What is an Air Freight Forwarder & What Services Do They Provide?
Efficient and reliable transportation of goods is crucial for businesses to succeed. An air freight forwarder plays an important role in facilitating the movement of goods across borders, offering numerous advantages over other modes of transportation.
According to the International Air Transport (IATA), air freight volume reached a record high of 67.2 million tonnes in 2023, highlighting its growing importance in global supply chains.
What is Air Freight Forwarding?
Air freight forwarding is a specialized service that involves the transportation of goods by air.
Air freight forwarders act as intermediaries between shippers and airlines, handling various aspects of the shipping process, including booking flights, customs clearance, insurance, and documentation.
How Air Freight Works: The Complete Process
Air forwarder offers a comprehensive solution for businesses hoping to transport their goods efficiently and cost-effectively via air.
1. Shipment Pickup
The air freight forwarding service arranges for the pickup of your goods from your designated location. This can be your warehouse, factory, or other specified location.
2. Documentation
Air forwarding prepares the necessary documentation, such as customs declarations, commercial invoices, and air waybills.
This ensures that your shipment complies with all relevant regulations and requirements for international transportation.
3. Consolidation
If your shipment is small, it may be consolidated with other shipments to fill a full container or aircraft.
This in return reduces costs and improves efficiency. However, it’s important to note that consolidation may result in longer transit times due to the need to coordinate with other shippers.
4. Booking
The air cargo forwarder books the appropriate flight based on your shipping requirements, including destination, transit time, and cost.
They will consider factors such as flight frequency, cargo capacity, and any special handling requirements.
5. Transportation
Your goods are transported to the airport and loaded onto the aircraft. Air freight forwarding services will coordinate the transportation from your location to the airport, ensuring that the shipment arrives on time for the scheduled flight.
6. Customs Clearance
The forwarder handles the customs clearance process at the destination airport, which involves submitting the necessary documentation, paying duties and taxes, ensuring that your shipment complies with all import regulations.
7. Delivery
Your goods are delivered to the final destination or picked up by the consignee. The forwarder will coordinate the delivery process and ensure that your shipment arrives safely and on time.
Air Freight Shipping: Advantages
Air freight offers the fastest mode of transportation, making it ideal for time-sensitive shipments.
Air freight is generally more reliable than other modes of transportation, with fewer delays and disruptions. Air cargo is considered one of the safest modes of transportation, with minimal risk of damage or loss.
Air freight allows for the transportation of goods to virtually any destination in the world.
Advanced tracking systems provide real-time visibility into your shipments, allowing you to monitor their progress and address any issues promptly.
Air Freight Shipping: Disadvantages
Air freight is generally more expensive than sea freight, making it less suitable for large, non-perishable shipments.
There are limitations on the weight and volume of goods that can be transported by air.
Air freight has a higher carbon footprint compared to other modes of transportation.
Benefits of Working with an Air Freight Forwarder
Air cargo freight forwarder has a specialized knowledge and experience in the field, ensuring efficient and compliant shipping processes.
They have established relationships with airlines and other service providers, allowing them to negotiate favorable rates and secure capacity.
Forwarders handle the complex paperwork associated with international shipping, saving you time and effort.
They can help you manage risks such as delays, customs issues, and insurance claims.
Forwarders provide dedicated customer support, assisting you throughout the shipping process.
How to Choose the Right Air Freight Forwarder
When selecting an air forwarding cargo, consider the following factors:
Reputation and Experience: Look for a forwarder with a proven track record and a strong reputation in the industry.
Service Offerings: Ensure the forwarder offers the services you need, such as customs clearance, insurance, and tracking.
Network and Partnerships: A forwarder with a strong network of airlines and agents can provide more options and potentially better rates.
Technology: Evaluate the forwarder’s use of technology of tracking, communication, and documentation.
Cost: Compare rates from different forwarders and consider factors such as fuel surcharges, security fees, and additional services.
What Is Air Express and When Should It Be Used?
Air express is a premium service that offers expedited delivery times and priority handling.
It is suitable for urgent shipments that require immediate delivery, such as time-sensitive documents or high-value goods.
However, air express is generally more expensive than standard air freight.
Cost Considerations for Using an Air Freight Forwarder
The cost of air freight can vary significantly depending on several factors.
Weight and Volume
In addition to actual weight, air freight carriers often consider dimensional weight, which is calculated based on the dimensions of your shipment.
If your shipment has a low density, the dimensional weight may be higher than the actual weight, resulting in increased shipping costs.
For larger shipments, you may be eligible for volume discounts. Negotiating with your air freight forwarder can help you secure favorable rates.
Destination
The distance between your origin and destination will directly impact shipping costs. Longer distances generally result in higher rates.
Countries with stricter customs regulations may lead to additional fees or delays, which can affect the overall cost of shipping.
Different airports may have different fees and charging, which can contribute to the overall shipping cost.
Currency Exchange Rates
Fluctuations in currency exchange rates can significantly impact the cost of international shipping.
Monitor exchange rates and consider hedging strategies to mitigate risks.
Fuel Surcharges
Airlines often impose surcharges to offset the cost of fuel.
These surcharges can fluctuate based on market prices and may be passed on to shippers.
Additional Services
Insurance: Consider the cost of insurance coverage to protect your shipment against loss or damage.
Customs Clearance: The cost of customs clearance can vary depending on the complexity of your shipment and the destination country’s regulations.
Door-to-Door Delivery: If you require door-to-door delivery, additional charges may apply.
9 Types of Air Cargo
- General Cargo: Non-perishable goods that do not require special handling.
- Perishable Cargo: Goods that require temperature-controlled environments, such as pharmaceuticals, food items, or flowers.
- Hazardous Materials: Dangerous goods that pose a risk to safety or the environment, requiring specialized handling and documentation.
- Live Animals: Cargo that involves the transportation of live animals, which requires specific regulations and handling procedures.
- Valuables: High-value items that require special security measures, such as jewelry, previous metals, or artwork.
- Oversized Cargo: Items that exceed standard dimensions or weight limits, requiring specialized handling and transportation equipment.
- Breakbulk Cargo: Large, individual items that are not packaged in containers, such as machinery or industrial equipment.
- Project Cargo: Complex shipments that require specialized logistics planning and coordination, such as industrial projects or exhibitions.
- Time-Sensitive Cargo: Shipments that require expedited delivery due to urgent deadlines, such as medical supplies or spare parts.
