Monday, 21 December 2009
What is Air Freight?
Air carriers can also offer something the LTL carriers cannot, which is next day or 2nd day services from any origin point in the US to any US destination point. Due to the way LTL carriers network their equipment, it would be very difficult for an LTL carrier to provide next day or 2ND day services for shipments moving over 500 miles. Also, air carriers can provide guaranteed delivery dates for next day and 2nd day shipments. This is a very good service that fits a customer's need to get product to the final destination quickly and on time. This type of service does introduce us to the third main difference in shipping LTL vs. air and that is price.
Air carriers will provide very quick transit times and can easily guarantee delivery dates, but in comparison to the cost of shipping a product LTL, shipping via air freight can be very expensive. This type of service is not something a customer will use on a regular basis but can be very helpful in a time of need.
One other difference between LTL freight and air freight is how a customer's price is calculated. LTL carriers take into account the origin and destination zip codes, the products total weight and freight class. Air carriers calculate rates based on the origin zip code, destination zip code, and the products total weight and dimensions. Freight class is not used to calculate air freight. Air freight rate shipments based on a per pound rate based on the greater of either the shipments actual weight or the dimensional weight.
To calculate a products dimensional weight, you will multiply the shipments length, width and height (in inches) and then divide the total by 194. You then would compare that number against the shipments actual weight. The greater amount of the two is what you would use to calculate the total cost.
Dimensional weight example: A customer has a shipment that weighs 1000 lbs and is 48" long X 58" wide X 72" high. To find out which is greater, the dimensional weight or the actual weight, you would use the below equation:
(L) 48 * (W) 58 * (H) 72 = 200,488
200,488/194 = 1033 dim weight
In this example, the product's dimensional weight is greater than the products actual weight. One thing that LTL carriers and Air carriers have in common is the fact that they are renting out container space on the vehicle they are moving the product with. If a product has a dimensional weight that is greater than the actual weight, the carrier must be able to make up for potential lost revenue.
Air freight
What Does an Air Freight Agent Do?
Duties of Air Freight Agent can include:
* Directing inbound and outbound air freight shipments to their prearranged destinations
* Assembling cargo according to their destination that includes arranging space for the shipment.
* Receiving bookings from customers for shipments and arranging for pickup of the freight and delivery to the cargo airplane
* Weighing the cargo and calculating the shipment costs. They put freight bills in order and accept shipping payments from the customers.
* Assembling appropriate documents and prepares and processes the documents and includes the information with the shipments
* Notifying shippers of departure delays
* Unloading inbound freight and contacting customers when the cargo arrives, as well as arranging for delivery.
* Arranging cargo movement to an international destination. Prepares international documentation that includes: commercial invoice, shipper's export declaration, bill of lading, and other documents required by the carrier or country they are shipping to.
Some freight agents specialize in certain cargo such as clothing. All agent services have their own specific rules and regulations for transporting cargo. One of these regulations is not permitting the import and export of illegal and prohibited goods. They will also have certain weight limitations. If a customer's cargo surpasses the maximum allowed weight, there are usually added shipping costs
Most services will arrange for pick up cargo from the customer's location and deliver the cargo right to the recipient's door step. Sometimes there is an additional price associated with door-to-door delivery. The agent can also arrange for discounts for a large volume of cargo.
For shipments that are time-sensitive or destined to an isolated location, air freight shipping is the most effective and quickest way of shipping. Air freight agents are there to meet customer needs as well as ensuring airline transportation runs smoothly.
Air freight agents are able to ensure an efficient and easy transport of cargo by bringing all shipping processes together so that the cargo arrives at its destination on time and in the same condition as when it was shipped. Agents are knowledgeable about the shipping process and can answer such inquiries as: if the item can be picked up and delivered to the destination, shipping insurance prices, when the item will arrive, and the methods they use to track an item. When calling an agent, make sure you have the measurements and weight of the cargo.
Individuals and businesses that have used the services of an air freight agent have enjoyed the benefits of hassle-free freight shipment. Using a highly regarded air freight agent who understands the air transport procedure ensures a stress free, easy, and safe delivery of your air freight cargo.
