Transcript Airfreight forwarding

Airfreight forwarding
Outline
I. Introduction to airfreight forwarding
1. Introduction
2. Infrastructures
II. International Air Cargo Operations
1. International Associations
2. Legal Issues
3. Documentation
4. Rates and Charges
5. Extend of carrier’s liability
6. Claims and actions
III. Air Cargo Operations in Vietnam
I. Introduction to airfreight
forwarding
1.1. Advantages
1.2. Disadvantages
- High speed
- Quick service
- Easy Access
- No physical barrier
- Natural Route
- National Defense
- Risky
- Very costly
- Small Carrying
Capacity
- Huge Investment
I. Introduction to airfreight
forwarding
2. Infrastructure
2.1. Airport
2.2. Aircraft
2.3. Loading/ Unloading Equipments
II. International Air Cargo
Operations
1.
International Associations
1.1. International Civil Aviation Organization (ICAO)
ICAO’s objective are to:
Ensure the safety and orderly growth of worldwide civil aviation;
Enhance the arts of aircraft design and its operations, for peaceful
purposes;
Encourage the development of airways, airport and air navigation
facilities;
Cater to the needs of passengers and operators for safe,
frequent, efficient and economical air transport;
Ensure that the rights of countries are fully respected to avoid
discrimination, allowing every country equal opportunities to
operate international airlines;
Eliminate unfair competition and practices; and
Promote flight safely and further developments in international
civil aviation.
1. International Associations
1.2. International Air Transport Association (IATA)
Some of IATA’s interest, in relation to its members,
are:
- Safety and security;
- Industry viability and recognition;
- Products and services;
- Standards and procedures; and
- Industry support
1. International Associations
1.3. International Federation of Freight Forwarders Associations
(FIATA)
FIATA’s objectives are to:
- Unite the freight forwarding industry around the world
- Represent, promote and protect the interest of the freight forwarding
industry by acting as advisor or expert in dealings with international
transport companies;
- Familiarize people with the services of freight forwarders through the
dissemination of information and distribution of publications;
- Introduce measures to enhance the quality of service rendered by
freight forwarding companies, by developing and promoting uniform
forwarding documentation, standard trading conditions and so on;
and
- Improve the speed and efficiency of freight transportation by
providing industrial or vocational training for the employees of freight
forwarders, solving liability insurance problems, and distributing ecommerce information tools like barcodes, radio frequency scanners
and electric data interchange software.
1. International Associations
1.4. ASEAN Federation of Forwarders Associations (AFFA)
AFFA’s objectives are to:
- Unify all freight forwarders in the ASEAN region through
national forwarders associations;
- Foster, promote, develop and maintain close cooperation
between and among freight forwarders in ASEAN;
- Represent members in their collective interests in
relation to freight forwarding matters peculiar to the
ASEAN region; and
- Pursue all measures to improve the quality, standard and
professionalism of freight forwarders in the ASEAN
region.
2. Legal Issues
- Convention for the unification of certain rules
relating to international carriage by air, 1929/
Warsaw Convention
- Protocols to amend the convention for the
certain rules relating to international carriage by
air:
-
The Hague Protocol 1955
Guadalajara Convention 1961
Montreal Agreement 1966
Guatemala Protocol 1971
Montreal Protocol 1975 No 1, 2, 3, 4
3. Documents
3.1. Air Way Bill (AWB)
3.1.1. Air Waybill (AWB) or air consignment note
refers to a receipt issued by an international
carrier company for goods and an evidence of
the contract of carriage.
- AWB is not a document of title to the goods.
Hence, it is non-negotiable.
- AWB is always a received for shipment
document.
