In markets where airlines may not wish to have their own operations and/or sales office, they may nominate a general sales agent to act on their behalf for a commission.
A GSA may be nominated to represent the airline in one market/city only (e.g., Dhaka), or across an entire country (e.g., Bangladesh).
The GSA can be nominated strictly as a sales agent on behalf of the airline, or may take on a much more complex role, active as the airline’s representative in all aspects including: warehousing, airport ground handling, sales, and operations. The latter is especially useful for passenger airlines that wish to profit from cargo sold on their passenger flights, but do not wish to incur the time, money and resources required to establish a network of additional ground handling staff, warehouse staff, etc.
A knowledgeable and experienced GSA can establish all aspects of cargo handling for the airline, promote the airline’s services within that market and accept bookings on behalf of the airline.
Often, GSAs will represent many non-competing airlines, and for bookings accepted by the agent, may have the capacity to invoice the agent/forwarder directly for freight charges incurred. This is especially helpful for the small freight forwarder, as they can establish one credit account with a GSA and have access to booking shipments to many destinations around the world, as offered by the various airlines the GSA represents.
Additionally, the GSA may not offer the most competitive rates for certain destinations, as they are strictly limited to services offered by the airlines they represent.
An air waybill (AWB) is a non-negotiable document, which is issued by a carrier when goods are transported by air.
An air waybill acts as delivery instructions, a contract of carriage, and a cargo receipt for airfreight. If the AWB issued by the actual carrier, Airlines, it is a master air waybill (MAWB). If issued by an air freight consolidator or forwarder it is a house air waybill (HAWB).
The Air Waybill (AWB) covers the consignment from origin to destination no matter how many airlines are involved.
The air waybill functions in a number of ways:
It is the documentary evidence to the contract of carriage
It is a receipt for the goods being shipped
It can be like a certificate of insurance (if the shipper requests the carrier’s insurance)
It is a waybill (a guide to carriers’ staff in handling, dispatching and delivering the consignment).
Master Air Waybill (MAWB)
A master air waybill (MAWB) is an airline document used for individual consignments.
The documentation for dispatch of a consolidated shipment is the same as for an individual (single) shipment as far as the airlines are concerned.
In the case of a consolidation, it shows the sending agent as shipper, the destination break-bulk agent as the consignee and reveals that a multi-package, loose consolidation is being dispatched, or a single, sealed container with a specific number of shipments.
A MAWB stating “consolidation” must be accompanied by a manifest, detailing all shipments within the consolidation.
The Use of the Master Air Waybill
The air waybill may be used only for two types of transportation:
Transportation by air of individual shipments
OR
Transportation by air of consolidated shipments
For the individual shipment in a consolidated shipment, the consolidator/Freight Forwarder must use his own “house air waybill” and not the carrier’s air waybill.
The principle of consolidation is that the forwarder/consolidator assembles many shipments of various sizes, weights, and volumes, paying the carrier on the total weight of the consolidation.
It is to note that mixing volume cargo with heavy cargo increases profitability. In air freight the heavier the shipment, the lower the cost per kg.
By containerizing or palletizing, the forwarder may pay the carrier only a lump sum per ULD. The consolidator then charges the individual shippers according to his own air freight tariff at the different weight levels. In this way the freight forwarder makes a profit from the shipper (Exporter or Importer).
The air freight forwarder (consolidator) usually offers lower-than-airline rates for the same (or better) level of service.
The air waybill generally consists of three originals and five copies.
Original (3) (blue)
This copy, for the shipper (cargo agent), is given to the shipper (or cargo agent) and is to serve as: Proof of receipt of the goods for shipment
Original (1) (green)
This copy, for the issuing carrier, is to be retained by the primary carrier for accounting purposes
Original (2) (red)
This copy, for the consignee, is to accompany the consignment to its final destination and is to be tendered to the consignee upon delivery of the goods.
The shipper/exporter is responsible for the correctness of the particulars and statements relating to the goods that he inserts in the AWB, or that are inserted on his behalf. The shipper will be liable for all damage suffered by the carrier or any other person because of irregularity, incorrectness or incompleteness of those particulars and statements, regardless of whether the AWB is completed by himself, or on his behalf by the carrier or its authorized agents.
House air Waybill (HAWB)
Air freight consolidator or forwarder may issue their own air waybills for each shipment with HAWB.
These are called house air waybills, and each customer receives one to identify his/her consignment.
