Cargo Load Management & Allocation

A Summer Internship Project Report

Submitted for the Partial Fulfilment for the Award of the Degree of

Master of Business Administration in Logistics & Supply Chain Management

Submitted to

Amity University, Noida, India

By
Daksh Sachdeva
CII School of Logistics

Supervisor
Dr Anita Kumar, Director

CII School of Logistics, Amity University

Year of submission 2022

 DECLARATION

I, Daksh Sachdeva , S/D/o Daksh Sachdeva resident of 572 Guru Ram Dass Nagar, Laxmi Nagar, New Delhi, India hereby
declare that the research work incorporated in the present project report entitled " Cargo Load Management &
Allocation " is my own work and is original. This work (in part or in full) has not been submitted to any University for the
award of a Degree or a Diploma. I have properly acknowledged the material collected from secondary sources wherever
required.

I solely own the responsibility for the originality of the entire content.

Date: 20/08/2022 Signature of the candidate

 APPROVAL FROM THE FACULTY GUIDE

I feel great pleasure in certifying that the project report entitled "Cargo Load Management & Allocation ” by Daksh
Sachdeva under my guidance.

S/he has completed the following requirements as per Non - Teaching Credit Course (NTCC) regulations of the University.

i) Online Registration for the NTCC

ii) Approval of Topic, Synopsis and Project Plan by the guide
iii) 90 % of WPR were submitted and 80% of the WPR were satisfactory.
iv) Similarity index found not more than 15 % as per Plagiarism Prevention Policy.

I recommend the submission of the Dissertation Project Report.

Date: 20/08/2022 Supervisor Dr Anita Kumar

 Acknowledgement

I dedicate this page to all those who have silently or actively left indelible mark on my project report , So that
they may give credits which richly deserve.

Talen & Capabilities are of course necessary but opportunities & Right guidance is two very important backup
without which any person cannot climb the ladder for success.

Proper guidance and direction is required in order to achieve the goals and Making optimum of each & every
opportunity. It is my privilege to have summer training is such an amazing organisation.

I am thankful from the core of my Heart & Express my feelings of gratitude and acknowledgement to my
Dissertation Mentor Mr Abhijeet (Manager Hub Operation ) , Mrs Deepanwita Basu ( Gateway Terminal
Manager) and All the Hub Team UPS Delhi Gateway , Also Faculty of CII School of Logistics, Amity Noida
Campus, Uttar Pradesh, Whose constant Support and faith in me always motivated me and their knowledge and
Brilliance has pulled me out of doldrums in this project.
 TABLE OF CONTENT

Page No. Content

1 ABSTRACT

2 INTRODUCTION

3 METHODOLOGY

4–5 DATA COLLECTION

6 FUTURE SCOPE

7 LIMITATION

8-9 CONCLUSION

10 – 12 REFERENCE
 Abstract

Though the Supply chain and Logistics has become the backbone of each and every industry to handle the Load
and manage the inventories to make them available at the right time on right place.

So for the same I have Joined UPS Express Pvt. Ltd. As UPS being one of the biggest Supply Chain and
Logistics companies which handles maximum load from one part of World to the Various countries and helping
Companies to work and manage their Inventories.

In this report I will mention all the details on which I have worked in my summer internship as Hub operations
intern, Also being a student of supply chain I have also put few ideas to improve the process to keep check on
the logistics avoid ay miss route or miss handling of Shipments.

Page No. 1
 INTRODUCTION

This project is about Cargo Load Management and Allocation, this project / learning I had in my summer
internship in UPS Express Pvt. Ltd.

UPS is basically one of the largest courier & Cargo company which was started in Washington DC, USA

Currently UPS handles more then 23 Million Shipments in a Day all over the World, UPS is Present in 220
Countries and Having one of the Largest HUB in world at COLONGE all cargo from various parts of world
come to Cologne and from there they are separated for various sectors i.e USA & Europe.

For south eastern countries UPS uses Private Airlines and for other all countries UPS is having its own Boeing
UPS 15 / 5X15.

So project I worked on is to know about and check the availability of cargo in warehouse and on which flight
how much cargo can be allocated as per the space and Positions available in the Aircraft.

Currently UPS is having 2 Gateway Terminals one is at Delhi Airport and Other on is at Bangalore Airport
from where all India’s cargo is being connected to various countries and Making UPS a profitable and also one
of the cheapest Airline to carry shipments in the world.