3.1. Air Way Bill (AWB)
3.1.2. Different types
• Base on issuer:
– Air line airway bill
– Neutral airway bill
• Base on consolidation services
– House airway bill
– Master airway bill
3.1. Air Way Bill (AWB)
3.1.3. Functions
– Evidence of the contract of affreightment
– Confirmation of shipment
– Freight Bill
– Insurance Certificate
– Custom declaration
– The guide to the air staffs
3.1. Air Way Bill (AWB)
3.1.4. Contents of AWB
• First side:
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AWB number
Name and address of the issuer
Airport of departure
References to originals
References to conditions of contract
Shipper
Consignee
Charge Code
Issuing carrier’s agent
3.1. Air Way Bill (AWB)
• First side:
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Accounting information
Currency
Routing
Declared value for carriage
Declared value for customs
Insurance Amount
Handling information
Other fees and charges
Number of Pieces
3.1. Air Way Bill (AWB)
• Second side (only in 3 originals):
– Information about carrier’s liabilities
– Terms and condition of contract of carriage
3.1. Air Way Bill (AWB)
• 3.1.5. Allocation
• Original 1: for carrier, signing by shipper
• Original 2: for consignee, signing by shipper and
issuing carrier
• Original 3: for shipper, signing by issuing carrier
• No 4: for final destination
• No 5: for final airport
• No 6, 7, 8: for the 3rd, 2nd and 1st carrier
• No 9: for carrier’s agent
3.2. Other documents
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Commercial invoice
Packing list
Cargo manifest
Shipper’s letter of instruction
Certificate of quality, quantity, live animals,
dangerous goods
- Custom declarations
4. Freight and Charges
4.1. Freight rate: the rate declared in air freight tariff on the
AWB issuing day.
4.2. Basis for calculation
- Quantity
- Volume/ measurement
- Value
 Total freight = freight rate X number of units
 Freight in Air transport is regulated in the unified freight
tariff of IATA:
 TACT rules (The Air Cargo Tariff): rules to calculate freight
 TACT freight rate:
Freight rate for North American area
Freight rate for other areas
4. Freight and Charges
4.3. Different types
- General Cargo Rate (GCR): the normal rate applied for
normal general cargo carried between two airport.
- GCR- N (normal): for goods with quantity < 45kg
- GCR- Q (quantity) for goods with quantity ≥ 45kg (45kg, 45-100,
100-250, 250- 500, 500- 1000, >1000)
- Minimum rate: the rate to guarantee profit for airlines
- Special Commodity rate (SCR): the rate applied for
special commodities in a certain routes.
- Class Rate/ Commodity Box Rate (CBR): freight rate
classified by commodity (live animals: 150% GCR, high
value commodities: 200% GCR, books, journals,
magazines, luggage, mortal remains/ ashes: 50% GCR)
4. Freight and Charges
4.3. Different types
- Freight All Kinds (FAK): single freight that is charged irrespective of
the commodity
- ULD rate: the rate that is charged when the goods are consolidated
in unit load devices
- Delayed shipment charge
- Fast shipment charge: the rate applied for cargo sending within 3
hours
- Unified Cargo rate: single freight that is charges irrespective of the
section
- Group rate: the rate that is applied for forwarders or airlines’ agents,
who usually send goods in containers, pallets or other transport
articles
- Subscribed rate: the rate that is charged when charter an entire
aircraft to carry the goods
5. Extend of carrier’s liability to the
goods
5.1. Warsaw Coventions
• Period of liability
=> “from airport to airport”
5. Extend of carrier’s liability to the
goods
5.1. Warsaw Conventions
• Basic of liability:
– Loss, damage, and delay in carriage
– Exceptions
5. Extend of carrier’s liability to the
goods
5.1. Warsaw Conventions
* Limitation of liability
• Passengers: 125,000 francs
• Registered luggage or goods: 250
francs/kg
• Private luggage: 5,000 francs
• Franc unit consisting of 65.5 milligrams
gold of millesimal fineness 900
5. Extend of carrier’s liability to the
goods
5.2. Hague protocol 1955
5.3. Guadalajara Convention
5.4. Guatemala Protocol 1971
5.5. Montreal protocol 1975- No. 1, 2, 3, 4
6.Claims and Actions
6.1. Claims
Limitation of claims:
• Warsaw Convention:
• Hague Protocol:
6.Claims and Actions
6.1. Claims
Claims documents:
- Application
- AWB
- Cargo documents
- Documents of damages
- Report on compensations (consisting of
indemnity and other fees and charges)
6.Claims and Actions
6.2. Actions
- Claimer
- Defendant
- Limitation of actions
III. Air Cargo Operations in Vietnam
1. Air transportation organizations in
Vietnam
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Vietnam Airlines
Pacific Airlines
VASCO (Vietnam Air Service Company)
SFC (Service Flight Corporation of Vietnam)
2. Legal Issues
• Civil Air Law 1991
• Civil Air Law 2006
• Regulations of international air cargo
operations 1993
3. Extend of carrier’s liability to the
goods
3.1. Period of liability
3.2. Basis of liability
• Exceptions
3.3. Limitation of liability
4. Claims and actions
4.1. Limitations of claims
4.2. Limitations of actions