The airline plays no part in the terms of payment quoted on the house air waybill.
All house air waybills are forwarded with the shipment in a sealed envelope, accompanied by a load list or manifest, itemizing all the component parts by house air waybill number, so that the cargo may be identified.
Packages must show the master air waybill number, the house air waybill number and destination airport code.
To note, when completing both the HAWB and the MAWB, always ensure that the number of pieces and weight on the HAWB exactly match the total pieces and weight as indicated on the MAWB.
Transporting Dangerous Goods
When transporting dangerous goods, shippers/exporters/importers must declare their shipments as dangerous goods on the cargo air waybill (in the “Handling Information” field).
This air waybill must be accompanied by the IATA Shipper’s Declaration for Dangerous Goods form, which must be completed by the shipper/exporter.
There are different types of ships of various configurations, sizes and shapes, ranging from general-purpose cargo ships and multi-purpose or specific-purpose container vessels in international trade.
Let us see the different types of ships that are of interest to us:
Conventional (Break Bulk) Cargo Ships
Conventional (Break Bulk) Cargo Ships
These flexible, multipurpose vessels are designed to be self-sufficient, most being equipped with cargo handling equipment such as cranes and derricks, and with heavy lift capabilities.
These ships can be completely independent of port facilities to load/off load cargo. In some cases, cargo can be discharged onto lighters (very small boats; LASH – lighter aboard ship), where no piers or quays exist.
Container Ships
Container Ships
Ships which are designed to carry goods stored in containers are called container ships.
These ships are fully cellular in construction (equipped with a series of internal guide rails to hold containers), and load containers under deck and on deck on specially fitted hatch covers.
To note, some small to medium-size container vessels may have geared lifting capability (either cranes or full-width derricks), most container vessels today are “gearless” (without any lifting equipment).
These vessels are totally dependent on a port’s facilities for loading and discharge of containers.
RO-RO (Roll on/Roll off)
RO-RO (Roll on/Roll off)
This RO-RO ship involves the loading of non-standard cargo onto the vessel, either self-propelled or towed, with mobile equipment, such as wheeled MAFI-trailers, lifters, and tractors and other transport devices.
The purest form of a RO-RO ship is the dedicated pure car/truck transporter.
A variant called RO-LO, for roll-on/off-lift-on/off is a vessel designed to accommodate both roll-on and lift-on cargo with the lift-on cargo usually being stowed on deck, or in dedicated holds separate from the RO-RO decks.
Reefer Ships in different types of Ships
Reefer Ships
These are specially designed vessels with a large reefer (temperature-controlled chamber) for the transport of a variety of perishable cargo.
In import and export trade, stuffing your goods in the right and secure way in the containers is one of the most important things. Below is a complete guide to Stuff, Inspect, Stow for Sea & Air freight containers.
Cargo stowage: The proper placement, distribution and packing of goods in a (cargo transport unit or CTU e.g. containers, pallets) for the shipment of the goods.
If not done properly in the containers while exporting then serious shipment causalities and damage may happen not only in sea or air flights but also during loading and unloading of the containers in the origin and discharge ports.
Heavy items, machinery, and items not uniform in shape or dimension should be crated, boxed, and/or provided with skids to permit ease of handling and compact stowage.
Need to provide adequate water damage protection. We can use the desiccants (moisture-absorbing materials), corrosion inhibitors, moisture or vapor barrier paper or plastic wraps, sheets, or shrouds to protect the cargo from water leakage or damage from condensation.
Step 02: Inspecting the Container
The freight containers should be free from splinters, snags, dents, or bulges of any kind.
We should inspect the Container interior of:
Watertight reliability: We can conduct a light test, whereby we enter the container, have the doors closed, and look for light leaks in the roof.
Fittings: Cargo tie-down cleats or rings should be in good condition and well-anchored.
Cleanliness: The container must be free of residue from any previous cargo and odors that may taint the cargo to be stowed in it for the next shipment.
It is wise not to touch or smell any unknown substance, as it could be harmful or fatal.
We should inspect the Container exterior of:
The doors: We should ensure that the doors can be securely locked and sealed. Check that door gaskets are in good condition and watertight when closed. Inspect door hardware closely.
Fittings: Checking the fittings that secure the container to the trailer chassis is very important. They should all be in working order and in use.