A trusted shipping company will provide postal service right from your home. Get international shipping quote on your shipment to prepare your freight charge beforehand.
Air Freight - Give Your Package The Room To Fly
One of the ideas for using a plane, was to allow them to carry freight. History was made in November of 1910, when a department store shipped a bolt of silk by air from Dayton to Columbus, Ohio. This was considered the first demonstration of air freight. In 1919, American Railway Express used a converted bomber to ship 1100 pounds of freight from Washington, D.C. to Chicago; unfortunately, the radiator froze and the plane had to land in Ohio, but that didn't stop the company from continuing to use planes as a way to move their freight. In the late 1920s, many airlines were known to be freight carriers. The invention of air freight was great for American business, not only did it allow them to get parts and merchandise quicker, but the speed of the process meant that businesses didn't have to keep as much inventory on hand.
As with any great idea, the early stages of the air freight industry saw tremendous growth. In 1927, only 45,000 pounds were shipped, but by 1931, that number had grown to over one million pounds a year. Although there were some attempts at organizing the air freight industry early on, the first commercial airlines that were all cargo did not happen until after World War II. In March of 1941, the top four airlines; United, American, Eastern and TWA formed Air Cargo, Inc., to deliver freight. Air Cargo operated during most of the war, and continued on until 1944. Near the end of the war, many of the airlines, including TWA and United, decided to start their own independent air freight services.
Many small plane operators wanted to join the air freight industry, but they weren't welcomed. The big airlines made it clear that they didn't want the small plane operators in the business. The big airlines believed that the small plane operators would make the industry unstable; plus, they really didn't want any competition. There were a few small plane operators that tried, but practically all of them fell by the wayside. But there was one small plane operator that survived, its name was Flying Tiger. Flying Tiger was owned by Robert Prescott, who was a "Flying Tigers" pilot during the war. Flying Tiger was able to survive because it delivered both civilian and military freight. During the 1960s, Flying Tiger became the largest air freight airline in the country.
Despite great hopes, especially after a tremendous start, the air freight industry wasn't growing as expected. It wasn't until the 1980s that someone tried to put a new spin on air freight; and that person was Fred Smith. Fred didn't believe the way the air freight industry was doing business was efficient or good for business and he opened up his own air freight business in Memphis, and named it Federal Express. A major plus for customers who chose Federal Express, was that they offered guaranteed next-day delivery. Within ten years of operations, Federal Express reported revenues of one billion dollars. In 1989, Federal Express bought Flying Tiger. The two companies were merged together to create the world's largest full-service all cargo airline.
Today, Federal Express is joined by United Parcel Service, which got its start back in 1907, as two of the more trusted and reliable air freight delivery services.
Michael Russell
Your Independent guide to Air Freight
The Future of the Chinese Air Freight Industry
The growth of China’s air freight industry has led to a surge in the Asian cargo business over the last few years. This is reflected in the fact that air freight from Asia to Dallas Fort Worth airport (which is the leader in Asian cargo in the eastern and southern U.S) increased by 42% in 2004.
However, it is expected that China’s air freight volume growth will ease off this year. This will happen as the market returns to a more stable expansion pace after the post SARS (Severe Acute Respiratory Syndrome) rebound in 2004 and 5.
In 2004 and 2005, China’s air freight volume increased by 25% and 20% respectively. Passenger traffic also grew at this time; by 33% in 2004 and by 20% in 2005. This was as a result of people taking to the skies following the outbreak of SARS in the region.
Although the growth rate of China’s air freight business is expected to ease off this year, it will not halt altogether. According to freight industry experts, air freight cargo volumes are anticipated to rise by 10% in 2006. If it does so, China’s air freight volume will be 3.36 million tons.
Similarly, air passenger numbers are also likely to increase. China’s aviation regulator estimates that air passenger number swill increase by 15%. This will mean that 159 million people will travel by air out of China in 2006.
The continued growth of China’s air freight and air passenger volumes is relevant to the country as it is the fastest growing aviation market in the world today. As a result China is an important battleground between Boeing and Airbus.
