02 Airfreight Forwarding

G u id e s to In te rn a tio n a l Logistics
T he P ra c titio n e r ’s
D e fin itiv e G u id e
Airfreight
4 th e d itio n Forwarding
T h e S in g a p o r e Logistics A s s o c ia tio n
w ith
Ho C hee M u n
Straits Times Press

REFERENCE
Published by Straits Times Press Pte Ltd
English/Malay Newspaper Division
Singapore Press Holdings
Mezzanine Floor, Information Resource Centre
Level 3, Podium Block
1000 Toa Payoh North, News Centre
Singapore 318994
Tel: C65] 6319 6319 Fax: (65] 6319 8258
stpressbooks@sph.com.sg
www.stpressbooks.com.sg
Author The Singapore Logistics Association with

Ho Chee Mun
Straits Times Press Team

Executive Director Shirley Hew
Publishing Manager Shova Loh
Designer Katherine Lumberio Chuaheyia
Marketing & Operations Clara Wong
© 2009, 2014 Singapore Logistics Association & Straits Times Press Pte Ltd
A ll rig h ts rese rve d. No p a rt o f th is p u b lic a tio n may be re p ro d u c e d ,

stored in a retrieval system, or transm itted, in any form or by any means,
electronic, mechanical, photocopying, recording or otherwise w ithout the prior
written permission of the publishers.
While every effort has been made to contact the relevant parties for permission
to use information and/or images in this book, it has not always been possible to
do so. Please direct any enquiries to Straits Times Press.
Printed in Singapore
ISBN 978 981 4266 25 3
National Library Board (Singapore] Cataloguing in Publication Data
Ho, Chee Mun.

The practitioner’s definitive guide : / the Singapore Logistics Association with Ho
Chee Mun. - 3rd ed. - Singapore : Straits Times Press Reference, c2009.
p. cm. - [Guides to international logistics]
Includes index.
ISBN-13 : 978-981-4266-25-3
ISBN-10 : 981-4266-25-6
I. Aeronautics, Commercial - Freight. 2. Freight and freightage - Management.

3. Materials handling. 4. Business logistics. I. Singapore Logistics Association.
II. Title. III. Series: Guides to international logistics.
HE9788
387.744-dc22 QCN320293335
To my wife, Josie, for
her love, dedication and support,
and whose life has really inspired
me to serve
To all my business associates and
friends for their unfailing support
and guidance
4
Message from the SLA
The publication of this guidebook - The Practitioner’s Definitive Guide: Airfreight Forwarding
- marks a milestone for the Singapore Logistics Association (SLA). The book describes
what some of our member companies do every day. Yet airfreight management is getting
more complex, and requires specialised physical handling and storage, whether in a
warehouse or on board a plane.
I invite forwarders, carriers, customers and others, including students pursuing tertiary
programmes or skills training in logistics and freight forwarding, to read this book. All
that you need to know is now contained in this practical guide.
I acknowledge that some practitioners have experienced thoroughly all that could
happen in this profession; at SLA’s request, many friends from the air cargo fraternity
read this book before its publication. Their helpful comments and feedback confirmed
that industry practitioners at large will still benefit from having Airfreight as a check to
what you already know.
The author. Ho Chee Mun, is a lecturer in freight management with the SLA. With
credentials spanning more than 30 years in the airfreight and logistics industry, and
several senior management positions held throughout his industrious career, Chee Mun
must be congratulated for putting together and combining everything about air cargo
handling into a concise book. I for one will certainly have a copy on hand at all times.
M r Stanley Lim
Chairman
Singapore Logistics Association
5
Message from the SAAA
I have often been approached by business associates, industry partners and airlines,
who ask if there is any book written specifically on air cargo. There are few publications
that we can use as references or training texts, so I was delighted when Chee Mun
told me that he would be writing this book, The Practitioner’s Definitive Guide: Airfreight
Forwarding, and invited me to write a few words.
I believe that there is a pool of qualified, talented and resourceful practitioners in the
air cargo industry with experience, creativity and innovation that has not been tapped,
and that there are an inadequate number of published textbooks and guides for this
industry.
Having known Chee Mun for more than 30 years, which is as long as he has also been
known in the air cargo industry, I strongly believe that he has much to contribute.
This book is significant, in that it will definitely inspire industry leaders, practitioners,
academics and government agencies to gain a better insight into the air cargo business.
It has been written with great enthusiasm, commitment, passion and determination by
an academically qualified author whom I admire.
We now have the opportunity to contextualise the art and science of airfreight in the air
cargo industry. It is as we gain a deeper understanding of the concepts and applications
of airfreight that we will be able to preserve our communities of work and ourselves.
M r Steven Lee
Chairman
Singapore Aircargo Agents Association
6
About the SLA
Established in 1973, the Singapore Logistics Association [SLA] champions the causes
of the logistics and freight forwarding industry in Singapore. Its vision is to be a major
contributor to promote Singapore as a w orld-class hub. Its mission is to promote
professionalism and excellence of the logistics industry. The association, is in close
collaboration and consultation with government agencies, trade organisations, logistics
professionals, academia and international organisations, crafted its objects to:
• promote, protect and develop a sound logistics industry:
• develop, promote and enhance Singapore as a premier regional and international

logistics hub with a reputation for reliability, integrity and high standards in logistics
practice and management; and to
• represent, protect and promote the general interests of members.
SLA has a membership of more than 500 companies. These are corporations that
are drawn from a wide spectrum of the freight forwarding and logistics fraternity
ranging from major global companies to local sm aller service providers. Mem bership
is voluntary. Ordinary membership is for Singapore incorporated companies actively
engaged in the provision of logistics services for a period of not less than two years.
Associate membership is open to incorporated or registered organisations, which are
actively engaged in the provision of logistics and/or ancillary services.
SLA is one of the five industry associations that has been successfully awarded the
Local Enterprise and Association Development (LEAD) funding in 2007.
For SLA, LEAD also encapsulates the key characteristics of the initiatives: Leadership,
Excellence, Advancement & Dynamism. The SLA will be implem enting 11 projects
over the next three years. These projects support the association's four strategic
thrusts, namely Industry Branding & Benchmarking; Education & Training; Resource &
Competence Development: and Business Facilitation & Development. SLA's initiatives
w ill promote the growth of the logistics industry and help Singapore to m aintain its
leadership position as a regional logistics hub.
7
Under Resource & Competence Development, one of the projects identified was adoption
of best practices. By developing and publishing a set of comprehensive books on best
practices in logistics, the association endeavours to help logistics companies upgrade
their process capabilities through a cost-effective medium.
The Practitioner’s Definitive Guide: Land Transport is the fourth publication launched under
the LEAD project following The Practitioner’s Definitive Guide: Process-Driven Warehouse
Operations, The Practitioner's Definitive Guide: Safety & Security and The Practitioner's
Definitive Guide: Warehouse Practices.
These publications add to the association's publication series of Guides to International

Logistics, namely The Practitioner’s Definitive Guide: Airfreight Forwarding, The Practitioner’s
Definitive Guide: Seafreight Forwarding and The Practitioner's Definitive Guide: Multimodal
Transport.
8
Preface
Airfreight forwarding may well be one of the most interesting and challenging areas in
the logistics industry. The Practitioner's Definite Guide: Airfreight Forwarding will provide
every practitioner with a comprehensive knowledge of current, practical and hands-on
field applications. It is specially designed for airfreight industry personnel, including
shippers from various industries.
This book is not only pragmatic, but also enables both readers who have already been
exposed to the air cargo industry, and those who are practising it for the first time, to
realise the importance of airfreight forwarding. Through materials and images from actual
companies like freight forwarders and airlines, it keeps readers in touch with real-life
practices. The majority of readers may not come from the air cargo industry, but those
who use this book, whatever their field of work, will discover that the topics discussed
are unique, interesting and extremely useful.
• E-commerce has gained much popularity in the air cargo industry - practitioners
realise its importance in providing a wide range of efficient services at low cost.
We have crossed the threshold into the information age, and users are constantly
engaged in manipulating and transmitting information on a daily basis. This book
shows the internet as a facilitator of the process, and illustrates how airlines, freight
forwarders and exporters have benefited tremendously from this technology of the
new millennium.
• A ir traffic rights and how airlines use them are central to the smooth transport of
goods between nations, as are the Nine Freedoms of air passage. These rights and
freedoms are explained and illustrated.
• The proliferation of cargo in today's market makes equipm ent selection very
challenging; decisions need to be made about the proper equipment to use in the
handling and delivery of cargo and mail. The constant advent of new technology
compels practitioners to seek more information when purchasing equipment. The
book discusses materials handling equipment and storage systems in modern
warehouses and distribution centres. The objective is to understand how, when and
why an organisation would use such equipment in its logistics system. The types of
equipment used to load containers and pallets onto an aircraft, be it a passenger
or freighter carrier, are also described.
9
• This book explores how marketing interfaces with air cargo, and the future challenges
faced by airlines, freight forwarders and manufacturers, with an emphasis on the
importance of alliances and collaborations, mergers and acquisitions, in improving
organisational profitability, efficiency and responsiveness. Partnerships make
investments - in warehouses, distribution centres, information systems, training,
management expertise, new technology - a shared responsibility, and bring a host
of other benefits.
In all, twelve crucial topics have been mapped out.
Chapter One: This is an introduction to the government agencies and associations

involved, and an overview of their roles in the air cargo industry. The chapter highlights
the importance of their involvement, and how they have contributed to the success of
today’s business environment.
It also shows the strong relationships that exist in the air cargo industry. It takes a
m iddle-of-the-road approach to the laws, rules and regulations and standard trading
conditions set by the International Civil Aviation Organisation 0CAO), International Air
Transport Association (IATA), International Federation of Freight Forwarders Association
CFIATA), Singapore Logistics Association (SLA) and the Singapore Aircargo Agents
Association CSAAA). Internal and external regulatory factors are carefully examined. Most
importantly, it addresses the many dynamic issues affecting the industries associated
with airfreight forwarding.
C hapter Two: This chapter clarifies legal implications by explaining the application of
the Montreal Convention 1999 [which replaces the Warsaw Convention), conditions of
contract and standard trading conditions.
Chapter Three: The chapter presents the differences between IATA and non-IATA
airlines. It includes airline geography, in particular country codes, city codes, computation
of time difference and calculation of flight time. It also explains traffic rights, and how
airlines utilise them.
C hapter Four: This chapter describes the various manuals that guide practitioners
who deal with various types of cargo: livestock, live tropical fishes, fresh cut flowers,
dangerous goods, electronics, computers and peripherals.
Chapter Five: This presents the roles of the ground handling agents in Changi Airfreight
Centre - Singapore Airport Terminal Services (SATS) and Changi International Airport
Services (CIAS) - and how their functions are similar to ground handling agents in other
parts of the world.
C hapter Six: This chapter explains the purpose of free trade zones CFTZs) in the w orld’s
major airfreight centres, and the roles of freight forwarders, third and fourth party
10
logistics providers, and integrators/express operators. The process of cross docking is

also described.
Chapter Seven: This chapter sets out the main types of aircrafts used by different
airlines, and the types of airline unit loading devices (AULDs) used for carriage of goods,
along with specifications and dimensions.
Chapter Eight: This chapter treats on materials handling equipment and storage systems.
It explains the key objectives of materials handling and how to effectively utilise space,
time and freight movement in warehouses or in an apron area.
Packing materials that preserve the freshness and safety of goods against weather,
handling, transportation, etc, are also described in this chapter.
Chapter Nine: The chapter describes master air waybills and house air waybills, the
differences between them, and how to prepare them. Issues relating to import and export
declarations are highlighted in detail, as well as practical examples of calculations of duty,
and the Goods & Services Tax (GST). It also answers the following questions: What is the
M ajor Exporter Scheme (MES), and who qualifies for it? How does Just-In-Time (JIT)
delivery benefit air cargo practitioners? Which goods are prohibited from air carriage?
C h ap ter Ten: It describes the classification of com m odities and related freig ht
charges, and how rates are broken down into different categories, including commodity
classification rates, special commodity rates and discounted rates. It shows how these
rates are calculated according to the type of goods being transported between two
nations or different IATA areas.
Chapter Eleven: The importance of e-commerce in today’s business environment is

illustrated in this chapter - its benefits and limitations, and the usefulness of the internet,
which enhances information flow. Bar codes, radio frequency scanners and other new
technology are available for improving logistics services, and can be effective in aiding
inventory management.
Chapter Twelve: This chapter discusses how marketing management is likely to interface
with airfreight forwarding in the near future. It focuses on alliances and collaborations,
mergers and acquisitions between freight forwarders and manufacturers, and between
manufacturers and suppliers, and illustrates why performance measurement is so crucial
in satisfying customer expectations.
I would like to express my heartfelt appreciation to the organisations involved -

government agencies, airlines On particular SIA Cargo Pte Ltd), ground handling agents
(CIAS), freight forwarders - and my friends for their sincere contributions in making
this book a reality. W ithout their tireless support, Airfreight may not have materialised.
Acknowledgements
The author wishes to acknowledge the following organisations for their contributions
and assistance to the development of this book.
• Changi International Airport Services [CIAS)
• Civil Aviation Authority of Singapore (CAAS)
• Customs & Excise Department, Singapore
• DHL
• Economic Development Board
• Emirates SkyCargo
• Exel
• Health Sciences Authority
• International A ir Transport Association (IATA)
• International Civil Aviation Authority [ICAO)
• Qian Hu Corporation Ltd
• Schenker
• SIA Cargo [especially for the images of aircraft and unit loading devices on p.89-
111)
• Singapore Aircargo Agents Association (SAAA)
• Swiss WorldCargo
• Toh Orchids
• U-Freight
12
Contents
P a rt O n e
GOVERNMENTS, AIRLINES, NATIONAL ASSOCIATIONS
Introduction Evolution of air cargo 16

Growth for the future 16
Factors and forecasts 20
C hapter One Government Agencies 22
World economic growth 22
Foreign investment and airport facilities 22
Security issues 23
Increased role of governments 24
The roles of associations 25
• International Civil Aviation Organisation OCAO) 25
• International Air Transport Association (IATA] 25
• International Federation of
Freight Forwarders Associations (FIATA] 28
• ASEAN Federation of Forwarders Associations (AFFA) 30
• Singapore Logistics Association (SLA) 31
• Singapore Aircargo Agents Association (SAAA) 31
C hapter Two Legal Issues 32
Legal considerations 32
What are conditions of contract? 32
What are standard trading conditions? 35
Montreal Convention 1999 37
• Exhibit 1: The Montreal Convention 1999 37
C hapter Three Space, Time and Rights 52
Conference areas 52
• IATA Area 1 52
• IATA Area 2 53
• IATA Area 3 53
World’s major airline operators 55
What is airline geography? 56
• Country codes, city codes and airport codes 56
Time difference between IATA areas 57
Flight time 61
Traffic rights and how airlines utilise them 62
C hapter Four Publications 65
TACT Manuals - The Air Cargo Tariff 66
IATA Live Animals Regulations 67
IATA Dangerous Goods Regulations 67
OAG Cargo Guide Worldwide/OAG Cargo Rules Supplement 67
13
P art Tw o
AIR CARGO OPERATIONS
Chapter Five Ground Handling Agents 68

Import functions 69
Information technology 69
Pallet/container buildup/breakdown 69
Discrepancy reports 70
Export functions 70
C hapter Six FTZs, Forwarders, Storage 73
Purpose of the free trade zone (FTZ) 73
• Facilities in the FTZ 73
• Electronic Data Interchange (EDI) 74
Roles of service providers 75
• Freight forwarders 76
• Third party logistics providers (3PLs) 80
• Integrators/express operators 81
• Fourth party logistics providers (4PLs) 81
Typical warehousing functions 81
C hapter Seven Aircraft and Loading 85
Types of aircraft and unit load devices (ULDs) used today 86
Palletisation and containerisation of ULDs 112
C hapter Eight Handling, Storage, Packing and Labelling 113
Objectives of materials handling 113
Benefits of materials handling 116
The importance of packing, labelling and handling 117
• Live animals 118
• Perishables 119
• Live tropical fishes and seafood 120
• Fresh cut orchids and flowers 120
• Dangerous goods 121
• Human remains 124
• Valuable cargo 124
Restrictions on dangerous goods 124
Chapter Nine A ir Waybills, Im port and Export 125
What is an air waybill? 125
The significance of the air waybill 127
The difference between the master air waybill and house air waybill 127
Preparation of a master air waybill 128
Validity and duration 130
Amendments to the air waybill 130
Air cargo reservations 130
• Master (airline) air waybill number 130
• Number of pieces, and dimensions 131
• Weight of consignment 131
14
• Nature of goods 131

• Dimensions and volume 131
• Airports of departure and arrival 133
• Requested routing 133
Import and export - basic principles 133
• Credit risk 135
• Foreign exchange rate risk 135
• Air transportation risk 135
Common Incoterms 136
• Ex-works (EXW) 136
• Free on Board (FOB) 136
• Cost, Insurance, Freight & Commission (CIFC), Cost, Insurance & Freight
(CIF), Cost & Freight (C&F) 137
• Delivered at Place (DAP) and Delivered Duty Paid (DDP) 138
Letter of Credit (L/C) 138
Trade Exchange 138
• Documentation process 138
Import 140
• Procedures 140
• Regulations on controlled items 142
• Documentation 142
Export 144
• Procedures 144
• Documentation 144
• Major Exporter Scheme (MES) 146
Computation of the Goods & Services Tax (GST) 147
• Dutiable goods 147
• Non-dutiable goods 147
Duty rates 147
Just-In-Time (JIT) delivery 147
Prohibited goods 148
Chapter Ten Commodities, Rates and Charges 149
Classification of commodities 149
Rates and charges 149
• Minimum charges 150
• General cargo rates (GCR) 150
• Specific commodity rates (SCR) 151
• Commodity classification rates (CCR) 151
• Unit load device rates (ULD rates) or unitised consignments 151
• Pivot rate, over-pivot rate and spillover rate 152
Precedence of rates and charges 152
Determining weights and charges 153
• Rounding off 153
• Currency conversion 153
Determinants of volume/weight ratio 153
The breakeven weight rule 154
15
Construction of add-ons or unpublished rates 155

Valuation and insurance charges 157
• Valuation charges 157
• Insurance charges 157
• Calculating valuation charges 158
• Calculating insurance premiums 159
The mechanics of disbursement fees 159
Key factors in freight charges 159
Computation of charges between IATA areas 160
How to consolidate airfreight shipments 189
P a rt T h r e e
MANAGING CHALLENGES IN THE AIR CARGO INDUSTRY
Chapter Eleven Inform ation and IT 190

E-commerce and its operations 190
Make e-commerce a success for your company 192
Automated data collection 194
• Bar codes and radio frequency scanners 194
• Inventory management 195
C hapter Twelve M arketin g M an agem ent and Logistics 196
Managing change 196
Service orientation 197
Alliances, collaborations, mergers 197
How to retain customers in a competitive environment 199
To measure or be measured - it's your destiny 200
Skills development 200
Professionalism 201
Profiles Civil Aviation Authority of Singapore CCAAS) 202
Changi International Airport Services (CIAS) 203
DHL 203
Emirates SkyCargo 204
Exel 205
Qian Hu Corporation Ltd 205
SIA Cargo 206
Schenker 206
Swiss WorldCargo 207
Toh Orchids 207
U-Freight 208
Glossary 210
Abbreviations 213
Index 215
16
PART ONE
GOVERNMENTS, AIRLINES,
NATIONAL ASSOCIATIONS
Introduction
A ir cargo m anagem ent is a fundam ental concept that has evolved to enable
airfreight com panies to increase efficiency, effectiveness and responsiveness
in the highly com petitive global environm ent of the new m illennium . This
book will assist practitioners in implem enting changes to enhance successful
operations.
E v o lu tio n o f a ir c a r g o
Airfreight transport owes its genesis to the principles of aerodynamics, simply because
aircraft fuselage has sufficient capacity for cargo. In the early decades of civil aviation
[the late 1970s), conventional aircraft were designed specifically for passengers. Any
cargo space was just a by-product of the airline's passenger system. The unique part
was that both people and goods were carried on the same aircraft. However, cargo was
never given priority - baggage, mail and emergency spares came first.
To meet the steady increase in air cargo movement, aircraft manufacturers developed
freighter derivatives of some passenger aircraft. However, this option was costly. The
advent of proper freighters, namely the B747, DCS. DCl 0 and B747-Combi models, among
others, marked the end of the hand-me-down era for freighter aircraft. As these w ide
bodied freighters appeared, the so-called derivative models became less significant.
G ro w th fo r th e fu tu re
Worldwide air cargo movement grew tremendously in the 1990s, with an accompanying
increase in the numbers of airlines, freight forwarders and shippers. This growth
outstripped that of postal mail. The dynamics of the global marketplace underwent
PART 1 Introduction
dramatic change too - companies focused increasingly on getting goods to customers

in a shorter time.
According to a report by the Boeing Company, air cargo movement saw a respectable
growth rate in 1999 and 2000, but suffered a decline in 2001. This can be attributed to
the slowdown in the US economy following the infamous terrorist attacks of September
11. That year, global air cargo traffic shrank 5.9% as compared to the same period the
previous year.
2011 Air Cargo Growth by M ajo r M ark et (°/o)

