Air cargo rates " weight charge" of any shipment may
never be lower than the published minimum charge from the point of origin to
the point of destination of the shipment. In my previous article, I learnt you
how to calculate chargeable weight for any shipment. Today, I am going to
explain you the different air freight rates. This article will give you the
basic knowledge which help you to understand the calculating of air freight
rates in my next articles.
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us know what your opinion regarding our contents.
Before starting explaining this subject,
you should understand the meaning of the following two terms (rates, charges),
which highly used in calculating air freight shipping costs from point (a) to
point (b).
What Do We Mean by Air Freight Rates?
Simply, the air freight rates is the amount charged by airline or shipping agent for the carriage of unite of weight ( kg. or lb.). As rule, we use the applicable air freight rate which are published by airline - or shipping agent – either in IATA TACT Online or through another publishing method such as website or online air freight calculating services.
These air freight rates must be in effect on the date of issuance of the air waybill by the airline or its cargo agent.
Note : Refer to my previous article " air cargo abbreviations"
What Do We Mean by Air Freight Charges ?
The air freight charge is the amount to be
paid for the transport of shipment or for incidental services in connection
with such transportation. Simply, when we determine the correct chargeable
weight for any shipment, we multiplying the applicable air freight rate per kg.
or lb. by the chargeable weight, the result of this calculation is called air
freight charges for transporting of the shipment.
Note: there is another term " other charges", these
include charges for government tax, ground handling, security check etc.
I am sure, you got the point and you understand
what is the meaning of the two terms (rates, charges). Now, I will explain you
the different air freight rates to be able to understand the difference between
them, and be able to understand my next articles which will discuss and explain
each one separately.
Types of Air Freight Rates
There are different air freight rates
listed below:
1- Minimum Charge
Airlines pay operational costs for carriage
each shipment. Also, when the shipment is light in weight or small, it needs to
be handled like other big shipments. For these reasons, airlines publish air freight
minimum charge to cover its operational costs, and for additional care of small
shipment from being lost or missed during transportation. In no event shall the
carriage for any shipment be less that the minimum charges published by airline
in IATA TACT Book or thought its website etc.
Note : specific
commodity rate, class rate and general freight rate will be covered in separate
articles in the future.
If your shipment is not allocated as specific
commodity rate as describe below, and not classified under one of many
commodities under the air freight class rate– as described below too- then we assume
that air freight general rate is applicable " general cargo rate GCR
".
Note : Dangerous goods shipments allocated as " general cargo rate GCR ".
3- Specific Commodity Rates (SCR)
Specific commodity rate is usually lower
than general cargo rates and are published for particular commodity from a
specific point of origin to specific destination point. For example, Fish (Edible), Seafood is considered
as specific commodity [ no. 0300], when it is shipped from Yemen to France the
specific commodity rate is applied. Applying this air freight rule give the
shipper lower price for 500 kgs of fish if we compared by general cargo rate.
4- Class Rates (SCR)
This air freight rate applies to a few
commodities with or between certain designated IATA areas. Cargo class rates
are usually stated in terms of a percentage either:
-
Increase, or
-
Reduction
In the normal general cargo rates. For example,
human remain (coffin) will costs 200% of normal general cargo rate if being shipped
by air within IATA area 2.
5- Unitized Shipments
For shippers that use unit load devices for
transporting more than shipment, airline give him special rates less than general
cargo rate.
Note : specific
commodity rate, class rate, Unitized Shipments and general freight rate will be
covered in separate articles in the future.
Summary
To ship any shipment, you will be charged
by the airline for the carriage of the total kgs or lbs. Airlines publish its
rates per kg. or lb., for each two points (origin, destination). The rate per
unit of weight called " rate" while the total amount paid for the carriage
of total kgs or lbs. call "charges".
There are many types of air freight rates :
1- Minimum Charge
2- General Freight Rate " General Cargo
Rate (GCR) "
3- Specific Commodity Rates (SCR)
4- Class Rates (SCR)
5- Unitized Shipments
Air freight rates is included in one of the
most important marketing mix " price ". Airlines determine the rates
while writing their air cargo marketing plan.
I am going to explain you how to calculate
air freight rates " minimum charge", and how to fill the amount on
the air waybill correctly soon.
Thank you for all of you, and we hope that
you share this article.