BASIC METHODS OF AIR FREIGHT

PRICE CALCULATION

Once you have established the chargeable weight (either actual gross or volume weight), you use the official tariff schedules (usually the manual "TACT Rates" - green volume for worldwide rates, red volume for rates from North America) to calculate the air freight charges for your shipment.

HEADERS IN THE TARIFF SCHEDULE COLUMNS

NAME AND 3 LETTER IATA CODE FOR THE DESTINATION CITY, 2 LETTER IATA CODE FOR THE DESTINATION COUNTRY.

UNIT OF MEASURE FOR WEIGHT (KGS or LBS)

ACTUAL COLUMNS FOR RATES

- ITEM (CORATE Number, if there is one)

- WEIGHT BREAKS

- PRICES (Minimum on the 1st line, per kg beyond that)

II) HOW TO CALCULATE TOTAL FREIGHT RATES

The total cost of the air freight is equal to the CHARGEABLE weight multiplied by the per kg price in the tariff schedule. Of course, this calculation must always be either equal or superior to the minimum rate for your particular destination.

III) PAYING A HIGHER WEIGHT BREAK

The shipper / forwarder can use a higher weight break to his advantage at any time if use of this type of calculation gives a lower total air freight rate.

An example : Your shipment has a chargeable weight of 65 kgs :

TARIFS

 Minimum (M) 330.00 FRF
  less than 45 kg rate (N) 32.50 FRF per kg
  more than 45 kg rate (45) 22.00 FRF per kg
  more than 100 kg rate (100) 13.00 FRF per kg

65 kg = 22.00 FRF x 65 kg = 1430.00 FRF

Higher Weight Break = 13.00 FRF x 100 kg = 1300.00 FRF

Since the second solution is more economical, you CAN use it. Do not forget that you must indicate 100 KGS as your chargeable weight on the AWB.

IV) CO-RATES (Commodity Rates) or CLASS RATES

Certain destinations have ITEM (Co-Rate) numbers which correspond to special tariffs applicable to specific sorts of goods. CLASS RATES are general reductions or increases depending on the nature and destination of goods (i.e.; personal effects, newspapers, live animals, etc.) TCI can study the applicability of these rates to your shipments, depending upon their nature, the chargeable weight and the final destination.

Give one of our air freight contacts (see the contact page in this Web Site) a call or an e-mail. We will be glad to help you for this or any other questions you may have.

TCI - Glenn Wilkins - 1998