Step 03: Planning of the Cargo Stowage
We must notice the weight limitations of the container weight handling capacity
Do not exceed the rated capacity of the container and the weight limits at origin and destination port.
Do not exceed permissible weight concentrations per square foot of deck.
Distribution of the weight equally in the container
Avoiding the concentrating heavy weights at one side or at one end.
Need to stow the heaviest items on the bottom of the container.
Avoiding the mixing of mismatched cargo
Cargo that exudes odor or moisture should not be stowed with other cargo to avoid tainting or water damage.
Cargo subject to leakage or spillage should not be stowed on top of other cargo.
Step 04: Dangerous goods (DG) need extra cautiousness to handle so need to observe Dangerous goods regulations
A prior consultation with the carrier for regulations and restrictions on shipping any commodity that falls under the dangerous goods classification is a must.
Load of the dangerous goods shipments according to regulations, to avoid loading incompatible dangerous goods together.
Ensure the DG goods are clearly and authentically declared to the shipping agent by the shipper. Many times it is seen that shipper do not correctly declare the goods to the shipping agent and because of that cargo blast and accidents happen with DG goods in the freight, loading and unloading stage.
Step 05: Important to make ready all the cargo and materials before you do the cargo stowage
When all the export shipments cargo is ready before the cargo stowage, it facilitates proper placement, stacking, and weight distribution. Additionally, it precludes the removal of cargo already stowed to accommodate unexpected items, and it permits the installation of blocking, bracing, and filling of voids as stowing operations progress.
Step 06: Making a concrete plan to ease the unloading process beforehand
Stow the cargo in reverse order of desired cargo discharge. So that the items that are needed to be discharged at first can be brought out.
Ensure that partition, dividers, or other suitable means physically separate cargo for multiple consignees in the LCL shipments.
Ensure that forklift openings in pallets or skids face the doors of the container.
Fill the voids, but avoid wedging or jamming cargo into the container.
Detail Analysis on the process of completing the Sea Cargo Stowage
1. We must isolate the cargo from the Container Doors
Construct a partition across the rear of the stowed cargo to prevent it from contacting the doors and falling out when the doors are opened. Container doors should not be used to secure any cargo.
The doors are not part of any blocking and bracing system. Cargo resting against the doors constitutes a dangerous situation to handling personnel at time of unloading.
2. Not exceeding the maximum weight that the container can carry
Do not exceed the maximum payload weight of the container. It is essential that weight be evenly distributed within the container; i.e., a single heavy unit must be centered in the container and then braced at both ends to prevent any shifting.
3. Providing the water-damage protection
Cover cargo adjacent to doors with plastic or waterproof paper sheets to protect it from possible leakage at door gaskets.
4. Ensuring the cargo ventilation
Make sure airflow in the container is unrestricted and that vents are open and clear.
5. Closing and sealing the container
Ensure that all locking lugs are engaged. Record the seal and container number and enter same on shipping documents accurately.
Steps on Complete Guide to Stuff, Inspect, Stow the shipments of Air Freight Containers.
It is seen that inadequate packaging and improper marking of air cargo as the leading causes of air cargo losses.
Package should be done to withstand pressure from adjacent and piled up cargo so that the package does not get disfigured.
To compile up the loose package, the packages can be containerize, unitize, and palletize for the air shipments
For the liquid cargo shipments in air, need to ensure that all caps, seals, and valves are tightly closed
For large, heavy, and awkward cargo, need to check the weight limits for the floor of the aircraft.
For perishable cargo need to ensure adequate package ventilation. Also the cooling and freezing of the goods need to confirm.
For water-damage protection need to package the cargo in wooden crates or boxes with waterproof paper or polyethylene liners.
Air Cargo Containerization
Air cargo containers fall into two basic categories:
Air cargo pallets
Lower deck and main deck containers
Air cargo pallets
Pallets are flat devices onto which the cargo is secured. The securing is done by cargo nets tightened over the cargo by tension straps.
Lower deck and main deck containers
These are air cargo containers where stowage of air cargo is done just like the sea based containers. But the size and shape of the air containers are very different from the sea based containers.
Dangerous goods are products that are capable of posing a significant risk to health, safety, property, or the environment.
In export dangerous (DG) goods & chemicals, dangerous goods are transported on almost every aircraft, ship, truck, and railcar every day and in every country.
