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INSIGHTS ON AIR FREIGHT AND COST CALCULATIONS IN 2019

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EVERYONE KNOWS THAT AIR SHIPMENTS ARE MUCH MORE EXPENSIVE THAN SHIPPING VIA SEA OR TRUCK, BUT SOMETIMES, URGENT CARGO REQUIRES A SHORTER TRANSIT TIME, LEAVING NO OTHER ALTERNATIVES THAN SHIPPING BY AIR. In those cases, it is useful to know how airlines build their transportation costs, to make an appropriate decision on what service to prefer and how costs are built up. Some of the most important cargo airlines in the world are: Cathay Pacific Cargo Korean Air Cargo Emirates SkyCargo Lufthansa Cargo Singapore Airlines Cargo China Airlines Cargo EVA Air Cargo Air France Cargo For air shipments, the cost is calculated by multiplying the rate (provided per kg/lbs) for the “chargeable weight”, which is calculated based on the weight or volume of goods. The volume/weight ratio is very simple to calculate: 167 kg is estimated for each cubic meter of space (formula: 1 CBM = 167 kg), but if the weight exceeds the chargeable weight, the actual weight will be applied for cost calculation....

Changing the Destination After the Cargo Has Sailed

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Let’s face it – things don’t always go as planned. There are countless steps that occur between moving your cargo from point A to point B, which means there are countless things that can go awry. If you have made it past some of the main check points – the product has a buyer, the space is reserved on the vessel, AES has been filed, equipment was available, all containers have been pulled, filled, and returned to the port by the cargo cut-off, documentation has been submitted by the docs cut-off, and the vessel has sailed with all containers confirmed on board – you may wonder: What could possibly go wrong at this point? CARGO HAS BEEN SHIPPED TO THE WRONG DESTINATION. After the minor heart-attack caused by the realization that your shipment of kangaroo food is on its way to Malaga, Spain instead of Malaga, Australia, your next step will be to request a Change of Destination (COD) or Diversion. A COD or Diversion is the act of altering the destination port, or final destination cit...