and striving hard to ensure better services to our Members.To establish the high ethical standards among specified constituents of the Air Cargo Trade.To arrange for and encourage the training of technical personals when practicable in the interest of CargoIndustry.BRIEF ACTIVITIESACAAP due to its role have assumed importance and enjoys respect from all Airlines and variousgovernment agencies like the Customs, Civil Aviation Authority, and Trade Development Authority ofPakistan etc. Air Cargo Agents Association of Pakistan (ACAAP) plays active part in development of AirCargo Industry.ACAAP takes all steps which are necessary for initiating or promoting any action which is likely to bebeneficial to the Air Cargo Agents/Industry and oppose all actions which may be calculated to adverselyaffect the interest of said industry.It is this Association who made the existing air cargo facilities like building of shades at Air Freight Unitfor protection of cargoes from the sunlight and rain and Office Block at Cargo Complex at KarachiAirport.ACAAP assists members in all possible way ordinarily and particularly when their business interest ortrade is effected prejudice or jeopardized.ACAAP encourages the training of technical personals and arrange training courses such as Basic Course,Dangerous Goods Regulation, etc., etc. from time to time in the interest of its member agents.ACAAP hold events such as:• Annual Agents Gala Night being held without any interval since 1996.• Various Seminars, talk-shows, Meet-the-Airlines interactive sessions, etc.• Various Sub-committees working as active arms of the Association• ACAAP always has been proactive in projecting / resolving issues of the industry with thegovernment authorities, customs, etc including Exporters.• ACAAP worked for the betterment and growth of its members, it encourages and promotes thespirit of cordiality, cooperation, unity and friendly relations among all specified constituents ofthe Air Cargo Industry.• ACAAP helped (financially & technically) CAA-Pakistan, for the up-gradation of CargoComplex at JIAP Karachi.• ACAAP was shouldering the expenditures of Deep freezers, (ACAAP provided) for PerishableCargos, Scanning Machines, Security & Cleaning for which ACAAP used to pay the salaries tostaff deployed at Cargo Complex and Air Cargo Agents Building.• ACAAP paid for the furniture and fixtures of Conference room of Air Cargo Building CargoComplex.

PURPOSED PLANAir Cargo Agents Association of Pakistan shall take all necessary steps and measures for the bettermentof Aviation Industry, especially for Air Cargo Agent. Following are the plans of ACAAPTo create awareness and importance of registration of Air Cargo Agents with the AssociationShall further promote spirit of cordiality, cooperation, unity and friendly relations between the membersitself and all constituents of Air Cargo Industry.Shall boost knowledge of staff for departing professional services.With the cooperation of CAA and TDAP shall improve working conditions for hassle free export.Pakistan enjoys pivotal strategic location and has edge over Regional Countries. There is a need to makefull use of this gateway to CIS Countries, Gulf and Middle EastTo exploit the advantage of Pakistani ports as a hub to increase trade volume for Air Cargo to SAARCCountries.To arrange DIP for the benefits of ACAAP members.Considering the importance of Air Transport which plays a key role in the promotion of Trade andEconomic growth of the country. ACAAP will play its due role in the formation of National AviationPolicy under National Trade Corridor (NTC) the program designed by the Ex-Prime Minister of Pakistan.Shall work for the promotion of Aviation sector and encourage development of infrastructure for requiredAir Cargo Shipments/ExportsAssociation is inclined in development of infrastructure of Air Freight Forwarders Industry and workingcohesively its best for improvement of Cargo handling and Warehousing facilities at Airports of Pakistan.For an efficient and quick transit/shipment a single window clearing mechanism comprising Airlines, AirCargo Agents, Customs house agents, Customs Regulatory agencies, Airlines ground handling agents,Insurance and Bank facilities under one roof. Infrastructure of a Cargo Village shall include MultimodalTransport Cargo Terminals, Cold Storage centers.Association will support that Pakistan shall continue to follow Open skies policy for Cargo Operations.This Association has made the existing facilities like building of Shades for protection of Cargo fromsunlight and rain.Air Cargo Agents Association of Pakistan always played proactive role in respect of development andbetterment of Air Cargo Industry and as well as for its members.It takes all steps which may be necessary and beneficial to Air Cargo Industry and oppose all such actionswhich may adversely affect the interest of the Industry.