World -0.9
Intra North America -1.1
Latin Am erica-North America +1.1
Latin America-Europe +3.8
Europe-North America +3.4
Intra Europe +0.1
Middle East-Europe +2.3
Africa-Europe -0.6
Asia-North America -5.0
Europe-Asia -7.0
Intra Asia -1.9
South Asia-Europe +2.0
Domestic China +2.8
Source: The Boeing Company
Averaged over the last two decades, air cargo yield had declined by 4.2% per year. The
current decade registered a marginal yield increase of 0.9% per year, compared to the
9.0% average annual decline in the preceding decade.
In 2008, significant fuel surcharges CFSC) and insurance & security charges CISS) helped
to push yield up to 15.4%, compared to 2007.
The economic downturn which started in 2008 had fallen by a hefty 22.1% in 2009.
In 2010, yield rose marginally by 1.9%. In 2011, the total air cargo capacity increased
marginally and registered a yield improvement of a mere 1%.
The most active air cargo markets in the world overall were Latin America-Europe and
Europe-North America. As reported by the Boeing Company, the average annual growth
rate is expected to be 5.2% over the next 20 years.
Guides to International Logistics A irfreight Forwarding
Air Cargo M ark et Performance - Contributions to Regional Traffic (°/o)

Transpacific Europe-Asia Asian Regional Market
Japan 8.4 3.0 Hong Kong/PRC 12.9
PRC 18.9 10.1 Japan/PRC 17.8
Taiwan 10.8 1.5 Japan/Taiwan 2.4
South Korea 10.3 0.9 Singapore/Malaysia 9.3
Singapore 8.8 1.7 Hong Kong/Japan 0.5
Hong Kong 4.4 1.5 Singapore/Japan 3.7
Malaysia 16.3 4.7 Thailand/Japan 7.6
Australia 6.1 0.3 Malaysia/Japan 6.7
Thailand 9.8 0.9 PRC/South Korea 37.7
Philippines 12.5 -
Indonesia - 6.0
Asian Cargo M arkets:

Projected Growth, 1 9 9 9 -2 0 1 9 (% ]
Intra Asia 8.6
North Am erica-Asia 7.7
Europe-Asia 7.2
North Am erica-Europe 6.9
North Am erica-Latin America 6.8
Intra Europe 5.9
Europe-Middle East 5.8
Europe-Africa 5.5
Europe-Latin America 5.5
North America 4.9
PART 1 Introduction
Historical & Forecast Air Cargo Growth Rate

Historic 10 years (%) Forecast 20 years [%)
2001-2011 2011-2031
World +3.7 +5.2
Intra North America -1.5 +2.3
Latin Am erica-North America +1.8 +5.6
Latin America-Europe +3.2 +5.3
Europe-North America + 1.5 +3.5
Intra Europe +1.6 +2.4
M iddle East-Europe +9.5 +5.7
Africa-Europe +3.2 +4.8
Asia-North America +4.3 +5.8
Europe-Asia +6.2 +5.7
Intra Asia +4.5 +6.9
South Asia-Europe +6.1 +5.8
Domestic China +10.9 +8.0
T h e w o r ld a ir c a r g o t r a f f ic g r o w t h
Over the next 20 years, the world air cargo uplift is expected to grow by 5.2% per year.
A ir cargo traffic together with express cargo traffic will on an average achieve a 5.3%
annual growth as determined by rtks (revenue ton-kilometre). A ir mail traffic is likely to
increase marginally by 0.9% through 2031.
Asia will lead the world air cargo growth between 8.0% and 6.9% respectively. The main
contributor comes from Domestic China and Intra Asia.
The number of air cargo freighters will increase by more than 80% during the next 20
years as demand for air freight more than double. As reported by the Boeing Company,
freighter aircraft are crucial to the overall health of the air cargo industry.
Airlines and freight forwarders have resorted to selective selling, to increase revenue
through efficient use of cargo space, particularly on the most critical routes or segments.
This has led to airlines and freight forwarders analysing how best to combine efforts
to achieve their goals. Airlines are also improving their services as an avenue to better
profitability. The introduction of express services by carriers are gaining much popularity:
shippers feel assured, as urgent goods can now reach buyers on time. Express operators
and integrators, on the other hand, are offering same-day delivery [this does not include
perishables, human remains, livestock, etc).
Guides io International Logistics i A irfreight Forwarding
Airlines, ground handling agents (GHAs) and freight forwarders have introduced
customer service quality improvement programmes; the ISO certification and People’s
Developer programmes are two examples of widely adopted standards. Employee training
and skills development has become necessary. M ost people believe that improved
customer service will eventually lead to improved revenue - from an airline perspective,
average yield computation is generally based on cents per capacity ton-kilometre [cents/
ctk) or cents per revenue ton-kilom etre (cents/rtk).
Another thing that has affected the industry is the deregulation imposed by governments
to increase healthy competition, leading to a decrease in rates.
F a c to rs a n d f o r e c a s t s
The following diagrams (adapted from the Boeing Company) show the forces and
constraints involved in air cargo growth, and the projected increase in the world market
over the next 20 years.
Forces and Constraints for Air Cargo Growth

Industry
relo ca tio n
PART 1 Introduction
World Airfreight Market Will More Than Triple in 20 Years*

RTKs, billions
* Excludes countries of the former Soviet Union
Baseline Cargo Forecast 2001 Baseline Cargo Forecast 2021
C2001 - U S/29.7% , N o n -U S /7 0 .3 % ) C2021 u s / 2 6 -1%- N o n -U S /7 3 .9 % )

22
Government Agencies
The history of the air cargo industry is closely linked to the developm ent of
international aviation. The unprecedented expansion of airtran spo rt resulted in
a mushrooming of airlines, and modern aircraft showcasing speed, perform ance
and capacity. Government involvement has boosted air cargo operations around
the world, and airfreight has becom e a profitable business. M ost governments
use the strategic geographical locations of their respective countries to facilitate
air transportation.
W o r ld e c o n o m i c g r o w t h
The healthy growth of the world economy and the high volume of cargo traded between
countries have led many governmental bodies, especially in the Asia-Pacific region, to
develop their airports into major air cargo and transhipment hubs (where goods are
transferred from one mode of transport to another in a single transport operation,
for example, sea-air or air-sea) and/or distribution centres. Industrialisation has also
contributed to the swell in air cargo movement. Modern, sophisticated technology is
producing time-sensitive goods, which has also made airfreight a sought-after service.
Companies now want goods to reach buyers faster, and have thus switched from seafreight
to airfreight. In Singapore, for example, Changi international Airport handled a total of
more than 1.64 million tons of airfreight in 2002.
F o re ig n in v e s t m e n t a n d a ir p o r t f a c ilitie s
Governments have adopted an "open sky” policy to encourage more airlines to operate via
their airports. More and more large investors - in particular, electronics manufacturers and
pharmaceuticals - are setting up manufacturing plants in various countries, to capitalise
on their excellent infrastructure and efficient air transportation system. One government
body that supports this trend is the Civil Aviation Authority of Singapore (CAAS). Today,
Singapore Changi Airfreight Centre hosts five cargo agents’ buildings, an Airport Logistics
Park, the GHAs of two airlines and an airmail transit centre.
PART 1 Government Agencies
Malaysia's Senai Airport Terminal Services (SATS) also announced in December 2003 that
it will invest RM$1 billion over the next five years to transform the airport into a logistics
hub. In addition, it plans to develop a cargo centre, at a cost of RM$250 million, that can
handle 400,000 tons of air cargo annually.
Dubai Airport, in the United Arab Emirates, showed a healthy 21.5% increase in cargo
handling in 2003, equivalent to about 940,000 tons. Similarly. Amsterdam’s Schiphol Airport
showed a good 5% growth in cargo traffic for the same year.
China’s trade with ASEAN (Association of Southeast Asian Nations) countries has risen
tremendously, hitting a record high of US$78.25 billion in 2003, representing a growth
of 42.8% over 2002, prompting freight forwarders to expect a surge in business with
China.
China imports machinery and mechanical parts, mineral and agricultural products, animal
fats and plant oil, mainly from Indonesia and Malaysia. Its exports include machinery,
electrical products, chemicals, fabrics and garments. There are plans to conclude the
China-ASEAN free trade agreement (FTA) by 2010, while India and Thailand are leading
four other ASEAN countries - Myanmar, Nepal, Bhutan and Sri Lanka - in the development
of a free trade zone by 2017.
S e c u r it y is s u e s
Global airports are awakening to potential threats. At the time of writing (2004), airports
face three critical issues: terrorism, surging oil prices and fuel surcharges. These factors
are wreaking havoc on the aviation industry and threatening to derail the already slow
recovery of the air cargo market. Airports around the world have implemented security
measures to prevent terrorist attacks on both passenger and freight centres - passenger
screening is common. The International A ir Transport Association (IA T A ) works closely
with member airlines to ensure these safeguards are in place w ithout inconveniencing
shippers, freight forwarders and consignees.
At lATA’s 58th Annual General Meeting, held in June 2002, some new programmes
were introduced, including
• a Security Resolution;
• Recommended Security Standards;
• a Security Committee (SEC); and
• the Global Aviation Security Action Group (GASAG).

Guides to International Logistics . A irfreight Forwarding
IATA also runs courses with the International Civil Aviation Organisation (ICAO). For
more information on security issues, you may refer to the third edition of the IATA
Security Manual.
As for air cargo, airport authorities have implemented X-rays and a 24-hour cooling
period for outbound goods. In particular, Hong Kong’s aviation authority has a Regulated
Agents Regime (RAR) security system in place, while Singapore's aviation authority
is considering a Regulated Cargo Agent Regime (RCAR) screening system. In some
countries, civil aviation authorities request that all outbound freight must be physically
inspected, packed and sealed before lodgement with airlines.
The United States Customs and Border Protection (CBP) had initially planned to implement
the Advance Cargo Information Programme in March 2004 for goods entering the country.
Unfortunately, this scheme was delayed. It will still be implemented, however, but in
three phases.
• East Coast ports of entry: August 2004
• Central US ports of entry: October 2004
• West Coast ports of entry: December 2004
The Advanced M anifest System (AMS) for air cargo, launched in 1996, requires airlines
to transmit details of consolidations to US Customs before arrival of the flight. For security
reasons, US Customs does not allow partial consolidations of mixed commodities to
enter any of its ports. If there is any such infringement, the partial consolidations will
be denied entry and returned to the country of origin on the same aircraft. US Customs
w ill only allow partial consolidations to be discharged in its ports if the commodity is
of the same type.
Shippers and freight forwarders are advised to visit the US Government website for more
information from and about the CBP.
In c r e a s e d ro le o f g o v e r n m e n t s
The future of airfreight looks bright. Government agencies are constantly improving their
airfreight facilities to satisfy customer expectations, and to increase traffic movement
between trading countries. With more airlines plying between airports, using more wide
bodied aircraft, the volume of air cargo will increase. Commercial airlines paid too much
attention to passenger travel in the past, but have since broadened their perspective to see
air cargo as another source of revenue, while airport authorities worldwide are upgrading
their airports to face the upswing in both passengers and cargo handling.
Changi Airport Group (S} Pte Ltd
The Changi Airport Group (CAG) was formed on 1 July 2009 and is the current operator
of Singapore Changi Airport. Its present role was previously undertaken by Civil Aviation
Authority of Singapore (CAAS). This airport operator focuses primarily on the management
and revenue collecting aspects of the a irpo rt CAAS now oversees the regulating aspects
of the airport and of aviation in Singapore.
The key functions of CAG are to undertake and manage airport operations and functional
operations at Changi Airport.
T h e ro le s o f a s s o c ia t io n s
International Civil Aviation Organisation (ICAO)
The ICAO was inaugurated in 1947 as a non-profit permanent body under the purview of
the United Nations Organisation (UNO}, through the Chicago Convention on International
Civil Aviation. The ICAO consists of members of the UNO.
The ICAO develops the principles and techniques of international air navigation and
strengthens the planning and development processes of international air transport, 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 airtransport;
• 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 safety and further developments in international civil aviation.
h ttp ;//www.icao.int
International Air Transport Association (IATA)
“International air transport is one o f the most dynamic and fast-changing industries in the
world. It needs a responsive, forward-looking and universal trade association, operating
to the highest professional standards. IATA is that association. Our mission and goals
summarise what IATA is and what it does."
Pierre J. Jeanniot, O.C.

Director General
IATA is a trade association representing the world’s major airlines. It serves the airline
industry, including passengers, air cargo and postal mail. Since its inception in 1919, it
has expanded to include a total of 280 airlines, an increasing number of which are now
forming alliances to ward off fierce competition while increasing market share. IATA
has taken the initiative to ensure that passengers, goods and postal mail are able to
move smoothly around the globe, and formalises rules to guarantee that member airlines
operate safely, effectively, efficiently and [most importantly) economically.
Some of lATA’s areas of interest, in relation to its members, are
• safety and security;
• industry viability and recognition;
• products and services;
• standards and procedures; and
• industry support.
IATA simplifies shipping costs for the benefit of shippers, airlines and freight forwarders.
Different commodities move across the world - perishables, dangerous goods, livestock,
human remains, life-saving drugs, computers and peripherals, electronic equipment. For
safe handling, packing and compliance to regulations, IATA has published its
• Dangerous Goods Regulations;
• Live Animals Regulations; and
• Perishable Cargo Manual.
These manuals are updated and renewed annually, and can be purchased from IATA
directly or through its representative offices in various countries.
Relationships between airlines and cargo agents are regulated and administrated under
a set of IATA Resolutions. These are government-approved rules establishing the rights
and obligations of both parties; they are standard procedures and requirements for cargo
agents who seek industry accreditation, so as to be part of the global air cargo distribution
network. IATA has simplified these Resolutions to meet regional requirements.
W hat is the IATA Cargo Agency Programme?
The IATA Cargo Agency Programme is the process of gaining accreditation from IATA.
Its mechanics are found in the IATA Agents' Handbook (refer to the latest edition for
any changes). It consists of Resolutions endorsed by the Cargo Agency Conference, or
CAConf, which is made up of senior commercial managers nominated by IATA member
airlines. CAConf deals with urgent air cargo matters. For easy identification, airlines break
down the IATA network into three distinct areas, namely
• Area 1 - The Americas;
• Area 2 - Europe, Africa and the Middle East; and
• Area 3 - Asia east of Iran and Australasia.
Regular dialogue sessions are held between IATA and FIATA [International Federation
of Freight Forwarders Associations), where they explore possible solutions to issues
affecting the air cargo industry. A consultative council was set up for this. One recent
initiative was the implementation of the Cargo Accounts Settlement System (CASS),
a scheme for the computerisation of accounts processing between airlines and air
cargo agents. CASS simplifies sales reporting and payment, thereby lowering costs and
improving cash flow. In participating countries where CASS is managed neutrally by
IATA, air cargo agents can settle amounts payable to airlines with a single payment to
a central accounting office.
Another form of electronic fund transfer (EFT) is available in Singapore - Electronic

Payment Invoicing for Cargo (EPIC), run by Cargo Community Network (CCN) Pte Ltd, in
conjunction with Deutsche Bank’s db-eBills system. While EPIC is an information sytem,
db-eBills is a payment and settlement system.
IATA Cargo Agency Application
For a cargo agent to be accredited as an IATA Cargo Agent, it has to go through stringent
evaluation by IATA member airlines to ascertain its reliability, creditability and financial
standing. Organisations must have
• qualified and duly trained staff who are capable of handling dangerous goods;
• good financial standing;
• cargo handling facilities and suitable working premises; and
• a strong emphasis on promoting international air cargo transportation.
Two other prerequisites for IATA Cargo Agency status are that the applicant at the country
of registration, must have at least two staff who have recently completed a Dangerous
Goods Regulations (DGR) training course, and also two staff - not necessarily those
who have taken the DGR course - who have completed an introductory or basic air
cargo training course. Such courses are offered by IATA member airlines, IA W FIATA,
government agencies and lATA-approved third party training institutions.
There is no assurance that an applicant will be successful. In the case of rejection, member
airlines have 30 days to provide the Agency Administrator with relevant reasons.
One advantage of being an appointed IATA freight forwarder is that the organisation
can obtain air waybill (AWB) stock from IATA airlines. However, some IATA airlines may
demand that IATA freight forwarders furnish banker guarantees as a form of surety, in
amounts ranging from US$50,000 to US$300,000.
Application forms can be obtained from IATA representative offices. Details can be found
in the telephone directory, or at the trade or air cargo association. Organisations can get
more information on air cargo issues from the IATA website at http://w w w .iata.org. IATA
also welcomes suggestions, queries and feedback at webmaster@iata.org.
International Federation of Freight Forwarders Associations

(FIATA}
FIATA, or in French, the "Fédération Internationale des Associations de Transitaires et

Assimilés”, was founded on 31 May 1926 in Vienna, Austria. It is a non-government
organisation representing over 40,000 freight forwarding companies, also known as
“Architects of Transport".
The association offers consultative services for the United Nations Economic and Social
Council CECOSOÇ), the United Nations Conference on Trade and Development (UNCTAD),
and the United Nations Commission on International Trade Law (UNCITAL).
FIATA is the largest non-governm ental organisation in the field of transportation,

and its influence is almost universally accepted. It is recognised by governm ent
organisations, government authorities, and private international organisations - the
International Chamber of Commerce (ICC), International A ir Transport Association
(IATA), International Union Airways (UIC), International Road Transport Union (IRU),
World Customs Organisation (WCO) and World Trade Organisation (WTO) - as the
representative of the freight forwarding industry.
FIATA’s objectives are to
• unite the freight forwarding industry around the world;
• represent, promote and protect the interests of the freight forwarding industry by
acting as advisor or expert in dealings with international transport companies;
• familiarise 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 forw arding docum entation,
standard trading conditions (STC) and so on; and
P A R TI Government Agencies 29
• 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 e-commerce information tools like bar codes, radio
frequency scanners and electronic data interchange CEDI) software.
FIATA is made up of institutes, advisory bodies and working groups, with each part
dealing w ith a certain aspect of international freight movement.
The three institutes are responsible for the federation’s technical tasks.
• Airfreight Institute (AFI)
• Customs Affairs Institute CCAI)
• M ultim odal Transport Institute (MTI)
The airfreight institute, in particular, disseminates information to all members on changes

related to air cargo.
In addition, FIATA has five advisory bodies.
• Advisory Body Dangerous Goods (ABDG)
• Advisory Body Information Technology (ABIT)
• Advisory Body Legal Matters (ABLM)
• Advisory Body Public Relations (ABPR)
• Advisory Body Vocational Training (ABVT)
FIATA’s National Association members are grouped into four regions.
• A frica/M iddle East
• the Americas
• Asia/Pacific
• Europe
Each region is represented by a chairman, and meets twice a year; once at headquarters
in Zurich, Switzerland, and the other at the FIATA World Congress. These regions bring
forward the issues they face, which are submitted if necessary to FIATA’s institutes and
advisory bodies for a decision. FIATA also promotes and shares its benefits among other
national associations to gain synergy, both internally and externally.
FIATA has derived standard documents and forms to be used universally. Each has a
unique, distinctive colour and carries the FIATA logo on the main page.
• Forwarders Certificate of Receipt (FCR)

3 0 Guides to International Logistics : A irfreight Forwarding
• Forwarders Certificate of Transport (FCT)
• FIATA Warehouse Receipt (FWR)
• FIATA Multimodal Transport Bill of Lading (FBL) - negotiable
• FIATA Multimodal Transport Waybill (FWB) - non-negotiable
• Shippers Declaration for the Transport of Dangerous Goods (SDT)
• Shippers Inter-Modal Weight Certificate (SIC)
• FIATA Forwarding Instructions (FFI)
These documents have gained a general reputation and trust, which has resulted in an
improvement in international trade services.
FIATA has also compiled a list of all the national associations relating to various modes
of freight forwarding in the world.
http://www.fiata.com
ASEAN Federation of Forwarders Associations CAFFA)
AFFA was registered and formalised as a non-government organisation of ASEAN

(Association of Southeast Asian Nations) in 1993. Its objectives are to
• unify all freight forwarders in the ASEAN region through national forw arders’
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.
AFFA offers five working programmes to meet these objectives:
• Education and Training
• Insurance (Forwarders Liabilities)
• Trade Facilitation
• Code of Ethics
• Publicity
http://www.affalog.net
Singapore Logistics Association (SLA)
The SLA was established in 1973 under its former name, the Singapore Freight Forwarders
Association (SFFA). Its current name was adopted in 1999 to reflect the changing role
of freight forwarders and the expanded scope of business operations in today's logistics
landscape. SLA aims to
• prom ote the interests of its m em bers in the areas of land, sea, air and e-
comrnerce;
• represent members in their collective interests to help shape policies and regulations
governing the logistics industry:
• establish industry standards and practices that provide a fair framework for all
shippers, consignees and service providers;
• educate and develop the skills and knowledge of practitioners in the logistics industry;
and
• foster collaborations, alliances and partnerships with counterparts in major trading

countries.
http://www.sla.org.sg
Singapore Aircargo Agents Association (SAAA)
The SAAA was established in 1971 by airfreight forwarders in Singapore. Some objectives
of the association include working to
• promote, protect and develop the carriage of goods by air;
• advance and promote education and technical training in the air cargo industry;
• serve as arbitrators, and otherwise to assist, in the settlement of disputes and

difficulties arising between members in connection with air cargo forwarding, or
similar transactions or businesses;
• act as a body of negotiation for association members, or, with the approval of the
association, for any person, body or company, for matters pertaining to the transaction
of any business connected with air cargo; make recommendations to government
authorities, IATA or any other body in relation to any measure which may be taken
involving members and/or the Singapore air cargo industry; and
• set and regulate standards and practices to be maintained by members.
http://www.saaa.org.sg
32
2 Legal Issues
L e g a l c o n s id e r a t io n s
It is clear that all dealings between carriers, freight forwarders, shippers and consignees
are guided by legal considerations. The conditions of such legal contracts are always
set out by the terms of agreement between the trading parties; mutual agreement is
considered the main ingredient of a contract. Freight forwarders and shippers have to
adhere to the conditions of contract and carrier’s limitation of liability.
The carriage of goods is governed by the Montreal Convention. The carrier’s limitation
of liability for loss, damage or delay to freight is 250 monetary units (19 Special Drawing
Rights] per kilogram, unless the shipper declares a higher value in advance - this comes
with a surcharge. This monetary unit corresponds to 65.5 milligrams of gold of millesimal
fineness 900. The monetary unit can be converted into the national currency concerned
and in accordance to the law of the country concerned.
It is advisable for shippers to declare the value of the goods being carried. Shippers and
their appointed service providers should also read the conditions of carriage carefully
when filling up the Shipper’s Letter of Instructions for Despatch (SLI), or the air waybill
(AWB). These conditions are clearly printed on the reverse side of both documents.
W h a t a r e c o n d it io n s o f c o n t r a c t ?
Conditions of contract are im portant to airlines, shippers and freight forw arders
alike, because carriage of goods is based on contracts. Knowledge of the principles
behind these conditions of contract and carriers’ limitation of liability is necessary to
understanding the legal issues relating to principals and agents or shippers.
The carrier is accountable for fulfilling its obligation to carry goods, after receiving them,
from point of origin to destination. As mentioned before, the carrier’s liability is limited to
PART 1 Legal Issues 33
US$20 per kilogram, unless a higher value for the goods is declared in advance by the
shipper. A valuation charge may then be imposed by the carrier concerned.
In cases of loss, damage or delay to a partial or full consignment, the weight of the goods
is used to ascertain the carrier’s liability. Therefore, as previously pointed out, it is best
that the shipper declares the value of the cargo. This should be clearly annotated on the
AWB or SLI - it reflects the amount in excess of the carrier’s limitation of liability. The
carrier w ill then honour the amount declared and pay compensation if necessary.
To obtain payment from the carrier, the shipper may show evidence of loss or damage
incurred. However, it must be noted that an air consignment may require more than
one carrier to bring it to the end point. This means involving a second or even a third
carrier, should the initial carrier not operate directly to the final destination. In the event
that the carriage of goods involves two carriers, the intended recipient of the delivery
must make an official complaint to the carrier whose AWB was used, or to the carrier
that performed the part of the transportation during which the goods were discovered
lost, damaged or delayed.
Claims for damages must be made within 14 days from the date of receipt of the goods.
In the case of delay, the claim must be made within 21 days from the date that the cargo
should have been delivered. The consignee can also lodge a complaint to the carrier for
non-delivery within 120 days from the date of issue of the AWB. Any right to damages
lapses after two years, unless the situation has been previously reported to the carrier.
To prevent delay or damage to goods, the shipper has to comply with all regulations
specified by the government - the country’s laws, special packing requirements, and
travel documentation for the goods. Examples of sensitive cargo which may be subject
to more stringent regulations are valuable items, dangerous goods, drugs and arms of
war. A carrier will not be held responsible for the shipper's non-compliance to the laws
and regulations imposed by any government. The onus is on the shipper to observe the
conditions of carriage (again, these are printed on the reverse of the master air waybill
- MAWB - or the SLI).
There is sometimes a special interline arrangement between carriers to carry each other’s
traffic, which can be called a "special pro-rate arrangement”. In recent years, carriers
have formed cartels or alliances to ferry one another's loads on their respective routes.
One such alliance is the w o w alliance, comprising SIA Cargo, JAL Cargo, Lufthansa
Cargo and SAS Cargo.
3 4 Guides to International Logistics A irfreight Forwarding
SINGAPORE AIRLINES LIMITED
NOTICE CONCERNING CARRIERS’ LIMITATION OF LIABILITY
IF T IE CARRIAGE INVOLVES AN ULTIMATE DESTINATION OR STOP IN A COUNTRY OTHER THAM THE COUNTRY OF DEPARTURE.
THE WARSAW CONVENTION MAY BE APPLICABLE AND TFE CONVENTION GOVERNS AND IN MOST CASES LIMITS THE LIABILITY OF THE
CARRIER IN RESPECT OF LOSS DAMAGE OR DELAY TO CARGO TO 250 FRENCH GOLD FRANCS PER KILOGRAMME UNLESS A HIGHER
VALUE IS DECLARED IN ADVANCE BY THE SHIPPER AND A SUPPLEMENTARY CHARGE PAID IF REQUIRED.
THE LIABILITY LIMIT OF 2 5 0 FRENCH GOLD FRANCS PER KILOGRAMME IS APPROXIMATELY U S $ 2 0 .0 0 PER KILOGRAMME ON THE BASIS
OF US$42 2 2 PER OUNCE OF GOLD.
CONDITIONS OF CONTRACT
1 Aa usad I M sontreci 'Carrier* means all «ir c a r r o t that carry or underta*e ts carry the gooda hereunder or perform any o in «' services mc-eentai to aucn
carriage. Convention' meana lha Convention lor tne Un,f,ration ol c a r ia * Ru-ea relating lo aiernallonai Carriage by Air. signed at We'eaw »2 October, 1929.
or mat Convention as amended at The Hague Í6 Seplembe’ :955. which aver may be applicable. and T rench gold Iranci* means francs consialmg o ' 85'» milligrams
of ao'd wllh I -nenes» of nine hundred thousandths.
2 (si Carriage hereunder .a suajecl to trie r j e t relating to liability established by Ihe Wmaaw oonventlon unless sucn carnage ia not 'International carnage' es
defined by that Convention
(b! to the extern not in oonffeot with the lo'egciog. cairiace hereunder and olhe» »erviee* po'termed by each Cen.e? are »ubjeot to
!U appl cat* a laws (-ncimSing national law* implementing the Convention), government r e la t io n s , orders and requémenla.
¡¡•) P'cvia.ona here,« set forth, and
{WiJ appi cable tariffs *aa. condition« of carriage. regulation» and tunelab ee {but no« the t-mea ol departure end arrival therein) ol Such cerne'. *h ich ai»
made part hereof and which may be inspected at any of <ls offices and al airport» free« which It ooe*ales refufer services m transportation eelween a
place in the Un led Stole* or Canada and any place outside thereof the applicable la rifls are lha ta rilt* tn force in ihoae oounlna*
.1 Iho lira i Carrier's name may be abbreviated on the face here cf. lha lui name and its abbreviates batng set forth n such Carrie* ♦ la n ila . oondiions a I carriage
'eguionons and timetables. Tna l;r»t Carrier a address .s Ihe airport of da p a /tê «nown on the lace hereof. The ag*ecd slopping places (wn.ch may be altered ay
Carrie- n raae of necessity) i t those places, except tne pace o l daparta'a and the place ot destination, sel »arm on the lace hereof or shewn Carrier »
i metiioias as scheduled etopp.ng oiacas for the route Carriage to ae pe 'lcrn e d hereunder by aavarai successive earners «» regarded as a sngie operation
* Except as slhcrwiae provided la Carrier s ta rifla or conditions of carnage, in carnage to w.n<h ihe Waraaw Ccnven:»cn dees not apply Carr.pi » »abtfHy snail nci
eaceed ¿SS20 0Q or the eqmve eni per kilogramme of gooda loat. damaged or aetayrd, úntese a îvghe» value s dec-ared by lha sftoper and aupprmenlary charge
paid
5 (f lha sum entered on Ine lace of the Air Weyb< ea ‘Declared Vaiu* lor C allag e »«presents an amount m excess ot the appl.cab a Kevts ol liability »efe'ied in m
the above Hon_e and m tnase Cond liens and I tne shipper has paid any Supplementary charge met may be requ>red by the Camer a lartlle, conditions ol cm 'a ge
o* regulations, this shall constitute a spec.ai declaration oi value end m this case Carrier a i>«ni ol fceblMy ahal be tne aum ao deela'ed Payment ol claun» shan be
subject lo proof of actual damages suffered
O m cesas al losa, damage or de<ay ot part of the consignment, the weight lo be laken mlo account m delermm ng earner a limit of babttity ahatl ba only ine weight of
me package or package« conceded
NOTE Notwithstanding any other provision, lor loreyn air transportation as delmed m the U.S fe de ra l Av ation Act. as amended. in case of cat 0' damage 0’
doiay oi a shiymenl or part (hereof. Ihe weight to be used in determining the carrier a limit ol fiab lity shall Be the weigh! wmoh le u*ed (or a pro -reta snare in the
casa ol a pari «fupment ioes.damege or delay) lo determine ir»e transportaren cfta’ ge for such ahomem.
Any excusión or limitation c f fiaaajy app:.caa;e lo Carrier ana! apply to and oe for the aenef t of Carrier's agents, servants erd 'epresentai ve* and any pe'tcn
whose aircraft s used by Carner for cerr age and its agents.*«'«ente and representatives fo r purposes of th s provision Carrier Acts he-e« as agents lor
all auoh peraowa.
a lal Carrier undertake« to comp ete the cer».ag« he*eunder with reesonable deapalch Center may aubsdtuie altérnala earners or aircralt and may without notice
and w th due regard to Ihe interest ùI the shipper aubstitute other meana of f»anaportal^>o Cerner ia a u th o re d ta aaleci lha routing or to cnar*ge or deviate
Irom tne -outing snown on tne lace nereol fm s üutiperagrapn .a not appkoaNa lo /lro m USA,
101 Carrier undertakes to '--ompleie Ihe can-age hereunder with rvasonable despatch ta c e p l e lhm USA where merrier lan ds w.il apply. Came* may substitute
alternate earner* oi a * o /a ll end may w iho ul notice and with due rega'd to tne interests o l Ihe shipper, eubatitult other meana of Iranspo'lalton. Carner «
aulhonied lo **ie o l Ihe routing o* lo change or dav>ate from Ihe routing shown on Ihe lace hereof !h*a Suaêragraph >s applicable only to /from U3A
9 Si*ti|eci lo ihe condition* herein. Ihe Carrier shan he <ab:e for ihe goods during ihe period Ihey are *n <t? charge Of Ihe charge ol ila agent.
to (al Eaccpt when lha Carrier ha* extended credit lo Ihe cona»ÇA** without ihe written consent of Ihe shipper, the shipper guarantee* payment of a l charges 1er
carriage due in accordance with Carr er s tariffs, cond tions c l carnage and related reguiat-ons. applicable lew» (.ncludng national lawa mcâeienting me
Convention), governmehl regiâklions, orders and requirements,
ft» wnan no part of ihe consignment is delivered, a cm m wan lespeel lo *uch consignment w ii be enterlamed even Ihougn transportation charge» thereon are
unpaid.
il Sol ce ol arr val ol goods wrt be given promptly lo Ihe consignee or lo the person idica le d on Ihe lace hereof as Ihe person to ba notified On err «ai of Ihe goods
■I (he piece of destination, subject lo lha acceptance ol otne' instructions from Ihe consignor prior lo arrival of Ihe gocda al the place o l dest nation. denvery wii
be meda lo or n accordance with lha instructions of ine cons gnee. W me consignee declines to accept Ihe gooda or cannot be comwwnicaled with d.sposttion mJ
09 m aooordance w th inatrucllona ol ihe shipper.
Î2 (al The person entitled la del very m ull make a complaint to tne Carrier in writing m lha case
(I) of v.s.tJie damage to tna goods, immediately aliar discover y of the damage end al Ihe latest within M days from racetpl of the goods
Ml of other damage to Ihe gooda. w Ihin 14 days Irom the dale ol receipt ol the goods
(lù) of delay within 21 day* ol Ihe dale Ihe goods are pieced al his disposal, end
(.v) of non delivery ol Ihe gocds, within »20 day* from Ifce date of the issue of the Air Wayb.a.
(b) for the purpose gf Suoparag’ spn (a) above complaint n writing may be made to tna Carr.tr whose Air Wayb« was used, or lo the lira i Carr er or to the last
Carrier or lo the Carrier whc pe.'lormed Ihe transportation du'r.g which Ihe laaa. damage or d e ay look place.
:o) any ' ghls lo damages agamst Carrier aha:' be ext ngu<shed m ess an action ia Drought w.thm two yaara Irom tne date of arr.val al Ihe dealeiai.oA. or Irom the
date on which Ihe a.rcralt ought to have arrived, oi from Ihe dale on which the tranaportal^n atopped.
13 Tie snppe' ana comply w in eu apptioa&le lews, and gove'nmenl reguietione of any country to from, through or over which the gooda may be cemed. .ncludng
ihoae relating to the packing, carnage or de’ivery of Ihe gooda. and shall lurrásh sjeh <nlormalion end attach *uch document* to thia A>r Waye » as mnr be
fteoaaaary lo comply wiin such laws and régulai ons Carrier is not t able to Ihe swpper lor loss o* eApenae due lo Ihe »hipper s laHwr» lo comply witn th * prov.sion
I* No agent, servant or representative ol Carrier hes authority lo e'lar. modify c? w a n any provisions of this contract
15 » C am e' ofle»a insurance and such mauranca .« requested . and If ine appropr ate premium ia p a d and the fa d reccrdad on the lace hereof, the gootf* covered oy
Ihio A r Waybill ere insured under an open po^cy fO' Ihe emounl requealrd as eel out on the lace hereof (recovery be.ng limited to Ihe actual value oi gooda iosi O'
tfc-nagad provded that s««h emounl doe* nnl exceed Ihe insured va'uel The msuranoe is subiecl in Ihe taima, conditions and coverage (Irom wh.cn certain > ata
are excluded) of the open policy wh ch •» avaiHibie lor inspection at an office cf the issuing Carrier by the interested parly C'auns under such po cy must be
reported r m t J i l p y to an office of Ca'ne*
PART 1 Legal Issues
W h a t a r e s t a n d a r d t r a d in g c o n d it io n s ?
Standard trading conditions, or STC in short, apply to all organisations that handle
goods. Such arrangements concern a number of factors and people: members of the
air cargo association, the consignee, the customers, owners of the goods and terms
and conditions of undertaking. The freight forwarder [not the airline) has to observe
the terms of agreement between itself and its customers - neither of these two parties
are the owner of the goods.
Here are some basic definitions of parties involved.
• “ Company" refers to a member of the Singapore Logistics Association and/or

Singapore Aircargo Agent Association (a freight forwarder);
• “Conditions” concern undertakings, terms, conditions and clauses stipulated in the

STC;
• “Consignee” refers to the party who is entitled to receive the goods from its appointed
freight forwarder;
• “ Consignor” refers to the party who requests the services of the freight forwarder;
• “ Owner” refers to the owner of the goods; and
• “ Person” refers to persons or any parties of corporation.
These conditions apply to sea, air, road and rail transport.
The following responsibilities are clearly defined:
• customers’ warranty on ownership of goods
• performance by the freight forwarders
• freight forwarder’s authority
• discretion of freight forwarder in discharge of duties
• warehousing activities
• packaging and warranty
• loading warranty
• payment of billing invoices and interest on overdue payments
• payment of brokerage and commission in the course of duty
• acceptance of quotations by customers

