Handling Airfreight 101

Transcription

1 Handling Airfreight 101

2 Presenter: Johan Dewachter 8 years experience in forwarding operations Works for BDP since years Project Operations Joined Center of Excellence Regulatory Compliance in May 2014 Located in Antwerp, BDP s European HQ

3 Housekeeping Due to the large amount of people on the line, this webinar will be conducted in lecture mode to avoid background noises from distracting the presentation Please ask questions as we go through use of the chat function, and I ll try to monitor that closely throughout the presentation At the end of the presentation, you ll be directed to BDP s website, where you ll be able to download a PDF copy of today s presentation

4 Air Cargo Security and Compliance Known Shipper Program In response to the terrorist attacks in recent years, the European Union implemented new rules to insure the safety of domestic and international air travel in the European Union. Since 29 th of April 2010, Known shipper programs became a standard. After an implementation period of 3 years, in 2013, shippers are only considered to be a known shipper if their security measures are checked and approved by an independent validator. Although this is a European regulation, it is Member States responsibility to implement the security programs. As a result, one member state could be better prepared than the other.

5 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.

6 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

7 What is the urgency, ETD, ETA? What kind of freight needs to be transported (dangerous goods, high value )? Pieces/Weight/Dimensions of the cargo to be shipped Packing type: cartons, drums, pallets.. Pick up place Delivery place Pickup date Important information required from you Requested delivery date (incoterm! Is it a delivery to airport of destination or delivered to your consignee?) 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). Any special handling instructions? For ex. keep cool, do not stack,..

8 Important information required from you In case of dangerous goods : UN number Class Packing group Packing instruction Type of packing (single/combined packing) NET quantity of your product PER packing (for ex: 10 plastic bottles of 1 liter, packed in 1 fibreboard carton. And 20 of those cartons, put on 1 pallet) Is the packing that you use UN approved or not Have you packed, labeled and marked the cargo correct, as per IATA dangerous goods regulations Have you established a dangerous goods declaration (DGD), document required by IATA

9 3 Kinds of Shipments / Air Waybills Direct Master Airway bill (MAWB) 1 MAWB processed from actual shipper X to the actual consignee Y No BDP office involved Back to Back 1MAWB processed from BDP to BDP For example: shipper BDP Brussels and consignee BDP USA 1 House airway bill (HAWB) From actual shipper X to actual consignee Y

10 3 Kinds of Shipments / Air Waybills Consolidation 1 MAWB from BDP to BDP Different HAWB s For example: HAWB1; 100 kg from shipper X to consignee Y HAWB2: 1000kg from shipper Z to consignee A HAWB3: 2000 kg from shipper B to consignee C

11 Advantage of direct shipment and back to back Freight is not combined with other cargo. Reason for direct shipment or back to back could be; Live animals L/C s Perishable shipments Oversize cargo Dangerous Goods Human remains Plant shutdown situations where time is critical

12 IATA Terms and Conditions

13 Standard Rate General rate provided by the airline valid for everyone (not negotiated) Can be found in a rate sheet Special Deal Rate Types Contract rate with the airline For a longer period (for ex. Fixed Rate for a period of 3 months) Ad hoc rate/spot Quote Freight would move on a specific flight with a specific service. (oversized, big ) Negotiated with airline for one trip Promo Rate Last minute rate provided by the airline Specific Commodity Rates Rates which cover shipments with special requirements for ex.: dangerous goods, live animals, valuable goods etc. ULD Rates = container rates Rates are negotiated in the currency of the origin country of the cargo

14 Chargeable Weight This is the actual or the volume weight of a shipment, whichever is higher: Example: 1 Pallet with actual gross weight= 70 kg Dimensions: 120 x 120 x 160 cm Volume weight = (LxWxH)/6000 = (120x120x160)/6000 Chargeable weight is the highest weight 384 kg This weight will be used in determining the air freight charges

15 Aircraft Unit Load Device Unit Load Device/Airline Pallet 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.

16 Cargo and Passenger Aircraft General standards: Within Europe: Passenger Aircrafts Max door height : 70 cm (small PAX)! Max 100 a 150 kilos per piece Outside Europe: Passenger and cargo aircraft Passenger: Max door height: 160 cm (big PAX /Combi) Air cargo: door height can be 240 or 300 cm

17 Passenger Aircraft (PAX) To be able to transport your cargo on a small PAX, cargo can have a max height of 70cm and width of 70 cm Maximum tonnage on this aircraft is ton

18 Combi Aircraft To be transported on a combi Aircraft, the height of cargo can be maximum 160 cm

19 Cargo Aircraft Depending on the type of cargo aircraft the maximum height is 240 cm or 300 cm This aircraft can take 100 tons in total Less frequent Only few airlines / airports who have this kind of aircraft

20 Need to know.. Category A: Have always priority: Passengers and their luggage Post, mail and newspapers Life saving material Human remains Valuables Live animals... LAST IN THE ROW = CARGO!! (general cargo/dangerous goods)

21 Need to know: Category B: Levels of precedence in cargo are: Priority Very high priced but will have priority to the lower priced cargoes Standard Normal market rate, at a normal departure Special deal/ad hoc Lowest price, where date of uplift is less important (last minute offers)

22 Need to know: You will never have a guaranteed uplift!! Meaning: if too much passengers, luggage and freight from category A, cargo of category B can always be offloaded last minute (at departure of the airplane) In case of dangerous goods, the airlines need to have the license to ship all types of dangerous goods Some types of dangerous goods are not allowed on passenger flights

23 Thank you! To register for any session, go to: Registration is required for each event. Upon successful registration, you will receive an with logon details. A copy of this presentation will be available on this same link immediately following this presentation.

24 Contact information Johan Dewachter Regulatory Compliance Executive Europe Phone: Mobile: johan.dewachter@bdpint.com Braderijstraat Antwerp Belgium To download today s presentation, please made note of the following link: