Handling Airfreight

Handling Airfreight
Benefits of Airfreight
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To speed delivery on:
– Perishable goods or lengthen useful market life.
– Production items, no downtime.
– Products/services seeking wider market from a fixed facility.
– Mobile production units.
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To cut inventory and storage costs:
– Where market is untested, demand undeterminable.
– Where value loss through style change or perishable can be prevented.
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Where lower levels of inventory reduce service requirements.
Benefits of Airfreight
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To take advantage of:
– Superior conditions of carriage where there is heavy or costly packaging.
– Superior conditions of carriage where there are higher insurance costs than other
transportation modes.
– Superior condition of carriage where premium handling, difficult coordination and
documents prevail in other transports.
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Airfreight permits:
– The seller to keep fewer inventories in fewer locations by responding relatively quickly to
market demands from central repositories of stock or even from the production line itself.
– Field inventories have freight, duty, administration charges and markup already attached
to them; therefore, could be more costly.
– The effects of motion and stress are less minimized to the cargo than other modes of
transport.
– Reduction of the time element in the transit from origin to destination.
Players
 Shipper to communicate their needs
 Forwarders = Indirect air carriers
 Carriers = scheduled and unscheduled
 scheduled = passenger / cargo or “all” cargo flights.
 unscheduled = Charters and extra sections during peak or busy
seasons
 Couriers = small packages, simple documentation
 US Government Agencies
Air Cargo Security and Compliance
TSA – Transportation Security Administration
The Transportation Security Administration protects the Nation’s transportation systems to
ensure freedom of movement for people and commerce. The Transportation Security
Administration will continuously set the standard for excellence in transportation security
through its people, processes, and technology,
Air Cargo Security and Compliance
The TSA is responsible for;
Law Enforcement Programs
Armed Security Officers are specially trained law enforcement officers
authorized by the TSA to fly onboard each general aviation aircraft
operating around our nation's capital.
Detection Canine Team Program
Selectively raises and prepares puppies to be future explosive detection dogs
within the National Explosives Detection Canine Team Program.
Crew Member Self-Defense
The Crew Member Self-Defense Training Program provides basic self-defense
training to crew members who volunteer for the program.
Federal Air Marshals
The Federal Air Marshal Service promotes confidence in the nation's civil
aviation system through the effective deployment of Federal Air Marshals
(FAMs) to detect, deter, and defeat hostile acts targeting U.S. air carriers,
airports, passengers, and crews.
Air Cargo Security and Compliance
Air Cargo Programs
TSA’s transportation security regime for air cargo is divided into two distinctive program
areas: 1) The Transportation Sector Network Management (TSNM) Air Cargo Division
charged with the strategic development of programs, and 2) Office of Security Operations
(OSO) charged with program compliance.
The Air Cargo Division is responsible for working across TSA, Department of Homeland
Security, and other governmental agencies (domestic and international) to develop air
cargo regulations, technological solutions, and policies that continuously enhance the
security of the air cargo supply chain while maintaining TSA’s commitment to ensure the
flow of commerce.
Air Cargo Security and Compliance
Air Cargo Environment Overview
The TSA’s vision for air cargo security is the creation of a layered solution designed to
protect against security breaches by using a combination of process along with
information and technology-based solutions, while preserving the integrity of the air
cargo supply chain. In response to possible threats to air cargo security, TSA uses a multilayered approach that includes:
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Vetting companies that ship and transport cargo on passenger planes to ensure they
meet TSA security standards.
Establishing a system to enable Certified Cargo Screening Facilities (CCSFs) to
physically screen cargo using approved screening methods and technologies.
Employing random and risk based assessment to identify high-risk cargo that
requires increased scrutiny
Inspecting industry compliance with security regulations through the deployment of
TSA inspectors.
Air Cargo Security and Compliance
Security Screening
In 2007, Congress passed the Implementing Recommendations of the 9/11 Commission Act more
commonly known as the 9/11 Act. This law requires that all cargo transported on a passenger
aircraft be screened for explosives as of August 1, 2010.