Shippers, exporters, and importers must ensure that their goods are properly identified and classified as dangerous goods or not. Once they have determined their goods fall into the category of dangerous goods, they must be properly packaged, marked, labeled, documented, and finally made safe for transport.
Ensure that all national and international regulations have been complied with
Ensure that their shipment is made safe for transport
Carrier Responsibilities in the Export of DG Goods
The carrier, shipping lines or air lines, makes the ultimate decision whether the DG goods shipment is acceptable for carriage or not for the voyage.
The responsibilities of the carriers are:
Acceptance or verification that the shipment of dangerous goods has been properly prepared.
Storage of dangerous goods shipments before and after carriage.
Loading and unloading of the dangerous goods shipments on and off the means of transport.
Inspection of the shipment during handling for any leaks or damage.
Provision of information to employees regarding the presence of dangerous goods.
Reporting of any accidents/incidents and undeclared dangerous goods.
Retention of records (waybills, bills of lading, dangerous goods transport documents, shipper’s letters of instruction, training, etc.).
Training of all employees who may come into contact with shipments of dangerous goods.
As we can see there is a high responsibility among the shipper, carrier, freight forwarding agent and buyer to handle the DG goods in safe manner within the transportation.
How do the Parties Handle the Responsibility?
So, how do the parties handle the responsibility? To handle the DG goods in a proper way the parties must receive proper training.
A carrier requires training because he is transporting the goods all the way from the origin to destination port.
A freight forwarder requires training because he is offering the dangerous goods to the carrier and may also be involved in handling and transporting.
A shipper/exporter requires training because he is offering the shipment and may be involved in handling and transporting.
An importer requires training because he has control and ownership of the shipment when it arrives in Canada and may be offering, handling, or even transporting the dangerous goods.
Identification & Classification of the DG Goods
Identification and classification of the DG goods are the two main responsibilities of shippers/exporters.
The shipper/exporter first responsibility is to recognize that their shipment contains dangerous goods and then to identify the specific article or substance.
Dangerous goods are identified in two ways: by proper shipping name and by a four-digit number.
These names and numbers are recognized internationally and are the same for air, ground, and ocean transport.
An example can be: Potassium Nitrate, UN2078
It can happen that due to the conditions of transport in an aircraft and the restrictions placed on items and quantities that can be carried, an item that is considered a dangerous good for air transport may not necessarily be considered a dangerous good for ground transport.
Classification of the Dangerous (DG) Goods
Dangerous goods are divided into nine classes according to the type of hazard they represent: corrosive, explosive, flammable, toxic etc.
* Ammonia solution, batteries [wet, filled with acid], chlorine, phosphoric acid, etc.
Class 09
Miscellaneous Dangerous Substances and Articles, Including Environmentally Hazardous Substances
* Asbestos, dry ice, internal combustion engines, magnetized materials, etc.
Classification of the Dangerous (DG) Goods
It is very important to note that, it is the shippers/exporters /importers responsibility to classify their shipments and to determine what class their items fall into.
Packages containing dangerous goods must have markings and labels that alert persons physically handling the packages of the contents.
Emergency response personnel can use the markings and labels to identify the contents when responding to a dangerous goods accident, spill, or leak.
The markings are normally in English but may have a translation in another language accompanying them.
The labels are universal in nature and may have wording in English on them. Again, the wording in English may have a translation in another language along with it.
It is the responsibility of the shipper/exporter/importer to properly package, mark, and label the shipment.
DG-Goods-Packaging
For ocean transportation, the method of marking the correct technical name and of affixing labels or applying stencils of labels on packages containing dangerous goods shall be such that this information will still be identifiable on packages surviving at least three months’ immersion in the sea.
In considering suitable marking and labeling methods, take account of the durability of the materials used and of the surface of the package.
Placarding the Cargo Transport Unit (ocean container, railway car, truck/trailer)
A placard similar to the dangerous goods labels must be applied to the outside of a cargo transport unit (ocean container, railway car, truck/trailer) to identify that dangerous goods are inside.
Placarding-the-Cargo-Transport-Unit
In considering placarding methods, take account of the durability of the materials used and of the surface of the cargo transport unit.
List of additional Markings and Placards
For Ground and Ocean Transportation:
Elevated Temperature Mark
Elevated-Temperature-Mark
The above sign is for Elevated Temperature Mark Used on shipments carried at high temperatures.
