Air Freight Consolidator | Offers Cheaper Air Freight Rates Per Kilo

In the standard air freight business, the rate system offers rates per kilo. The bigger the consignment, the less rate per kilo is giving. If you run a business and you have shipment that needs to be shipped to most domestic and international destinations, for shipments that are too small, if you decide to air freight your shipments by standard air freight services you will pay more in shipping costs. What to do?

Here is the answer, Air Freight Consolidator becomes a much more cost-effective option for moving your shipments by air. Consolidated air freight can get your shipments where they need to go, at a price that won’t break your budget.

In this article, you will be able to understand what Shipping Consolidator do and how you can benefit from his services.

 

What is Air Freight Consolidator?

The Air Freight Consolidator is a freight forwarder [may be an individual, firm, carrier, and an agency] specialized in air consolidation (groupage). Freight Consolidator send you shipment combined with other small shipments via shipping consolidation, however, you will pay a smaller freight rates and benefit from other advantages such as:

·         Faster delivery

·         No damages during transport

Freight Consolidator take the advantage of the freight rate structures making up consolidations to the mutual economic benefit of both customers and agents.

 

Now, i will explain the consolidation process.

 

Freight Consolidation Process

Air Freight Agent that offer standard air freight service will arrange, dispatch, via scheduled airline, of single shipment that are documented and forwarded separately at normal published airline rate.

While, the freight consolidator assembles a number of individual shipments and dispatches them as one bulk shipment on one air waybill. This practice is called consolidation. The consolidator can send several shipments as one shipment to one common destination. This type of load will be consigned to a representative of the freight consolidator whose task is to break up the consolidation and to arrange clearance by himself or by another party of each individual shipment within the consolidation.

  

Air Freight Consolidator Responsibility

The freight consolidator's responsibility goes beyond delivering the shipment to the airline at the airport of departure. It extends to the recovery of shipment from the airline at destination and, where requested, to its delivery to consignee.

The freight consolidator performs two roles:

Frist role: Indirect Carrier

Responsible to you ( as a shipper ), as principal, for the transportation of the shipments, this responsibility applies to each individual shipment in the consolidation.

Second role: Principal

In relationship with the airline, as a carrier, for the carriage of the whole consolidation as one shipment.

 

Note: This responsibility may be change in if the air freight consolidator is a carrier itself. I recommended that, you at all times, you review the air freight consolidator responsibility before you send your shipment.

 

You may ask what the ..

Difference between consolidated and individual shipments

  Individual shipment

The individual or direct shipment is delivered by the air freight agent [ freight forwarder] acting on behalf of his principal, the airlines, in the capacity of an authorized representative

The air waybill covering the individual/direct shipment is issued by the air freight agent [ freight forwarder], bearing the names and addresses of the shipper and consignee

 

Consolidated shipment

The consolidated shipment (groupage) is delivered by the consolidator acting in the capacity of a client of the airlines.

The air waybill or master air waybill covering the consolidated shipment is a transportation document for the airlines and is issued by the consolidator who is shown as the shipper.

The master air waybill covers several individual consignments grouped together whilst a house air waybill is issued for each individual consignment.

 

I will more explain this:

Individual shipments: One air waybill

 

Consolidated shipments: Two air waybills

The maser air waybill for the airline and

The house air waybills for individual customers of the Freight Consolidator (it's for internal use).

 

Air Freight Consolidator - Rate Structures         

The Freight Consolidator produces his own freight tariff (consolidation tariff or wholesale rate) for the carriage of air freight on his consolidation.

Air freight consolidation rating is based on the gross or volume weights (density weight versus dimensional weight), whichever, is higher, the airlines will use.

Let us assume that the following is Yemen Airways freight rates from Aden to Cairo, the rates go by the weight break:

From : Aden ,ADE (YE )	CURRENCY YEMENI RIALS YER
To Cairo, CAI (EG)	Weight Break	Freight Rate Is not the current rate just for explaining purposes
	Minimum	4073.00
	Less than 45 K	921.65
	45 K	699.30
	100 K	643.30
	300 K	570.30
	500 K	499.30
	1000 K	450.20

 

Note 1 : Rates and weight breaks will not match from destination to destination, as each has its own rate structure.

Note 2: “How do you calculate "volume weight?" click on the link and read my previous article.

 

Example:

Base on the freight rate above

will be charged at an assume rate ( e.g.   GCR Q 45 kgs ) of  YER 699.30 Per kilo, whereas	70 kgs
will be charged at an assume rate ( e.g. GCR Q 500 kgs ) of  YER 499.30 Per kilo.	700 kgs

 

Now, I will further explain that, can you compare between the total costs for each shipping method.

Total costs	Rate per kilo	Description	Weight	No of the shipments	Shipping Method
YER 489,510	YER 699.30	Individual Shipments	70 kgs each	10	1
YER 349,510	YER 499.30	One Shipment	700 kgs	1	2
YER 349,510	YER 499.30	Individual Shipments consolidated to one shipment	70 kgs each	10	3

 

Consequently

Each shipper's saving would be the difference between:

YER 48,951	The airline's rate  GCR Q 45 kgs of YER 699.30 Per kilo for shipment of 70 kgs
YER 41,930	The consolidator's rate GCR Q 45 kgs of YER 599 Per kilo for shipment of 70 kgs
YER 7,021 For each shipper	Total saving

 

 

The consolidator's profit would be the difference between:

YER 419,300	His wholesale rate of GCR Q 45 kgs of YER 599 Per kilo for 10 shipments of 70 kgs each.
YER 349,510	The airline's rate  GCR Q 500 kgs of YER 499.30 Per kilo for shipment of 700 kgs
YER 69,790 For Air Freight Consolidator	Total profit

Note: General Freight Rate Only .

  

Services Offered by the Air Freight Consolidator

The Freight Consolidator offers a wide Assortment of Consolidated Air Freight Forwarding Services that include Shipment Pick up, Express , Customs clearance, Time convinced delivery and All-in-One Distribution to a Vast range of Worldwide Destinations.

 

Documents Required for Transportation by Air

The documentation required for dispatch of a consolidated shipment is the same as for an individual shipment as far as the airlines are concerned.

Consolidated shipments: Two air waybills

 The master air waybill for the airline and

The house air waybills for individual customers of the freight consolidator (it's for internal use).

All house air waybill will be forwarded with the consolidation in a sealed envelope, accompanied by a load list or manifest itemizing all the individual shipments by house air waybill number so the freight can be identified. The envelope will be attached to master air waybill.

 

 

Conclusion:

For companies that ship a high volume of small packages, consolidation services can provide substantial savings. Currently, many carriers such as UPS and FedEx are providing the consolidation services with smart planning [ Creation of Carrier Consolidation Services]. 

 

 

 Aviation Professional welcome  your comments.