In today's global marketplace, air freight plays a crucial role in facilitating the swift and efficient movement of goods across borders. Whether you're a seasoned importer/exporter or just dipping your toes into international trade, understanding the key factors influencing air freight can make a significant difference in your shipping experience.
Air freight is a reliable option for transporting both routine, non-perishable goods and urgent, perishable items. It covers domestic and international routes, specializing in various types of cargo, including pharmaceuticals, engineering equipment, and temperature-sensitive goods. Registered with IATA, air cargo services offer chartered planes on demand for special shipments, ensuring timely and efficient delivery for all kinds of cargo needs. This makes air freight an essential service for industries requiring fast and secure transportation. In this comprehensive guide, we'll explore the major factors to consider for successful air freight shipments.
What are the critical factors to consider for air freight?
Air Freight Costs
Quick Delivery
Cargo Volume and Size
Air freight is generally more costly than other methods of international shipping, but it offers faster delivery times and higher security for valuable or perishable items.
If your cargo needs to reach its destination quickly, consider using air freight for expedited delivery.
The dimensions (size) and volume of your cargo will influence whether it is suitable for air freight and will affect the overall shipping cost.
Some Key Factors that You need to Consider
The shipper is required to possess an Importer Exporter Code (IEC), Permanent Account Number (PAN), Goods and Services Tax (GST) registration, and must be officially registered with Customs, providing their bank details along with the Authorized Dealer (AD) code assigned by the bank.
The Commercial Invoice and packing list are essential. Cargo must be declared accurately with its value and quantity. The packing list should clearly indicate the quantity and markings/numbers of the cargo for easy identification.
Speed and Efficiency:
One of the most significant advantages of air freight is its unparalleled speed. Air transportation offers rapid delivery times, making it ideal for time-sensitive shipments. Whether you're shipping perishable goods or urgent deliveries, air freight ensures swift transit and on-time delivery.
Insurance:
It is highly advisable to obtain cargo insurance to cover the shipment from the origin to the final delivery point.
Environmental Impact:
While air freight offers speed and efficiency, it also has environmental implications due to carbon emissions. As sustainability becomes increasingly important, businesses are exploring ways to reduce the environmental footprint of their supply chains. Options such as carbon offset programs and alternative transportation modes can help mitigate the environmental impact of air freight.
Air-Way bill:
The Air Waybill (AWB) is crucial. Following Customs Clearance for export, the cargo is transferred to the designated airline, either directly by the shipper or through a forwarding company. The airline will receive the cargo and issue an AWB, serving as evidence for the air freight shipment.
Customs Clearance:
Customs Clearance is highly advised to be facilitated by a Custom House Agent (CHA) to ensure the accurate and proper processing of your cargo. The CHA will initiate the filing of a Shipping Bill with the Customs authority, oversee cargo assessment and examination, and secure the issuance of a Let Export Order (LEO) to authorize the shipment of your goods.
Certificate of Origin:
It is typically issued by the Chamber of Commerce, serves to authenticate the origin of goods. This certification is instrumental in securing preferential duties upon arrival at the destination. Always ensure to thoroughly review the documentation with your buyer/importer to address any additional specific requirements that may be necessary.
Recommendation:
Consider engaging a Shipping Forwarding company that offers Custom House Agent (CHA) services as well. This integrated approach allows for streamlined oversight of all activities through a centralized platform, enhancing efficiency and control.
Route Optimization and Transit Times:
Choosing the right routes and airlines can significantly impact transit times and overall efficiency. Factors such as direct flights, transit hubs, and frequency of services play a vital role in optimizing transit routes. By leveraging route optimization strategies, you can minimize transit times and enhance supply chain efficiency.
Destination:
Your buyer/importer has the option to designate a Customs Broker/forwarder at the destination airport to manage clearance and delivery at the final destination. The feasibility of this arrangement will also be contingent upon the terms of your shipment.
Communication and Transparency:
Effective communication is key to successful air freight operations. Maintaining transparent communication channels with airlines, freight forwarders, and other stakeholders ensures smooth coordination throughout the shipping process. Clear communication helps address any issues promptly and ensures timely delivery of shipments.
Delivery:
Your goods will be transported by the airline to the destination airport. Please remember to include copies of all the aforementioned documents along with the cargo for smooth processing.
For the transportation of Dangerous Goods (DG Cargo), supplementary documents will be necessary, such as the Material Safety Data Sheet (MSDS) and the Indian Institute of Packaging (IIP) Certificate. Please ensure to provide these additional documents accordingly.
If your business engages in both exports and imports of products, it's essential to seek guidance and support from a reputable freight forwarding company. They can provide you with comprehensive information and assistance to navigate the complexities of international trade effectively.