CARGO

PROCESSES & CALCULATIONS

AIR CARGO AGENCY

The Air cargo industry now represents a vital part of the International
Transportation System, essential to world trade, especially with the
introduction of wide body and freighter (all cargo) aircraft.
Ocean Freight companies ,looking far into the future, started to
perform AIR CARGO as a minor function within their organizations
and now ,air cargo agencies have become either independent firms
devoted mainly to forwarding cargo by air, or important departments
of multi modal enterprises.
Air Cargo Agencies have become intermediaries between
shippers/consignees and airlines, performing a wide and varied
range of services, acting as IATA cargo agents as well as
consolidators.
IATA airlines have set minimum requirements for professional
background in staff, equipment and capital investment. Approved by
IATA,they are called registered IATA cargo agents.

IATA CARGO AGENT

An IATA cargo agent is a freight forwarding agent, registered
by IATA to act as agent on behalf of appointing IATA airlines.
As an agent he must have adequate knowledge of operations
like-LIVESTOCK,DANGEROUS
GOODS,INSURANCE,DAMAGE
To get IATA registration ,the applicant must provide evidence
of his ability to develop air cargo business, must have
competent staff, adequate facilities, knowledge of
documentation etc.

RIGHTS & OBLIGATIONS

OF IATA CARGO AGENTS
Can obtain stocks of air way bills and credit facilities from
airlines
Can be appointed as an agent of an airline
Receives commission from IATA airlines on export cargo
Required to present shipments to the airlines as READY
FOR CARRIAGE
Must pay all freight accounts within a stipulated time

RIGHTS & OBLIGATIONS

OF IATA CARGO AGENTS
Assisting the shipping public with information related to
requirements in importing countries
Providing facilities and security processing for the acceptance or
collection of export shipments from shippers
Arranging pick up from shippers premises
Preparing airline documentation completing Air Waybill including
all charges, Invoices and commercial documentation
Checking that export and import licenses (at destination) are in
order and comply fully with government regulations
Complete packing certificates shippers declaration
Insurance for customers
Arranging transportation of the goods, booking space with airlines
Tracing the movement of consignments

AIR FREIGHT FORWARDER

(CONSOLIDATOR)
The consolidator is a freight forwarding agency specialized
in air consolidation (groupage).A freight forwarding agency
can be both an IATA cargo agent and a consolidator.
The consolidator assembles a number of individual
consignments and dispatches them as one bulk shipment on
one airline Air Waybill-this practice is called consolidation.
Takes benefits of bulk booking rate system
Requires the use of warehousing
Acting as a consolidator, the IATA cargo agent sells his own
transport system at his own tariff and consequently ,he also
assumes the liability of a carrier

RIGHTS & OBLIGATIONS

OF IATA CARGO AGENTS
Services of consolidator
Export cargo
Undertaking the consolidation of cargo
Delivering the bulk cargo to airlines ready for carriage
Loading cargo into aircraft ULDs (Unit LOAD Devices) for delivery to
airlines ready for carriage
Following up cargo movements, including transshipment and onward
carriage up to final delivery
Import cargo
Arranging customs clearance and delivery
Arranging payment of import duties and taxes for consignees (in a few
countries)
Processing re-documentation of goods for re-export
Undertaking domestic in-bond transfer to point of final clearance

RATE STRUCTURE
Airlines tariffs offer a variety of ratesA basic minimum charge per shipment which applies to small
consignments
General cargo rates based on a weight scale, offer lower rates
for higher weight breakpoints of general cargo
Specific commodity rates with varied qualifying weight
breakpoints apply to specific categories of goods
Class rates provide a fixed percentage of surcharge or reduction
on the general cargo rates for certain classes of goods
ULD charges applicable to Unit Load Devices i.e. pallets and
containers-these rates quote fixed charges per ULD type for a
minimum PIVOT WEIGHT with rates for OVER PIVOT weights to
encourage denser loads in containers

BREAK BULK AGENT

The break bulk agent is an agent at destination who breaks
down consolidation into their individual parts.
The break bulk agent ,apart from arranging customs
clearance or transfer to another agent when required by the
consignee has a responsibility to the consolidator for
collecting any charges due at destination and transferring
them immmediately to the consolidator at the point of origin.
If the elements of consolidation are routed according to the
instructions shown on the house air waybill to a destination
beyond the break bulk point,the break bulk agent will isssue
a new airline way bill and arrange the onforwarding of such
items,billing the consolidator with the new sector charges
incurrred.

PACKING
Packing is the art and operation by which articles or
substances are prepared and protected so that they can be
transported without damage or loss of goods
Single packaging