TSA continues to encourage businesses to closely examine how they ship cargo on passenger
aircraft. TSA recognizes cargo may only be a small portion of your operation, but all businesses
must consider how the new requirement has affected their operational continuity, punctuality,
and customer satisfaction.
Every shipment of cargo carried on passenger aircraft requires screening at piece level, prior to
being transported on any passenger aircraft. Skids and pallets will have to be taken apart,
screened and reconfigured. The 9/11 Act specifically identifies the types of screening allowed
ranging from physical inspection to various technologies. If airlines are forced to screen cargo,
similar to how passenger baggage is screened, there is a potential for delays and damage to
shipments. The screening process affects all cargo on passenger planes.
Air Cargo Security and Compliance
The TSA developed the Certified Cargo Screening Program (CCSP) as a solution to help industry
reach the 100 percent screening mandate. The program enables freight forwarders and shippers
to pre-screen cargo prior to arrival at the airport. Most CCSP shipper participants have been able
to quickly incorporate physical screening into their shipping process at a small cost to their
operation.
TSA continues working with companies to examine all their cargo screening options. Shippers
should contact their freight forwarders to determine if any of their products are transported on
passenger aircraft. Many freight forwarders have already joined CCSP and in many cases will be
able to help companies through the screening process.
TSA can assist you in assessing the possible impact for your supply chain, both inbound from
suppliers as well as outbound customer shipments.
Air Cargo Security and Compliance
Indirect Air Carrier (IAC)
An Indirect Air Carrier (IAC) means any person or entity within the United States not in
possession of an Federal Aviation Administration air carrier operating certificate, that
undertakes to engage indirectly in air transportation of property and uses for all or any part of
such transportation the services of a passenger air carrier. Each Indirect Air Carrier must adopt
and carry out a security program that meets Transportation Security Administration (TSA)
requirements.
Known Shipper Program
In response to the September 11, 2001 attacks on the United States, the United States
Department of Homeland Security (DHS) implemented new rules to insure the safety of domestic
and international air travel in the United States.
IATA
What is IATA?
The International Air Transport Association – works with its airline members and the air
transport industry as a whole to promote safe, reliable, secure and economical air travel
for the benefit of the world's consumers. IATA’s 230 member airlines comprise 93% of all
international traffic. IATA employs 1400 people located in 90 offices that serve over 130
countries around the world.
What does IATA do?
IATA provides a wide range of services and programs to its member airlines, the broader
aviation community and by extension the traveling public. IATA sets standards in many
areas of the business - from ticketing to baggage - that make it possible for passengers to
travel from one place to another using two or more airlines. It also leads a number of
industry initiatives involving
safety, security, environment and the quality of air travel.
IATA Terms and Conditions are found on the back of either a direct airway bill, a
house airway bill or a master air waybill. These Terms and Conditions reflect the
Carriers’ Limitation of Liability per air waybill.
What is an Air Waybill?
An “air waybill” acts as a Bill of Lading which is issued by the freight forwarder
to the shipper. This document contains information pertinent to the movement
of the cargo.
There are 3 different types of air waybills;
 Direct air waybill
 Master Air waybill
 House air waybill
House Air Waybill
HAWB (House Airway bill)
Shipments sent on a consolidation basis whereby grouping together various clients
consignments under one MAWB being issued by BDP (regular consolidation) or one
house air waybill issued by BDP (back to back consolidation).
Information shown on the air waybill:
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Master air waybill number
House Air waybill
Each air waybill will show:
Shipper (originating party)
Consignee (end receiver of goods)
Air carrier and flight information
Pieces/Weight/Dimensions of the cargo being moved
Commodity
Payment terms of shipment (collect or prepaid)
Customs information
Direct Air Waybill
A direct air waybill represents the bill of lading for the shipment and will show one
shipper and one consignee. Generally the rate structure would be higher when
using a direct air waybill and contract rates would not be applicable
Direct shipments are generally used when freight and service needs are immediate.