Boeing has entered into discussions with China to supply the country with 150 jets. Whilst Airbus has signed a deal with China to supply 150 A320 jets to it. As a result China’s role in the global aviation market is likely to remain very significant despite a slight slow down in its air freight industry’s growth rate.
GBS Freight provides the following services: Air Freight. Freight Forwarding UK.
Air Freight - Everything You Need to Know About Air Freight
For personal shipping, air services will get your goods to their destination safely and quickly. For businesses, shipping by air will keep your business running smoothly. Many freight companies offer businesses combined air and land or air and sea services to save money while still keeping a reasonable time frame.
The history of air freight has been a story of constant growth. The first attempts at Air freight were made in the 1920s, but commercial shipping companies did not get involved until the 1950s. Today, with the technological advances in airplane technology and the huge increase in air cargo services, air freight is a safe and well organised business in itself. As international trade continues to grow, the demand for air cargo transport is steadily increasing.
In the United Kingdom, air freight is often a preferred method for export businesses since the country exports a large amount of high value goods such as technical instruments and so on. Air transport now covers nearly one third of the UK's freight transportation by value.
Air freight is extremely time efficient, usually shipping goods within one to two weeks, or within days for express services. The cost of air freight can be up to ten times that of shipping by sea, so it is usually used for smaller, high value shipments. It is also essential in transporting time sensitive goods, such as perishable food, flowers, and live products. International freight forwarding companies make a lucrative business from arranging the logistics of air cargo shipping, connecting customers and transport providers for mutually beneficial and efficient business.
Air freight is irrevocably linked to the ups and downs of air transport generally. When prices of fuel increase, the increased costs will be transferred to customers of freight forwarders. As efforts continue to reduce the environmental impact of carbon emissions caused by excessive air transport, air freight prices may rise. In the coming years we may see drastic changes in the way we transport goods, but for now air freight is a booming industry and an integral part of the UK's international economy.
Bob writes for the Cardiff Shipping company and about Bristol Freight Forwarding in the UK and internationally.
Tuesday, 24 November 2009
The Freight Transport Infrastructure in Germany
Germany has a transport infrastructure that is the envy of the world and this has helped enable the development of a highly effective freight services industry. The phrase 'Germanic' is often used as a byword for efficiency and with good reason, if the freight services industry in Germany is seen as a measure.
The efficiency of the transport network throughout the country is all the more remarkable when you consider that it is less than twenty years since the Berlin Wall came down and East Germany started its process of integration within Germany.
Since the reunification of Germany in 1990, there has been a program of extensive development throughout Eastern Germany to bring the freight transport infrastructure up to the same standard as the more developed west Germany.
This program has been highly successful and the freight transport infrastructure in Germany is now amongst the best in the world, with every mode of transport fully maximized. The speed of development following reunification has presented a challenge for freight forwarders as they have kept up to date with the evolving transport infrastructure, that has increased the options to be considered by the shipping company or freight company.
There is a very efficient network of waterways, railways and motorways that make internal connections fast and straightforward and also connect Germany with other countries throughout the world. This has been a spur to economic activity, as access to markets is fully facilitated.
The road network is particularly impressive in Germany, with the Autobahn world famous for its outstanding efficiency and speed. There are over 650,000 kilometers of paved roads in Germany, which includes over 11,000 miles of expressways. There are no speed limits on some roads, meaning that freight forwarding by road can be a particularly effective option. The roads also tend to be free of traffic jams, as the German public are very keen on public transport and also make above average use of travel by bicycle, thus helping reduce overall traffic congestion. This has a positive impact on the freight services industry, meaning that journey times and costs can be accurately predicted and that risk is minimized.
As well as the excellent roads, there is also an impressive rail system in Germany. There are over 40,000 kilometers of railroads, which are run by the national railroad carrier, Deutsche Bahn AG. Deutsche Bahn AG was privatized in 1994 although it still received subsidies from the government, reflecting the government's prioritization of the country's transport infrastructure.
Lufthansa, the flagship air carrier in Germany is one of the leading airlines in the world. Since the liberalization of air transport in the European Union in 1997, Lufthansa has fought hard to retain its dominant position in Germany's internal routes, in the face of burgeoning competition from low cost carriers and others.