(Liquids shipped at 100 oC or more; solids shipped at 240 oC or more)
Environmentally Hazardous Substance/Marine Pollutant Mark
Used on shipments that can have a negative impact on marine life or the food chain if spilled into the waterways.
Danger Placard
Danger-Placard
This is used on trucks/trailers carrying different classes or divisions of dangerous goods at the same time.
Fumigation Placard
Used on transport containers those have been fumigated with toxic substances to eliminate insects and pests.
For Air Transportation:
Magnetized Material Label
Magnetized-Material Label
Used on packages containing magnetized items that may affect the aircraft’s instruments.
Cryogenic Liquid Label
Cryogenic-Liquid-Label
The level is used on packages containing super cold (cryogenic) liquids (e.g., liquid nitrogen).
Orientation Labels
Orientation-Labels
Used on packages containing liquids (either example permitted).
Lithium Battery Label
Lithium-Battery-Label
Used as a warning not to transport damaged packages or items containing lithium batteries.
Documentation process for Sea, Air and Land Goods Shipments of Dangerous (DG) Goods
It is very important to declare the dangerous goods in transport documents before the shipment is made by the shippers/exporters/importers.
The declaration will aware all the parties in the transportation process on the type of hazard goods the vessel of airline will carry and will help determine their measures to mitigate the spill or leak.
The transport document is normally completed in English but may have a translation in another language accompanying it. It is the responsibility of the shipper/exporter/importer to complete the transport document. The freight forwarder or carrier should NOT be involved in the actual completion of the documentation. The declaration should be signed and dated by the consignor/supplier.
Air Transportation
For air transportation, there is a standard dangerous goods transport document – the IATA shipper’s declaration for dangerous goods form. The shipper’s declaration must accompany the cargo air waybill, which must also contain certain prescribed information pertaining to the dangerous goods.
The IATA shipper’s declaration must be completed by the shipper/exporter. The importer must ensure the form is completed properly prior to the goods arriving at the destination port.
Example of an Air Dangerous Goods Transport Document (IATA Shipper’s Declaration for Dangerous Goods)
IATA-Air-Dangerous-Goods-Transport-Document
Land Transportation
For land transportation, there is no specific form, but the bill of lading is used as the dangerous goods transport document, with information relating to the dangerous goods indicated on the form in a precise sequence.
Ocean Transportation
For ocean transportation, there is a multimodal dangerous goods form. This document contains specific information relating to the dangerous goods, indicated in a precise sequence.
Example of an Ocean Dangerous Goods Transport Document (Multimodal Dangerous Goods Form)
Multimodal-DG-Goods-form
Container Packing Certificate
When packages containing dangerous goods are packed onto or into any cargo transport unit, such as an ocean container, flat, trailer, or other vehicle intended for transport by sea, those responsible for the packing of the cargo transport unit should provide a container/vehicle packing certificate specifying the container/vehicle/unit identification number(s) and certifying that the operation has been carried out in accordance.
If the container packing certificate is not available while shipment, the container will not be accepted by the shipping line for the transportation.
In the multimodal dangerous goods form, the container/vehicle packing certificate is included.
Container-Packing-Certificate
Fumigation for Safety of Human Health
What is fumigation of cargo?
Fumigation of cargo is a process of releasing toxic gases (pesticides) into a cargo hold or compartment for the purpose of eliminating or avoiding infestation by insects or other pests that may cause the cargo to deteriorate.
We all know that marine shipping containers are used to transport a variety of goods throughout the world, so trade companies rely on chemical fumigants to kill invasive alien species in cargo loads, preserve cargo loads, and maximize shipping techniques. If precautionary measures are not taken, these chemicals can be harmful to human health.
Further the trading companies can take steps like:
The cargo transport unit should be fumigated in accordance with the recommendations on the Safe Use of Pesticides in Ships.
Only cargo transport units that can be closed in such a way that the escape of gas is reduced to a minimum should be used for the transport of fumigated cargo.
Cargo transport units should be identified with a warning sign affixed to the access door(s) incorporating the identity of the fumigant used, as well as the date and time of fumigation.
The transport documents for a closed cargo transport unit should show the date of fumigation and the type and amount of fumigant used.
Fumigants should not be applied to the contents of a cargo transport unit once it has been loaded aboard the ship.
Documentation and Identification of Cargo Transport Units under Fumigation
Transport documents associated with the transport of cargo transport units under fumigation should show the date of fumigation and the type and amount of fumigant used.
