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Know the Costs and Know How To Save on Air
Know the Costs and Know How To Save on Air Freight Shipping
Air freight shipping, in most cases, is fairly complicated when it comes to pricing. But there are of course some areas when all you need is to look at the price list and voila- your parcel is already in mid air.
Letters and parcels are often priced based on the weight, size and the service level the shipper chooses. These are often fixed and seldom would one find great discrepancies in pricing. But as for air freight shipping prices, it is no good to be surprised at how high one item can cost.
The National Motor Freight Traffic Association has provided a system of pricing shipments known as the National Motor Freight Classification. This works on the principle of creating classes for items and for each class are some general prices.
Items are basically grouped into various types to make listing easier. This grouping is based on qualifications like loadability, mixed-environment appropriateness, density and a number of other factors. In general, freight classes apply to all items- from express letters to huge machineries including helicopters and planes. Freight classes range from 50 to 500.
Freight shipments are rated by means of “per one hundred pounds” parameter. However, other air freight forwarders make use of per hundred weight system and cwt.
Each freight class is able to provide discounts on the base rate. Plus, there is always a discount given on the transportation rates.
Nevertheless, such discounts can be set off by charges that are often treated as accesorial yet crucial to the base rate that would later come up for the shipment. The most commonly found accesorial charges and surcharges are discussed below.
To save on these charges, it is best to know your grounds first and study in full the terms and conditions of air freight shipping as provided by the freight company.
Lift gate- When there is no forklift or loading dock available, a lift gate service is billed to help drivers load and unload the shipments for residential pickups and deliveries or commercial pick up and deliveries. To avoid complications during the process, it is best that you notify the air freight service provider in case you see the need of a lift gate since trailers are rarely equipped with this item.
Additional fees in reconfiguring routes- Most air freight shipping are designed to follow a route of some sorts. If you require the company to take another route apart from what is earlier set, they would most likely charge you with additional fees for this extra work.
Extra charges on inside pick up and delivery- When you need to have your shipment picked up or delivered inside an establishment or a building, this will impede the carrier to finish his route on schedule. Thus, to set off the expenses they are likely to use, carriers will require you of some additional charges.
Residential pick up and delivery- To off set the costs incurred for transferring shipments to smaller trailers, most air freight shipping companies require extra charges on residential pick ups and deliveries. This is the case since most local laws restrain larger sizes of trucks from entering residential areas.
There are literally hundreds of possibilities for extra payments that would stock up on your final bill. For Less-than-Truckload and Truckload shipments, it is advisable that shippers seek for intermediaries who would not only guide them through the process but would also realize for them some forms of savings.
How Does Air Freight Service Works
Our present day living is driven by the need to communicate, to be informed and to send various items worldwide. And due to time constraint and the immediate necessity to transfer everything in the fastest mode of transportation available, the airline and cargo industry devised ways of carrying cargoes while maximizing time incurred during the process.
Cargo shipment by air is now termed to as air freight service. Items shipped at this mode range anywhere from a couple of pounds to as much as 43 000 pounds. Therefore accommodating almost all items that need for immediate shipment.
Parcels and express letters are typically the easiest to ship due to relatively handy size and weight. For larger-sized items however, various methods of shipment are required for travel and services vary depending on the number of categories including:
The size and weight of the item
The duration (number of days) required for shipment
The type of item
There are four basic categories for shipments namely:
a. Household goods which cover items such as furniture and the likes.
b. Overnight express or express shipments that deliver personal and business items which are observably lighter and smaller in size. These often come in the packaging of the carrier or the service provider and are often delivered overnight or within a couple of days, depending on the choice of service the shipper agreed on.
Parcel delivery, on the other hand, covers those items that are typically boxed. The services vary and packaging may be provided by the company or should the shipper chooses, may be shipped on the box of their own.
The duration of delivery varies yet typical of this kind is the speed of 500 to 700 miles per day, providing it a coast to coast travel of around 4 days.
Beyond this types are the LTL and TL freights. These are the actual air freight services and obviously cover cargoes that need big-time shipments.
Items covered in this category often weigh 15 000 pounds to around 43 000 pounds and have lengths not exceeding 53 inches long.
For each type of service level comes different corresponding prices. Parcel and express packages have pretty simpler system of pricing as compared with cargoes covered in the Less-than-Truckload-Freight and Truckload Freight which have more complicated systems of pricing.
National Motor Freight Classification is the system of pricing that monitors and dictates what price must be given to each item depending on its loadability, density, mixability and a number of other factors.
Theoretically, fragile items require higher costs of shipment since they fall in the freight class 125 to 500.
Denser items such as industrial machineries and steel require lesser care yet take most of the weight falls under the freight class 50 to 85.
Generally, these freight classes have assigned prices for which the assigned class corresponds to the base rate given.
While most air freight service providers can be contacted directly, heavier cargoes require freight brokers for easier arrangements and for the facilitation of savings. Such brokers can be contacted through online marketplaces. They have the hand for directly arranging shipments at much lower rates since they act as intermediaries between carriers and shippers.
It is good to remember that when shipping cargoes with any type of air freight service chosen, you must know in full all the terms and conditions included.
