AIRFREIGHT FOWARDING

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AIRFREIGHT FOWARDING by Mind Map: AIRFREIGHT FOWARDING

1. COMMODITIES

1.1. Live stock (like live tropical fish)

1.2. Electronic components

1.3. Fresh cut orchids, flowers...

1.4. Clothing, textiles, apparel...

1.5. Perishables (such as seafood and chilled meat)

1.6. Computers and peripherals

2. RATES & CHARGES

2.1. OVERALL

2.1.1. Formalised by IATA, published in the TACT

2.1.2. Rate: A fee that shipper have to pay for carrier to move container from this place to another place.

2.1.3. Charge: Fee that you have to pay for carrier and customs

2.2. TYPES

2.2.1. Minimum charges

2.2.2. General cargo rates – GCR

2.2.3. Specific commodity rates (SCR)

2.2.4. Commodity classification rates (CCR)

2.2.5. Unit load device rates (ULD rates) or unitized consignments

2.2.6. Pivot rate, over-pivot rate (OPR) and spillover rate (S/OR)

2.3. PRECEDENCE

2.3.1. General: SCR -> CCR -> GCR

2.3.2. Exception

2.3.2.1. If GCR < SCR, lower rate applies

2.3.2.2. If GCR < SCR, unless cargo is covered by CCR, GCR applies

2.3.2.3. If GCR for newspaper, magazines, periodicals... < CCR, GCR applies

3. DETERMINING WEIGHTS & CHARGES

3.1. ROUNDING OFF

3.1.1. The given weight should be rounded off to the nearest half kilograms or full pound.

3.1.2. Ex: 4.15kg -> 4.5kg, 4.8kg -> 5kg 4.15lbs -> 5lbs, 4.8lbs -> 5lbs

3.1.3. Dimension: 215.2 x 188.6 x 345.4 cm -> 215.5 x 189 x 345.5 cm 111.6” x 112.3” x 200.5” -> 112” x 112.5” x 200.5”

3.2. CURRENCY CONVERSION

4. DETERMINANTS OF VOLUME/WEIGHT RATIO

4.1. Volumetric weight = Length x Breadth x Height (L x B x H) (in cm or inches)

4.2. 1kg = 6000cm3 1kg = 366in3

5. THE BREAKEVEN WEIGHT RULE

5.1. The breakeven weight is the weight at which it is cheaper to apply the rate for a higher weight break, than to apply the rate for the actual weight of the shipment.

5.2. (Higher weight x Lower rate)/Higher rate

6. VALUATION AND INSURANCE CHARGES

6.1. VALUATION CHARGES

6.1.1. Airport-to-airport

6.1.2. Including actual value of goods, packaging and transportation costs

6.1.3. Airlines can take months to years to respond to claims

6.1.4. Lower coverage

6.2. INSURANCE CHARGES

6.2.1. Door-to-door

6.2.2. Including value of goods, packaging, transportation costs, insurance costs, and all other transport costs and customs duties

6.2.3. Faster refund

6.2.4. Higher coverage

6.3. CALCULATING VALUATION CHARGES

6.3.1. 2 publications of TACT

6.3.1.1. TACT Manuals (published twice a year)

6.3.1.2. TACT Rates (published every 2 months in NA and Worldwide)

6.4. CALCULATING INSURANCE PREMIUMS

6.4.1. Refering to the TACT Manual on Rule under section 3.8 – Information By Carrier