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04_17 - Types of Air Freight(TBD)
04_17 - Types of Air Freight(TBD)Business Management and Finance Courses » Udemy - International Logistics & Transportation in Supply Chain. 2023-5 |
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| 04 - Air Cargo Udemy - International Logistics & Transportation in Supply Chain. 2023-5 0 00:00,650 --> 00:02,380 Airfreight types and cargo. 1 00:02,390 --> 00:09,230 So till now we have discussed many things about air cargo and we have also discussed about how to calculate 2 00:09,230 --> 00:12,290 the air freight by calculating the chargeable weight. 3 00:12,470 --> 00:18,260 So now let's discuss the different types of air freight and the way in which air freight is charged 4 00:18,260 --> 00:20,090 for specific cargo type. 5 00:20,270 --> 00:28,130 So on the basis of type of cargo you are planning to ship the airline will go to the rate depending 6 00:28,130 --> 00:30,560 on the special requirement of the cargo. 7 00:30,860 --> 00:35,240 The air freight will be higher as not all the products are the same. Right? 8 00:35,270 --> 00:36,970 Some products are perishable. 9 00:36,980 --> 00:38,650 Some products are hazardous. 10 00:38,660 --> 00:44,270 So we have to learn different types of cargoes when it comes to air freight and also understand the 11 00:44,270 --> 00:50,330 way in which airline will treat those cargo and quote you the air freight. 12 00:50,450 --> 00:51,710 So let's get started. 13 00:51,740 --> 00:59,130 So depending on the inventory that is the cargo in shipping we call an inventory a cargo also a commodity. 14 00:59,150 --> 01:02,630 So depending on the commodity the air freight is quoted. 15 01:02,660 --> 01:08,810 So the first type of air freight is general commodity rate which means there is no need for any special 16 01:09,290 --> 01:16,370 attention required to move this kind of product. As this product are normal dry cargo which can be placed 17 01:16,370 --> 01:17,590 inside a box. 18 01:17,600 --> 01:20,210 They don't require any particular set temperature. 19 01:20,240 --> 01:24,340 Neither they are hazardous nor they are any kind of living animals. 20 01:24,350 --> 01:30,830 So this kind of cargo are charged on the basis of chargeable weight which we already learned how to 21 01:30,830 --> 01:31,520 calculate. 22 01:31,580 --> 01:36,770 So general commodities can be anything other than harmful materials or passengers. 23 01:36,800 --> 01:42,470 Also they don't have any special requirements like set temperature or neither they are any living 24 01:42,470 --> 01:42,980 animals. 25 01:43,000 --> 01:50,080 So the example of general cargo can be bags, cases and anything that can be packed inside a box which 26 01:50,090 --> 01:57,290 does not cause any damage to the cargo placed beside them. As in case of hazardous cargo if there is 27 01:57,380 --> 01:59,690 a hazardous cargo placed inside this box, 28 01:59,930 --> 02:09,320 If there is a blast in this box, this cargo may destroy or damage the entire Aeroplan or it may damage 29 02:09,320 --> 02:10,540 the surrounding cargo. 30 02:10,550 --> 02:14,900 So hazardous cargos are very dangerous and they need special attention. 31 02:15,080 --> 02:17,660 And we will discuss different types of hazardous cargo. 32 02:17,660 --> 02:24,140 Usually hazardous cargoes are treated in nine classes which we will treat for shipment by air and 33 02:24,140 --> 02:25,160 sea mode of transport. 34 02:25,160 --> 02:31,550 And that will be a totally different chapter as it is a very important discussion. Now that we have already 35 02:31,550 --> 02:33,590 learned about general commodity. 36 02:33,860 --> 02:40,520 Now talking about cargoes which require special attention say for example the movement of seamen 37 02:40,910 --> 02:44,240 for artificial insemination of farm animals. 38 02:44,270 --> 02:50,600 We need to move that seamen into a specially designed container which contains liquid nitrogen. 39 02:50,600 --> 02:57,770 And this liquid nitrogen acts as a cooling which allows the transport of seamen in liquid or frozen 40 02:57,770 --> 02:58,130 state. 