3 6 Guides to International Logistics i A irfreight Forwarding
• provision of detailed information of goods by customers
• payment by customers of customs duties, taxes and levies imposed by local

authorities
• customers’ payment of freight charges, duties, and miscellaneous charges should

consignees default
• customers’ insurance coverage on goods, or advice to freight forwarders to act on

their behalf
• freight forwarders’ liability for any loss, damage or theft to goods in their possession
and attributed to its negligence
Other points to note are that
• in Singapore, both the SLA and SAAA have their own sets of STCs;
• on any cargo claim, customers must write officially to their freight forwarders stating
their intention of claiming for loss, damage, theft, etc, and specify the reason;
• if time-sensitive goods, such as perishable items, are not cleared immediately upon
arrival, the freight forwarder can exercise its right to dispose of the goods, and use
the proceeds to offset any outstanding freight charges;
• in the case of dangerous goods, the onus is on the customer to declare fully and
accurately the nature of the contents, failing which the freight forwarder can exercise
its right to reject the consignment;
• if the customer fails to respond to the official delivery advice after 21 days, the freight
forwarder will dispose of the goods and the customer will be responsible for the
expenses incurred;
• customers are responsible for making the necessary security arrangements for
transportation of valuable goods to the freight forwarder, or they can officially
request that the freight forwarder do so;
• a lien gives a freight forwarder in possession of goods, documents and so on the

right to retain possession of the cargo until the customer has paid all outstanding
charges or dues in respect of the goods; and
• under the stated conditions, customers should indemnify the freight forwarder
against all liabilities and penalties imposed by local regulatory bodies.
The national freight forwarders association of any country has its own set of STC, so it
is advisable to consult the association on how these conditions are applied.
PART 1 Legal Issues
M o n t r e a l C o n v e n t io n 1 9 9 9
The Montreal Convention moves away from the outdated rules of the Warsaw Convention
of 1929 and the Hague Protocol of 1955. It removes obstacles to the use of modern
technology in business, such as electronic ticketing/documentation. The new Convention
specifically provides for such documentation in ticketing and cargo.
Also, under the Warsaw Convention and the Hague Protocol, AWBs required specific
data fields. Liability limits would not apply if this information was missing. The Montreal
Convention allows electronic records to replace the printed AWB w ithout any loss of
the liability limit. Twenty-nine states have ratified the Montreal Convention 1999; thirty
states are required to bring it into effect. IATA Legal is currently preparing for this
eventuality, which is dependent on amendments to the conditions of contract governed
by Resolutions 600b and 600bOO- The drafted wording will be reviewed by the Cargo
Legal Working Group and Legal Advisory Council. Once approved, the amendments
will be adopted.
E x h ib it 7: Th e M o n tr e a l C o n v e n tio n 7999
CHAPTER I: SCOPE - D EFIN ITIO N S
Article 1
1. This Convention applies to all international carriage of persons, baggage or cargo

performed by aircraft for reward. It applies equally to gratuitous carriage by aircraft
performed by an air transport undertaking.
2. For the purposes of this Convention, the expression international carriage means
any carriage in which, according to the agreement between the parties, the place
of departure and the place of destination, whether or not there be a break in the
carriage or a transhipm ent are situated either within the territories of two High
Contracting Parties or within the territory of a single High Contracting Party if there
is an agreed stopping place w ithin the territory of another State, even if that State is
not a High Contracting Party. Carriage between two points within the territory of a
single High Contracting Party w ithout an agreed stopping place within the territory
of another State is not international carriage for the purposes of this Convention.
3. Carriage to be performed by several successive air carriers is deemed, for the

purposes of this Convention, to be one undivided carriage if it has been regarded by
the parties as a single operation, whether it had been agreed upon under the form
of a single contract or of a series of contracts, and it does not lose its international
character merely because one contract or a series of contracts is to be performed
entirely within the territory of the same State.
Article 2
1. This Convention applies to carriage performed by the State or by legally constituted

public bodies provided it falls within the conditions laid down in Article 1.
2. In the carriage of postal items the carrier shall be liable only to the relevant postal
administration in accordance with the rules applicable to the relationship between
the carriers and the postal administrations.
3. Except as provided in paragraph 2 of this Article, the provisions of this Convention

shall not apply to the carriage of mail and postal items.
CHAPTER II: D O C U M ENTS OF CARRIAGE
SECTION 1 - PASSENGER TICKET
A rticle 3
1. In respect of the carriage of passengers a ticket shall be delivered containing:
a. an indication of the places of departure and destination;
b. if the places of departure and destination are within the territory of a single
High Contracting Party, one or more agreed stopping places being within the
territory of another State, an indication of at least one such stopping place;
c. a notice to the effect th a t if the passenger’s journey involves an ultimate

destination or stop in a country other than the country of departure, the Warsaw
Convention may be applicable and that the Convention governs and in most cases
limits the liability of carriers for death or personal injury and in respect of loss of
or damage to baggage.
2. The passenger ticket shall constitute prima facie evidence of the conclusion
and conditions of the contract of carriage. The absence, irregularity or loss of the
passenger ticket does not affect the existence or the validity of the contract of carriage
which shall, none the less, be subject to the rules of this Convention. Nevertheless,
if, w ith the consent of the carrier, the passenger embarks w ithout a passenger
ticket having been delivered, or if the ticket does not include the notice required by
paragraph 1c of this Article, the carrier shall not be entitled to avail himself of the
provisions of Article 22.
PART 1 s Legal Issues 3 9
SECTION 2 - BAGGAGE CHECK
Article 4
1. In respect of the carriage of registered baggage, a baggage check shall be

delivered, which, unless combined with or incorporated in a passenger ticket which
complies with the provisions of Article 3, paragraph 1, shall contain:
b. if the places of departure and destination are within the Territory of a single
territory of another State, an indication of at least one such stopping place;
c. a notice to the effect that, if the carriage involves an ultimate destination or

stop in a country other than the country of departure, the Warsaw Convention
may be applicable and that the Convention governs and in most cases limits the
liability of carriers in respect of loss of or damage to baggage.
2. The baggage check shall constitute prima facie evidence of the registration of the
baggage and of the conditions of the contract of carriage. The absence, irregularity or
loss of the baggage check does not affect the existence or the validity of the contract
of carriage which shall, none the less, be subject to the rules of this Convention.
Nevertheless, if the carrier takes charge of the baggage w ithout a baggage check
having been delivered or if the baggage check (unless combined with or incorporated
in the passenger ticket which complies with the provisions of Article 3. paragraph
1c] does not include the notice required by paragraph 1c of this Article, he shall not
be entitled to avail himself of the provisions of Article 22, paragraph 2.
SECTION 3 - AIR WAYBILL
A rticle 5
1. In respect of the carriage of cargo an air waybill shall be delivered.
2. Any other means which would preserve a record of the carriage to be performed
may. with the consent of the consignor, be substituted for the delivery of an air
waybill. If such other means are used, the carrier shall, if so requested by the
consignor, deliver to the consignor a receipt for the cargo permitting identification
of the consignment and access to the information contained in the record preserved
by such other means.
40 Guides to International Logistics A irfre ig ht Forwarding
3. The impossibility of using, at points of transit and destination, the other means
which would preserve the record of the carriage referred to in paragraph 2 of this
Article does not entitle the carrier to refuse to accept the cargo for carriage.
A rticle 6
1. The air waybill shall be made out by the consignor in three original parts.
2. The first part shall be marked "for the carrier” ; it shall be signed by the consignor.
The second part shall be marked "for the consignee"; it shall be signed by the
consignor and by the carrier. The third part shall be signed by the carrier and handed
by him to the consignor after the cargo has been accepted.
3. The signature of the carrier and that of the consignor may be printed or
stamped.
5. If, at the request of the consignor, the carrier makes out the air waybill, he shall
be deemed, subject to proof to the contrary, to have done so on behalf of the
consignor.
A rticle 7
When there is more than one package:
a. the carrier of cargo has the right to require the consignor to make out separate
air waybills;
b. the consignor has the right to require the carrier to deliver separate receipts
when the other means referred to in paragraph 2 of Article 5 are used.
Article 8
The air waybill and the receipt for the cargo shall contain:
b. if the places of departure and destination are within the territory of a single
territory of another State, an indication of at least one such stopping place; and
c. an indication of the weight of the consignment.

PART 1 Legal Issues
Article 9
Non-compliance with the provision of Articles 5 to 8 shall not affect the existence or
the validity of the contract of carriage, which shall, none the less, be subject to the
rules of this Convention including those relating to limitation of liability.
Article 10
1. The consignor is responsible for the correctness of the particulars and statements
relating to the cargo inserted by him or on his behalf in the air waybill or furnished
by him or on his behalf to the carrier for insertion in the receipt for the cargo or for
insertion in the record preserved by the other means referred to in paragraph 2 ot
Article 5.
2. The consignor shall indemnify the carrier against all damage suffered by him,
or by any other person to whom the carrier is liable, by reason of the irregularity,
incorrectness or incompleteness of the particulars and statements furnished by the
consignor or on his behalf.
3. Subject to the provisions of paragraphs 1 and 2 of this Article, the carrier shall
indem nify the consignor against all damage suffered by him, or by any other
person to whom the consignor is liable, by reason of the irregularity, incorrectness
or incompleteness of the particulars and statements inserted by the carrier or on
his behalf in the receipt for the cargo or in the record preserved by the other means
referred to in paragraph 2 of Article 5.
Article 11
1. The air waybill or the receipt for the cargo is prima facie evidence of the conclusion
of the contract, of the acceptance of the cargo and of the conditions of carriage
mentioned therein.
2. Any statements in the air waybill relating to the weight, dimensions and packing
of the cargo, as well as those relating to the number of packages, are prima facie
evidence of the facts stated; those relating to the quantity, volume and condition of
the cargo do not constitute evidence against the carrier except so far as they both
have been, and are stated in the air waybill to have been, checked by him in the
presence of the consignor, or relate to the apparent condition of the cargo.
42 Guides to International Logistics A irfreight Forwarding
Article 12
1. Subject to his liability to carry out all his obligations under the contract of carriage,
the consignor has the right to dispose of the cargo by withdrawing it at the airport
of departure or destination, or by stopping it in the course of the journey on any
landing, or by calling for it to be delivered at the place of destination or in the course
of the journey to a person other than the consignee named in the air waybill, or by
requiring it to be returned to the airport of departure. He must not exercise this right
of disposition in such a way as to prejudice the carrier or other consignors and he
must repay any expenses occasioned by the exercise of this right.
2. If it is impossible to carry out the orders of the consignor the carrier must so
inform him forthwith.
3. If the carrier obeys the orders of the consignor for the disposition of the cargo
w ithout requiring the production of the part of the air waybill or the receipt for
the cargo delivered to the latter, he will be liable, w ithout prejudice to his right of
recovery from the consignor, for any damage which may be caused thereby to any
person who is lawfully in possession of that part of the air waybill or the receipt for
the cargo.
4. The right conferred on the consignor ceases at the moment when that of the
consignee begins in accordance with Article 13. Nevertheless, if the consignee
declines to accept the air waybill or the cargo, or if he cannot be communicated
with, the consignor resumes his right of disposition.
A rticle 13
1. Except when the consignor has exercised his right under Article 12, the consignee
is entitled, on arrival of the cargo at the place of destination, to require the carrier
to deliver the cargo to him, on payment of the charges due and on complying with
the conditions of carriage.
2. Unless it is otherwise agreed, it is the duty of the carrier to give notice to the
consignee as soon as the cargo arrives.
3. If the carrier admits the loss of the cargo, or if the cargo has not arrived at
the expiration of seven days after the date on which it ought to have arrived, the
consignee is entitled to put into force against the carrier the rights which flow from
the contract of carriage.
Article 14
The consignor and the consignee can respectively enforce all the rights given them
by Articles 12 and 13, each in his own name, whether he is acting in his own interest
or in the interest of another, provided that he carries out the obligations imposed
by the contract.
A rticle 15
1. Articles 12, 13 and 14 do not affect either the relations of the consignor or the
consignee with each other or the mutual relations of third parties whose rights are
derived either from the consignor or from the consignee.
2. The provisions of Articles 12, 13 and 14 can only be varied by express provision
in the air waybill or the receipt for the cargo.
Article 16
1. The consignor must furnish such inform ation and such docum ents as are
necessary to meet the formalities of customs, octroi or police before the cargo can
be delivered to the consignee. The consignor is liable to the carrier for any damage
occasioned by the absence, insufficiency or irregularity of any such information
or documents, unless the damage is due to the fault of the carrier, his servants or
agents.
2. The carrier is under no obligation to inquire into the correctness or sufficiency of

such information or documents.
CHAPTER III: LIABILITY OF THE CARRIER
A rticle 17
The carrier is liable for damage sustained in the event of the death or wounding of a
passenger or any other bodily injury suffered by a passenger, if the accident which
caused the damage so sustained took place on board the aircraft or in the course
of any of the operations of embarking or disembarking.
Article 18
1. The carrier is liable for damage sustained in the event of the destruction or loss of,
or damage to, any registered baggage, if the occurrence which caused the damage
so sustained took place during the carriage by air.
2. The carrier is liable for damage sustained in the event of the destruction or loss
of, or damage to. cargo upon condition only that the occurrence which caused the
damage so sustained took place during the carriage by air.
3. However, the carrier is not liable if he proves that the destruction, loss of, or
damage to, the cargo resulted solely from one or more of the following:
a. inherent defect, quality or vice of that cargo;
b. defective packing of that cargo performed by a person other than the carrier
or his servants or agents;
c. an act of war or an armed conflict;
d. an act of public authority carried out in connexion with the entry, exit or transit
of the cargo.
4. The carnage by air within the meaning of the preceding paragraphs of this Article
comprises the period during which the baggage or cargo is in the charge of the
carrier, whether in an aerodrome or on board an aircraft, or, in the case of a landing
outside an airport, in any place whatsoever.
5. The period of the carriage by air does not extend to any carriage by land, by sea
or by river performed outside an airport. If. however, such a carriage takes place in
the performance of a contract for carriage by air, for the purpose of loading, delivery
or transhipment, any damage is presumed, subject to proof to the contrary, to have
been the result of an event which took place during the carriage by air.
Article 19
The carrier is liable for damage occasioned by delay in the transportation by air of
passengers, baggage or cargo.
Article 20
In the carriage of passengers and baggage, and in the case of damage occasioned
by delay in the carriage of cargo, the carrier shall not be liable if he proves that he
and his servants and agents have taken all necessary measures to avoid the damage
or that it was impossible for him or them to take such measures.
Article 21
1. In the carriage of passengers and baggage, if the carrier proves that the damage
was caused by or contributed to by the negligence of the person suffering the
damage the Court may, in accordance with the provisions of its own law, exonerate
the carrier wholly or partly from his liability.
2. In the carriage of cargo, if the carrier proves that the damage was caused by or
contributed to by the negligence or other wrongful act or omission of the person
claiming compensation, or the person from whom he derives his rights, the carrier
shall be wholly or partly exonerated from his liability to the claimant to the extent
that such negligence or wrongful act or omission caused or contributed to the
damage.
Article 22
1. In the carriage of persons the liability of the carrier for each passenger is limited
to the sum of two hundred and fifty thousand francs (76 600 Special Drawing Rights).
Where, in accordance with the law of the court seised of the case, damages may
be awarded in the form of periodical payments, the equivalent capital value of the
said payments shall not exceed 250 000 francs. Nevertheless, by special contract,
the carrier and the passenger may agree to a higher limit of liability.
2 a. In the carriage of registered baggage, the liability of the carrier is limited to a

sum of two hundred and fifty francs (79 Special Drawing Rights) per kilogramme,
unless the passenger or consignor has made, at the time when the package was
handed over to the carrier, a special declaration of interest in delivery at destination
and has paid a supplementary sum if the case so requires. In that case the carrier
will be liable to pay a sum not exceeding the declared sum, unless he proves that
that sum is greater than the passenger’s or consignor’s actual interest in delivery
at destination.
b. In the carriage of cargo, the liability of the carrier is limited to a sum of 19

Special Drawing Rights per kilogramme, unless the consignor has made, at the
time when the package was handed over to the carrier, a special declaration of
interest in delivery at destination and has paid a supplementary sum if the case
so requires. In that case the carrier will be liable to pay a sum not exceeding the
declared sum. unless he proves that that sum is greater than the passenger’s or
consignor’s actual interest in delivery at destination.
46 Guides to International Logistics ■ A irfreight Forwarding
c. In the case of loss, damage or delay of part of registered baggage or cargo,

or of any object contained therein, the w eight to be taken into consideration in
determining the amount to which the carrier’s liability is limited shall be only
the total weight of the package or packages concerned. Nevertheless, when the
loss, damage or delay of a part of the registered baggage or cargo, or of an object
contained therein, affects the value of other packages covered by the same
baggage check or the same air waybill, the total weight of such package or
packages shall also be taken into consideration in determ ining the limit of
liability.
3. As regards objects of which the passenger takes charge himself the liability
of the carrier is limited to five thousand francs [332 Special Drawing Rights) per
passenger.
4. The limits prescribed in this Article shall not prevent the court from awarding, in
accordance with its own law, in addition, the whole or part of the court costs and of
the other expenses of the litigation incurred by the plaintiff. The foregoing provision
shall not apply if the amount of the damages awarded, excluding court costs and
other expenses of litigation, does not exceed the sum which the carrier has offered
in writing to the plaintiff within a period of six months from the date of the ccurrence
causing the damage, or before the commencement of the action, if that is later.
5. The sums mentioned in francs in this Article shall be deemed to refer to a currency
unit consisting of sixty-five and a half milligrammes of gold of millesimal fineness nine
hundred. These sums may be converted into national currencies in round figures.
Conversion of the sums into national currencies other than gold shall, in case of
judicial proceedings, be made according to the gold value of such currencies at the
date of the judgment.
6. The sums mentioned in terms of the Special Drawing Right in this Article shall
be deemed to refer to the Special Drawing Right as defined by the International
Monetary Fund. Conversion of the sums into national currencies shall, in case of
judicial proceedings, be made according to value of such currencies in terms of
the Special Drawing Right at the date of the judgment. The value of a national
currency, in terms of the Special Drawing Right, of a High Contracting Party which
is a Member of the International Monetary Fund, shall be calculated in accordance
with the method of valuation applied by the International Monetary Fund, in effect
at the date of judgment, for its operations and transactions. The value of a national
currency, in terms of the Special Drawing Right, of a High Contracting Party which
is not a Member of the International Monetary Fund, shall be calculated in a manner
determined by that High Contracting Party.
PART 1 Legal Issues
Nevertheless, those States which are not Members of the International Monetary
Fund and whose law does not permit the application of the provisions of paragraph
2b of Article 22 may, at the time of ratification or accession or at any time thereafter,
declare that the limit of liability of the carrier in judicial proceedings in their territories
is fixed at a sum of two hundred and fifty monetary units per kilogramme. This
monetary unit corresponds to sixty-five and a half milligrammes of gold of millesimal
fineness nine hundred. This sum may be converted into the national currency
concerned in round figures. The conversion of this sum into the national currency
shall be made according to the law of the State concerned.
Article 23
1. Any provision tending to relieve the carrier of liability or to fix a lower limit than
that which is laid down in this Convention shall be null and void, but the nullity of
any such provision does not involve the nullity of the whole contract, which shall
remain subject to the provisions of this Convention.
2. Paragraph 1 of this Article shall not apply to provisions governing loss or damage
resulting from the inherent defect, quality or vice of the cargo carried.
Article 24
1. In the carriage of passengers and baggage, any action for damages, however
founded, can only be brought subject to the conditions and limits set out in this
Convention, w ithout prejudice to the question as to who are the persons who have
the right to bring suit and what are their respective rights.
2. In the carriage of cargo, any action for damages, however founded, whether
under this Convention or in contract or in to rt or otherwise, can only be brought
subject to the conditions and limits set out in this Convention w ithout prejudice to
the question as to who are the persons who have the right to bring suit and what
are their respective rights. Such limits of liability constitute maximum limits and may
not be exceeded whatever the circumstances which gave rise to the liability.
Article 25
In the carriage of passengers and baggage, the limits of liability specified in Article
22 shall not apply if it is proved that the damage resulted from an act or omission of
the carrier, his servants or agents, done with intent to cause damage or recklessly
and with knowledge that damage would probably result; provided that, in the case
of such act or omission of a servant or agent it is also proved that he was acting
within the scope of his em ploym ent
Article 25A
1. If an action is brought against a servant or agent of the carrier arising out of

damage to which this Convention relates, such sen/ant or agent, if he proves that
he acted within the scope of his employment, shall be entitled to avail himself of the
limits of liability which that carrier himself is entitled to invoke under Article 22.
2. The aggregate of the amounts recoverable from the carrier, his servants and
agents, in that case, shall not exceed the said limits.
3. In the carriage of passengers and baggage, the provisions of paragraphs 1 and

2 of this Article shall not apply if it is proved that the damage resulted from an act
or omission of the servant or agent done with intent to cause damage or recklessly
and with knowledge that damage would probably result.
Article 26
1. Receipt by the person entitled to delivery of baggage or cargo w ithout complaint

is prima facie evidence that the same have been delivered in good condition and in
accordance with the document of carriage.
2. In the case of damage, the person entitled to delivery must complain to the carrier
forthw ith after the discovery of the damage, and, at the latest, within seven days
from the date of receipt in the case of baggage and fourteen days from the date of
receipt in the case of cargo. In the case of delay the complaint must be made at the
latest within twenty-one days from the date on which the baggage or cargo have
been placed at his disposal.
3. Every complaint must be made in writing upon the document of carriage or by

separate notice in writing despatched within the times aforesaid.
4. Failing complaint within the times aforesaid, no action shall lie against the carrier,
save in the case of fraud on his part.
Article 27
In the case of the death of the person liable, an action for damages lies in accordance
with the terms of this Convention against those legally representing his estate.
Article 28
1. An action for damages must be brought, at the option of the plaintiff, in the territory
of one of the High Contracting Parties, either before the court having jurisdiction
PART 1 Legal Issues
where the carrier is ordinarily resident or has his principal place of business, or has
an establishment by which the contract has been made, or before the court having
jurisdiction at the place of destination.
2. Questions of procedure shall be governed by the law of the court seized of the
case.
A rticle 29
1. The right to damages shall be extinguished if an action is not brought within 2

