Introduction to Airfreight

Myths?

Airfreight is only used for emergencys and small consignments.

I never plan airfreight shipments.
Airfreight is too expensive.
Its too complicated.

FACT

Air shipping is often a standard practice, with emergencies representing

only 10% of shipments, and is projected to continue to grow.
International Logistics Quality Institute

Why airfreight?

Airfreights potential world wide

Air Cargo Transport ~

20%
$45 billion annual sales

Distribution Logistics ~
80%
$180 billion annual sales

Air Logistics Total 100%

$225 billion annual sales
Source: Boeing World Air Cargo Forecast

Macro Economics

Key and Strategic markets to focus

EXPORTS

IMPORTS
Germany

USA
Germany
Spain
France
UK
Denmark

China
USA
Japan
Korea
Singapore
France
Italy

What are the commodities

airfreighted

Industry and consumer electronics

Finished Apparels
Semi Conductors
Ship spares
Machinery parts
Industrial Equipment
Pharmaceuticals/Vaccines
Fruits and Vegetables
Jewellery (Gold/Gem/Silver)

Airfreight- Basics

All airlines and airfreight forwarders are governed by an international

regulatory body- IATA (International Air Transport Association) based
in Netherlands.
Air shipments acceptance are as per the rules laid down by IATA in their
Air Cargo manual.
Computation of charges The chargeable weight is the gross weight or
volume weight whichever is higher.
Volume weight = lxbxhxno of pcs (cms /inches)
6000(cms) / 366 (inches)
1cbm~167Kg

Case Study - 1

Calculate the chargeable weight of the foll:

A shipment containing machinery parts has to be airlifted from Shanghai
Airport in China to Chennai Airport in India. The specifications are as follows:
Pieces : 5 boxes
Weight : 750Kg
Dimensions (mm) : 1100x750x650
Answer : 750Kg

Case Study -2

Calculate the chargeable weight of the foll:

A pharmaceutical consignment from Mumbai to London is to be airfreighted as
per the below details
Pieces : 50 boxes
Gross Weight : 450Kg
Dimensions (cm) : 60x60x30
Answer : 900Kg

Airfreight- Basics -Rate Class

In Airfreight, the rates are charged on basis of the weight breaks applicable.
The different weight breaks are:
Min
-45Kg (Normal)
+45Kg
+100Kg
+300Kg
+500Kg.
All airlines have published tariffs for all weight breaks which is usually valid for
6months. IATA agents are paid 5% commission on the published tariff.
For +500Kg, airlines provide spot rates with short validity (~1-2 weeks)

Airfreight- Basics - Due Carrier Charges

Apart from the freight there are other charges which are charged by the
airlines. These charges are:
Fuel Surcharges : Code-FSC
Security Surcharges: Code- SSC/WSC
X-Ray Code XRY

Airfreight- Basics - Products

Every airlines offer a variety of products designed to cater to industry

requirements. Airlines charge premium rates based on the product
requirements.
Express
Standard
Heavy
Perishables
Pharmaceutical (Temp Sensitive)
Live Animals
Dangerous Goods
Odd Dimension Cargo.

Documentation : The Air Waybill

The Air Waybill (AWB)

Made out on behalf of the shipper
Evidences the contract between the shipper and carrier(s) for carriage of
goods over routes of the carrier (s).
The AWB is a non-negotiable document
The Conditions of Contract are on the reverse side of the AWB.
The AWB combines several purposes:
Documentary evidence of the conclusion of the contract of carriage
Proof of receipt of the goods for shipment
Freight bill
Guide to carriers
consignment

staff

in

handling,

dispatching

and

delivering

the

Origin

Shipper Details
Consignee Details

Currency

Freight Forwarder details

Accounting information
Airport of
Origin

Flight Details
Freight
Charges

Destination
Marks and Nos information
No of Pcs
Weight
(kg)

Chargeable
Weight

Rate/
Kg

Total

Description of
Goods
Incl
Dimensions

Other Charges

Prepaid
Charges

Signature of Shipper/Agent

Collect Charges

IATA Agent
Stamp
Date

Place

Dangerous Goods Regulation (DGR)

Safety. Its our native tongue

Depending on the hazard type, Dangerous Goods are classified into 9 classes:
Class 1: Explosives
Class 2 : Gases
Class 3 : Flammable Liquid
Class 4 : Flammable Solids
Class 5: Oxidising Substances
Class 6 : Infectious Substances
Class 7: Radioactive Materials
Class 8: Corrosives
Class 9: Miscellaneous Dangerous Goods

Class 1 Explosives

Mass Explosion

Mass Explosion

Blasting Agents

Crackers

Insensitive Explosives

Ammunition

Class 2 -Gases

Flammable Gases: Gases which ignite on contact with ignition

source eg Hydrogen

Non-Flammable Gases: Gases which are neither flammable

nor poisonous eg rocket fuel such as nitrogen

Poisonous Gases: Gases liable to cause death or serious

injury to human health if inhaled; examples are fluorine,
chlorine, and hydrogen cyanide.