41 02:58,250 --> 03:05,240 Similarly for movement of seafood dry ice that is solid carbon dioxide or a coolant gel is used 42 03:05,360 --> 03:08,860 which can shoot and make sure that the seafood does not. 43 03:08,870 --> 03:15,900 detoriate itself during the air voyage. Also chemicals which require a set temperature, alcoholic beverages, 44 03:15,920 --> 03:22,790 printed materials, electronics require some special attention, fresh agricultural products like flowers, 45 03:22,810 --> 03:24,290 plant, soil. 46 03:24,380 --> 03:28,280 So this all commodities attract specific commodity rate. 47 03:28,670 --> 03:34,640 As this commodities require certain attention and a different way in which they need to be handled. 48 03:35,000 --> 03:41,270 So that they can be moved from one airport to other airport or from the origin to the destination very 49 03:41,270 --> 03:41,840 safely. 50 03:41,850 --> 03:49,130 So once the SCR rate that is the specific commodity rate is applied to a said cargo the question of the 51 03:49,130 --> 03:56,360 cargo moving from one airport to another airport on general rate basis is no longer available as 52 03:56,600 --> 03:58,890 this commodities requires special attention. 53 03:58,910 --> 04:05,750 So due to special attention specific commodity rate is applicable and specific commodity rate is higher 54 04:05,750 --> 04:07,820 compared to general commodity 55 04:07,820 --> 04:12,060 rate. Now coming to third type of airfreight that is exception rate. So 56 04:12,170 --> 04:19,070 exceptional rates are the rates which are applicable for the cargoes who have lots of complexity. As this 57 04:19,070 --> 04:23,300 cargo need lots of handling and care to be taken while 58 04:23,360 --> 04:24,980 they are moving by air. 59 04:25,100 --> 04:27,230 So exceptional rate is applicable. 60 04:27,560 --> 04:34,010 Exceptional rate are similar to specific cargo rate but the exceptional rate are higher than the 61 04:34,010 --> 04:37,730 specific commodity rate due to the complexity they attract 62 04:37,730 --> 04:44,210 during the transportation voyage. So some example of the cargoes which attract exceptional rate are the 63 04:44,210 --> 04:46,310 transport of live animals. 64 04:46,310 --> 04:49,450 As this animals need a proper cage. 65 04:49,460 --> 04:55,790 Also this animals are living right so they will need a suitable temperature which has to be maintained 66 04:55,790 --> 04:58,190 continuously during the air voyage. 67 04:58,430 --> 04:59,960 Similarly human remains 68 05:00,160 --> 05:05,380 and disassembled furniture also attract exception rate. Now talking about joint rate. 69 05:05,500 --> 05:10,960 As we all know airlines have their own truck to move cargo from the factory of the exporter or 70 05:10,960 --> 05:13,210 warehouse of the exporter to the airport. 71 05:13,240 --> 05:17,280 Similarly from the airport to the warehouse of the importer. 72 05:17,290 --> 05:24,880 So when a exporter or an importer request the airline to quote the rate on the basis of joint rate the 73 05:24,880 --> 05:32,470 airline will sum up all the trucking and different leg of air voyage and then quote the rate to the exporter 74 05:32,470 --> 05:35,580 or importer whoever has requested the air freight. 75 05:35,620 --> 05:42,670 So joint rate mainly means the sum of the trucking cost and the air movement from the factory of the exporter 76 05:42,970 --> 05:44,920 to the warehouse of the importer. 77 05:44,950 --> 05:51,310 Also at times there are multiple legs in which the cargo stops at different airport and the cargo 78 05:51,310 --> 05:54,190 has to be moved from the airplane to the truck. 79 05:54,220 --> 05:56,770 Than again it has to be moved to the airplane. 80 05:56,770 --> 05:59,470 And again the tracking is done several times. 81 05:59,590 --> 06:05,410 So here is the scenario which will give you a better understanding of joint rate. Say for example the 82 06:05,410 --> 06:10,960 cargo is loaded onto the truck from the factory of the exporter and the tracking is done from the factory 83 06:10,960 --> 06:15,400 to the airport where the cargo is unloaded and loaded on to the airplane. 84 06:15,400 --> 06:22,780 Then the airplane moves from the airport to the first leg destination airport where the cargo is unloaded 85 06:22,780 --> 06:25,480 from the airplane and again loaded on to the truck. 