[two) years, reckoned from the date of arrival at the destination, or from the date
on which the aircraft ought to have arrived, or from the date on which the carriage
stopped.
2. The method of calculating the period of limitation shall be determined by the law
of the Court seised of the case.
A rticle 30
1. In the case of carriage to be performed by various successive carriers and

falling within the definition set out in the third paragraph of Article 1, each carrier
who accepts passengers, baggage or cargo is subject to the rules set out in this
Convention, and is deemed to be one of the contracting parties to the contract of
carriage insofar as the contract deals with that part of the carriage which is performed
under his supervision.
2. In the case of transportation of this nature, the passenger or his representative

can take action only against the carrier who performed the carriage during which
the accident or the delay occurred, save in the case where, by express agreement,
the first carrier has assumed liability for the whole journey.
3. As regards baggage or cargo, the passenger or consignor will have a right of action
against the first carrier, and the passenger or consignee who is entitled to delivery
w ill have a right of action against the last carrier, and further, each may take action
against the carrier who performed the carriage during which the destruction, loss,
or damage or delay took place. These carriers will be jointly and severally liable to
the passenger or to the consignor or consignee.
Article 30A
Nothing in this Convention shall prejudice the question whether a person liable for
damage in accordance with its provisions has a right of recourse against any other
person.
CHAPTER IV: PRO VISIO NS RELATING TO C O M B IN E D CARRIAGE
Article 31
1. In the case of combined carriage performed partly by air and partly by any other
mode of carriage, the provisions of this Convention shall apply only to the carriage
by air, provided that the carriage by air falls within the terms of Article 1.
2. Nothing in this Convention shall prevent the parties in the case of combined
carriage from inserting in the document of air carriage conditions relating to other
modes of carriage, provided that the provisions of this Convention are observed as
regards the carriage by air.
CHAPTER V: GENERAL A ND FINAL PROVISIONS
Article 32
Any clause contained in the contract and all special agreements entered into before
the damage occurred by which the parties purport to infringe the rules laid down
by this Convention, whether by deciding the law to be applied, or by altering the
rules as to jurisdiction, shall be null and void. Nevertheless for the carriage of cargo
arbitration clauses are allowed, subject to this Convention, if the arbitration is to take
place within one of the jurisdictions referred to in the first paragraph of Article 28.
A rticle 33
Except as provided in paragraph 3 of Article 5, nothing in this Convention shall prevent

the carrier either from refusing to enter into any contract of carriage or from making
regulations which do not conflict with the provisions of this Convention.
A rticle 34
The provisions of Articles 3 to 9 inclusive relating to documents of carriage shall not

apply in the case of carriage performed in extraordinary circumstances outside the
normal scope of an air carrier’s business.
A rticle 35
The expression "days” when used in this Convention means current days, not
working days.
PART 1 Legal Issues
Article 40A
1. In A rticle 37, paragraph 2 and Article 40, paragraph 1, the expression High
Contracting Party shall mean State. In all other cases, the expression High Contracting
Party shall mean a State whose ratification of or adherence to the Convention has
become effective and whose denunciation thereof has not become effective.
2. For the purposes of the Convention the word territory means not only the
metropolitan territory of a State but also all other territories for the foreign relations
of which that State is responsible.
A D D ITIO N A L PROTOCOL with reference to Article 2
The High Contracting Parties reserve to themselves the right to declare at the time
of ratification or of accession that the first paragraph of Article 2 of this Convention
shall not apply to international carriage by air performed directly by the State, its
colonies, protectorates or mandated territories or by any other territory under its
sovereignty, suzerainty or authority.
52
3 Sp ace, Time and Rights
C o n fe re n c e areas
Grouping countries into the three IATA traffic conference areas allows a systematic
structure in terms of regulations and freight charges.
• IATA Area 1 - North and South America
• IATA Area 2 - Europe, Africa and the Middle East
• IATA Area 3 - Asia and Australasia
Shippers send goods by air across different continents, and the creation of conference
areas helps determine the airfreight charges for sending goods, say. from Beijing (IATA
Area 3) to New York (IATA Area 1). Similarly, knowledge of the areas would be useful if
one needs to know how much it will cost, including surcharges, to send a consignment of
valuable cargo from London (IATA Area 2) to Singapore (IATA Area 3). The computation
of freight charges based on commodities is shown in Chapter Nine.
The detailed breakdown of the IATA Traffic Conference Areas is as follows.
IATA Area 1
North America consists of Canada, the Caribbean Islands. Mexico, Belize, Costa Rica,
El Salvador, Guatemala. Honduras, Nicaragua, Bermuda, the Bahamas and the whole
of the United States.
South America consists of Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, French
Guiana, Guyana, Panama, Paraguay, Peru, Uruguay, Suriname and Venezuela.
PART 1 Space, Time and Rights
IATA Area 2
Europe consists of Albania, Andorra, Armenia, Austria, Azerbaijan, Azores, Belarus,

Belgium, Bosnia and Herzegovina. Bulgaria, the Canary Islands, Croatia, Cyprus, the
Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Gibraltar,
Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg,
Macedonia (the former Yugoslav Republic), Madeira, Malta, Moldova, Morocco, the
Netherlands, Norway, Poland, Portugal, Romania, Russia, San Marino, the Slovak Republic,
Slovenia, Spain, Sweden, Switzerland, Tunisia, Turkey, Ukraine, the United Kingdom and
Yugoslavia.
The M iddle East is made up of Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon,
Oman, the Palestinian Territory, Qatar, Saudi Arabia, Sudan, the United Arab Emirates
(Abu Dhabi, Ajman, Dubai, Fujairah, Ras al Khaimah, Sharjah and Urnn Qaiwan) and
Yemen.
Africa consists of Central Africa (Malawi, Zambia and Zimbabwe), Eastern Africa (Burundi,
Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Somalia, Tanzania and Uganda), the Indian
Ocean Islands (Comoros, Madagascar, Mauritius, Mayotte, Reunion Island and the
Seychelles Islands), Southern Africa (Botswana, Lestotho. Mozambique, South Africa
and Swaziland), Western Africa (Angola, Benin, Burkina Faso, Cameroon, Cape Verde,
the Central African Republic. Chad, Congo-Brazzaville, Congo-Kinshasa, Cote d’Ivoire,
Equatorial Guinea, Gabon, Gambia, Ghana, Guinea Bissau, Liberia, Mali, Mauritania,
Niger, Nigeria, Sao Tome and Principe, Senegal, Sierra Leone and Togo).
IATA Area 3
Asia consists of Afghanistan, Bangladesh, Bhutan, Brunei Darussalam, China, Chinese

Taipei, Guam, Hong Kong, India, Indonesia, Japan, Kampuchea, North Korea, South
Korea, Laos, Malaysia, the Marshall Islands, Myanmar, Macau, Micronesia, Mongolia,
the Northern Mariana Islands, the Philippines, Pakistan, Palau, Russia (East of the Urals),
Singapore, Tajikistan, Thailand, Turkmenistan, Uzbekistan and Vietnam.
The Southwest Pacific area consists of Australia, New Zealand, American Samoa, the
Cook Islands, the Fiji Islands, French Polynesia, Nauru, New Caledonia, Niue, Papua
New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu and the Wallis and Futuna
Islands.
54 Guides to International Logistics i A irfreight Forwarding
P A R TI Space. Time and Rights 55
W o r l d ’s m a jo r a ir lin e o p e r a t o r s
Most major airlines operate under the flagship of their respective countries. Some are
IATA members, and adopt its rules pertaining to aircraft safety and improvement of
operational efficiency. In doing so, they can easily ferry passengers, air cargo and postal
mail all over the world. Visible benefits include safety and security, industry viability and
recognition, product and services development, standard procedures and industrial
support in trade promotion and development. Being part of IATA helps minimise shipping
costs too, since member airlines meet regularly in promoting trade among member
countries. However, not all national airlines are members of IATA.
As different commodities are carried by major airlines, these carriers can adopt the rules
and regulations set by IATA for safe and easy handling. Moreover, air consignments can
be transferred between member airlines. The interline transportation among members is
governed by lATA’s Standard Interline Traffic Agreement - Cargo, which covers general
cargo, special cargo, etc.
Non-IATA airlines are not entitled to those benefits enjoyed by IATA member airlines.
These other carriers have their own set of rules and regulations, but they do follow those
laid out by IATA for carriage of livestock, perishables and dangerous goods. Members
and non-members of IATA can still conclude interline agreements on a bilateral basis
or as a carrier-to-carrier arrangement. Air cargo consignments from non-IATA airlines
must adhere to lATA's rules and regulations when they are transferred to final uplift on
any IATA airline. IATA, however, would encourage more national airlines to join IATA
as members or associate members.
IATA and non-IATA airlines can be identified by
• prefix numbers or airline codes;
• tw o-letter designators; or
• three-letter designators.
The prefix number or airline code is the airline’s identification number. It is indicated by
the first three digits [prefix) of the airline’s airfreight documents, such as the AWB.
M ost airlines, IATA or non-IATA, are allocated a tw o-letter designator for reservations,
flight schedules, ticketing, cargo documentation, tariffs and correspondence.
Here are the prefixes and designators of some airlines.
2 - le tt e r 3 - le tt e r
N a m e o f A ir lin e P re fix
d e s ig n a to r d e s ig n a to r
Singapore International Airlines 618 SQ SIA
Silkair CS) Pte Ltd 629 Ml SLK
KLM Royal Dutch Airlines 074 KL KLM
China Airlines 297 Cl CAL
Swiss WorldCargo 724 LX sw c
Emirates Airlines 176 EK UAE
For more information on the coding and decoding of airlines, you may refer to Section
1.4 of The Air Cargo Tariff, or TACT Manuals, published by IATA (see Chapter Four for
more details on the publications used in the industry).
What is airline geography?

Airline geography gives a basic knowledge of the countries in the world and their key
cities, as well as airports. Employees of airlines, freight forwarders, GHAs, shippers and
consignees need to be well-versed in the city and airport codes of countries. When the
exact location of the consignee is known, goods can be shipped to the right place.
C o u n t ry co d e s , city c o d e s a n d a irp o rt c o d e s
• Two-letter country codes
Singapore - SG
Malaysia - MY
Thailand -T H
The Philippines - PH
Vietnam - VN
United States - US
Japan - JP
Australia -A U
• Two-letter province or state codes
Adelaide -S A
Banff -A B
Houston -T X
LA Plata - BA
Windsor - ON
Toowoomba -Q L
PART 1 Space. Time and Rights
* Three-letter city/airport codes
Singapore - S IN
London - LON
Tokyo - TYO
Hong Kong - HKG
Bangkok - BKK
Manila - MNL
Jakarta - JKT
Kuala Lumpur - KUL
Sydney - SYD
San Francisco - SFO
Delhi - DEL
Amsterdam - AMS
Time difference between IATA areas

In Chapter Three, we identified the three IATA traffic conference areas. There are 24
time zones; each covers 15° of longitude. The time difference between zones is exactly
one hour.
Greenwich Mean Time or GMT covers the area between longitude 7° 30’ west and
longitude 7° 30’ east of the Greenwich Meridian, located at longitude 0°. Because goods
travel through different time zones and the international dateline, a worldwide standard
time and date are required. This is known internationally as Universal Time Coordinated,
abbreviated as UTC; it was previously called Greenwich Mean Time or GMT. However,
there are also different terminologies used to identify the time zones, such as Zulu Time,
World Time and Universal Time.
GMT was originally based on the time at the Greenwich Meridian, longitude 0°, that passes
through Greenwich in the United Kingdom CUK), from which it gets its name. Back in the
nineteenth century, the British Royal Navy and merchant ships used GMT as the official
worldwide standard time and date. With modern telecommunication technology, radio
signals now span multiple time zones and the international dateline. At present, there
are precise atomic clocks, shortwave time signals and satellites to ensure that UTC is
an accurate and reliable standard for navigational and scientific purposes.
However, despite improved accuracy, the same principles applied to GMT have spilled
over to UTC. The easiest way to convert UTC into local time is to either add or subtract a
certain number of hours from it - those people west of the UTC, up to the international
dateline, have to deduct hours from UTC in order to find their local time, and those east
of the UTC have to add hours.
PART 1 I. Space, Time and Rights
Besides UTC, Central European Time CCET) is also widely adopted by Central European
countries.
Following are some examples to illustrate time difference.
GMT +1 hour or UTC +1 hour (This simply means "1 hour ahead of GMT/UTC”}
GMT -1 hour or UTC -1 hour (This simply means “ 1 hour behind GMT/UTC”)
The maximum time difference is GMT/UTC +12 or GMT/UTC -12.

T h is d ia g ra m illu s tra te s a s c a le o f h o u rs re la tiv e to G M T /U T C .
W ES T ----------------------------------------- ► ROTATION F R O M W EST TO EAST ----------------------------------------- ► EAST
G M T /U T C
1 1 1 I 1 1 1 1 1 1 1 1 I 1 1 1 1 1 II 1 II 1
-1 2 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +7 +8 +9 + 1 0 + 1 1 + 1 2
In order to simplify the time zones, airline timetables are based on the 24-hour clock.
E x a m p le 1
The standard time in Egypt is UTC 4-0200 hours all year round (lo c a l time is two hours
ahead of UTC). What is the time in Cairo CCAI), Egypt, at 1200 hours UTC?
It would be 1400 in Cairo.

W ES T G M T / UTC EAST
-1 2 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 •1 •2 +3 +4 +5 +6 +7 +0 +9 + 1 0 + 1 1 + 1 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
1400 h o u rs
C Al
1200 hours
E x a m p le 2
In Chile, standard time is UTC -0500 all year round - local time is five hours behind UTC.
What is the local time in Santiago (SCL), Chile, at 1200 hours UTC?
It would be 0700 hours in Santiago.
W EST G M T / UTC EAST
III Mi l l 1 1 1 1 1 1 1 1 II 1 1
-1 2 -11 -1 0 -9 -8 -7 -6 -5 -4 -3 -2 -1 -«1 +2 +3 ^4 15 *6 +7 »8 +9 *1 0 + 1 1 + 1 2
0700 h o u rs
SC: l
1200 h o u rs
E x a m p le 3
During summer in the US, standard time is UTC -0400; local time is four hours behind
UTC. However, in the winter, it is UTC -0500 hours. What is the time in New York CNYC),
US, in the summer, at 1200 hours UTC?
It would be 0800 hours in New York.
W ES T UTC EAST
1 1 1 1 1 1 1 1 1 1 ' ' ' II II II 1 II 1 1 1

-1 2 -11 -1 0 -9 -8 -7 -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +7 +8 +9 + 1 0 + 1 1 + 1 2
0 80 0 h o u rs
N /C
1200 h o u rs
E x a m p le 4
Standard time in Australia is UTC +1100, which means that local time is 11 hours ahead
of UTC. What is the time in Melbourne [MEL], Australia, on 1 April 2004 at 1200 UTC?
It would be 2300 hours on 1 April 2004 in Melbourne.
w est l,T C EAST
1 1 1 II 1 1 1 1 1 II 1 1 1 1 1 1 1 1 II 1 1
- 1 2 -11 -1 0 -9 -8 -7 -6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6 +7 ->8 ‘9 ‘ 1 0 * 1 1 • 12
230 0 h o u rs
M EL
1200 hours
PART 1 Space. Time and Rights
Not all countries follow this approach. For instance, in the US, the day is divided into
two 12-hour periods. In view of the different systems, practitioners have to be able to
convert times from one to the other. Let us examine the two tables below that show
how it works.
M idnight = 0000 or 12.00 a.m Noon = 1200 or 12.00 p.m.
+ 1 minute = 0001 or 12.01 a.m +1 minute = 1200 or 12.01 p.m.
+30 minutes = 0030 or 12.30 a.m +1 minute = 1230 or 12.30 p.m.
+1 hour = 0100 or 1.00 a.m. + 1 h o u r= 1300 Or 1.00 p.m.
Flight time
To determine flying time, we first need to ascertain where the flight originates. No matter
where this is, you have to convert the time at the destination to the time at the country of
origin. For example, a passenger travels on Singapore International Airlines (SIA) flight
SQ62 that leaves Singapore at 0850 hours Singapore time on 30 March 2004, arriving in
Bangkok at 1010 hours Bangkok time on the same day. We need to convert the arrival
time in Bangkok to Singapore time.
Using the information in the table, Singapore is one hour ahead of Bangkok. To change
the arrival time in Bangkok to Singapore time, we have to add one hour to the arrival
time - 1110 hours is the time in Singapore when the plane lands. The flight time would
be the difference between departure time (0 8 5 0 hours) and arrival time (1110 hours):
2 hours 20 minutes.
As another example, a passenger leaves Chennai on flight SQ409, departing on 01 April

2004 at 2335 hours (Chennai time), arriving in Singapore on 02 April 2004 at 0600 hours
(Singapore time). Chennai is 2 hours 30 minutes behind Singapore. To convert Singapore
time into Chennai time, we have to subtract 2 hours 30 minutes from 0600 hours, which
gives 0330 hours. The flying time from Chennai to Singapore is 3 hours 55 minutes.
You have a choice between GMT and UTC. Here are some examples.
S e c to r ETD ETA F ly in g T im e
SQ62 - Singapore SIN(+8)/Bangkok BKK(+7) 0850 1010 2 hr 20min
SQ409 - Chennai M AA(+5.5)/Singapore SIN(+8) 2335 0600 3 hr 55min
SQ19 - Los Angeles LAX(-8)/Singapore SIN(+8) 2000 0640 18 hr 40min
SQ26 - Singapore S IN (+8)/N ew York NYC(-5) 2350 1045 23 hr 55min
SQ997 - Tokyo TYO(+9)/Singapore SIN(+8) 1200 1835 7 hr 35min
Traffic rights and how airlines utilise them

Traffic Rights were first established under the Chicago Convention, and consist of nine
freedoms.
1st Freedom of a ir passage
Right for Home Country to fly over Country A. i.e. w ithout landing
Home Country Country A Country B
2nd Freedom of a ir passage

Right for Home Country to make a technical stop in Country A for non-commercial
purposes, i.e. for refueling, maintenance, etc
Home C ountry Country A
Note: The 1st and 2nd Freedoms are found under the International Air Services Transit
Agreements in the Chicago Convention.
3rd Freedom of a ir passage
Right for Home Country to carry commercial loads to Country A, e.g. Singapore-Narita
Home Country Country A
4th Freedom of a ir passage
Right for Home Country to carry commercial traffic from Country A. e.g. Narita-Singapore
Home Country C ountry A

PART 1 Space. Time and Rights 63
5th Freedom o f a ir passage
Right for Home Country to pick up commercial loads in Country A and carry them to
other countries, e.g. Zurich-Dubai-Singapore
Right for Home Country to carry commercial loads from foreign country A to another
country B via its own territory
C ountry A Home Country Country B
7th Freedom o f a ir passage
Pure foreign flight: Right for Home Country to carry commercial loads from foreign
country A to another country B
No Cabotage: Right for Home Country to carry commercial loads from City A in foreign
country to another city B in that country, e.g. Australia; the flight must originate in Home
Country (cabotage is the transport of goods between two points in the same country)
Home Country City A in City B in

Foreign Country Foreign Country
Pure Cabotage: Right for Home Country to carry commercial loads from City A in foreign
country to City B in the same country; the flight need not originate in Home Country
H om e C ountry City A in City B in

Foreign Country Foreign Country
65
4 Publications
It should be quite obvious by now th a t th e m ovem ent of a ir cargo is not an easy

process. You need to know the cost o f sending a parcel o f general m erchandise
to an overseas business and w ha t sort of packing should be used to prevent
dam age or theft.
An exporter of live tropical fish must be familiar with how to pack them, and consider the
amount of water and oxygen required, so that they will arrive w ithout any mortalities.
A pharmaceutical manufacturer may import or export dangerous items like raw materials
for producing medicinal drugs. An offshore drilling company needs hazardous cargo
with a low flashpoint for its offshore rig. Given the nature of such dangerous goods, it is
imperative to know the specific requirements for their handling and packing.
Airlines not only carry passengers, but also cargo, loaded into the upper or lower bellies
of the aircraft. We need to determine how to send goods to the customer in a shorter
lead-time; we have to look at which airline flies to a particular destination, and its flight
schedules. The type of aircraft used is equally important, as some large-sized cargo
cannot be airlifted on small, conventional aircraft, especially on domestic routes.
To clarify rate structures, packing and handling requirements, and rules and regulations,
these manuals give the information we need for transporting commodities by air.
• IATA TACT Manuals (The A ir Cargo Tariff) - this consists of three volumes: Rules,
Rates (Worldwide) and Rates (USA)
• IATA Live Animals Regulations
• IATA Dangerous Goods Regulations
• ICAO’s Technical Instructions fo r the Safe Transport of Dangerous Goods by Air
• OAG Cargo Guide Worldwide
• OAG Cargo Rules Supplement

Guides to International Logistics i A irfreight Forwarding
TACT Manuals - The A ir Cargo Tariff

The TACT manuals comprise three volumes.
The first contains the freight charges to various parts of the world; that is, the published
rates for various countries. These rates include minimum charges, quantity rates and
special commodity rates, which will be covered in more detail in Chapter Ten. It also
helps the user identify the correct rating for a particular shipment and its minimum
required weight. Freight rate per kilogram (kg) and other charges are computed based
on the country of origin and the final destination. The rules and regulations imposed
by the carrier or carriers have to be adhered to. The currency used in the computation
of freight charges, and all other charges, is either that of the country of origin, or US
dollars. In some countries, like the United States, freight rate is calculated per pound
(lb). (For examples of how airfreight rates on various types of commodities and other
charges are computed, see Chapter Ten.)
The second volume contains the freight charges to various cities in the US. In this manual,
the freight rate is calculated per pound (lb).
The third volume contains the rules and regulations on carriage of cargo across the
globe, and also maps out the three IATA areas. It is a very im portant manual that every
practitioner uses in the workplace. Contents include
• general information - application of tariffs, IATA areas, airport/city codes, geographic

abbreviation and handling codes;
• information on acceptance of air cargo for carriage - shipper’s documentation,

acceptance of goods, advance arrangement, cargo attendants;
• transportation charges - valuation charge, precedence of rates, minimum charges,

general cargo rates, specific commodity rates (see Chapter Ten);
• services and related charges - disbursement fees, insurance, documentation fees;
• payment of freight charges and currency conversion - freight prepaid, freight collect
application of banker’s exchange rate;
• understanding of the AWB;
• information by countries - charges collect facilities; and
• carrier's special handling requirements - interline agreement, loading charts for

different types of aircraft.
Visit http://www.tact-online.org for updates.

