Air Freight: What You Need To Know

SUPATH
International Air Freight Consultant

Introduction

Air freight mode of transport is fast but expensive but in a fast-moving world  there is no other faster mode of transport . Businesses must be fast in getting their freight to their clients. Unless sea freight has been mentioned explicitly air freight remains the popular mode of transport in moving small to medium freight. Large freight is shipped by air, when an emergency arises. As air freight is expensive, attention is to be paid to the details and the planning should be fast and correct. Knowledge is power and armed with the right information, a company can keep the cost under control. SUPATH brings you practical suggestions that you can use, and  knowledge that has been tested

 

Cost Involved : Mandatory Charges

The following charges will definitely be an inseparable part of air freight. There are charges that cannot be listed by SUPATH because the charges vary from country to country and from company to company.

  • Pick up – from the shipper’s place to the freight forwarder or to the airport warehouse
  • Haulage – the lorry service to the airport of departure
  • Handling – air way bill, labelling, warehouse checking, customs formalities
  • air freight rate – based on chargeable weight (gross weight or volume weight: whichever is higher)
  • Fuel Surcharge : usually charged on gross weight. Of late most of the airlines charge this on chargeable weight
  • Risk Surcharge: also called security surcharge. charging mode similar to Fuel Surcharge
  • AMS Fee : Automated Manifest Service Fee: Airlines need to transfer air way bill data to customs authorities. Electronic transfer
  • Warehouse Charges: demurrage charges! ask for tariff. There is no general tariff. Each country and each airport of destination has its own listing! SUPATH can never warn you enough.  Delay could mean a shocking invoice!

Costs Involved : Possible Charges

  • Dangerous Goods Fee : only applicable to hazardous goods (IATA regulation)
  • Development Fee : only if the airport of destination lists this (Canada does)
  • Broker Transfer Fee : depends on who does the brokerage. Applicable if the de-consolidator and the broker doing the customs clearance is not the same company.
  • Crane  or Forklift charges
  • Insurance : If you want to insure the freight, you need to cover it before the pick up of the freight

Documents involved

  • Commercial Invoice(s)
  • Packing Lists (freight to India: if you have  more than one piece please include a packing list)
  • Delivery Note : some companies issue these. Not needed for customs clearance
  • Pro-forma Invoice : NOT accepted by customs in India for clearance.
  • Certificate of Origin : needed in countries that have Agreement on Preferential Tariffs ( goods from India to Europe should carry Certificate of Origin; also called Form A; so that the importer can get reduction on duties. Original certificate is to be tabled.
  • Certificate of Conformity : usually for electronic and electrical goods. Also applicable for telecommunication equipment in certain countries
  • Export Permit : In Europe, if the goods for export fall in of the categories of dual use listed in the appendices of the EC regulation, an export permit in original is mandatory
  • Export declaration : varies from country to country. In India the export clearance takes time and a customs inspection may take place.
  • Customs Bond : in the US, either a single entry bond or a continuous bond is mandatory
  • ATA Carnet : needed only for exhibitions. Not all countries are parties to the ATA Carnet contract.
  • Fumigation Certificate or Non-Wood Packing Declaration may be required by the country of destination
  • IEC : (Import Export Code) : needed by importers in India along with the PAN (Permanent Account Number)

Conclusion

Check the invoices for mistakes (spelling mistakes in names can cost money: e. g. South American destinations)! Keep contact lines open: time is money

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Author: surenpillai

Experienced freight forwarder. Managed freight movements across all the continents. Highlights were the technology roadshows (EMEA) and Trade Lane Management India. All the above combined with Customer Relationship Management, foreign agent management, dedicated key account management. Previous experience as a teacher of English. Member of the Queen's English Society