A closed cargo transport unit under fumigation should be identified with a warning sign as specified, affixed to the access door(s) in a location where it will be easily seen by persons attempting to enter the interior of the cargo transport unit, and incorporating the identity of the fumigant and the date and time of fumigation.
Conclusion
The reason that dangerous goods are so regulated is that they have the potential to cause a serious catastrophe. However, when they are handled and transported properly through the supply chain, they are relatively safe.
Employers and employees in the supply chain – carriers, freight forwarders, shippers/exporters, and importers – must understand their responsibilities when it comes to dangerous goods.
Employers and employees must receive the correct training for each mode of transport and for their individual job function.
Employers and employees must use and follow the requirements of the current edition of the applicable set of dangerous goods regulations: IATA for air transport, IMO for ocean transport.
All employers and employees in the supply chain must exercise due diligence to ensure that undeclared or hidden dangerous goods do NOT enter the transportation chain.
For booking air cargo with an Airlines in export and import trade, let us see the information that we (exporter or importer) will need:
Freight forwarder, an agent who will give the service to the exporter or importer to book the cargo with the different airlines
AWB number
Departure and arrival airports (the routing is usually at the discretion of the airline, so if a specific routing is required, it must be indicated)
Cargo description
Cargo specifications (packages, weights and sizes)
Special handling instructions (perishables, regulated)
Hazardous materials, with complete information: quantity, UN number, class, packing group
Freight terms: The standard is freight prepaid; freight collect is an exception
Shipper/consignee: This information is not usually required at this stage.
It is to be note that the booking is placed for a specific flight on a specific date, and the delivery address/warehouse location must be determined separately ahead of time, as this varies from airline to airline.
The latest cut-off time for delivery of cargo and information/documentation is usually four hours before the flight, but this varies.
Information that are provided by the Freight Forwarder to the client after the Booking of the goods is completed with the Airlines
After the booking is completed with the airlines the freight forwarder can then provide the booking details to the client, with the following information:
For cargo reservations, it is essential to know the nature of the goods to be loaded on any aircraft.
For instance, certain dangerous goods (toxins/poisons) must not be loaded together with foodstuffs; live animals need heated and well-ventilated conditions; fragile goods, which generally require more space than normal cargo, must be loaded and positioned very carefully in the aircraft.
To check the completeness of a shipment during loading, transfer or delivery, the total number of packages must be known.
The Weight of the Shipment
Since an aircraft has a limited payload or capacity, correct information on the weight of each shipment is necessary.
This is particularly the case when handling heavy goods, since equipment for loading and unloading must be validated in advance.
The Dimensions and Volume of the Shipment
Information concerning the dimensions of a shipment is essential for planning, to ensure the cargo will fit in/on the ULDs. Not only the weight capacity, but also the volume capacity available in an aircraft is limited.
Package dimensions must be identified on the air waybill, either in centimetres or in inches.
The Airport of Departure, Transfer Point and Airport of Destination
The names of the airports of departure and final destination, as well as any transfer point are necessary for the following reasons:
To determine the routing of the shipment
To arrange for suitable storage prior to departure, at the transfer point or after arrival
To allow communication in the case of irregularities during transportation
To allow for special arrangements by the shipper at any transit point or at the airport of destination.
The Requested Routing
Information about the requested flight(s) is important for the shipper/consignee and the agent.
If a connecting flight is involved, it is essential to know its flight number to ensure there is enough time for the transfer from incoming to outgoing aircraft at the connecting airport.
Only with these details at hand will it be possible to arrange the quickest transportation of a shipment in cooperation with the airline.
Air Charters
Normal air freight shipments are carried on scheduled flights at predetermined rates as explained earlier.
However, under certain or special circumstances, the shipper may wish to move cargo that:
Cannot be accommodated on normal flights
Is too urgent to wait for a scheduled flight
Is far heavier than a normal load.
In such instances, you may be required to charter an aircraft. Charter companies offer all types of aircraft, from small planes to a Hercules, a Boeing 747, or an Antonov 124 capable of lifting 150,000 kg of freight.
When chartering, the party signing the charter agreement is responsible for all charges. The cost is determined by the charter operator and is based on a roundtrip journey. For example, if you wanted to charter a DK10 from New York to Tokyo to carry 45,000 kg of freight, the charter operator would quote you New York /Tokyo/ New York, even if you did not have any use for the Tokyo/ New York leg of the flight.
