Handling Airfreight 101. Anne Kelly

Transcription

1 Handling Airfreight 101 Anne Kelly

2 Presenter Anne Kelly Over 30 years experience in the transportation industry. Anne joined BDP International at our JFK, New York office in 1992 as the Account Manager for Air Products and Chemicals and Sony Electronics. Anne relocated to BDP s Philadelphia Corporate Office in 1996 as part of the Corporate Transportation and Logistics Team. During her tenure in Philadelphia Anne has; managed the day to day operations of BDP s Corporate Air Freight Group served as Director of Air Freight Service brought her airfreight background and experience to the Regulatory Compliance Team. Anne currently oversees regulatory aspects for the TSA and Customs for air.

3 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. The rules of this program are administered by the Transportation Security Administration (TSA), who is responsible for the oversight of all transportation security, including truck, rail and ocean, as well as air. While the specifics of the security program are restricted, the multi-layered program effectively eliminates the anonymous shipment of all documents, parcels, counter-to-counter packages and freight on both passenger and cargo-only flights originating within the U.S. Such anonymous shipments were frequent in the years prior to 2001 and led to growing concern in Congress and amongst the general public about the overall security of air travel.

4 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 makes buying tickets easier as well. It accredits over 70,000 travel agents worldwide to ensure they provide the high standards of service and dependability that airlines and their clients expect. IATA s Billing and Settlement Plan serves as the financial backbone of the industry by managing the flow of the over $270 billion generated annually by travel agent ticket sales to airlines.

5 A forwarder should offer accountability through every step of the process Bring VALUE to your process, in the form of new ideas and solutions Set up good metrics for all parties to follow, ensure that each key step is measured and a high performance level is achieved. Understand and keep current with export regulations as it pertains to them as well as to the export industry. Assist in assembling and collection of cargo Consolidation of goods Document preparation Export license assistance Marine insurance rates and coverage Warehouse and distribution services Hazardous materials shipping compliance information Interface with all the necessary government agencies and companies involved to get cargo to its foreign destination. International documentation and packaging Carrier and routing information and interaction Clearance and delivery of goods at destination, if required.

6 Automated Export System (AES) The Automated Export System (AES) is the system used by U.S. exporters to electronically declare their international exports, known as Electronic Export Information (EEI), to the Customs and Border Protection (CBP). The information is also shared with the Census Bureau to help compile U.S. export and trade statistics. Formerly, this declaration was only made by the paper Shipper's Export Declaration (SED) form. An EEI/SED is generally required when any one commodity on a given shipment exceeds $2500 in value. Among the data that is required to file an EEI/SED includes the following: The U.S. Principal Party in Interest (USPPI): the name and address of the principle seller or party based in the U.S. that is receiving the benefits from the shipment. The Taxpayer Identification Number (TIN) of the USPPI. The ultimate consignee: the name and address of the party that is ultimately receiving the shipment. Whether the USPPI and the ultimate consignee are "related" companies: if one party owns directly or indirectly at least 10 percent of the other. The country of destination The departure date: the date of the export out of the country

7 Automated Export System (AES) The origin state: the primary U.S. state where the shipment is originating from. If commodities originating from different warehouses are being consolidated into one shipment, then it is either the state whose warehouse has the commodity of greatest value, or the state where all the consolidation is being performed. The mode of transportation: whether by air, vessel, rail, or by truck. The port of export: the airport, seaport, or port of entry where the shipment will actually be taken out of the United States. This is represented by a 4-digit "Port Code". This does not mean the closet port from the originating warehouse. For example, if cargo from Denver would have to be put on a direct international flight from San Francisco to Tokyo, the port of export would then be the San Francisco Airport instead of the Denver Airport. Whether it is a "Routed Transaction": if the U.S. Freight Forwarder or other U.S. agent is authorized to facilitate the export of items, prepare and file the EEI on the parties' behalf. Whether the shipment contains hazardous materials. A description of each of the commodities being shipped, including their Harmonized Tariff Schedule code, weight, customs value, quantity, and if any require an export license or permit. Harmonized Tariff Schedule codes can be found at (

8 US Principal Party of Interest US Principal Party of Interest The person in the United States that receives the primary benefit monetary or otherwise of the export transaction. Generally that person is the U.S. seller, manufacturer, order party, or foreign entity. The foreign entity must be listed as the USPPI if it is in the United States when the items are purchased or obtained for export. Who is the USPPI? The USPPI can be: U.S. Seller (wholesaler/distributor) of the merchandise for export. U.S. Manufacturer if selling the merchandise for export. U.S. Order Party - Party who directly negotiated between the U.S. seller and foreign buyer and received the order for the export of the merchandise. Foreign Entity if in the U.S. when items are purchased or obtained for export. Who cannot be the USPPI? The forwarding agent or the consolidator cannot be listed as the U.S. Principal Party in Interest on the AES record.