Freight is not consolidated with other cargo.
Examples of direct shipment would be;
 Live animals
 Perishable shipments
 Oversize cargo
 Dangerous Goods
 Human remains
 Plant shutdown situations
Master Air Waybill
While the principal of a Master air waybill is the same as a direct air waybill (one
shipper/one consignee). The shipper on the master bill represents the freight forwarder.
The consignee on the master air waybill represents the party representing the freight
forwarder at destination.
This party is usually the destination office of the freight forwarder handling the cargo.
Information shown on the air waybill;
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Master air waybill number
Each air waybill will show:
Shipper (originating party)
Consignee (end receiver of goods)
Air carrier and flight information
Total pieces and weight of the cargo being moved
Payment terms of shipment (collect or prepaid)
Customs information
Air Waybill
Terms and Conditions
House air waybill / Master air waybill
HAWB (House Air Waybill)
Shipments sent on a consolidation basis whereby
grouping together various clients consignments
under one MAWB being issued by the freight
forwarder.
Information shown on the air waybill:
 Master air waybill number
 House Air waybill
 Each air waybill will show:
 Shipper (originating party)
 Consignee (end receiver of goods)
 Air carrier and flight information
 Pieces/Weight/Dimensions of the cargo
being moved
 Commodity
 Payment terms of shipment (collect or
prepaid)
 Customs information
MAWB (Master Airway bill)
While the principal of a Master air waybill is the
same as a direct air waybill (one shipper/one
consignee). The shipper on the master bill
represents the freight forwarder. The consignee
on the master air waybill represents the party
representing the freight forwarder at destination.
This party is usually the destination office of the
freight forwarder handling the cargo.
Information shown on the air waybill:
 Master air waybill number
 Shipper (originating party)
 Consignee (end receiver of goods)
 Air carrier and flight information
 Total pieces and weight of the cargo being moved
 Payment terms of shipment (collect or prepaid)
 Customs information
Consolidation vs Direct Shipment
Consolidation Shipment
Advantage of a consolidated shipment – cost
savings
Utilizing a consolidated service guarantees the
cost effectiveness.
Cargo shipping method in which a freight
forwarder at the port of origin combines several
individual consignments. This arrangement
allows multiple shipments to be ‘consolidated’
under one master air waybill. The total weight of
the consolidation tendered to the air carrier will
drive down the cost of the total shipment.
At the port of destination, the consolidated
shipment is separated and arrangements are
made with the consignee for freight to be cleared
through local Customs and delivered to the
consignee or documents to be turned other to
another broker for clearance.
Direct Shipment
Advantage – expedited service
Disadvantage – premium cost
Some shipments with scheduled airlines (IATA
members) earn a commission from the carrier.
Forwarders acts as the 3rd party in the
transaction. Forwarders issue a direct airway
bill (AWB) which is considered to be
documentation from the shipper directly to the
consignee.
Airline has full carrier liability issues for
carriage.
What Carrier Should I Choose?
Rates and services makeup the profile for carrier selection
Depending upon the specifics of the particular shipment the following are taken into
consideration:
 Frequency of flights. Is the flight non-stop or does it have a series of stops along
the way.
 Arrival ports (consolidation and deconsolidation points in the network).
 Knowledge of the airline industry by the carrier (direct or indirect).
 Competitive rate structure.
Chargeable vs Volume Weight
Chargeable Weight
The weight of a shipment (contents and
packaging) used in determining air freight
charges. The chargeable weight may be the
dimensional weight or on container
shipments.
Volume Weight
Dimensional weight refers to the weight
per cubic foot of the cargo. The
dimensional weight would be considered
the actual amount of space the freight
takes up when loaded on a plane.
Rate Structures
Four basic categories for rates that are used in the airfreight industry:
TACT (carrier specific rates)
Commodities such as; dangerous goods, oversize cargo, perishable goods, valuable
goods, live animals would require special service provided the air carrier which would
require a higher cost be involved in the transportation of the shipment.