What are the key points to focus while choosing an airline for cargo transportation?
Airlines with a global network
Available capacity
An airline that has good capacity will tend to be cheaper, because of the space it needs to fill, and less likely to bump the cargo.
Capacity depends on the frequency of service (daily flights are the best), the types of aircraft they use, and the number and types of pallets or ULDs they accommodate.
Seasonality
Is also an important factor, as the year-end trade, U.S. Thanksgiving, Chinese New Year and similar events bring a surge in volume, resulting in tight space and higher rates.
Good regional connections
Airlines serving niche geographic markets will provide better service to smaller destinations.
Safety records
Tracking and Tracing facility of the cargo
Weather conditions and/or the likelihood of weather disruptions
Pricing
In most cases pricing will be one of the first elements you consider.
Pricing depends on many factors, including supply and demand, space availability, specifics of a particular shipment, season, timing, etc., as well as the relationship a forwarder has with a particular airline and the volume the forwarder ships with that airline.
Some airlines give spot-deals on certain lanes for a limited time, and some may give relatively better rates based on complete ULDs rather than a per-kg rate.
The key here is to “shop” smartly, consider the price but also all of the other factors mentioned above, in order to arrive at the best overall value.
Cargo movement in international trade by air is a complex commercial work done by air freight forwarder in import and export. The cargo freight movement has a considerable scope for error and abounding risk for small mistakes and large ones.
For example, cargo is misrouted, the documentation is wrong, or cargo is improperly labeled.
The air freight forwarder must avoid making even the smallest error. An error may lead to high costs or the loss of a client. An error in cargo handling can have far-reaching consequences, out of all proportion to the size of the shipment in question, which may include legal proceedings.
The air freight forwarder (or consolidator) is also an IATA-registered agent.
The International Air Transport Association (IATA) is the global trade association for the airline industry. IATA member airlines account for over 80% of total air traffic
Functions of International Air Transport Association (IATA):
To promote safe regular and economical air transport for the benefit of peoples of the world, to foster air commerce and to study the problems connected therewith
To provide the means of collaboration among air transport enterprises engaged directly or indirectly in international air transport services
To cooperate with the International Civil Aviation Organization (ICAO) and other international organizations
Roles an Air Freight Forwarder in Import and Export plays
The forwarder specializes in consolidating different shippers’ traffic into one shipment for movement by a carrier to one single destination.
2 very essential roles an airfreight forwarder plays are:
It is responsible to the shipper as principal in the transportation of the goods moving on a consolidated basis under the forwarder’s own house air waybill (HAWB)
It acts as a principal in the relationship with the airline for the carriage of the whole consolidation as a single shipment.
An air freight forwarder can provide better freight rates for a shipment to an export or import customer than the air lines.
Services an Air Freight Forwarder provides to an Exporter in an Export shipments
Monitoring door-to-door movements where the cargo is always under the control of the consolidator
Offering lower than IATA carrier freight rates for consolidated cargo
Offering direct fax or electronic communication with their office at the point of destination
Offering full export documentation services
Negotiating air freight rates based on annual tonnage to specific destinations
Offering various levels of service, such as deferred services for less time-sensitive shipments, that once again reduces the air freight costs
Tracking and tracing shipments
Services an Air Freight Forwarder provides to an Importer in an Import shipments
For import shipments the air freight forwarder has a network of overseas offices and/or agents who will represent the needs of the importer at destination. List of services for import shipments are:
Arranging pick-up at the point of origin, using their overseas office and communicating pertinent details electronically or by fax
Offering consolidated import air freight rates
Contacting vendors for shipping readiness
Tracking and tracing
Giving pre-advice of arrival, so that the importer can be made aware of the shipment before it actually arrives at the point of destination
Managing purchase orders and vendor compliance
Cooperating with a customs broker to arrange customs documentation and clearance formalities at the point of entry
Cooperating with a customs broker to prepare customs forms to allow for temporary importation of goods, i.e., for repair or for exhibitions
Cooperating with a customs broker to reclaim duties paid on temporary importation when the goods are re-exported
Cooperating with a customs broker or agent to prepay duty and taxes where required and appropriate
The agent bears full responsibility to fulfill its contractual obligations until the shipment is finally cleared through customs and delivered to the consignee or to the consignee’s customs broker.
What is Ocean Containers of 20ft, 40ft and 40 High Cube sizes?