What You Should Know About Air Freight Carriers
Freight is technically the term used to describe the cargo for shipment. Air freight, on the other hand, is the cargo that is being shipped via air. This may be done using typical passenger airplane aboard the cargo area or through specialized cargo planes dedicated for this special industry.
It is primarily divided into three categories: a) household goods, b) express deliveries, c) parcel shipment, and d) freight shipments.
Each of which is priced depending on the system as provided by the National Motor Freight Classification. Each class also corresponds to the goods that can be shipped. Say for household goods, only those that can be considered furniture and household appliances can be subjected to price ranges and services provided in this area. Express deliveries, in general, include items such as mails, business papers and envelopes. Parcels, on the other hand, include those items that are usually boxed. Freight shipment though covers all other huge items that can’t be accommodated by services functioning in the lower classes.
Air freight is further subdivided into two categories: The Less-than-Truckload Freight which basically accommodate items that are less than 15 000 pounds and have the height of exactly 28 inches or even lesser than that. The other subcategory of freight shipments is the Truckload Freight that covers item weighing 43 000 pounds or less and has the length not exceeding to 53 inches.
Shipments larger than these are often carried by super cargo planes. Those relatively huge items such as military equipments, planes and helicopters are carried through the Antonov AN-225- the largest cargo plane in the world.
For each type of air freight cargo, there is basically some air freight carriers to do the job. Most often than not, smaller items can be shipped using passenger air planes turned into air freight carriers.
Boeing 747-400 is usually configured into air freight carrier since it has space large enough to accommodate items for forwarding. But since it is not purely designed as an air freight carrier, there are some crucial limitations that impedes to its absolute use for this exact purpose. Nevertheless, when used as an air freight carrier, it may function well enough to transport cargoes of various kinds towards their proper destinations.
Air freight carriers like Bekins and North American Van Lines specialize in household goods delivery. FedEx Express, UPS and DHL top rate the field of express deliveries yet it is basically everybody’s game since this field appears to be the easiest route when you want to make money in the forwarding business. Leading air freight carriers in the parcel division (also known as ground shipment) are FedEx Grounds and UPS. While for Less-than-Truckload and Truckload freight areas, air freight carrier names like Old Dominion, AAA Cooper, Averett Express, Roadway, Schneider and JB Hunt are the most trusted.
In the air freight industry, there are also middlemen in the playing field. These are often called as freight brokers since they are the institutions that create arrangements between shippers and air freight companies. Brokers are reached through online marketplaces. They are the best sources for discounts since they have the direct contacts with air service providers.
Major air freight brokers are CHRobinson, Hub Group, Twin Modal and Rockwell.
If you want better and easier access to the names we have listed above, it is best to find sources through online intermediaries such as Transcore DAT, Freightquote.com and uShip.com.
Types of Air Freight Options
Due to the inevitable changes occurring around the globe and the need to quickly send and receive various items across countries, the airline industry has birthed a new way of shipment- air freight.
Air freights are basically cargoes on the shipment which are typified into various categories to make shipping more organized and easier. Some primary basis of categorizing air freight are:
Type of the item
How large is the item, in terms of the number of items in the shipment and size, and,
The number of days or hours it takes one shipment to arrive on its pointed destination.
Shipments, on the other hand, are categorized into the following:
Household goods include art pieces, furniture and other similar items which are primarily transported using Household Goods (HHG) carriers such as North American Van Lines and Bekins.
The “Express” category, on the other hand, include personal items and small business goods which are often considered as overnight shipment (or express shipment, express letters, and overnight express). Such transports are carried by shipment companies like FedEx Express, UPS and DHL.
Since most items falling under this category are relatively small and don’t normally weigh heavier than a couple of pounds, they often come in the carrier’s own packaging.
Service levels vary depending on the service offered by the carrier or the personal choice of the shipper. These normally travel by air and may be delivered on the exact day it was sent to the carrier or may take several days of travel.
Packages that are slightly larger and heavier than express items are considered as parcels. These include boxes of shipments, regardless of the content. Carriers like UPS and FedEx Ground provide the services for this type of cargoes. Parcels cover most of the business-to-consumer items and services and don’t often exceed 100 pound-weight category. Since these are relatively small, they often come on the shipper’s or carrier’s own packaging.
Types of services on this category also vary. However, a number of ground shipping can travel for 500 to 700 miles a day in around 3 to four days, depending on the service rendered by the shipper or the service option the customer chose. Such shipments don’t often travel by air, instead they move through road and rail.
Freight shipments cover the largest cargoes in the industry. It is subdivided into two major categories, mainly: LTL of Larger-than-truckload freight and TL or truckload freight.
Less-than-truckload shipments are also known as motor freights. These often cover the bulk of business to business transactions. The range of services vary from carrying 100-pound items up to those not exceeding 15 000 pounds. Since LTL trailers are just as long as 28 inches, most air freights of this kind cannot exceed this length.
Unlike with smaller packages, shipments don’t often come in company packaging.
Truckload freight covers larger shipments from 15 000 pounds to 40 000 pounds with a maximum length of 53 inches. This type of air freight differs from all other categories since these don’t normally stop along the travel and are not intermingled with other shipments. Most are frequently arranged via freight brokers and online marketplaces.
When availing this type of air freight, it is best that one understands in full all the terms covered including the claims, pricing and insurance.