There are no less than 320 airports in Germany, including 14 with runways over 3 km. There are over half a million departures from airports in Germany every year. The busiest airport in terms of passenger services and freight forwarding is the Rhein-Main airport at Frankfurt am Main. Cologne-Bonn is the second biggest in terms of freight transport. The other most important airports for international freight are Berlin-Tegel, Dusseldorf and Hamburg. The federal government and cities such as Berlin and Cologne are preparing to sell their shares in major airports.
With such an extensive airport network, freight forwarding by air is extremely efficient in Germany and the freight services provider will fully consider all the available options when designing the best freight forwarding solution for a client.
Marine transport is also very developed, with major ports in the Baltic Sea including Kiel, Rostock and Luebeck, and also on the North Sea, including Hamburg, Bremen, Emden and Bremerhaven.
There are also many major river ports. The most notable are at Bonn, Cologne, Duisberg, Mannheim and Karlsruhe on the Rhein; Magdeburg and Dresden on the Elbe and Kiel on the Kiel Canal. The Kiel canal is an important strategic transport link, connecting the North Sea and the Baltic Sea.
The most important port for Germany is actually not in Germany at all - it is Rotterdam in the Netherlands. Meanwhile, Hamburg is the largest port within Germany, accounting for about a third of all the international freight.
The amount of freight shipped through German ports is very high, at over 200 million tonnes a year.
The integrated and comprehensive transport infrastructure is a model of efficiency, meaning that shipping companies can provide streamlined and cost-effective freight services for their clients.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Germany.
Understanding Direct Freight Management
Dependable, timely, and direct transportation is at the heart of the success of many different kinds of businesses, from commercial and retail to industrial and manufacturing. Understanding freight management, which is the ensurement of this transportation, can be a key to the efficient conduct of your business. An important decision to make at the outset is whether you want to deal with the hassle of managing your business's direct freight needs on your own, or whether your needs can be met by a client-based freight company.
There are a variety of experienced companies and agencies that coordinate direct freight for business clients. Building a long-term relationship with a good direct freight company will help solve many of the managerial and logistical difficulties that arise from trying to juggle freight management on your own. Such companies are in a position to offer to their clients a variety of assets gained from experience and expertise in the field of freight using up to date logistics management software.
Management of direct freight can be a confusing proposition, with so many variables to keep track of in a variety of times and locations. Freight management involves making sound business decisions from a multitude of often-confusing options and time schedules. Transferring these decisions to an agency that specializes in them can relieve clients of the burdens of shipment-tracking, contact maintenance, and matching drivers and destinations.
Freight management companies can offer their clients a variety of services. Most have freight quotes immediately available on their web sites, a valuable tool for comparing prices and services. Experienced personnel will deal with your questions and requests. Account managers for the companies stay in direct contact with the drivers, and time-stamping is used for record-keeping and tracking of shipments. The best way to get the best rates in shipping freight is logistics management software.
A variety of shipment options are available for direct freight needs. Depending on the needs and schedules of the client, next-day delivery can often be guaranteed by the direct freight provider. A good direct freight company will be bonded and insured, work with trusted carriers, offer reasonable freight quotes, and negotiate fair prices for their clients.
Many freight companies offer overseas shipping, by air or ocean, for international businesses. They employ meticulous direct freight management plans that ensure the security of your shipment from loading to destination, coordinating every aspect of the shipping process. Access to intermodal transportation, which is the combination of modes of transportation such as planes, boats, and trucks, is another convenience for businesses and customers. Many companies also offer continuously-refreshed online load boards to assist customers in direct freight management.
Successful management of the direct freight needs of your business can be a cornerstone to your success in building your business and reliably meeting the needs of your customer. The best starting point is a complete understanding of the major elements and benefits of a dependable freight management system and logistics management software. Once you understand the foundations, you can put the pieces in place and start guaranteeing your partners and customers the timely and reliable service that ensures success.
If there was logistics management software out there that could help a business maintain and manage the company down to the smallest detail, whether you're a large company or small company thus saving lots of money and time, I am sure you would want to know about it. RateLinx has the solutions and the direct freight management you need to help your business grow.