Freight Tutorial - your knowledge base
Here we collected an useful information regarding all types of freight transport, as well as the legal framework for customs clearance.
Our experts are always ready to support you with every step and any issues!
What does "chargeable" weight mean?
Let's start with the fact that all airline's freight rates are based on a "chargeable weight". According to the rules of the International Association of Carriers IATA, "chargeable" weight is the highest value between volumetric and actual weight.
Physical weight - gross weight, ie the actual weight in kg.
Volumetric weight - a value that indicates the amount of space occupied by cargo on an aircraft (based on 6 000 cubic cm per one kilogram).
How to calculate "chargeable" weight of cargo:
Assume you have the goods: two boxes with tools
Gross weight of each box - 60 kg
Dimensions of each box (LxWxH): 0,40x0,50x0,30cm
Step 1: find total gross (actual) weight of the cargo
The total gross (actual) weigth of the cargo: 60kg * 2 boxes=120kg
Step 2: use formula to calculate volumetric weight of the cargo
LxWxH x Quantity of pieces (in our case there are two places - 2 boxes) / 0.006
0.40 * 0.50 * 0.30 * 2=0.12 / 6000=20kg
Step3: compare total gross (actual) and volumetric weights of the cargo. The highest value would be considered as chargeable weight:
120 kg (total gross weight) greater than 20 kg (volumetric weight).
120 kg will be considered as "chargeable weight" on which airfreight rate would be based.
Good to know! If the packaging has cylindrical form (tube, roll, barrel, etc.), the volumetric weight is calculated by the formula:
(Radius * Radius * 3.14 * Height) / 0.006
Depending on measurements of cargo, nature and weight, your cargo can be transported at passenger or freighter aircraft.
Fleet of cargo aircraft have been operated by such companies as AirBridgeCargo, Lufthansa, Korean Air, Air France and others.
Characteristics of the main types of passenger aircraft:
Characteristics of the main types of freighter aircraft:
Air cargo pallets and containers specification
B/L BILL OF LADING
Legal document representing ownership of cargo, evidencing a contract of carriage by sea and also negotiable document to receive cargo.
Shipper is responsible for shipping details stated in B/L
Place located at port terminal area for storing, receiving, delivering containers before / after their further shipment.
Carrier Owned Container
Shipper Owned Container
The loading of cargo into a container.
Non-containerized cargo. Loose cement, grains,
ores, etc., are termed bulk cargo, whereas cargo shipped as a
unit (bags, bales, barrels, boxes, cartons, drums, pallets, sacks,
vehicles, etc.) is termed break bulk.
Vessel used for local or short sea routes for transportation of cargo between ports which are not serviced by the main ocean vessels.
Port of delivery
Port of loading
BAF ("Bunker adjustment factor")
A fuel surcharge expressed as a percentage added or subtracted from the freight amount, reflecting the movement in the market place price for bunkers.
Origin terminal handling charges
Destination terminal handling charges
Charge made by container owner and/or terminal operators for delivery of a leased, or pool container into depot stock. The dropoff charge may be a combination of actual handling and storage charges with surcharges.
Extra charge paid for failure to load or remove goods from container yard within allowed/free time period.
Freight and charges be paid by the consignee
Freight and charges to be paid by the shipper.
Currency Adjustment Factor - depended to fluctuations in exchange rates of tariff currencies, affect on shipping lines freight rates
ISPS OR SEC
Full container load
Less container load
Cargo, cosisting of goods, packed in crates,
bags, packed as looses boxes or palletized.
FIFO (free in free out)/FIOS
Sea freight tariff includes sea/ocean shipment only.
Loading and discharging costs excluded from the tariff.
FILO (free in liner out)
Sea freight tariff includes sea/ocean shipment to the port of destination and discharging costs.
Loading costs excluded from the tariff.
LIFO (liner in free out)
Sea freight tariff includes loading costs and sea/ocean shipment to the port of destination.
Discharging costs excluded from the tariff.
LILO (liner in liner out)
Sea freight tariff includes loading costs, sea/ocean shipment to the port of destination, discharging costs.