No carrier is permitted to charge more than the rates that have been stipulated by IATA.
ULD Rate
Pricing is based on the type of the ULD.
Each ULD will have a flat rate for the use of the ULD AND pivot rate for amounts over the
maximum allowable weight.
The tare weight is the actual weight of the ULD when it is empty. The pivot weight is
weight over the allowable weight for the container. The amount is payable to the carrier
in addition to the flat rate for the use of the ULD.
Contract rates / Ad Hoc Rates
Rates offered for specific services, commodities, flight schedule. Generally offered on a
commitment or space available basis.
Rates are expressed in the currency the origin of the cargo and are not
restricted to specific customers.
Carrier Tariff Rates
Carrier specific tariff rates apply for specific commodities, services levels, special
handling, specific flights.
Specific commodities would be:
Dangerous goods, oversize cargo, perishable goods, valuables, medical reagents, human
remains, live animals, temperature sensitive products.
Specific flight – does the flight go directly from the airport of departure to the airport of
destination?
Special handling – additional handling would be needed if the shipment needed to be
placed in an area of the plane that is not considered to be general cargo.
No carrier is permitted to charge more than the rates stipulated by IATA. Rates regulated
by IATA are called Tact Rates.
What Types of Air Carrier to Choose?
Rates and services makeup the profile for carrier selection.
 Frequency of flights. Is the flight non-stop or does it have a series of stops along
the way.
 Arrival ports (consolidation and deconsolidation points in the network).
 Knowledge of the airline industry by the carrier (direct or indirect).
 Competitive rate structure.
Packaging
All cargo is containerized for flights
Cargo can be tendered to the carrier as loose pieces or containerized cargo.
Cargo is then loaded on the aircraft in ULD’s (Unit Load Devices) or on flat pallets
(similar to a cookie sheet)
There are approximately 20 different sizes of ULD’s or pallets utilized by air carriers.
The type of ULD or pallet used will depend upon the cargo configuration of the aircraft
used for transportation and whether or not the ULD or pallet is designed for use on the
main or lower deck of the aircraft.
Main deck ULD’s would be carried in the cabin section of a cargo aircraft, or on the
passenger carrying level of passenger aircraft.
Lower deck ULD’s are designed to be carried below the main (cabin) deck.
Unit Load Device/Airline Pallet
Aircraft Unit Load Device – ULD is an assembly of components consisting of any of the
following:
1. Aircraft container
2. Aircraft pallet and pallet net
3. Aircraft pallet and pallet net over a nonstructural container or igloo
The purpose of the unit load device (ULD)is to enable individual pieces of cargo to be
assembled into a standard-size unit to facilitate efficient loading and unloading of aircraft
having compatible handling and restraint systems.
ULD’s are primarily used on wide body aircraft. Wide-body aircraft are also used for the
transport of commercial freight and cargo.
Unit Load Device/Airline Pallet
Aircraft Unit Load Device – ULD is an assembly of components consisting of any of the
following:
1. Aircraft container
2. Aircraft pallet and pallet net
3. Aircraft pallet and pallet net over a nonstructural container or igloo
The purpose of the unit load device (ULD)is to enable individual pieces of cargo to be
assembled into a standard-size unit to facilitate efficient loading and unloading of aircraft
having compatible handling and restraint systems.
ULD’s are primarily used on wide body aircraft. Wide-body aircraft are also used for the
transport of commercial freight and cargo.
ULD’s are designed to accommodate many types of cargo. Some units are:
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Temperature controlled for such perishable items as pharmaceuticals, medical
reagents, food stuffs
Designed to handle garments which are placed on hangers.
Designed to carry such commodities as live animals, high value goods, human
remains, dangerous goods.
Automobiles and oversize cargo would be placed on a “flat pallet.”
Lower Deck / Lower Deck Containers
Lower deck is considered to be the lowest cargo holding area of a plane.
