How can a Freight forwarder provide airfreight rates better than airlines


The information provided here is part of Import Export online Training

 How can a Freight forwarder provide airfreight rates better than Airlines?



What does a Freight Forwarder do in Exports and Imports trade? Can a freight forwarder provide better sea freight/ air freight to exporters/importers?


Let us take an example in air shipment – How can a Freight Forwarder provide better air rate than a major aircraft carrier?


Aircraft liner provides air rates to freight forwarders..However freight forwarder can provide better rates than actual aircraft liners.

How can a Freight forwarder provide airfreight rates better than airlines

Let us discuss this statement. You are an exporter situated in Paris. You need to move 150 kgs parcels to London. You have contacted airlines to provide airfreight up to London for 150 kgs. The airlines has various tariff. Say – USD 30 minimum, USD 3 per kg for +100kgs,USD 2.5 per kg for +250kgs ,USD 2 per kg for +500kgs etc. So this particular cargo falls under +100kgs and charges is USD 2 per kg.



You have contacted freight forwarders to provide the rates. He can provide you a rate of USD 1.5 per kg. Because, this particular freight forwarders will have cargo of others also to the same destinations. For example he collects cargo from one or more other exporters to the same destination and club all cargo together and book in his name (freight forwarder’s name). He, as a freight forwarder issues House Airway Bill to each of them and books as one shipment as a Groupage Airway Bill (Master Airway Bill – MAWB). The freight forwarder at Paris ships cargo to his counterpart at London. Once cargo reached London, the freight forwarder at London delivers cargo to each of consignees. I have written a couple of articles about how does MAWB and HAWB work etc. to know more about freight forwarding documentation in same website. Please read the same to know more about freight forwarding business activities in import and export trade of international business.


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Other details on how to import export 


Difference between MAWB and HAWB
Difference between MBL and HBL. How MBL works and How HBL works
What is House BL
Tips to exporters while booking LCL shipments with a Freight Forwarder
What happens, if HAWB number marks wrongly
Difference between Airway Bill and Bill of Lading.
Difference between NVOCC and Freight Forwarder
Excise and Customs - Click here to read complete notification under Budget 2014
How to get Export Orders?
How to settle dispute in Exports and Imports?
Click here to know India Trade Classification(ITC)
Pre shipment bank finance to suppliers for exports through other agencies
Types of export containers
Measurement of export containers
Exim Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation


Tips to importers of Edible preparations of fish,meat,crustaceans etc         
Guidelines to importers of Animal fats, Animal oil, vegetable fats,vegetable oil etc.
How is packing credit/pre shipment finance be liquidated?  
Bank Pre shipment Finance to exporters
What is crystallization of export bills? How does delinking of export bills work?                  
Types of Insurance Documents
 Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
 How many types of shipping bills in export
 How to add Line number in Import General Manifest in Custom in India
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Triangular shipment
Types of Insurance Documents

 How to protect parties each other in triangular exports
Is letter of credit safe mode of payment?
IGM amendment (Import General Manifest Amendment)
Import clearance under high sea sales
 Is Customs House Agents (CHA ) required to be appointed mandatory?
 How does Letter of Credit work?
 How does STP units work in India?
Government rules to import Slag, Ores and Ash      
 Importation of salt, earth stone, lime cement           
 How to import Tobacco and Tobacco Substitutes   
 Tips to importers of Prepared Animal Fodder          
 How to import Vinegar,Beverages   
 Foreign Trade Policy 2014-19 (FTP 2014-19) delayed
Types of Export Containers   
Dimension of Cargo Containers
The term LCL. What does LCL mean?
Difference between normal container and Hard Top Container
How to import Prepared vegetables, Prepared fruits, Prepared nuts           
Guidelines to importers of Prepared Cereals, Prepared Flour, Prepared starch and Prepared Milk           
Import processes of Cocoa and Cocoa products     
Are Construction contractors eligible for Packing credit?     
Conditions of Bank to provide Export Packing Credit to Sub-Suppliers       
Packing credit pre shipment finance to suppliers for exports through other export agencies



next-terra: Next Terra International is a licensed international freight forwarding company, Transportation and Logistics are our core competences and part of our DNA. Because of their background, working for integrators and a major European Post entity, the partners have an extensive industry experience and a large expertise in Express transportation, Parcels, Logistics and Postal business. Whatever your requirements and wherever your location, Documents or Parcels, Small, large or X-Large, Express or deferred, Air or Road, Commercial or Postal, Next Terra International is able to take the challenge. Next Terra International has access to the best networks all over the world and especially in Europe. Next Terra International can organize your transportation needs from any location worldwide in the most optimized way.

sadiksabri: hiii I need to know the airfreight for 1kg sample from India to Vietnam. plz anyone can guide how to know freight?

Shashi Bhushan: Dear Sir, Please guide me how i can calculate air freight of Electrical Cable Gross weight 350 Kg but i don't know volume weight. From Delhi to Doha

Logitude World: Very useful blog. thanks for sharing

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