Unit-7-Air-Cargo-Transport

UnitSevenAirCargoTransportHighlightsCommoditiesshippedbyairusuallyhavehighvaluesperunitoraretime-sensitive.Aircargoratesarebasedonthevalueofserviceorthecostofservice.AsetofguidelinescanbereferredtoTheAirCargoTariff(TACT).TheAirWaybill(AWB)servesasanevidenceofcontractandreceiptbetweentheshipperandthecarrier.Consolidationisthepracticeofcombiningdiversecargoesintosingleshipments,toachievesubstantialsavingsonfreightcosts.Afreightforwarderofferingaconsolidationservicewillissueitsownairwaybillorbilloflading.TextInrecentyearsairfreighthasbeendevelopingrapidlyandaircarriershavebeenabletoofferaneverwideningrangeofservices.Freightcostscanbepaidinadvance,atdestinationoragainstreimbursement.Themainadvantageofairfreightisspeed,whichmakesitinvaluableforthecarriageofhigh-valueproductsandperishableproductssuchasfish,flowers,andotherproductswhichhaveashortlifespan.ThemostoftenusedIncotermisFCAetc.Unit7AirCargoTransport—PartAPartAAirCargoCharges,RatesandWaybillAirCargoChargesandRatesAircargoratesarebasedonthevalueofserviceorthecostofservice.Valueofserviceratesaredemandbasedandconsiderthesensitivityofthecargotofreightrates.Thelesssensitivethecargoistorates,thehighertheratewillbe.Ontrafficlaneswheredemandisstrongandplanecapacityislimited,theairrateswillbehighandviceversafortrafficlaneswheresupplyexceedsdemand.Also,productswithhighpricesoremergencyconditionssurroundingthemovewillbechargedhighratesbecausethefreightrateisasmallportionofthelandedsellingprice.Costofservicefactorsalsoenterintoaircarrierpricingofcargo.Giventhelimitedcargocarryingcapacityofaplane,spaceisatapremium.Theutilizationofthisspaceisrelatedtothedensityofthecargo,withlow-densitycargorequiringmorespaceperweightunitthanhigh-densitycargo.Aircarrierscalculatethedimensionalweight(dimweight)ofashipmenttoevaluatetheweightversusspaceissue.Freightcarriersusethegreateroftheactualweightordimensionalweighttocalculateshippingcharges.Carrierscalculateinternationalairshipmentas(Length×Width×Height)/(DimensionalFactor).Thecommondimensionalfactorforinternationalfreightis166forshipmentsmeasuredininchesandor6,000forshipmentsmeasuredincentimeters.Unit7AirCargoTransport—PartAThepricingofinternationalairfreightisgovernedbytheInternationalAirTransportAssociation(IATA)viatheAirCargoTariff(TACT).TACTisgenerallyconsideredtobeasetofguidelineswhichcontainscomprehensiveinformationregardingaircargorules,regulations,rates,andchargestoTACT.However,carriersarenotrequiredtousetheseratesandcharges.Morethan100airlines,carrierstendtodeveloptheirownratesbasedonthecommodityandmarketcompetition.Unit7AirCargoTransport—PartATACTincludesthreetypesofinternationalaircarrierrates:GeneralCargoRate(GCR)Generalcargoratesarechargedbyacarriertotransportcargowhenitdoesn’tqualifyforadiscountedspecialclassfeeoracommodityfeefromthecarrier.Generalcargoratesconsistofminimumrate(M),normalrate(N),andlowerchargeinhigherweight(Q).Unit7AirCargoTransport—PartACommodityClassificationRate(CCR)Commodityclassificationrates,alsoknownasclassrates,arepublishedforparticularcommoditiesfromaspecifiedpointoforigintoaspecifieddestinationpointandareusuallyshowninSurcharged(S)orReduced(R).ClassRatestakeprecedenceoverGeneralCargoRatesregardlessofcomparisons.•Newspapers,Magazines,Periodicals,Books,Catalogues,Braille-TypeEquipmentandTalkingBooksfortheBlindUsually,50%ofnormalGCRshallapplytotheabovecommoditiesandtheminimumchargewillbeeithertheminimumchargeforthespecifiedsectorortheamountcustomersgetbymultiplyingsuchdiscountedrateperkg/lbbytheminimumchargeableweight,whicheverishigher.Unit7AirCargoTransport—PartA•BaggageShippedasCargoForcarriageofbaggageshippedascargo(excludingmachinery,jewelry,cameras,merchandiseandsalesmansamples),50%ofnormalGCRwillapply,andsuchbaggageissubjecttoaminimumchargefor10kg.ThisrateisapplicableonlywhenpassengerstraveltoIATAarea2andarea3.Thebaggagemustbedeliveredtothecarriernolaterthanthepassenger’sdeparturedate,andthepassengerorhisagentisresponsibleforcustomsclearance.•LiveAnimalsAllliveanimals(includingcoldbloodedanimals)ratesare200%ofNormalGCR.Besides,allliveanimals(includingcoldbloodedanimals)minimumchargesare200%ofapplicableminimumcharge.•OtherCommodityClassificationRatesSurchargedratesareapplicableforhumanremainsandvaluablecargoincludinglegalbanknotes,traveler’schecks,securities,bonds,gold,platinum,diamonds(includingdiamondsforindustrialuse)andjewelry.However,classratesarenotapplicabletothecarriageofcalendars,pricetagsandposters.Unit7AirCargoTransport—PartASpecificCommodityRate(SCR)Specificcommodityratesareapplicabletonamedtypesoffreightorsomenamedcommodities.Over5,000differentcommoditiesaredescribedinlistsofdefinitionspreparedbytheairlineswithInternationalAirTransportAssociationforinternationalservices.Similarlistsexistfordomesticrates.Specificcommodityratesareusuallylowerthangeneralcargoratesandarepublishedforparticularcommoditiesfromaspecifiedpointoforigintoaspecifieddestinationpoint.Theyaresubjecttoaminimumweightrestriction.Specificcommodityratestakeprecedenceoverclassratesandgeneralcargorates.Whenthe