Statement of problem :- Here the Allocation of Cargo is very vital and important as all the cargo need to be
connected to the available flight as if it doesn’t carry the cargo it will lead to heavy losses to the company and
may loose the customer.

Originally known as the American Messenger Company specializing in telegraphs, UPS has grown to become
a Fortune 500 company and one of the world's largest shipping couriers. UPS today is primarily known for its
ground shipping services as well as the UPS Store, a retail chain which assists UPS shipments and provides
tools for small businesses. In addition, UPS offers air shipping on an overnight or two-day basis and delivers
to post office boxes through UPS Sure Post, a subsidiary that passes on packages to the United States Postal
Service for last mile delivery.
UPS is the largest courier company in the world by revenue, with annual revenues around US$85 billion in
2020, ahead of competitors DHL and FedEx.[10] UPS' main international hub, UPS World port in Louisville,
Kentucky, is the fifth busiest airport in the world by cargo traffic based on preliminary statistics from ACI, and
the third busiest in the United States behind FedEx's Memphis Superhub and Ted Stevens Anchorage
International Airport.

Page No. 2
 Methodology

Cargo Allocation and management is very difficult at times for the Airline or Co-Loaders, Airlines basically
have a whole group of team of industrial Engineering which look into this, but being on ground also the Hub
Team and the Custodian Team together takes the charges as to check that how much Cargo or load is available
for the particular destination or Flight.

Airlines have two main things according to which the Cargo is being loaded on the flight, The lower Deck and
the Upper Deck, aircraft is divided into two parts.

Then second thing is the containers which are being used in Aircraft and which cargo is being Loaded, there are
various types of container i.e AMD,AMJ,AAD,MD etc which has various payload capacity and according to
that cargo is loaded in them and them they are being sent to Airline for Loading.

Airline also check the Various things i.e Temperature , Fuel , Payload Capacity and according to that exact
cargo is Sent and Loaded in the Airlines.

As UPS has one main hub at Cologne so flight that comes to Delhi is UPS279 which comes from Hongkong
and once the flight takes off from Hongkong then the Team here gets the exact time of Arrival and Departure
and according to that the cargo is being loaded into the Various containers.

UPS has its own Software Called IBCS which shows all the details and from there we can shift the cargo from
one flight to other if the cargo in India is not reaching in Hub on Time.

Page No. 3
 Data Collection

Data is Collected from the UPS Website and the Hub Report which is prepared daily by the Sr. Officer of Hub
according to which the exact Volume of Load is calculated and allocated to the Airline.

Before Allocation the Shipments are Filled on the INDIAN CUSTOMS Portal called ECCS and there are
currently 3 types in which shipments are filled

1. CSB III
2. CSB IV
3. CSB IV

The CSB Stands for Courier Shipping Bills and All these CSB are sent to Indian Customs portal and only
after Clearance is given from the Customs they are allowed to export/import.

So for this a Zebra Scanner is used which scan the Barcode labels which are placed on each and every
shipment and in the Scanner the status of shipment is shown if it is not Clear for export and any other
details is mentioned the shipment cannot be loaded on the Airline hence this also a point and serious thing
which hinders the Volume estimation which was predicted but later shipments gone into customs exam it
lead to Delays.

Page No. 4
Revenue Earned per year by UPS also Employees Added every year in Ups

Page No. 5
 Future Scope

While Learning about the various process which are being followed which has helped me to lear how exactly
small size shipment are being exported and how they are allocated and arranged in order to deliver at the right
customer at Time stated while booking.

Also UPS is implementing a software which will have automatic allocation and management of cargo as when
the customer will feed the Details in the website while booking of cargo it will directly come into the UPS
HUB Portal and currently the details are first gone to the Centres and then centres which take bookings transfer
the details to Gateway Hub Team and then filling in Customs is Done and which is a very long process and
time consuming.

Also, customer will get the right to select the Flights in which the cargo needs to be planned which will come to
the UPS and according to the Urgency UPS can allocate the Shipments which will eventually reduce the
backlog which is being left on the each day after the flight Depart.

The Future scope of this industry is very huge after Covid-19 it has been increased and which has affected the
whole world and even in that time this Supply chain was working to deliver the emergency material to the
various parts of the world.

