Air Shipment is the swift, global transportation of cargo from one point to another using aircraft. While it may appear straightforward, delving into the intricacies of this process reveals its complexity. Whether air freight services are suitable for your needs, understanding the nuances, having the correct documentation to prevent delays, and enlisting the help of a professional freight forwarder are all vital considerations for a seamless experience.
This blog will provide you with a comprehensive insight into the mechanics of air freight. We will simplify the intricate process, making it accessible to all. By the end, you’ll have a clear understanding of how air freight operates and the steps involved. So, let’s take off and explore the world of air freight together!
What are the steps of the Air Shipment process?
Step 1: Preparing for Air Shipment
When considering air freight, the initial step involves requesting quotes and coordinating with your overseas suppliers to ensure they align with air transport requirements. This is a two-way process, so it’s crucial to have your supplier on board.
Key tasks at this stage include:
- Sourcing the right supplier through market research.
- Deciding on Incoterms, international terms that govern risk allocation.
- Engaging a freight forwarder to communicate with your suppliers and represent your interests.
- Handling the necessary commercial documents, which can be extensive in shipping.
While air freight is faster than ocean freight, it often comes at a higher cost. Alternatively, you can explore ocean freight or air-sea solutions, which blend air and sea transport. Your choice should align with your business’s specific needs and budget considerations.
Step 2: Grasping the Air Freight Impact
Before finalizing agreements with your supplier, it’s essential to comprehend how Air Shipment operates and its implications for your cargo transportation. This involves:
- Volumetric Ratios: Understanding that in air freight, you’re not solely paying for the weight of your cargo but also for the space it occupies in the aircraft. Larger cargo areas incur higher costs.
- Air Freight Containers: Recognizing that cargo can be shipped in various forms, such as unit load devices, palletized shipments, or loose cargo. These options have specific sizes and security regulations.
- Cargo Examination: Comprehending that air freight cargo must undergo security checks before export. These checks can be conducted at the piece level, in a consolidated form or by approved Known Consignors. Cargo screening may involve metal detectors, so plastic or cardboard pallets are preferred over wooden ones to avoid potential issues and additional repacking costs.
Step 3: Cargo Packing and Booking
In this step, it’s time to prepare your cargo and arrange the freight. Be sure to:
- Confirm Aircraft Restrictions: Consult your forwarder to understand any aircraft-specific restrictions. Your cargo must fit within the aircraft and be available for X-ray screening.
- Compare Services: Take the opportunity to compare different airfreight services.
- Select the Appropriate Route: Just like booking a flight, choose the right route for your cargo. Different airlines offer diverse routing and transit times. Consider both price and transit time to find the best fit for your needs. Remember that a significant portion of air cargo arrives on passenger aircraft, making the route selection crucial for your shipment’s success.
Step 4: Freight Forwarder Takes Charge
After your cargo is packed and freight is booked, it’s time for your freight forwarder to manage your shipment. For importing, your supplier must prepare crucial documents:
- Commercial Invoice: A vital shipping document that details the purchased items, parties involved, and the terms and conditions of the transaction.
- Packing List: Provides information on how the cargo is packed, specifying its arrangement.
- Certificate of Origin: Necessary if your import originates from a “free trade” country, helping avoid unnecessary duty charges due to free trade agreements.
- Import Permits or Manufacturer Declarations: Essential for specific product types, ensuring compliance with regulations.
- Dangerous Goods Forms: Required if the shipment includes dangerous goods classified by international organizations like IATA or IMO.
Once your flight is booked, an airway bill is generated to outline the service and carriage terms. Your goods will travel on designated services, and you can typically track their progress online through your freight forwarder, ensuring a transparent and organized process.
Step 5: Arrival and Handling
Upon arrival, your cargo goes through various stages:
- Cargo Terminal Operator: Your goods are transferred to a CTO, which has responsibilities to ensure cargo terminal security and customs compliance. The CTO segregates the cargo for collection.
- Master Airway Bill: If you’ve arranged your shipment under an MAWB, the goods are often consolidated, meaning different shipments are grouped together. Upon arrival, the cargo moves to a Customs Bond facility for deconsolidation, separating consignments for their final destinations.
- Customs Outturn Report: Customs is informed of the cargo’s arrival through an outturn report.
- Direct Airway Bill: In the case of a direct airway bill, freight is transported without a House Airway Bill. This option is ideal for immediate service needs, as cargo is not consolidated with others. Goods can be collected directly from the CTO, bypassing the deconsolidation process.
Step 6: Final Transport to the Buyer
In the last step, your goods are transported from the airport to the buyer’s location. This phase involves:
- Road or Logistics: Once the goods arrive at the airport, they are typically moved by road or through a logistics network to reach the buyer’s designated destination.
- Timely Delivery: Ensuring that the cargo reaches the buyer in a timely manner, meeting any delivery commitments.
- This step marks the culmination of the air freight process, where the cargo reaches its final destination, ready for use or distribution by the buyer.
Summary – Air Shipment, a vital component of global trade and logistics, offers swift and efficient transportation of goods across the world. This mode of freight is characterized by its speed, making it an ideal choice for businesses that require timely deliveries. However, as we’ve explored, the process of air freight can be intricate, involving various steps from initial preparation to final delivery. One notable development in the world of air freight is the partnership between air shipment and Amazon’s Fulfillment by Amazon (FBA). FBA leverages air freight to ensure that products are readily available for Amazon customers. By combining the efficiency of air shipment with Amazon’s vast distribution network, FBA enables businesses to reach a broader audience, meet demand quickly, and simplify their logistics operations.
