5 Facts About Tariffs For International Air Freight Rates

5 Facts About Tariffs For International Air Freight Rates
5 Facts About Tariffs For International Air Freight Rates

Choosing a product for air travel helps businesses quickly deliver critical shipments in the event of a stock depletion or a surge in demand. Since air travel is one of the fastest modes of transport, their fares are also among the most expensive. While the quota processes and data inputs are similar to land and sea rates, there are a few key differences to be aware of to help streamline the process and make the best decision quickly.

1. Time for preparing quotes Most often, the processing time for air cargo is 12 to 24 hours, but can be as little as 2-4 hours. Regarding international air freight rates, forwarders usually have to contact overseas partners and request local rates in order to draw up an accurate quote for the end customer. This process usually happens overnight due to time zone differences.

2. Requirements for shipment details As with all modes of transportation, there are necessary shipping details that must be known before the supplier can quote air transportation. The most common shipping information needed to complete a quotation includes: Name and address of sender and recipient PC Weight (most often in kilograms) dimensions Product Is the cargo dangerous or not Date of availability and date of need Special licenses or permits Additional information required for international shipments Incoterms Customs Broker Contact Information. Check here the best air freight companies in Hong Kong.

3. How are air fares calculated Air transportation rates are calculated based on the weight or volume of the cargo, as well as the selected service. There are various service options, which essentially depend on how quickly the cargo can arrive at its final destination. Air freight rates are generally reported to the customer on a per kilogram (kg) basis plus standard charges. While the presentation of the fare structure may vary from forwarder, air fares are usually presented as total costs or itemized proposals, broken down by each charge category.When comparing tariffs, shippers should compare: Pickup costs Airfreight costs including surcharges On-site delivery cost In terms of pickup costs, forwarders either use their own trucks or outsource it to a local shipping company. The same is true on the delivery side. For major air cargo, freight forwarders usually agree with airlines on rates for common departure and destination pairs. Freight forwarders can also receive offers from airlines.

4. General additional charges for air transportation Accessories are additional fees that are charged on top of the basic shipping cost. Some of the more common air freight surcharges include: Automated Export System (AES) Filing Fee Airport service charge Airport check-in fee Airport transfer rates Dangerous goods levy Document creation fee Document transfer fee Fuel surcharges Gateway transfer fee Processing fee Inland fuel surcharge Legalization fee Letter of credit commission Commission fee Safe collection Security premium Preview fee Terminal handling fee X-ray fee

5. Trends in air fares Air fares, like other modes of transport, vary depending on current market conditions. Increases in fares are common during peak hours or seasonal events. Some of the more frequent cases in which shippers can expect rate hikes include the fourth quarter due to the holiday shopping season and the first quarter due to extended closures of factories in China during the New Year. In addition, supply chain disruptions such as COVID-19 can spike rates due to imbalances in supply and demand. Although air travel is less commonly used due to the fact that it is one of the most expensive modes of transport, it doesn’t have to be complicated. Who said logistics has to be difficult? Of course not.

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