How can a Freight forwarder provide airfreight rates better than airlines Posted on 06 April 2023 Category : Export 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. 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. Have you satisfied with this article - How can a Freight forwarder provide airfreight rates better than Airlines in exports and import business of international trade? Do you wish to add more information about a freight forwarder’s role in Export and Import trade? Share your experience in export and import trade about the advantages of a freight forwarder in international business. The above information is a part of Export Import Training course online Comment below your thoughts about this article - How can a Freight forwarder provide airfreight rates better than Airlines in exports and import business of international trade? 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 How to amend AWB number in Import General Manifest (IGM) What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo? 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 Comments next-terra: On 13 May 2015 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: On 14 January 2016 hiii I need to know the airfreight for 1kg sample from India to Vietnam. plz anyone can guide how to know freight? Shashi Bhushan: On 23 May 2016 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: On 21 May 2019 Very useful blog. thanks for sharing Hardzic: On 09 July 2022 We encourage you to contact us with any assistance you may need with the following: LIST OF SERVICES: Warehousing (340 South Stiles St. Linden, NJ 07036) ( 201 Bay Avenue, Port Elizabeth, NJ - directly in between Maher and APM) • 500,000 sq ft of premium ambient space - FDA, USDA approved. • 6 acres yard space • A variety of Trans Load Options • Blocking & Bracing • Export Consolidations • Import De-consolidations • Project Consolidations Trucking • Drayage • HEAVY CONTAINERS • Oversize and Out-Of-Gauge Trucking • Flat-bed, Step-Deck Export Boxing / Crating / Lashing • Skidding • Banding • Crating When it comes to our warehousing business - I encourage you to think of this space as your own. Utilize all of our capabilities, and share what we have to offer to your existing customers, potential customers, and future opportunities alike! I look forward to hearing from you, and hopefully working together in the near future. esraa: On 16 July 2022 I am engaged in customs clearance work from the past 4 years. we primarily do customs clearance from Delhi ports. I came across your site sometime age and read a few articles which I was searching online, and I must say that they are really informative and good. Most of the people who are associated with customs clearance work doesn't share information, whether it's a deliberate act or their negligence or lack of information I can't say that. Information which is available online is most of the time incomplete or too confusing. Hope to see some more good interesting articles from you. One more thing I would like to ask you, sir, can I discuss some cases with you if I find myself stuck in a situation where I need to consult you.