PART 1 Publications
IATA Live Animals Regulations

This manual contains information on the handling of live animals. The Live Animals
Regulations (LAR) is closely linked to the Convention on International Trade in
Endangered Species of Wild Fauna and Flora (CITES) and the Office International des
Epizooties (01E), as well as government bodies.
The manual is a guide for employees of airlines, freight forwarders, GHAs, consignees
and consignors. It lists the responsibilities of the shipper and airline, animal health
restrictions, shipper’s certification, container requirements, and so on.
When live animals are carried by air, several factors need to be considered, for example,
marking and labelling on each container by the shipper. The LAR also offers guidelines
on choosing the right containers for the animals, and explains the airline’s liability in
the event of death. It gives specific instructions to cargo handlers on how to handle the
animals from the point of origin to the final destination as well.
IATA Dangerous Goods Regulations

The IATA Dangerous Goods Regulations follows closely the regulations set down by
the International Civil Aviation Organisation (ICAO). This manual provides shippers and
airlines with information on the handling of dangerous goods, to ensure that they are
safe for uplift on commercial airlines. It advises shippers how to pack these hazardous
goods so that they can be transported by air w ithout jeopardising the safety of passengers
and equipm ent and offers packing instructions, such as the exact quantity of dangerous
goods that can be combined in one package. It is also compulsory for IATA member
airlines, freight forwarders and GHAs to have at least two employees trained in handling
dangerous goods.
OAG Cargo Guide Worldwide

OAG Cargo Rules Supplement
These two manuals by OAG, the leading source of flight data, contain information on
airlines’ flight operations. Users can check flight schedules, flight numbers, frequency
of departure, time of departure at origin and time of arrival at destination.
They also show the types of aircraft used on a particular route. Users will be able to
ascertain the time difference between the origin and the destination, based on UTC. The
departure time of a particular flight is crucial to a shipper or its freight forwarder, for their
planning of pickup and lodgement of cargo with the airline or GHA. These user-friendly
guides even provide information on the types of freighters used by different airlines,
including the airport of departure, airport of destination, departure time at origin and
arrival time at destination.
68
PART TWO
AIR CARGO OPERATIONS
5 Ground Handling Agents
A irlin e s’ ground handling agents (GHAs) play an im portant role in ensuring

fast and e fficie n t service, especially in handling inbound and outbound cargo.
However, not all airlines outsource th e ir a ir cargo handling operations to GHAs;
som e prefer to provide th e ir own cargo handling.
Modern GHAs are well equipped with state-of-the-art facilities, and provide excellent
service to airlines, freight forwarders and customers. Changi International A irpo rt
Services (CIAS), for example, has invested in a m ulti-m illion dollar, sophisticated cargo
management system, housed in a spacious Cargo Centre. With this system, CIAS
computerises documentation and information processing, so that consignees and even
shippers can have complete details of incoming shipments. It also enables CIAS to accept
and release freight within a minimum processing time.
Most GHA warehouses include storage areas for a variety of commodities. For instance,
there are facilities like livestock holding areas, cold and refrigerated rooms for perishable
goods (chilled meat, dairy products, vegetables), storage areas for dangerous goods like
radioactive material and explosives/firearms, security vaults for valuables, and express
handling areas.
Materials handling equipment such as forklifts, pallet jacks and hand jacks are most
frequently used in the warehouse or cargo centre/terminal. Other such equipment
found in cargo terminals include automated stackers, pallet racks and automated
guided vehicles (AGV).
Let us take a look at the activities undertaken by a GHA. However, it has to be noted that
there are slight variations between GHAs in terms of cargo handling operations.
PART 2 Ground Handling Agents 69
Im port functions
When an aircraft arrives, a GHA staff obtains a copy of the load-sheet, to identify the
loading positions of pallets, containers, and goods in the bulk-holds. This staff then
contacts Apron Services (the apron or platform is the area in an airport where aircraft
park for embarkation and loading/unloading) to retrieve the aircraft unit load devices
(AULDs), and have them towed directly to the import section of the cargo terminal or
warehouse.
Depending on the volume of inbound freight, the GHA assigns one or two import cargo
checkers to verify all the items on the flight cargo manifest - this document gives
information such as contents, number of pieces, w eight and loading instructions. The
import checker is assisted by three or four cargo hands; they use mainly forklifts, pallet
jacks and hand jacks.
All incoming shipments are inspected and moved to storage areas at the cargo terminal,
awaiting claim by consignees or service providers. Perishables, human remains and
livestock are cleared by customs almost immediately upon arrival, but only with pre
clearance. which simply means that the cargo is approved before it gets to its destination.
However, some animals like dogs, cats, and wild animals may have to undergo one to
two weeks of quarantine. Endangered species are prohibited from import, unless prior
approval is obtained from CITES.
Information technology
Thanks to information technology, bar code labels have become a common sight, the
neutral air waybill (which does not have preprinted identification of the issuing carrier)
is replacing the master air waybill CMAWB), and radio frequency (RF) scanners are often
encountered in cargo terminals and warehouses. M ost modern cargo storehouses are
fully automated, so the import checker's role is to clearly and correctly annotate the
location of an inbound shipment so that delivery staff w ill know where to find it. The
data entered into the computer has to be accurate and complete.
Pallet/container buildup/breakdow n
Pallets are platforms on which goods can be stacked for easy movement by forklifts or
slings. In the process called buildup pallet CBUP), which is the loading of cargo onto the
platforms, freight forwarders retrieve the built-up pallets or BUPs directly from the GHA
or request that the GHA tows the BUPs to their warehouses for a fee. BUPs, whether
pallets or containers, are usually built up by either the shippers or freight forwarders.
Storage and equipment
Discrepancy reports
A discrepancy report is raised if an inbound shipment is overcarried, shortlanded,
damaged, partially missing or contains excess freight. An overcarried shipment refers
to cargo that is supposed to be unloaded, but is left on board and brought on to the
aircraft’s next point of landing, while a shortlanded shipment is one that has been left
behind at the point of origin when it should be loaded onto the aircraft.
A copy of the MAWB is attached to the discrepancy report for further action by the track
and trace section. The documentation section indicates on the MAWBs the flight details
and arrival dates of each flight handled by the GHA.
If no discrepancies are noted, the GHA contacts the consignees to arrange for clearance.
The date and time of the call, and the person that the GHA personnel spoke to, are
reflected in the MAWB. For inbound shipments, some GHAs allow up to 48 hours of
free storage, after which a storage charge is imposed. Consignees may appoint service
providers or freight forwarders to clear all their inbound shipments by serving an official
notice to the GHA. Upon receipt of such notices, the GHA retains the incoming AWBs
awaiting collection by the freight forwarders. The majority of the GHA’s cargo terminals
and freight forwarders’ warehouses are located within the free trade zone (FTZ); this
allows free movement of goods between terminals and warehouses.
Export functions
Airlines are responsible for accepting cargo bookings from freight forwarders and direct
shippers for a particular flight, destination and date of despatch. The finalised booking
slips, which include loading instructions, are then handed over to the GHA. The airlines
PART 2 ■ Ground Handling Agents
advise the GHA on the total unit load device (ULD) allocation. For narrow-bodied aircraft,
belly loading is allowed, subject to space availability - priority is given to passenger
baggage and urgent postal mail. The GHA tows the empty U LD sto the assigned freight
forwarders, who acknowledge receipt. These freight forwarders are held responsible for
any damage to the ULDs in their charge.
Storage for BUPs
The onus is on the shipper or its appointed forwarder to build up the ULD, whether it is
a pallet or container, and return the complete unit to the GHA at least six hours before
departure. The BUP is an ideal concept as the shipper or its agent can maximise the
loading of ULDs, for example main deck pallets that can withstand up to 3,000 kilograms
of general freight. Some can hold as much as 4 to 5 tons, especially high-density items like
machinery, tractor parts, chemicals and engines. The shipper or its agent is accountable
for items that are loaded in the U LD, as the whole unit is treated as one piece. The airline
and GHA are not responsible for missing items.
The export section receives the cargo from the freight forwarders and direct shippers,
and examines the shipment carefully before releasing it to the export checker for loading
into the allocated ULDs. The acceptance staff verifies the shipment details according to
the MAWB: description of contents, number of pieces, markings, handling instructions,
packing requirements, dimensions, valuation charges, and insurance, if any. Perishables
like meat, vegetables and dairy products, whether loose or unitised - combined into one
unit - are temporarily stored in chiller rooms. In view of their nature, perishables are only
towed to the aircraft for loading one hour before departure. This is to avoid damaging
the contents, while maintaining freshness of the goods. The acceptance staff also looks
out for the export permit issued by local customs. In Singapore, for example, shippers
Guides to International Logistics r A irfreight Forwarding
or freight forwarders can submit the export permit for an outbound shipment within 14
days of departure. A penalty is imposed for late submission. For consolidations (where
individual consignments are grouped together for carriage as a larger unit to obtain
reduced rates), freight forwarders have to ensure that a complete set of the consolidated
house manifest is attached to the forwarding documents, together with the goods, so
as to expedite the process of tracking and tracing any missing item.
Built-up lower deck pallet
All the built-up ULDs are placed on the ramp, ready for Apron Services to tow them
to the aircraft for loading. The cutoff time for booked freight meant for bulk loading is
one hour before departure; GHA personnel usually remind freight forwarders of this,
and to lodge in their shipments. Late lodgements are rejected by the GHA, to prevent
unnecessary delay to the flight. The export, apron and traffic sections have to be closely
coordinated. A complete set of the airline’s cargo manifest, plus the ULD statement, is
handed over to the traffic section for flight planning and trimming. The apron section
loads the pallets, containers and loose cargo into the freighter or passenger aircraft. The
GHA then submits all cargo manifests to local customs, airlines and the GHA’s accounts
section for billing. This requirement may vary from country to country.
It is the GHA’s duty to inform freight forwarders, shippers and airlines of any offloading
due to payload constraints. Arrangements will be made by airlines to rebook the offloaded
shipments on the next available flight. Unitised shipments are kept in the GHA's cargo
terminal until ready for uplift on the next booked flight.
73
6 FTZs, Forwarders, Storage
Purpose of the free trade zone CFTZ}

In the FTZ of any country, freight forwarders can easily move, transfer, consolidate,
break-bulk, mix, store and repack goods w ithout documentation or customs duties. This
is convenient for not only the freight forwarders, but airlines, importers and exporters
as well. The FTZ also acts as a transhipment hub. Only goods leaving the FTZ need
documentation to clear the centralised customs and security checkpoints. Security is
tight in all FTZs, as goods must be thoroughly screened and inspected by airport security
personnel and customs officials.
F a c ilit ie s in t h e F T Z
FTZs cater to the needs of airfreight forwarding, including airmail. Some of the facilities
that can be found include
• airlines’ GHAs’ cargo terminals or cargo centres, as found in some countries;
• air cargo agents’ warehouses or freight terminals;
• freighter parking bays located directly in front of the GHAs’ cargo terminals;
• express and courier centre to handle express and urgent freight;
• customs checkpoint;
• police checkpoint;
• Customs & Excise Department housing the Import & Export Office;
• Airmail Transit Centre that handles incoming, outgoing and transhipment postal mail
managed by the Postal Authority;
• Animal and Plant Quarantine Unit; and
• live animal handling centre.
A irfreight terminals in FTZs are built and run in accordance to local transportation laws.
In certain countries, individual airlines have their own dedicated freight terminals that
Guides to International Logistics . A irfreight Forwarding
handle import and export, documentation and procedures. However, in other places,
airlines may share common warehouses, managed by either the airport authorities or
customs. A good example is Singapore’s modern Changi Air Freight Centre, developed
by CAAS.
E le c tro n ic D a ta In te rc h a n g e C E D I)
M ost FTZs contain national com puter networks that facilitate com m unication and
operations between fre ig h t forw arders, airlines, customs and other governm ent
departments or statutory boards and the trading community, by means of Electronic
Data Interchange CEDI).
Singapore’s Trade Exchange System
One example of EDI is the Trade Exchange system, managed by Crimson Logic. Freight
forwarders and other members of the trading community can electronically submit
trade declarations to customs for processing through this system. Upon approval,
the declaration is returned electronically to the sender. Singapore Customs requires
each trading company to nominate two authorised declarants for processing both
import and export declarations.
The Trade Exchange system works on the concept of mailboxes, with Crimson Logic's
computer as the central exchange. The moment a declaration is transmitted, it goes
to Crimson Logic’s inbox, where it then gets routed to the mailboxes of the relevant
government departments. The respective authorities open them periodically and
process the declarations, after which an approval permit is sent back to Crimson
Logic’s outgoing mailbox for transmission to the freight forwarder, shipper, or
consignee.
Express operators (sometimes called integrators), for example DHL, manage their
own express and courier centres within the FTZ. These operators subm it their
inbound declarations before the shipments get to their destination. Such pre
clearance requires some form of comm unication between themselves and the
customs authorities. In Singapore, the Advance Clearance for Courier and Express
Shipments System [ACCESS) enables customs to clear all incoming onboard courier
and express shipments before their arrival in Singapore. This allows shipments due
for inspection at customs to be packed separately for clearance when they reach
the checkpoint in the special check lane dedicated to this purpose.
PART 2 FTZs. Forwarders, Storage 75
Roles of service providers

Airfreight forwarders in the air cargo industry act as marketing intermediaries for airlines
and customers. They are involved in import, export and transhipment of freight in and
out of the airport or FTZ. One common function is providing consolidation services to
customers and other airfreight agencies. Co-loading activities are widely practised in the
airfreight industry across the world. Airfreight forwarders can be classified as
• freight forwarders or air cargo agents;
• third party logistics providers C3PLs);
• integrators/express operators; and
• fourth party logistics providers C4PLs).
These freight forwarders assume various roles in addition to freight forwarding, to

offer one-stop service to their customers. High customer expectations coupled with
a competitive environment mean that freight forwarders have to constantly upgrade
their services to retain business. There is no room for error or poor service in a service-
driven industry. Other equally im portant factors that customers pay attention to include
management expertise, labour skills, level of technology, quality of facilities, organisational
network, financial status, reliability and creditability. The majority of freight forwarders
are members of IATA and the national air cargo associations in their respective countries
of operation. Together with airlines and their national associations, these companies
often meet with customs, trade boards and other governmental authorities to explore
new ways of improving air carriage in such areas as formalising procedures, pricing,
handling and environmental issues.
Let us examine the usual roles of freight forwarders before expanding further on
the additional functions performed by third and fourth party logistics providers and
integrators.
The Cargo Agent The Airlines A gents - Consignees
Customs Custom s
Shipper's Agent's Origin Destination Agent's Consignee

Warehouse Warehouse Airport Airport Warehouse Warehouse
F r e ig h t f o r w a r d e r s
Export
• Collection of shipments from shippers or consignors, meant for air carriage
• Consolidation of cargo
• Transfer of unitised loads [BUPs) and bulk freight to airlines or appointed GHAs
• Buildup of pallets and containers for specific airline customers
• Tracking and tracing of air export shipments from origin to destination, and final
delivery to consignees
• Booking of cargo space with airlines, and block bookings for regular shippers
• Close monitoring of block bookings to avoid paying a “ no show” penalty; most airlines
have imposed a deadfreight rule for all standard or block bookings [deadweight
refers to slots that have been paid for but are not used)
• Preparation of customs declarations [export permits in some countries) on behalf

of shippers or consignors for export shipments; submission of documents to the
customs department before or after departure of shipments
• Handling of full charter operations such as wide-bodied freighters, namely B747F

and DC-1 OF
• Finalising billing invoices for the internal accounts department and shippers
• Maintaining close relationships with airlines’ sales, cargo reservations and customer
service units
• Close liaisons with airlines' GHAs in tracking and tracing of missing shipments, and
coordination with overseas offices in the search
• Sending pre-alerts to consignees for despatch of special or urgent cargo
• Sending documents [MAWBs, pro forma invoices, packing lists) to consignees for
arrangement of pre-clearance [a pro forma invoice is a draft invoice, which can be
used to obtain import licences, or to state the value of the consignment for letters
of credit, or L/Cs)
• Better understanding of Incoterms; these are trade terms established by the