A lower deck container is specifically designed as an integral part of the aircraft to fit in
the cargo compartment of a wide body aircraft. Lower deck containers generally have
smaller base dimensions than upper deck containers as a result of the curvature of the
airplane body.
Upper Deck / Upper Deck Containers
Upper Deck (main deck) is to be considered the highest deck on an aircraft. Since a
great deal of cargo is carried on commercial passenger flights, there are generally more
lower deck than upper deck containers.
The main deck of cargo planes are 79 to 96 inches tall. ULDs with footprints similar to
those of 88 inches or 96 inches wide pallets and 62 inches or 125 inches long. A 62-inch
wide x 88-inch tall ULD is half the volume of a 125-inch x 88 inch pallet. The 20 foot
pallet is 238 inches long and 96 inches wide.
There several common types of contoured main deck ULDs, that are contoured (curved to
fit in the plane) to provide as much cargo volume as possible. Upper deck ULDs are just
like lower deck ULDs that are either the full width of the plane with two corners of the
profile removed.,
Main Deck ULDs and pallets are not only taller than lower deck ULDs, they are
frequently two or four times longer.
Many air cargo companies use main deck ULDs that have both features called dualprofile, so that on small planes such as the Boeing 727, they are stored widthwise and
have two corners contoured, and on the bigger Boeing 767, they can be rotated 90
degrees and shipped in parallel like LD3s, so that only one corner is contoured when
being used like an LD3. This greatly simplifies transportation of cargo containers at slight
cost of cargo volume.
Combi Aircraft
In commercial aviation, the term “combi” refers to versions of various aircraft that can be
used for either passenger, as an airliner would, or cargo duties, as a freighter would, and
often have a partition in the aircraft cabin to allow both uses at once. Combi aircraft
typically feature an oversized cargo door, as well as tracks on the cabin floor to allow the
seats to be added or removed quickly. Typically, configured for both passenger and cargo
duty, the passenger compartment is pressurized to a higher pressure, to prevent fumes
from cargo entering the passenger area.
Combi aircraft is often used to move live animals such as baby chicks, horses or livestock.
Each animal has an individual area in the plane that is accessible to their handlers.
Cargo Aircraft
A cargo aircraft is a fixed-wing aircraft designed or converted for the carriage of goods,
rather than passengers. They are usually devoid of passenger amenities, and generally
feature one or more large doors for the loading and unloading of cargo. Freighters may be
operated by civil passenger or cargo airlines, by private individuals or by the armed forces
of individual countries. However most air freight is carried in special ULD containers in
the cargo holds of passenger aircraft.
Aircraft designed for cargo flight use have a number of features that distinguish them
from conventional passenger aircraft: a "fat" looking fuselage, a high-wing to allow the
cargo area to sit near the ground, a large number of wheels to allow it to land at
unprepared locations, and a high-mounted tail to allow cargo to be driven directly into
and off the aircraft.
Antonov
The Antonov is a strategic airlift jet aircraft. It is the world's largest ever seriallymanufactured cargo airplane.
Weights: Maximum take-off weight: 286,000lb (130,000kg). Empty weight: 145,500lb
(66,000kg). Maximum payload: 103,600kg.
Dimensions: Length 133ft 0in. Wingspan 144ft 61/2in. Height: 53ft 13/4in.
Accommodation: Three flight crew (two pilots and a flight engineer) plus loadmaster,
although it can be converted for two-crew operation. Pressurized cargo compartment will
accommodate a wide range of rigid or flexible pallets, containers, unpacked freight,
wheeled or tracked vehicles or seat up to 170 troops."
Contact information
Contact: Anne Kelly
Phone: 215-629-4502
Mobile: 215-888-5627
Email : [email protected]
BDP International
510 Walnut Street 13th Floor
Philadelphia, Pa. 19106
To download today’s presentation please make note of the following link:
http://www.bdpinternational.com/about-bdp/customer-support/resource-center/
Next session: Anti-Dumping March 10, 2016
Handling Airfreight