Airfreight Pricing

Second Review Airfreight Matters
Business Analysts
part of Freight Matters Canada
Series
An introduction to
Airfreight Pricing
August 31, 2009 Copyright©2009Second Review

Business Analysts
Index
Second Review
Business Analysts
• Introduction • ULD Pricing

• Benefits • ULD 2
• Airfreight rates • ULD 3
• Origin pricing • ULD 96 inches
• Airport /Airport pricing • ULD 9
• Destination Pricing • ULD 8
• Chargeable Weight Calculation • Airport Codes
• Glossary
• Contact Us

Business Analysts
Second Review
Business Analysts
Introduction
The use of airfreight to move cargo on a regular

basis is a 20th century phenomenon for 20th
century products and onwards.
This has changed the world of the supply chain

forever from the previous century. The benefits
are numerous…

Business Analysts
Benefits
Second Review
Business Analysts
• Faster transit times, resulting in lower risk of damage to cargo.
• “Just in time” supply chain processes reducing the size of the

consignment and the amount of capital outlay. Importers buy
only what is needed to fulfil their sales.
• Cleaner environment for susceptible cargo such as

pharmaceuticals, electrical components, motherboards.
• More markets are reached as the traditional surface barriers are

reduced.
• Significant reduction of loss for perishables, enabling fish,

flowers vaccines, produce, live animals to reach more
destinations intact.

Business Analysts
Airfreight Rates
Second Review
Business Analysts
• Airlines and forwarders normally offer

A loose rate per Kg or 6 dm3 (1 Cbm = 166 Kgs), from an
airport to airport basis.
• A forwarder may provide a flat general non – hazardous rate

per Kg. subject to a minimum, or provide weight breaks,
Minimum, under 45 Kgs, over 45 Kgs , over 100 Kgs, over 300
Kgs, over 500 Kgs, over 1000 Kgs. Forwarders sometimes
have their own consolidations which are specific flights and
space pre-booked from a specific origin.
• An airline would provide rates based on TACT ( The Air Cargo

Tariff) based on commodities and weight breaks (as above) and
is the standard tariff for international movements. An airline
would offer service on a first available flight basis but is often
more expensive.

Business Analysts
Pricing
Second Review
Business Analysts Origin Charges
(Currency of the origin country)
• Pick up & Haulage *1

• Documentation Fee
• Aviation Security –X-Ray *1
• Export Clearance * 2
• Export Handling i.e.. airline terminal charge *1
• ACI charge *2
*1 Rate per Kg. Subject to a Minimum

*2 Flat Rate per shipment

Business Analysts
Pricing
Second Review Airport to Airport
Business Analysts
(Currency of the origin country)
• Airfreight *1
• Fuel Surcharge *1
• W.R.I. (War Risks Insurance) *1
* 1 Rate per Kg. Subject to a Minimum

* 2 Flat Rate per shipment
weight/volume relationship normally 1 Kg = 6 dm3

Business Analysts
Pricing
Second Review
Business Analysts Destination Charges
(Currency of the destination country)
• Navcan Fee *1 (applicable to Canada)

• Airline Terminal Charges *1
• Documentation Fee
• Customs Clearance *2
• Delivery * 1
* 1 Rate per Kg. Subject to a Minimum

* 2 Flat Rate per shipment

Business Analysts
Chargeable Weight
Second Review Calculation
Business Analysts
The formula for calculating the dimensional weight for all commodities is 166
cubic inches per pound (6000 cubic centimeters per kilogram or 366 cubic
inches per kilogram).
Multiply the length by the width by the height to obtain the cubic inches (cm).
• To obtain the dimensional weight in kilograms, divide the cubic inch result by
366.
• To obtain the dimensional weight in pounds, divide the cubic inch result by
166.
• To obtain the dimensional weight in kilograms, divide the cubic centimeter
result by 6000.
If the dimensional weight is greater than the actual weight, freight will be
charged on the dimensional weight.
Business Analysts
ULD Pricing (1)
Second Review
Business Analysts
A Unit Load Device rate (ULD) . These are airfreight

containers, and are specially configured for the
aircraft. There are many different types, with
different weight and dimension restrictions but not all
are offered by every airline and at every airport.
This is dependent on supply, aircraft type.

Business Analysts
Second Review ULD Pricing (2)
Business Analysts
Retailers of high value products, Specialized Food

Importers Pharmaceutical companies would be some
of the companies likely to utilize ULD’s to isolate
their products from the mix of general cargoes.

