Exporting Cargo via Air freight.

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Let’s say that currently your cargo is small. What do I mean in small? This basically means that your cargo is below 50 kgs. and the dimensions are a couple of boxes. In this case the best possible way of getting your shipment to and from different countries is air courier. Yes, you have heard it right. Air couriers are companies like FEDEX, DHL, EMS etc. They can usually move small freight at a lower cost then freight forwarders. Its more viable. But what happens when the cargo becomes over 50kgs and the dimensions start to become larger? You need a International Freight forwarder

Today where going to give you some tips on what’s involved in an air freight move from Australia to the rest of the world and help you to make sure that you keep the costs low.

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Incoterms

Some incoterms are:
EXW – EXWORKS – All costs from the factory to agreed place of delivery. 
FOB – Free on Board 
CFR- Cost and Freight 
CIF – Cost freight and insurance
DDU – Door to door without duty paid from the supplier
DDP – Door to door all costs paid from the supplier

When you arrange shipments be sure you understand which incoterm you use and selling to your offshore customers. DDP makes you hold the most responsibility and liability. This basically means your paying for everything to the customers door.

 If this was the case, it would be wise to do your research on whether the goods require any permits, what duties / tax’s in the other country would be payable. Best possible approach from our stand point is. CIF. Cost freight and insurance. This incoterm will put you responsible for the cargo going all the way to the port and then its up to your customer to clear and arrange delivery themselves. It holds less liability incase things go wrong.

Chargeable weight vs GROSS KG

With airfreight, airlines will charge you based on either gross weight or chargeable weight. Imagine bricks vs feathers. While bricks may weigh a lot more in gross kgs. Feathers do not weigh much but end up taking more VOLUME.  When you arrange your freight ensure that you always check both avenues.  Remember airlines and freight forwarders go off the greater of the two and that’s what you will be charged on.
The best way to check is to ensure you have the gross kgs. of all packages on hand but to also ensure that you measure your cargo. Here’s how to calculate chargeable weight.

Calculating Chargeable weight
 Grab a tape line and start measuring the dimensions. Let’s say overall gross kgs.’ is 150kg. You just want to make sure and check the dimensions incase chargeable weight is more. 
Calculate example below:
length x width x height. 

(100cm x 100cm x 112) 

= 1120000

1120000 / 6000

=186.66 kg 

Chargeable weight is more then the gross kgs. So if the airlines, freight agent has given you a rate of about $1.00 AUD per kg.  $1.00 AUD x 186.66 = total freight you will pay. You can be assured that they will charge you based on the chargeable weight as that’s the greater amount of the two.

Conclusion

These are a few tips to help you understand what you need to do when exporting cargo.
in conclusion if you are unsure of anything always get your freight agent to check everything before you commit to the export. E.g.

  • Weights / pallets (if your boxes are on a pallet, don’t forget the pallet is included in the weight / dimensions
  • Check for Customs requirements offshore- Does your client have the proper licenses to import? Permits to import? do all the valid checks before committing
  • Check if the goods require anything before exporting with your local freight agent.
  • Consider insurance for the cargo. Anything can go wrong along the way. Life isn’t perfect and better be safe than sorry!
    Till next time keep.  Ship well!

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