Class 3 Flammable Liquids

Liquids which ignite on contact with ignition source eg

Petrol.

Class 4 Flammable Solids

4.1 Flammable Solids: Solid substances that are easily

ignited and readily combustible e.g. strike-anywhere
matches).

4.2 Spontaneously Combustible: Solid substances that

ignite spontaneously e.g. white phosphorus

4.3 Dangerous when Wet: Solid substances that emit a

flammable gas when wet or react violently with water
(sodium, calcium, potassium, calcium carbide).

Class 5 Oxidizing Agents and Organic

Peroxides

5.1 An oxidizer is a material that may, generally by

yielding oxygen, cause or enhance the combustion of
other materials.
e.g. ammonium nitrate, hydrogen peroxide

5.2: Organic Peroxides is any organic compound

containing oxygen (O) in the bivalent -O-Ostructure and which may be considered a derivative
of hydrogen peroxide, where one or more of the
hydrogen atoms have been replaced by organic
radicals e.g. benzoyl peroxides

Class 6 Toxic

6.1 Toxic substances which are liable to cause death

or serious injury to human health if inhaled,
swallowed or by skin absorption (potassium
cyanide)

6.2 Biohazardous substances e.g. virus cultures,

pathology specimens, used intravenous needles

Class 7 Radioactive Substances

Radioactive substances comprise substances or a combination of

substances which emit ionizing radiation (e.g. uranium, plutonium).
Depending on the specific activities, RAM are divided into 2 types White,
Yellow II and Yellow III

Class 8 Corrosives

Corrosive substances are substances that can dissolve organic tissue or

severely corrode certain metals e.g. Acids such as Hydrochloric Acids

Class 9- Miscellaneous

Hazardous substances that do not fall into the other categories (asbestos, self
inflating life rafts, dry ice).

Shippers Declaration for Dangerous

Goods

The IATA Shipper's Declaration is used in air freight. Under no circumstances should
the declaration be completed and/or signed by a consolidator, a forwarder or an
IATA cargo agent. It contains such information as the names and addresses of the
shipper and consignee, airport of departure, airport of destination, dangerous goods
identification (proper shipping name, class or division, UN or ID number), subsidiary
risk, quantity and type of packing, additional handling information, and name/title of
signatory

Adobe Acrobat
Document

Aircraft Types

2 Types of Aircraft Narrow Body and Wide body

Narrow body aircraft types : B737, A320,A321. Used for short haul
flights. Flying time 2-3 hours.
Wide Body aircraft types : B767,B747,B777, 300,A319,A330,A340,MD11,
Medium to Long haul flights. Flying time 4-16
hours.

Aircraft Cross section

B747

Aircraft Dimensions

Unit Load Devices

A unit load device or ULD is a pallet or container used to load luggage, freight
and mail on wide body aircraft. It allows large quantity of cargo to be bundled
into a single unit. Since this leads to fewer units to load, it saves the crew
ground time and effort apart from preventing flights delays.
ULD pallets are rugged sheets of aluminum with rims designed to lock onto
cargo net .
ULD containers, are enclosed units made of aluminum walls.

ULD Containers Lower Deck

LD3 AKE/AVA
Dims 61.5x 60.4x 64in

LD7 - AMP
Dims 318x244x64in

ULD Containers Main Deck

AMA 125x96x96in

AMD 125x96x118in

ULD Pallets

Lower Deck Pallet

PAG/PAJ/P1P -125x88x62in
PMC/P6P 125x96x62in

Main Deck Pallet

PGE -238.5x96x96inches (20 ft)

Case Study-3

A shipment having dimensions 106x80x40cm and having a gross weight of

1600Kg has to be loaded onto to a PMC pallet (318x244cm) which would be
transported on a passenger aircraft (max permissible height 160cm)
Find the number of pieces that can be loaded on this ULD.
Answer : 36.

Aircraft Loading

Freighter Main Deck cross section

Heavy Lift

Thank You