An ocean container is to facilitate the carriage of goods by one or more modes of transport without the need for intermediate reloading, while ensuring its ease of handling between transport modes.
The ocean container has a permanent in character, sufficiently strong in construction to allow for repeated and continual use for a number of years.
The international term TEU (twenty-foot equivalent unit) means one 20-ft container. 1 x 20-ft container = 1 TEU and 1 x 40-ft container = 2 TEUs or one FEU (forty-foot equivalent unit)
General or dry freight standard containers include:
Closed-Container
Closed: This is the basic type of container. It is end-loading (equipped with two end doors) and is used for general cargo requiring no environmental controls during transport.
40ft-high-cube-container_front
Open-top: It is used for the transport of heavy, awkward or bulky items for which loading and discharge is done with top-lifting equipment, when the use of end doors is not practical.
Open tops come equipped with either a flexible fabric tarp (“soft” or “rag top”) or a removable hard top (a detachable full-sized metal roof).
Any protrusion of cargo beyond the frame of the container would require clearance authorization from the carrier (ocean, rail or truck), as it would create an out-of-gauge (OOG) container.
Capacity of 20ft Container
20ft-Container
Dimensions of a 20ft container : 2.38m x 2.35m x 5.87m
Cartons in a 20ft container : 25-28cbm of cartons (possibly less if very large cartons – more wasted space; possibly more if fairly small cartons – less wasted space)
Weight: 28MT of maximum goods can carry
Capacity of 40ft Container
40ft-Container
Dimensions of a 40ft container : 2.38m x 2.35m x 12m
Cartons in a 40ft container : 54-58cbm of cartons (possibly less if very large cartons – more wasted space; possibly more if fairly small cartons – less wasted space)
Weight: 28MT of maximum goods can carry
Capacity of 40ft High Cube Containers
40ft-high-cube-container_front
The only difference in dimensions between a 40ft and a 40ft High Cube is that there is a little added height, which allow an extra row of goods.
A 27cm height increase, this adds up to a total extra volume of 9cbm.
Internal dimensions of 2.65m x 2.35m x 12.0m
60-68 cbm of goods will fill one (if boxed)
Weight: 28MT of maximum goods can carry
Reefer Containers
20ft-standard-reefer
Reefer containers are temperature-controlled containers equipped with mechanically powered built-in cooling and/or heating systems to maintain a preset constant temperature.
These containers are specially insulated and built with a metal interior (usually aluminum) so that air flow channels are part of the floor, walls and ceiling of the unit to allow for full air circulation and the maintenance of a uniform cargo temperature, regardless of the outside ambient temperature.
The electric power comes from ship- or shore-based sources and from portable diesel generators when moved inland by road and rail. The portable generators are usually called gen-sets and are clipped either at the front of the container or under the truck’s chassis.
New-generation reefer containers, called controlled atmosphere (CA) containers, are now available. They help slow down the ripening process of fruits and vegetables by reducing the oxygen level in the container via a controlled supply of nitrogen.
Tank and Bulk Containers
Tank-Bulk-Containers
These types of containers are owned by either the carrier or the shipper for its specific cargo.
Bulk liquid: A tank container, typically made of steel, and built within the ISO standard size frame.
Dry bulk: A container utilized for the transport of any free-flowing cargo in bulk.
Platform Containers
Platform-Containers
Platform and/or flat racks are containers that are typically without sides or ends and may have only a skeletal frame at the corners.
These units are designed for a variety of nonstandard or oversize cargo (machinery, vehicles, large or bulk items, etc.). Some of these containers are fully collapsible to allow the carrier to stack several of these together to save on space when repositioning them.
Benefits of using Ocean Containers
Faster loading/unloading
Ease of handling
Less time for a ship in port
Seamless transfer of cargo between various modes of transport
Enabling of greater inland distances to be served with the economies of scale provided by a single fully loaded container
Greater cargo security, less opportunity for theft or damage
Reduction in labor/cargo handling expenses
Savings on packaging costs
Points to note:
Most shipping lines provide containers free to shippers. In some cases, where specialized equipment is required, there may be a user fee or a positioning fee to compensate the carrier for this equipment.
Shipping line owned container fleets are supplemented when the demand is high by hiring leased units that are off hired when the demand drops.
Ocean carriers have to often move empty containers between ports and/or intermodal points to compensate for the variance in demand.