UPS splits its international shipping into a few services:

 UPS Standard for shipments to Mexico and Canada

 UPS Worldwide Expedited for all international shipments usually delivered within 2-5 business
days
 UPS Worldwide Saver, also for all international shipments usually delivered overnight to Canada, 2
Days to Mexico, Latin America, and Europe, and 3 or more days to the rest of the world, all by the
end of the day.
 UPS Worldwide Express for more critical international shipments with similar time frames to
Worldwide Saver. Delivers around 10:30 AM to Noon.
 UPS Worldwide Express Plus for Worldwide Express shipments that need to arrive to their
destination earlier in the morning.

Page No. 6
 LIMITATIONS

Limitations are also present while handling such a huge Business, While the Number of shipments and
customers are way more than the Handling capacity of UPS for which they are looking to diver their business
in the various parts of India and divide them according to the North, South, East and West India for allocation
of all the cargo and to lower the No. of shipments will be less at single Hub and will also Reduce the Cost and
Can accommodate More Shipments.

UPS is having approximately 150+ Centres in India from where customers book their shipments which is very
low and old Method to go on centres and Book shipments, for which UPS is also developing a app from where
Customers can directly Book and Ship their shipments and UPS team can go and collect shipments directly
from Shippers Door and can accommodate directly to the place from where shipments need to be shipped out.

Also there at UPS there is Number of cases in which the Small shipments are being misplaced and lost at times
as there are shipments ranging from 50gm to 40 kgs and in which small shipments are being miss-placed also
for this UPS has started doing bagging of small shipments into one single bag of 30 kgs each on every bag
there is on ULD / Barcode and Every packet which is put into that bag is scanned to keep in record that which
ULD has how many bags to avoid the Mis-place or mis-route of Shipments.

Wear and Tear of Shipments while Transporting from the Centres to the Gateway Terminal for export, there are
few boxes which are of less weight or fragile are being torn if any heavy packet is put on them, to avoid this in
vehicles Bins are being put to separate the each packet according to its use / weight / nature.

Page No. 7
 CONCLUSION

1 Overview

In this project/internship I am Interning with UPS Express Pvt. Ltd. As a Hub Operations Intern and which I
am Learning about the Various Activities a International Courier & Freight Carrier Works.

Here I am learning from Inbound to Outbound each activity involved to Deliver the Shipments
across the World.

2 The Problem

 Allocation of Cargo/Shipments according to the Flights and Payload Capacity

 Sortation of Shipment According to Various Countries.
 Bagging of Shipments to Avoid loose Cargo and Mismatch of Shipment delivery
 1st Check and 2nd Check of Shipments to avoid any shipment Movement without Indian
Customs Permission.

3 The Solution

 Software is being used with collect the Data from the GSSI Scanners and sort them according to
the payload capacity & Flights.
 Bagging is done using the Scanners which Scan the ULD (Unit Load Device ) and scan each and
every package which is put inside the bag to check that how many shipments are there in the Bag.
 Zebra Scanners / Hand Scanners are used to check the 1st & 2nd Check of the shipments, these
zebra scanners are directly connected to the ECCS ( Express Cargo Clearance System ) , which
shows shipment status for example :- Examination , Assessment etc

Page No. 8
4 Keys to Success

 Got Knowledge about the Software which collect and merge data to check any
discrepancies
 Got Knowledge about MAWB ( Master Airway Bill ) which has all information about cargo
and its Weight & Dimensions
 Learning about Various Air Containers that are as per the dimensions of Aircraft
 Learning about various positions in Aircraft i.e Main Deck & Lower Deck
 Indian Custom procedure of Clearance and Documents Required to clear shipment
 Putting locations of Shipments which are either detained or offloaded by Aircraft

5 Financial Highlights

 UPS Express Pvt. Ltd. Owns its own Aircrafts and to fly that from one part of world to other it
approximately spends 1.50 cr on one single flights
 UPS has manpower of approx.. 275 at the terminal which is approx. being managed at 25000
average salary
 UPS is running a standalone terminal at IGI Airport New Delhi which approx. cost them for
60 Lakhs a year
 One Shipment average cost that comes to UPS is $3.5
 UPS have a annual turnover of $97.3 billion last year.

Page No. 9
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