Business Analysts
Second Review ULD Pricing (3)
Business Analysts
ULD’s are priced differently according to their

configurations, maximum loads as well as availability.
Normally there is a flat rate up per unit to a pivot weight,

e.g. 600 Kgs, 1300 Kgs etc., and then a flat rate per Kg.
thereafter. Surcharges as well as origin and destination
charges are extra.
The following slides indicate just some of the ULD’s in

use today.

Business Analysts
ULD LD2
Second Review
Business Analysts
LD2 Half Size Lower Deck Container

(DPN, DPE Series)
8D Note: The RC8D is carried on the

Rate Classification B767-200 and B767-300
Maximum Net Weight 1,165 kg (2,568 lb)
Tare Weight 92 kg (202 lb)
Maximum Gross
1,225 kg (2,700 lb)
Weight
Approx. Internal
3.4 m3 (120 ft3)
Volume
977 kg/m2 (200
Floor Loading Limit
lb/ft2)

Business Analysts
ULD LD3
Second Review
Business Analysts
LD3 Half Size Lower Deck Container (AVE,

AVN, AKE, AKN Series)
8
Rate Classification
Note: The RC8 is carried on the A340,
Maximum Net Weight 1,490 kg (3,285 lb) A330 and B777-300

Maximum Gross
1,588 kg (3,500 lb)
Weight
Approx. Internal
4.13 m3 (146 ft3)
Volume
977 kg/m2 (200
Floor Loading Limit
lb/ft2)

Business Analysts
Second Review
ULD 96 in Lower Deck
Business Analysts
96” Lower Deck Contour Pallet With Net

(PMC Series)
Note: The RC5 (PMC Series) is carried on
5 the B767-200, B767-300, A340, A330,
Rate Classification B777-200 and B777-300
Maximum Net
4,978 kg (10,975 lb)
Weight
Maximum Gross
6,804 kg (15,000 lb)
Weight
Volume 11.70 m3 (415
Approx. Internal
ft3)
1,465 kg/m2 (300
Floor Loading Limit
lb/ft2)

Business Analysts
ULD LD9
Second Review
Business Analysts
Full Size Lower Deck
LD9 Full Size Lower Deck Container

(AA2, AAP Series)
Note: The RC5 (AA2, AAP Series) is
5 carried on the B767-200, B767-300, A340,
Rate Classification
A330, B777-200 and B777-300
Maximum Gross
5,100 kg (11,244 lb)
Weight
Approx. Internal
10.6 m3 (374 ft3)
Volume
1,465 kg/m2 (300
Floor Loading Limit
lb/ft2)

Business Analysts
Second Review
ULD LD8
Business Analysts
LD8 Full Width Lower Deck Container

(ALN, DQN, DQF Series)
6A Note: The RC6A is carried on the B767-200

Rate Classification and B767-300
Maximum Gross
2,449 kg (5,400 lb)
Weight
Approx. Internal
6.85 m3 (242 ft3)
Volume
977 kg/m2 (200
Floor Loading Limit
lb/ft2)

Business Analysts
Second Review
Airport Codes Canada
Business Analysts
• YXX Abbotsford YND Gatineau Hull YOW Ottawa Intl
• YBC Baie Comeau YYR Goose Bay YRO Ottawa Rockcliffe
• YBA Banff YQU Grand Prairie YWA Petawawa
• XBR Brockville YHZ Halifax Int’l YPQ Peterborough
• YYC Calgary YHM Hamilton YPA Prince Albert
• YHG Charlottetown YEV Inuvik YQB Quebec Intl
• YYQ Churchill YKA Kamloops YQF Red Deer
• YCA Courtenay YYU Kapuskasing YZR Sarnia
• YDA Dawson City YQW Kenora YXE Saskatoon
• YHD Dryden YGK Kingston YYT St. John’s
• YED Edmonton Int’l YKF Kitchener YQT Thunder Bay
• YXD Edmonton Mun. YQL Lethbridge YYZ Toronto Pearson
• YFO Flin Flon YXU London YTZ Toronto Island
• YAG Fort Frances YXH Medicine Hat YVR Vancouver Intl
• YFC Fredericton Mun. YLP Moncton YYJ Victoria Intl
• YMM Fort McMurray YUL Montreal Dorval YWG Winnipeg Intl
• YQX Gander YMX Montreal Mirabel YQI Yarmouth
• YGP Gaspe YMJ Moose Jaw YZF Yellowknife
YCD Nanaimo
YYB North Bay
Search for Worldwide Airport Codes online:

http://www.nationsonline.org/oneworld/airport_code.htm

Business Analysts
Glossary
Second Review
Business Analysts
All Cargo Aircraft An aircraft that is designed for cargo only and does not carry
passengers. Flights tend to be limited and many hazardous materials are limited to
this type of carriage.
Airway bill AWB Airfreight bill of lading for domestic and international transport that
can be used for legal tender in documentary credit situations.
AOG Aircraft on Ground – This is a service designation, for aircraft spares and parts
that are required immediately in order to enable an aircraft to fly. Priority and after
hours service are often involved.
Apron The area of the airport where aircraft are parked for loading/unloading
HAWB (House airway bill) . An airway bill issued by a freight forwarder
NAVCAN Canada’s civil air service provider, governing navigation, weather information,
traffic control. A fee per Kg is charged for all freight in and out of Canada by Air.
LD3 Lower deck container. Commonly used in passenger aircraft.
Main Deck. The deck on which the major portion of payload is carried, normally known
Upper Deck of an airplane. The full cargo freighter aircraft has it entire upper deck
equipped for main deck type of containers/pallets while Combi aircraft uses it rear part of
the upper deck for cargo loading. There is no upper deck or main deck type of
container/pallet at passenger aircraft.
MAWB (Master airway bill). An airway bill issued by an airline.

Business Analysts
Contact us
Second Review
Business Analysts
Presented by
Second Review
Business Analysts
http://www.secondreview.ca
info@secondreview.ca
Toronto, Ontario, Canada

Business Analysts

Airfreight Pricing

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Second Review Airfreight Matters

August 31, 2009 Copyright©2009Second Review

• Introduction • ULD Pricing

August 31, 2009 Copyright©2009Second Review

The use of airfreight to move cargo on a regular

This has changed the world of the supply chain

August 31, 2009 Copyright©2009Second Review

• Faster transit times, resulting in lower risk of damage to cargo.

• “Just in time” supply chain processes reducing the size of the

• Cleaner environment for susceptible cargo such as

• More markets are reached as the traditional surface barriers are

• Significant reduction of loss for perishables, enabling fish,

August 31, 2009 Copyright©2009Second Review

• Airlines and forwarders normally offer

• A forwarder may provide a flat general non – hazardous rate

• An airline would provide rates based on TACT ( The Air Cargo

August 31, 2009 Copyright©2009Second Review

• Pick up & Haulage *1

*1 Rate per Kg. Subject to a Minimum

August 31, 2009 Copyright©2009Second Review

(Currency of the origin country)

* 1 Rate per Kg. Subject to a Minimum

weight/volume relationship normally 1 Kg = 6 dm3

August 31, 2009 Copyright©2009Second Review

(Currency of the destination country)

• Navcan Fee *1 (applicable to Canada)

* 1 Rate per Kg. Subject to a Minimum

August 31, 2009 Copyright©2009Second Review

A Unit Load Device rate (ULD) . These are airfreight

August 31, 2009 Copyright©2009Second Review

Retailers of high value products, Specialized Food

August 31, 2009 Copyright©2009Second Review

ULD’s are priced differently according to their

Normally there is a flat rate up per unit to a pivot weight,

The following slides indicate just some of the ULD’s in

August 31, 2009 Copyright©2009Second Review

LD2 Half Size Lower Deck Container

8D Note: The RC8D is carried on the

August 31, 2009 Copyright©2009Second Review

LD3 Half Size Lower Deck Container (AVE,

Tare Weight 98 kg (215 lb)

August 31, 2009 Copyright©2009Second Review

96” Lower Deck Contour Pallet With Net

August 31, 2009 Copyright©2009Second Review

LD9 Full Size Lower Deck Container

August 31, 2009 Copyright©2009Second Review

LD8 Full Width Lower Deck Container

6A Note: The RC6A is carried on the B767-200

August 31, 2009 Copyright©2009Second Review

Search for Worldwide Airport Codes online:

August 31, 2009 Copyright©2009Second Review

August 31, 2009 Copyright©2009Second Review

August 31, 2009 Copyright©2009Second Review

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