86 06:25,480 --> 06:30,310 And trucking is done from the first leg destination airport to the hub airport. 87 06:30,400 --> 06:37,180 So once the truck arrives the hub airport the cargo is unloaded and loaded again on the aircraft. 88 06:37,360 --> 06:44,020 And once the aircraft arrives the final destination airport the tracking is done to the importers warehouse. 89 06:44,080 --> 06:49,750 So in this case there was two legs of air transport and the trucking was done several times. 90 06:49,750 --> 06:55,180 So this is a complex process right, in which lots of arrangement has to be done. 91 06:55,180 --> 07:02,210 So to escape this arrangement the exporter and importer make sure to request the airline for a 92 07:02,260 --> 07:08,680 joint rate if the flights are not available directly from the Origin Airport to the destination airport. 93 07:08,710 --> 07:14,680 And this case is usually noticed for the factories which are located in a rural part of the country. 94 07:15,370 --> 07:17,020 Priority Reserve Airfreight. 95 07:17,230 --> 07:22,960 See there are times when the passenger aircraft belly where the cargo is loaded are full, at the freighter 96 07:22,960 --> 07:29,260 aircraft are also going full and the international trade is at peak. So the hassle for getting a space in the 97 07:29,260 --> 07:32,590 passenger aircraft and the freighter becomes very difficult. 98 07:32,740 --> 07:38,980 And in that situation if you are smart enough you go for a priority reserve air freight where you make 99 07:38,980 --> 07:44,980 sure to reserve the space on the aircraft beforehand even though the bellies and freighter are going 100 07:44,980 --> 07:45,430 full. 101 07:45,430 --> 07:48,370 So this way you can escape the emergency situation. 102 07:48,370 --> 07:54,160 Also you can charter an aircraft if you have enough cargo to fill the entire aircraft. 103 07:54,340 --> 07:58,540 And if you don't have enough cargo to fill the entire aircraft you can 104 07:58,570 --> 08:05,890 pre reserve your space with the airline. But you need to make sure if you are reserving the space 105 08:06,100 --> 08:13,270 on a said flight you need to make sure that your cargo is loaded on the targeted flight. If you fail 106 08:13,270 --> 08:13,990 to do so. 107 08:13,990 --> 08:15,790 It is not a problem of the airlines. 108 08:15,850 --> 08:17,200 It is your problem. 109 08:17,200 --> 08:23,440 You have to face the music and you need to pay for the reserved space as your cargo failed to catch 110 08:23,440 --> 08:25,210 the targeted flight. 111 08:25,210 --> 08:27,580 So this led to a space loss. 112 08:27,580 --> 08:30,430 So you need to pay for the empty space. 113 08:30,430 --> 08:36,010 And here is another case which is very important to understand why and when to charter a aircraft. 114 08:36,010 --> 08:38,890 See you can charter a aircraft when you want 115 08:38,890 --> 08:45,310 your shipment to be uninterrupted. Also in case there are no passenger aircraft or freighters 116 08:45,310 --> 08:46,000 available. 117 08:46,000 --> 08:52,360 So you make sure to charter the aircraft you have to plan the shipment accordingly as your factory 118 08:52,360 --> 08:54,970 is in remote area so you can charter the aircraft. 119 08:54,970 --> 08:59,020 Also there are storage complications when it comes to freighters. 120 08:59,050 --> 09:07,350 So if the entire aircraft is chartered by you the airline will help you to solve the storage complications. 121 09:07,450 --> 09:14,530 Your cargo will be the only priority for the airline for the said aircraft as you are the charter of 122 09:14,530 --> 09:15,250 the aircraft. 123 09:15,490 --> 09:20,350 But you need to make sure that you have enough cargo to charter the entire aircraft. 124 09:20,770 --> 09:27,700 If you charter a aircraft for just to move ten tons of cargo or 15 tons of cargo then you know you 125 09:27,700 --> 09:30,250 don't have enough cargo to fill the entire aircraft. 126 09:30,280 --> 09:36,850 And you are making a loss by paying for the entire aircraft for a set period of time or a said voyage. 127 09:36,880 --> 09:41,830 So this were some different types of airfreight charged on the basis of cargo. | ||||
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