9 Important information for required for documentation purposes Is consolidated or domestic service required? Is the freight (D) domestic origin or (F) foreign goods manufactured outside the United States Is the freight considered to be Dangerous Goods? Pieces/Weight/Dimensions of the cargo to be shipped Commercial Invoice to be used for Customs purposes Value - Selling price or cost of goods, if not sold Should the cargo be insured? If so, for what amount? Any special instructions to be followed for shipment (i.e., freight to be cleared and delivered by a specific broker at destination or freight to be delivered with/without duties being paid).

10 House air waybill Bill of lading issued by the freight forwarder to the shipper. Document contains pertinent shipment information. Each shipment is handled on a BDP house air waybill. The BDP house air waybill has a specific number which identifies the shipment by BDP Division. Also represented on the house air waybill are: Shipper (originating party) Consignee (end recipient of good) Air carrier and flight information Pieces / weight / dimensions Commodity Payment terms of shipment (collect or prepaid) Customs information

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12 Direct air waybill Air waybill is shown from the shipper to the actual consignee of the goods. Customs clearance at destination can be performed by a designated party or BDP s office. For direct shipments BDP would act as the handling agent for the goods. Advantage of direct shipment: Freight is not combined with other cargo. Flight and service are immediate. Reason for direct shipment could be; Live animals Perishable shipments Oversize cargo Dangerous Goods Human remains Plant shutdown situations where time is critical

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14 IATA Terms and Conditions

15 Consolidation vs Direct Advantage of a consolidated shipment 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.

16 BDP Gateways to the World JFK Gateway covers Northeast Region of the US Atlanta Gateway covers Southeast Region of the US Miami Gateway covers Southern Region of the US Houston Gateway covers Southwest Region of the US Los Angeles Gateway covers Western Region of the US Chicago Gateway covers Midwest Region of the US When freight is combined from different areas of the country and moved from a specific gateway there is opportunity to leverage the total amount of the weight tendered to the carrier and secure a lower rate for the total consol. Many air carriers will offer different levels of service. For example, costs to Europe from the East Coast (JFK/Atlanta) might be cheaper due to the fact European carriers are servicing the East Coast. Rates with a European carrier from the West Coast would be higher due to the fact the carrier is crossing the United States and adding additional miles to the flight. Using Gateways also affords the customer the opportunity to utilize the services of Global BDP offices.

17 Rate Types Carrier specific tariff rates. Rates would cover shipments with special requirements. Examples would be: Dangerous Goods Oversize cargo Perishable goods Live animals Valuable goods Unit Load Device (ULD) Pricing is based on the type of container used. Each ULD has a flat amount charged for the use of the unit depending upon the tare and net weight of the container. (Tare weight is the weight of a container and/or packaging material, without the goods being shipped. The gross weight of a shipment less the net weight of the goods being shipped. Net weight is the weight of the goods without the packaging. The weight of the actual merchandise without the shipping container). Ad Hoc/Spot rates for larger shipments. Freight would move on a specific flight with a specific service. Ad Hoc/spot rates would normally not be used for a premium service. Contract Rates Flat rates provided for specific weight breaks. All weight breaks would start with a minimum charge and be followed by lower cost at various weight breaks (i.e., 45 kgs = 2.00 per kilo, 100 kgs = 1.80 per kilo, 300 kgs = 1.50 per kilo) Rates are expressed in the currency of the origin country of the cargo

18 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 the gross weight of the container. Example: 1 pallet containing 12 individual pieces weighs 500 lbs or 227 kilos Pallet has dimensions of 24 inches x 36 inches x 38 inches. The dimensional weight would be divided by 366 = 227 kilos Air carrier would charge for 227 kilos for airfreight charges

19 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. Example: 1 pallet containing 12 individual pieces weighs 200 lbs or 91 kilos Pallet has dimensions of 24 inches x 36 inches x 38 inches 24 x 36 x 48 divided by 366 would be 113 kilos Air carrier would charge 113 kilos to accommodate the extra space that would be taken up

20 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.

21 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.

22 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 dual-profile, 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.

23 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.

24 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.

25 Antonov The Antonov is a strategic airlift jet aircraft. It is the world's largest ever serially-manufactured cargo airplane and world's second largest operating cargo aircraft. 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."

26 Contact information Contact: Anne Kelly Phone: Mobile: anne.kelly@bdpinternational.com 510 Walnut Street, 13 th Floor, Philadelphia, Pa To download today s presentation please make note of the following link. Documenting your Hazardous Shipments September 20, 2012

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