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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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

 

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IGM amendment (Import General Manifest Amendment)
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Comments


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