International Chamber of Commerce in 1953, which serve as a set of international
rules for the interpretation of the principal terms of delivery in trade contracts
• Knowledge of how to handle dangerous goods, perishables, livestock, valuables,

arms and explosives, medicinal herbs, etc
PART 2 FTZs. Forwarders, Storage 77
Loaded Type 8 container
• Completion of a recent course on dangerous goods handling and/or awareness by

two staff
• Participation in trade and business development, for the standardisation and

simplification of export documentation and procedures
• Proper maintenance of warehouse equipment and ensuring that health and safety
guidelines are properly adhered to
Im port
• Collection of inbound shipments from airlines’ GHAs, on behalf of consignees or

importers
• Preparation of documentation for customs clearance, payment of inbound duties,

value-added tax (VAT) or Goods & Services Tax CGST) - different countries have
different tax rates
• Identifying inbound shipments to ascertain if they are DDP (Delivered Duty Paid)
or DAP (Delivered at Place); DDP means that the seller clears the goods for import
and pays customs duties, taxes and other charges, while DAP means that the buyer
undertakes those responsibilities
• Contacting the traffic department to arrange for customs clearance and delivery to
consignees
Guides to International Logistics £ A irfreight Forwarding
• Presenting goods and relevant documents to customs, followed by physical inspection

of the goods by customs officials
• Reprocessing of documentation for transhipment freight
• Finalising billing invoices for the accounts section and the consignees
• Conducting surveys, together with the consignee’s appointed surveyor, on damaged

or lost items
• Assisting in the tracing of shortlanded or overcarried shipments
• Better understanding of Incoterms
• Knowledge of how to handle dangerous goods, perishables, livestock, valuables,

arms and explosives, medicinal herbs, etc
• Completion of a recent course on dangerous goods handling and/or awareness by

two staff
• Processing documentation for controlled items, through close liaisons with the
customs and control authority
• Processing documentation for special clearance of publications, periodicals, films,

tapes, etc, with local government agencies
• Participation in trade and business development, fo r the standardisation and

simplification of import documentation and procedures
• Proper maintenance of warehouse equipment and ensuring that health and safety
guidelines are properly adhered to
M arketin g
• Acting as sales agents (by appointment)
• Acting as middlemen between shippers and airlines
• Selling airlines’ services and space to shippers or consignors
• Finalising joining loads and proper documentation before tendering shipments to

the transporting airline
• Tendering complete shipments with relevant documents to airlines or GHAs
• Reviewing space requirements and agreements with airlines for terms from six
months to a year
PART 2 FTZs, Forwarders, Storage
C onsolidation
• Consolidation of cargo
• Setting tariffs, managing the transportation system
• Assum ption of the airline’s liability in the event of loss, damage, theft, etc, to
shipments
• Collection of charges through working closely with break-bulk agents
B reak-B ulk
• Breakdown of consolidations at the destination
• Collection of payment or charges due to the consolidator, and reverting to the

consolidator
• Release of documents and freight to another freight forwarder as requested by the

consignee
Transport (Trucking)
• Ownership of trucks, vans, motorcycles, etc
• Specialisation in road transportation
• Access to an extensive interstate road network
Insurance
• Acting as insurance agents by providing customers with “all risks” or “shipper’s

interest” coverage; this comes under a “open policy" agreement with an insurance
company, and covers all risks of physical loss of or damage to the insured cargo,
except those risks that are specifically excluded
• Arrangement of insurance from the carrier whose AWB is used [not all airlines offer
insurance coverage for its customers or appointed freight forwarders - in such cases,
customers arrange their own insurance)
Other roles include administration of cargo claims, cash-on-delivery CCOD) collection

and representation of overseas buyers.
T h ir d p a rty lo g is tic s p ro v id e rs ( 3 P L s )
Shippers are outsourcing their storage and shipping functions to 3PLs, who assume the
full responsibility of moving a company’s goods to its customers. In addition, a 3PL also
moves incoming goods, especially raw materials, to its manufacturing plants.
3PLs offer a host of services - transportation, distribution, warehousing, financial services,

project management and e-solutions. Let us take a look at the specific types of 3PLs in
the air cargo industry.
• F o rw a rd e rs - Leading international logistics providers around the world are also

expanding their services and facilities, offering to pharmaceutical/life sciences sector
customers too. The 3PL sector is also facing serious challenges moving forward in
an environment marked by uncertainty and cost pressure. These 3PLs act more
like freight forwarders or customs brokers. They operate independently, providing
logistics services to their customers. Some key areas of involvement are pick-up,
delivery, documentation, trade declarations, clearance and lodgement of freight to
and from airlines’ GHAs.
• D is trib u tio n a n d w a re h o u s in g a g e n ts - These 3PLs offer a wide range of logistics

services: contract warehousing and distribution, sharing of management expertise
and information, inventory management, airfreight forwarding, intermodal transport,
seafreight transport, in-plant and in-store logistics, packing/finished distribution,
reworking, kitting and assembly, return management, Just-In-Time delivery hubs and
vendor drop-ship. Examples of active companies are Exel, Schenker and U-Freight.
A large proportion of their clients deal in computers and peripherals, and consumer
products, including Hewlett-Packard, BMW. and IBM.
• T r a n s p o r ta tio n a n d in fo r m a tio n o p e r a to r s - This group of 3PLs is in the

commercial transportation business, which covers express and courier operations
and includes much application of information technology. Some companies that
come under this category are DHL, UPS, TNT and FedEx.
3PLs sort cargo (left] and provide express delivery services (right)
PART 2 FTZs. Forwarders, Storage
In te g ra to rs/E xp re ss o pe ra to rs
Integrators or express operators offer reliability and fast global service. Companies like
DHL. UPS and FedEx are specialists in the global express delivery service; they are part of a
very close-knit worldwide distribution network. Like those in warehousing and distribution,
these organisations provide e-solutions to logistics and supply chain problems. They
manage a fleet of aircraft and express freight terminals with hubs or gateways located in
Asia, Southeast Asia, Europe, the Southwest Pacific and the United States. DHL Worldwide
Express, for instance, is a market leader, boasting exceptional expertise in air-express
services: it offers all parcel, express and general cargo services.
F o u rth p a rty lo g is tic s p ro v id e rs ( 4 P L s )

Beyond the 3PL, the next evolution in the supply chain is the fourth party logistics provider
(4PL). A 4PL brings together and manages the resources, capabilities and technology
of its own organisation with those of complementary service providers to deliver a
comprehensive supply chain solution. It acts as the integrator catering to the needs of
the client, using resources available through the 3PL and IT service provider.
Typical warehousing functions

Warehouses of the new millennium serve as short- to long-term storage areas for
inbound and outbound cargo. They have advanced and specialised facilities such as
strong rooms, vulnerable cages, refrigeration facilities, handling areas for dangerous
goods and livestock holding areas.
They offer value-added functions as well, the most common of which is cross docking.
This is a unique activity that comprises freight-mixing, consolidation and break-bulk,
Cross docking involves moving goods quickly through the warehouse for delivery
and takes place in the warehouse or distribution centre. It refers to the tim e-reduction
initiatives adopted by logisticians who focus on the flow of goods through warehouses
or distribution centres, rather than its storage. In such an operation, goods from
different suppliers arrive by the truckload. They are then shifted across the warehouse
or distribution centre onto waiting trucks, for delivery to customers; this includes goods
that are only being stored temporarily.
Cross docking is synonymous with speed and minimal storage of goods in the warehouse
- there is no need for order picking. The entire process is executed within 24 hours or
less. It increases inventory turnover while assuring greater customer satisfaction, since
goods are available as and when the customers require them. There is temporary storage
of incoming goods, to meet the next scheduled deliveries to specific customers, who
benefit from this approach that combines reasonable pricing with good customer service.
Cross docking is widely practised by service providers and 3PLs.
Storage and retrieval (left) and inventory taking (right)

PART 2 FTZs. Forwarders, Storage
Cross D o ckin g - C onsolidations
• M ake use of tra n a p o rta tio n rate breaks

• For c o n s o lid a tin g in p u t m a te ria ls
- LTL - Less th a n tru c k lo a d
• FTL - Full tru c k lo a d
C o o lp o rt@ C h a n g i
Coolport@Changi is a subsidiary company of SATS Ltd and was formed on 17 June

2010. Coolport@Changi is the latest facility in Asia to handle terminal and transhipment
perishable goods within the Changi Airfreight Centre located within the FTZ. The new
facility is located in SATS Airfreight Terminal 2. It is well equipped with m ulti-tiered zones
of different temperatures ranging from -28°C to 18°C. This facility is able to handle a
wide range of perishable goods such as live, frozen, poultry, meat, fresh produce, fresh
flowers and pharmaceutical products.
85
■7 Aircraft and Loading
In this chapter, we look at the m ost com m on a ircra ft and a ircraft unit loading
devices [A U LD s) used by airlines. New technology has led to the developm ent
o f m odern, s ta te -o f-th e -a rt a ircra ft w ith im proved aerodynam ic design, better
perform ance, advanced con trol system fu n ctio n s and increased interaction
between the aircra ft and its operating environm ent. M ost airlines are im proving
on efficiency, re lia b ility and m aintenance, allo w in g them to optim ise cargo
space. So how e xactly has advanced te ch n o lo g y im proved cargo u p lift for
airlines?
• Improved fuel efficiency with better payload
• Lower operating costs
• Improved reliability with minimum delay
• Reduced costs of spare parts
• Improved total preventive maintenance, resulting in lower maintenance costs
Airline operators have to identify the types of aircraft that improve productivity. Aircraft
designs must satisfy industrial requirements; this is critical, as cargo comes in different
sizes, shapes, and weights. The most sought-after model is the B747, which can operate
as a full freighter or passenger carrier, or combi-style. One critical determinant of the
choice of aircraft is size and range. Besides, airlines are also looking into the feasibility
of interchangeable AULDs within their own fleets.
It is difficult to see the industry's future development, because
• no one can predict cargo growth;
• shippers and consignees are constantly changing their buying behaviour;
• inflation is always a factor;

• foreign exchange rates are erratic; and
• epidem ics can strike any time, for example SARS (Severe Acute Respiratory
Syndrome)
Types of aircraft and unit load devices

CULDs} used today
Lower and main deck pallets, and containers, are used most often when loading cargo
onto aircraft. There are two types of ULDs, aircraft ULDs CAULDs) and non-aircraft
ULDs.
AULDs are structural and non-structural units that interface directly with the aircraft.
They include main deck units, sometimes called upper deck units, which are made
to fit into the cabin section of the cargo freighter or combi, on the same level as the
passengers.
The other types of AULDs are referred to as lower deck units; they are loaded in the
lower compartment of the aircraft, below the main deck or cabin.
Non-aircraft ULDs are mainly lATA-approved units, such as containers, that can be
lifted by forklift and are meant for bulk or loose loading. Shippers who use non-aircraft
ULDs must make sure that they adhere to lATA’s standard specifications. These units
are owned by the shipper or its appointed freight forwarder, not by the airlines.
AULDs improve airline services while maximising cargo revenue. The employees of airlines
and GHAs are trained to handle and optimise the use of the AULDs. This enhances cargo
operations, which leads to better quality service.
Some airlines set up AULD Logistics Departments to train their employees to ascertain
the need for such equipment in their respective stations. To monitor the movement of
such ULDs, airlines have to control and manage the number of pallets and stations, and
also take into account passengers’ baggage requirements, especially containers.
For effective operations, airlines’ online stations have to ensure that there is no shortage
of ULDs required for both passengers and cargo, by
• ascertaining the types of ULDs needed, such as containers Q-D1/LD3, AVE, AVJ,
etc). Some airlines have different identification for the LD1 or LD3, lower deck
pallets/containers and main deck pallets/containers - this will be explained later in
the chapter;
• maintaining an ample allocation of ULDs at the stations at all times;

PART 2 » A ircraft and Loading
controlling and managing ULDs in terms of serviceability;
reporting any unserviceable or damaged containers and pallets for aircraft safety;
managing the ULDs, like containers and pallets (lower and main decks], that are
released to freight forwarders and shippers for buildup (BUP); and
returning containers and pallets borrowed from other airlines,
how can airlines and GHAs handle ULDs properly?
Ensure that the proper equipment (dollies, trolleys, conveyors and slave pallets) is
used to support the different types of ULDs.
Make it a point to check that the ULDs are in good condition before use, to avoid
any unnecessary incidents of having to waste precious time offloading damaged
ULDs that are already full of cargo.
Damaged ULDs must be promptly reported, so that replacement units can be initiated.
SIA classifies damaged ULDs into two categories: “Severe" and "Tolerable”. “Severe"
means major damage or defects that can affect the safe operation of both the
aircraft and ULD, for instance, a damaged base or main structure that makes the
ULD impossible to load onto the aircraft. "Tolerable” means some minor damage or
defects that will not jeopardise the aircraft or ULD: small dents, scratches, missing
fasteners.
Do not use forklifts to retrieve containers or pallets from trucks or dollies.
Try not to tilt the ULDs during buildup. Heavy items must be placed at the base, and
restrained if necessary, to prevent them from shifting during takeoff and landing.
A irb u s A 3 1 0
Cargo capacity 8 tons/45 m3

Pallets and containers 60.4 x 125" pallet
88 x 125” pallet
96 x 125” pallet
LD 3 container
LD 7 container
AM F container
AM P container
Loading capacity Forward cargo compartment: 8 LD 3 containers, or 3 pallets
or LD 7 containers or AM F containers, or combinations
thereof.
A ft cargo compartment: 6 LD 3 containers.
Bulk cargo compartment for mixed general cargo.
Dimensions of cargo doors in cm

Width Height
Forward cargo compartment 270 170
A ft cargo compartment 181 168
Bulk cargo compartment 95 108
PART 2 A ircraft and Loading
A irb u s A 3AO
Cargo capacity 12.1 tons/141 m3

88 x 125" pallet
96 x 125” pallet
LD 3 container
LD 7 container
AM F container
AM P container
Loading capacity Forward cargo compartment: 14 LD 3 containers, or
5 pallets or LD 7 containers or AMF containers, or
combinations thereof.
Aft cargo compartment: 12 LD 3 containers, or 4 pallets
or LD 7 containers or AM F containers, or combinations
thereof.

Width Height
B o e in g 7 4 7 —3 0 0 C o m b i

Pallets and containers 60.4 x 125” pallet
88 x 125” pallet
96 x 125” pallet
96 x 196" pallet
LD 1 container (AVQ
LD 3 container
10-foot container
20-foot container
AM F container
All horse containers
Loading capacity Main deck cargo compartment: 6 cargo pallets (96” x
125”), or 6 AM D containers (125” x 96” x 118") and 1 A M A
container, or 4 A M A containers and 1 20-foot container or
pallet.
Forward cargo compartment: 5 pallets (88" x 125" or 96" x
125”), or 6 LD 1 containers and 3 pallets (88" x 125” or 96” x
125”).
A ft cargo compartment: 14 LD 1 containers, or 7 full size
containers, or 2 pallets (88" x 125”), or 8 LD 1 containers or

Width Height
Main deck 304 340
Aft cargo compartment 167 263
B o e in g 7 4 7 -4 0 0

88 x 125" pallet
96 x 125” pallet
LD 3 container
LD 7 container
AM F container
A M I container
AM P container
Loading capacity Forward cargo compartment: 16 LD 3 containers, or
5 pallets or LD 7 containers and AM F containers, or
Aft cargo compartment: 14 LD 3 containers, or 4 pallets or
LD 7 containers or AM F containers and 2 LD 3 containers,
or combinations thereof.

Width Height
B o e in g 7 4 7 -4 0 0 C o m b i

88 x 125” pallet
96 x 125" pallet
96 x 196” pallet
96 x 238.5” pallet
LD 3 container
LD 7 container
10-foot container
20-foot container
AM F container
A M I container
AM P container
Loading capacity Main deck cargo compartment: 7 10-foot containers, or 5
10-foot containers and 120-foot containers and pallet.
Forward cargo compartment: 16 LD 3 containers, or 5
pallets or LD 7 containers or AMF containers.
Aft cargo compartment: 14 LD 3 containers, or 4 pallets or
LD 7 containers or AMF containers and 2 LD 3 containers,
or combinations thereof.

Width Height
Main deck 340 304
PART 2 ■ A ircraft and Loading 93
B o e in g 7 4 7 —4 0 0 F re ig h te r

Pallets and containers 88 x 125” pallet
96 x 125” pallet
96 x 238.5" pallet
LD 3 container
LD 7 container
10-foot container
20-foot container
AM F container
A M I container
AM P container
Loading capacity Main deck cargo compartment: 30 pallets (mixture of 96” x
196” pallets, 20-foot, 30-foot and 40-foot pallets/containers
can also be loaded).
Forward cargo compartment: 5 pallets or LD 7 containers or
AM F containers.
A ft cargo compartment: 4 pallets or LD 7 containers or
AM F containers and 2 LD 3 containers, or combinations
thereof.

Width Height
Main deck forward compartment 382 249
Main deck aft compartment 340 312
Lower deck forward compartment 264 168
Lower deck aft compartment 264 168
B o e in g 7 4 7 -2 0 0 F re ig h te r

60.A x 125” pallet
88 x 125” pallet
96 x 125” pallet
96 x 96” pallet
96 x 238.5” pallet
LD 3 container
LD 7 container
10-foot container
20-foot container
AM F container
AM I container
AM P container
Loading capacity Main deck cargo compartment: 29 10-foot containers and
2 55” x 96” pallets, or 12 20-foot containers and 5 10-foot
containers or pallets.
Forward cargo compartment: 5 pallets or LD 7 containers or
AMF containers.
Aft cargo compartment: 4 pallets or LD 7 containers or
AMF containers and 2 LD 3 containers, or combinations
thereof.
Width Height
Main deck forward compartment 356 249
Main deck aft compartment 340 304
Lower deck forward compartment 264 168
Lower deck aft compartment 264 168
PART 2 A ircraft and Loading 95
1886.0 2062.0
B o e in g 7 7 7 —2 0 0

96 x 125” pallet
LD 3 container
Loading capacity Forward and aft cargo compartments: 4 pallets and 16 LD 3
containers.
Bulk cargo compartment for mixed general cargo, postal
mail and baggage.

Width Height
9 6 Guides to International Logistics t A irfreight Forwarding
M D - 1 1 F re ig h te r
Cargo capacity 93.23 tons/534.4 m3

96 x 125" pallet
96 x 196" pallet
96 x 238.5” pallet
LD 3 container
LD 7 container
AM I container
AM P container
Animal pens
Loading capacity
Cargo volume Cm3)
Main deck 412
Lower deck/forward 60
Lower deck/centre 48
Lower deck/aft bulk 14.4

Width Height
Main deck 355.6 259.0
Lower deck 264.2 167.6
A V J/ L D 1 c o n ta in e r
Dimensions Base CL) : 1562 mm/61.5 in

(W) : 1534 mm/60.4 in
Top CL) : 2337 tnm/92.0 in
(W) : 1486 mm/58.5 in
Height : 1626 mm/64.0 in
Tare weight : 92 kg Cthe tare w eight is the w eight of the unit when empty)
Max gross w eight : 1587 kg
Features : Single fabric doors.
Seat tracks on base for tie-down fittings.
Available with single all-metal bifold doors.
Handling precautions : Place heaviest items away from trapezoidal end to avoid
container tilting.
Use on B747 only.
Do not use if base corner insert is missing or bent, or if
base is warped.
A V E / L D 3 c o n ta in e r
Dimensions Base (L) 1562 mm/61.5 in
m 1534 mm/60.4 in
Top CL) 2006 mm/79.0 in
m 1494 mm/58.8 in
Height 1626 mm/64.0 in
Tare w eight 82 kg
Max gross weight 1587 kg
Features Single fabric doors.
Seat tracks on base for tie-down fittings.
Available with single all-metal bifold doors.
Handling precautions Place heaviest items away from trapezoidal end to avoid
container tilting.
Do not use if base corner insert is missing or bent or if base
is warped.
15.2A
A A P / L D 9 c o n ta in e r
(W) 2235 mm/88.0 in

Tare weight 270 kg (including detachable security door)
Max gross weight Lower deck A310 - 4626 kg
Lower deck B747 - 4626 kg
Main deck - 6000 kg
Features AAP3101 to AAP3130 fitted with garm ent-on-hanger (GOH)
frames. (The 5 GOH frames can take up to 3500 kg.)
Detachable security doors.
Internal seat tracks for cargo tie-down.
Handling precautions Do not use if door net is missing, base corners are cracked
or bent, or if base is warped or bent.
A A U / L D 2 9 c o n ta in e r
Dimensions Base CL] 3175 mm/125.0 in
m 2235 mm/88.0 in
Top CL] 4724 mm/186.0 in
Tare weight 265 kg
Features Seat tracks on base for cargo tie-down.
Fabric door with net.
Can also be fitted with metal security doors.
Load on lower deck of B747 only.
PART 2 A ircraft and Loading 10 1
A M A / M l c o n ta in e r
Dimensions Base 00 3175 mm/125.0 in
m 2438 mm/96.0 in
Tare weight 270 kg
A M D / M l H c o n ta in e r

m 2438 mm/96.0 in
Height 2997 m m /118.0 in
Tare weight 370 kg
Handling precautions Should not load in position PL of B747F and B74D.
Do not use if door net is missing, base corners are cracked
Do not load also in positions A, B, CR. CL, DR, DL, ER, EL and
T of B747F.
R K N / L D 3 in s u la te d c o n ta in e r
Dimensions Base CL) 1562 mm/61.5 in
m 1534 mm/60.4 in
Top CL) 2006 mm/79.0 in
m 1494 mm/58.8 in
Tare weight 190 kg
Features Forkliftable base.
Fully insulated walls.
Airtight.
Handling precautions Before loading perishables, ensure the unit is clean, pre-
cool the unit, and stuff any empty space with crumpled
newspapers to minimise heat loss.
Stainer
R A P / L D 9 in s u la te d c o n ta in e r

m 2235 mm/88.0 in
Tare w eight 325 kg
Main deck B74D - 6000 kg
Main deck B74F - 6000 kg
Features : Insulated walls.
Airtight.
Handling precautions : Before loading perishables, ensure the unit is clean, pre
cool the unit, and stuff any empty space with crumpled
newspapers to minimise heat loss.
PART 2 ■ A ircraft and Loading 105
K M A liv e s to c k c o n ta in e r
Dimensions Base CL) 3022 m m /119.0 in
m 2286 mm/90.0 in
Height 2438 mm/96.0 in for 3-deck configuration
1626 mm/64.0 in for 2-deck configuration
Tare weight 610 kg (including pallet)
Max gross weight Main deck B747 - 6800 kg
Lower deck A310 - 5035 kg
Features Units can be collapsed for loading in lower deck.
H M A h o r s e s ta ll

