Understanding Air Freight Rates (Part 2)

In the dynamic world of international trade and logistics, air cargo plays a pivotal role in ensuring goods reach their destinations swiftly and efficiently. However, a set of rules and regulations known as air cargo tariffs and rules governs this rapid movement of cargo through the skies. In this blog, we will explore the significance of these rules and their impact on air cargo costs.

Understanding Air Cargo Tariffs and Rules

When it comes to shipping goods by air, understanding air cargo tariffs and rules is essential for a seamless and cost-effective experience. These guidelines govern the cost and handling of each consignment shipped by air. Let’s delve into the key aspects:

What Is Freight?

Freight refers to the commercial shipment of goods, including the cost associated with it. It encompasses not only the product or merchandise but also the amount due or the money charged for the shipment.

What Is Cargo?

Cargo refers to goods typically shipped by ship or aircraft. Unlike freight, it does not have as many uses and is a straightforward term that identifies the goods being transported.

Air Cargo Tariffs: A Deeper Dive

Each air carrier or the industry level determines air cargo tariffs. They are openly accessible and serve as the foundation for calculating airwaybill ratings and pricing special commodities. Most countries require airlines to openly file tariffs with the relevant air transportation agency.

Air Cargo Rules: Navigating the Criteria

Air cargo rules encompass specific criteria that must be met in the shipping and handling of air cargo. These criteria can include city, country, or carrier rules, as well as codes for airlines, cities, and airports. Knowing these rules is crucial to ensuring compliance and the acceptance of your shipments.

When to Choose Air Freight

Air freight shines when speed and efficiency are paramount. It is the preferred option for overseas shipping, especially for time-sensitive, temperature-controlled, or perishable goods. Its benefits include:

• Swift transportation
• Reliability
• Global accessibility
• Reduced risk of theft or damage
• Lower insurance costs
• The Ever-Changing Landscape of Air Freight Prices

Various factors, including oil prices, government restrictions, and geopolitical concerns, constantly fluctuate international air freight prices. The ongoing COVID-19 pandemic has also led to significant increases in air freight prices, primarily due to capacity constraints.

In conclusion, air cargo tariffs and rules are the guiding principles that underpin the world of air freight. By comprehending their significance and staying informed about ever-changing market conditions, businesses can navigate the skies of international trade with confidence and efficiency, ensuring their cargo reaches its destination safely and swiftly.