(W) 2286 mm/90.0 in
Tare w eight 1310 kg Concluding pallet and net)
Features Carries up to 3 horses.
Handling precautions Do not lower the heavy ramps unassisted. Use spreaders to
minimise damage to internal flooring when loading cargo.
PART 2 S3 A ircraft and Loading 107
P I P p a lle t
Dimensions Base (L) : 3175 mm/125.0 in

(W) : 2235 mm/88.0 in
Net : 125 x 88 x 80 in
3175 x 2235 x 2032 mm
Tare w eight : 110 kg
Max gross w eight : Lower deck A310 - 4626 kg
Main deck B747 - 6000 kg
Features : 125" sides anodised blue.
88” sides anodised yellow.
The net is orange, knotless, made of 8” mesh.
Handling precautions : Do not overtighten net, as this may cause the pallet to
warp.
Do not use if corners are cracked or if the corner inserts
are missing.
Always use spreaders for heavy cargo. Spread load across
entire available area.
P 6 P pa lle t

m 2438 mm/96.0 in
Net 125 x 96 x 118 in
3175 x 2438 x 2997 mm
Tare w eight 120 kg
Main deck B747 - 6800 kg
Features 125” sides anodised blue.
96” sides anodised red.
The net is blue, knotless, made of 8-inch mesh.
Handling precautions Do not overtighten net, as this may cause the pallet to
warp.
are missing.
Always use spreaders for heavy cargo.
Restricted to position 41 or 42 of B747 lower deck. Spread
load across entire available area.
P G A p a lle t
m 2438 mm/96.0 in
Net 238.5 x 96 x 118 in
6058 x 2438 x 2997 mm
Tare weight 540 kg
Features 238" sides anodised blue.
96” sides anodised red.
The net is red, knotless, made of 8-inch mesh.
Handling precautions Always use spreaders for heavy cargo.
Restricted to position RR or SR of B74D.
For maximum space utilisation, avoid loading a single unit
in positions ER/FR, EL/FL, HR/JR, HL/JL, JR/KR, JL/KL.
P L B pa lle t

m 1534 mm/60.4 in
Net 125 x 60.4 x 64 in
3175 x 1534 x 1625 mm
Tare weight 110 kg
Features Non-anodised edges.
Net is white, made of 10-inch mesh.
Handling precautions Do not overtighten net, as this may cause the pallet to
warp.
are missing.
Always use spreaders for heavy cargo.
Use only in lower decks of B747 and A310.
PART 2 Aircraft and Loading 111
B747 300 C OM BI
REARVIEW
Cross-section of a B747-300 Combi

Palletisation and containerisation of

AULDs
Airlines encourage freight forwarders to buy AULDs from them and load them with
regular traffic. This lowers handling costs for airlines, and at the same time allows cargo
agents to optimise the use of these units, to meet the pivot weight imposed on airlines
for all ULD programmes. The onus is on the freight forwarders to maximise the loading
of all ULDs. Except for structural containers and m ain-deck pallets, freight forwarders
can best utilise the lower-deck pallets by extending them. This includes the loading of
odd-sized cargo.
747 A300 A30D 747
Out-sized cargo
1 13
8 Handling, Storage, Packing

and Labelling
Objectives of materials handling

GHAs, freight forw arders and airlines are constantly upgrading th eir e q u ip m e n t
Materials handling has become an important tool in moving, loading and storing cargo in
warehouses, cargo terminals, hangars and distribution centres, involving mechanical and
manual means, and automation. The term materials handling simply means the transfer of
cargo to storage locations. It reduces physical handling of cargo and increases efficiency.
One key objective of materials handling is to maximise the building's storage capacity;
the handling method very much depends on the size and design of the building.
A contributing factor is the height of the building. Some modern warehouses can be as
tall as 44 metres. In view of this, 240” and 274” forklifts, narrow-aisle lift trucks, and so
on, are used. In Singapore and some other Asian countries, warehouses or distribution
centres are designed and built in multiple levels, by contrast to the single-level ones
found in the United States, Europe and Australia. The scarcity and high cost of land in
Asia combine to make multi-level buildings
most ideal.
Forklifts, hand jacks, pallet jacks, conveyor

equipm ent lift/reach trucks, stackers, tuggers,
scissor lift pallet jacks, narrow-aisle lift trucks
and live-roller conveyors are among the most
common equipment seen in the warehouse.
There are two types of conveyors: the roller

or gravity style, and the belt style. Although
both versions are common, conveyors carry
advantages and disadvantages.
Narrow-aisle storage
114 Guides to International Logistics ■ A irfreight Forwarding
Advantages
• easy location of items
• quick and efficient movement of carcjo
Disadvantages
• high cost
• less flexibility
Semi-automated conveyor system
Materials handling equipment minimises travelling within the warehouse, and between
the warehouse and freight forwarders’ premises. In a distribution centre (DC), one can find
the latest equipment, such as automated storage and retrieval systems (ASRS), automated
stacker systems, pallet racking systems, and automated guided vehicles. In some cases,
mezzanine floors are constructed for storage of small items. Other equipment include
• top-running bridge cranes;
• tow -line conveyors;
• stacker cranes; and
• shelves.
Distribution centre operators are mainly established multinational companies like Exel,
U-Freight and Schenker, that provide pick and pack services to their customers, through
order picking and storage equipment. These include
PART 2 • Handling, Storage, Packing and Labelling 115
Shelving in the warehouse
• part-to-picker systems (the pick travels through an automated machine

direct to the picker - it has vertical and horizontal carousels);
• automated storage and retrieval systems (ASRS); and
Materials handling
116 Guides to International Logistics i A irfreight Forwarding
• picker-to-part systems [the picker, armed with a pick order list, travels to the pick
location within the aisle - examples of such storage systems are bin shelving, modular
storage drawers, flow racks, mobile storage systems, order picking vehicles, etc).
Automated Storage and Retrieval System (ASRS)
Benefits of materials handling

Materials handling enables freight forwarders to deliver and despatch cargo to customers
and airlines on time, in the right quantity and in good condition. Locating, storing and
packing of cargo is much easier, and there is less mishandling. It saves time, money
and eliminates the high usage of labour. And although materials handling is a heavy
investment for freight forwarders and GHAs, in the long run, it minimises cost through
higher productivity, which in turn leads to customer service improvement, the ultimate
goal of a freight forwarder. Moreover, it maximises utilisation of warehouse space. While
much emphasis is placed on cargo storage, distribution centres focus on speed with
faster turnaround. This removes the problem of long-term cargo storage, which may
result in unnecessary backlog. Besides, freight forwarders gain substantial savings on
transportation time, a critical cost consideration.
However, health and safety should not be ignored. An ideal working environment that
takes these factors into consideration enhances productivity. Thus, in this new millennium,
it is appropriate for freight forwarders, airlines, and GHAs to automate warehouses and
cargo terminals.
PART 2 Handling, Storage, Packing and Labelling 117
Materials handling (left) and a stacker system (right)
The importance of packing, labelling and

handling
Airlines and shippers are exploring ways to improve packing. When it comes to package
design, shippers have to ensure that it is also suitable for multimodal transportation.
Proper packing allows goods (and the packaging itself) to withstand rough handling
at the airport and during the flight, and turbulence as well. These days, shippers even
design their own IATA-approved containers for sending goods on any airline. In this way,
shippers not only improve protection to the contents, but also reduce handling costs.
In this section, we examine the packing required for carriage of live animals, perishables
such as fresh cut flowers and orchids, live tropical fishes, dangerous goods, human
remains and other items.
Appropriate packing helps airlines optimise utilisation of belly holds and AULDs. There
are standards set for the packing of various types of commodities, like wet shipments,
dangerous goods, and livestock; manuals are available on the market to assist shippers
Loading of AULDs onto the aircraft

118 Guides to International Logistics • A irfreight Forwarding
in adhering to these stringent requirements. Some commonly used manuals are
• lATA’s Live Animals Regulations:
• lATA’s Dangerous Goods Regulations; and
• ICAO’s Technical Instructions for the Safe Transport of Dangerous Goods by Air.
Another activity in logistics is the labelling of goods. Airlines, shippers and freight
forwarders are changing their requirements, to ensure that goods are properly and
individually labelled with the identification numbers and/or logos of both the shipper
and consignee. For example, if a consignee decides to import a crate of foreign beer,
a label has to be affixed onto each can. Similarly, a label stuck on the outer packaging
would alert the handler that the cargo requires proper handling to avoid damage to the
contents.
L iv e a n im a ls
It is the shipper's responsibility to ascertain that live animals, like cats or dogs, comply
with the regulations set by IATA. Other live animals include birds, horses, goats, sheep,
poultry, mammals like whales and dolphins, and seafood such as lobsters. Regulations
require the shipper to meet the minimum standard for the transport of live animals in
cages, pens, containers and/or horse stalls. As for endangered species, prior approval
must be granted from the Convention on International Trade in Endangered Species of
Wild Fauna and Flora (CITES).
For those who are unfamiliar with the export and import of live animals, it is best to
contact local government agencies for detailed information. Alternatively, shippers can
check with the national carrier if there is any embargo. Certain governments do not permit
the import of live animals and failure to comply will result in the immediate termination
of the animals upon arrival, and the shipper or importer may face a penalty or fine.
Shippers transporting their pet dog or cat should check that the cage is big enough for
the animal to move freely, to avoid causing unnecessary stress during flight. Such cages
or containers are available at any pet shop or from the airline.
Airlines must not load live animals near foodstuffs, dangerous goods, or human remains.
Refer to Chapter Seven for the various types of AULDs for different animals.
The IATA Live Animals Regulations provide important information on the appropriate type
of containers for different types of livestock. Here are some guidelines for the shipper:
• Reserve space. If there is a demand for space, the airline will only offer it on a first-
come-first-served basis. An airline will not allow carriage of both dogs and cats in
PART 2 Handling, Storage. Packing and Labelling 1 19
the bulk area of the same flight. Similarly, if the airline has accepted a booking for
carriage of human remains, it will not accept the live cat or dog. However, it is up to
the airline to make special arrangements for loading the human remains and one
of the live animals in different sections of the aircraft, at its own discretion.
• Advise the airline of the name and gender of the animal.
• Apply for import and export permits or licenses from the respective local government
bodies.
• The animal's health certificate must accompany the shipment.
• The type and size of the container has to satisfy the IATA Live Animals Regulations.
• Provide the airline with feeding and watering instructions for the duration of
transportation.
• Provide proper markings and labels, such as livestock labels.
• For carriage of cats and dogs, it is best not to feed the animals before flight.
• Get the local veterinarian to sedate the animal to keep it from stress during the flight.
Such information should be recorded; affix the record to the animal’s container.
• There should be an attendant to accompany horses and wild animals (this could be
part of an exchange programme between zoos).
P e r is h a b le s
Perishable items such as fresh seafood, chilled meat, and fresh shellfish require special
packing to prevent leaking and spillage. The most suitable container would be a
corrugated fibreboard box with external dimensions 25 x 16 x 14 inches, and a thickness
of 0.5 inches. A polyethylene film sheet should be placed inside as extra protection.
The contents should be put into polyethylene bags before they go into the boxes - it is
advisable to use bags that can take the weight of the cargo. Once the contents are packed
into the box, it must be sealed with tape. To maintain freshness, add ice packs.
Certain perishables may require internal packing, which comes in the form of foam boxes.
This offers double protection to the contents, and minimises damage from handling.
Stickers declaring the shipment as perishable goods should be used - this facilitates
proper handling. These stickers are distributed by airlines to their appointed freight
forwarders.
L iv e t r o p ic a l fis h e s a n d s e a fo o d
Foam boxes are commonly used for the despatch of live tropical fish and seafood. The
contents are packed in polyethylene or vinyl bags filled with approximately 10-15 litres
of water. Oxygen is pumped into each bag, before it is tied shut with elastic bands.
On average, the oxygen lasts up to 36 hours. Some live fish exporters use corrugated
fibreboard boxes as external packing, followed by foam boxes inside. To prevent mortality
during transportation in winter, heated packs are placed in each box. Proper labels
should be placed on each carton for easy identification by airline employees during
acceptance and delivery.
F re s h c u t o r c h id s a n d f lo w e r s
The most suitable packing materials for fresh cut orchids and other flowers are water-
resistant fibreboard or hardboard boxes with ventilation openings. The flowers have to
first be soaked in water containing insecticide, to kill parasites and insects. They are
then left on racks for an hour to drain off the water before they are trimmed, sorted and
packed according to the buyers' orders. If the moisture is not totally drained, the box will
be weakened, which may damage the flowers. After packing, the flowers are stored in
the cold room, which is part of the pre-cooling process. It takes approximately another
hour before the flowers are despatched to the airport for uplift.
D a n g e ro u s g o o d s
IATA has introduced its Dangerous Goods Regulations, w hich sets out specific
requirements in the packing of hazardous goods. Considering that passengers and
cargo travel together on commercial flights, airlines have to safeguard the security of
passengers and crew.
LIVE
| Ü ( TROPICAL n
FISH
77'ij t_25° QUICK
TRANSFER
68 : t 20" SPECIAL
COMPARTMENT
F .Ö C . < e < i
Corrugated fibreboard box with proper markings Oeft) and flowers packed in water-resistant fibreboard or
hardboard boxes (right)
PART 2 Handling, Storage, Packing and Labelling 121
Dangerous goods are those substances and articles that can be harmful to human beings
and their environment, and which may endanger the safety of aircraft and property. If
such goods are carried on board, they must meet minimum safety standards. As they
come in various forms, shippers should adhere to the special packing requirements.
Some dangerous goods are meant for freighter aircraft only, while others can be carried
on passenger flights. Radioactive and magnetised material, explosives, flammable gases
and liquids, corrosive substances and so on would require different types of packing
to ensure that they are more than safe. If the shipment is improperly packed, or if the
packing does not comply with the regulations, the airline or GHA will not accept it,
even if it has been booked. Airlines also have their own checklists to ascertain that the
IA TA /1C A O H A Z A R D A N D H A N D L IN G L A B E L S
Except fo» Rart»oact»ve and Hsnottng Labels le*! indicating ihe nature of risk on label is optional
HAZARD LABELS
• An>r:t?s bfrac«ng »he Expios.*» iaaeift shown 200s « arul fading into Divisions- i t t.2. 1.4F. t 5 t.6 arc* norrr«;i> lotb'dder
hazardous items are safe for carriage. IATA has specifically indicated that hazardous
items should be packed with respect to danger level; there are three categories, namely
• high danger - Group I;
• medium danger - Group II; and
• low danger - Group III.
IA T A /IC A O H A Z A R D A N D H A N D L IN G L A B E L S
Excsot (or Radioactive ar-.d Hnrxiir^ Labels, text ir>d<ca;my the natuic ol risk on label is optional
HAZARD LABELS
PART 2 ■ Handling, Storage, Packing and Labelling 1
Chemicals in barrels
Here are some pointers for shippers:
• Inform the airline of the nature of the dangerous goods (gases, flam m able
liquids, explosives). More importantly, the shipper must correctly identify to which
classification the cargo belongs.
• Proper identification of the goods is necessary due to their composition or properties.

Some may also come with scientific names or shipping names.
• Once the nature and classification of the dangerous goods have been established,
check the packing requirements.
• M ark and label the goods correctly, to avoid mishandling by ground staff, be it airline
or GHA personnel.
• The cargo requires particular care and storage prior to uplift, and special handling
to protect cargo handlers from harm.
• If in doubt, consult the airlines’ dangerous goods specialists or lATA-appointed

dangerous goods management section.
• Shippers of dangerous goods must sign the Shipper’s Instruction for Despatch
of Dangerous Goods. Freight forwarders are not allowed to sign on behalf of the
shippers.
H u m a n r e m a in s
The requirements for the handling of human remains vary from country to country. Each
has its own set of mandatory import or export regulations. An undertaker’s assistance
should be sought as to the proper packing of such items. Any party transporting human
remains should provide
• a death certificate indicating the deceased’s name, nationality, age, sex, and the
date, cause and place of death:
• an embalming or medical certificate to indicate how the body is preserved and/or

embalmed; and
• export and import permits.
On the aircraft, the coffin should be stored the right way up, marked and labelled "This
Side Up”.
V a lu a b le c a r g o
Valuable cargo must be properly packed and labelled for uplift. For small items like
jewellery, diamonds, and gold, the minimum size of the packing should not be less than
6 x 4 x 2 inches. Shippers should book their shipments in advance, so that the airlines
can arrange for security handling at the point of uplift and at the point of discharge.
Shippers also have to ensure that their cargo is well covered by insurance in the event
of loss or theft.
Restrictions on dangerous goods

To avoid legal issues arising from improper handling of dangerous goods, shippers and
freight forwarders should send employees for courses on dangerous goods regulations,
run by IATA member airlines. This is to reduce the risk to human lives and safety of the
aircraft, not to mention our environment. In Singapore, the government imposes stringent
punishments on any person who does not conform to requirements; this means a jail
term or a fine, or both. As an old adage goes, "if in doubt, do not accept”. Check with
the experts, or approach the airlines directly.
R C A R ( R e g u la t e d C a r g o A g e n t R e g i m e ) -S i n g a p o r e
Pilot Run : 1 October 2007
Legislation : 1 April 2008

125
9 Air Waybills, Import and

Export
What is an air waybill?

Airlines and customers must keep a record of cargo carried. Customs authorities at
the destination require documentation to support goods entering the country - an air
waybill (AWB) fulfils this purpose. For a consolidation, which is a sub-shipment, a house
air waybill (HAWB) is used. This is not an airline [master) air waybill, but is issued by a
freight forwarder.
But what is an AWB? The IATA TACT manual defines it as follows: "An air waybill [AWB)
shall be either an air waybill referred to as an Airline Air Waybill' with preprinted issuing
carrier identification or an air waybill referred to as a ‘Neutral Air Waybill’ w ithout the
preprinted identification of the carrier in any form.” CIATA TACT Manuals, Section 6.1
- General). The terminology employed by the World Customs Organisation (WCO) is Direct
Air Waybill (DAWB), Master Air Waybill (MAWB) and House A ir Waybill CHAWB).
An AWB shows evidence of the contractual agreement between the shipper and the
carrier of the goods. In all contracts, the signatures of the airline and the shipper - or
freight forwarder - are required. M ost carriers have now switched to neutral AWBs,
rather than the preprinted ones.
The AWB can be used for consolidations and individual shipments. A ir shipments
must be covered and accompanied by an AWB issued by the transporting airline. If
the issuing airline cannot uplift the goods to its final destination, another airline will be
activated. Special interline agreements can be formalised between airlines for carriage
of one another’s commercial loads; this was highlighted in Chapter Three. It cannot be
emphasised enough that it is crucial for shippers to read the conditions of carriage or
contract found on the reverse side of the AWB, which spells out clearly the carriers’
limitation of liability. To reiterate, this liability due to damage, theft, loss and delay is
limited to US$20 per kilogram, unless the shipper declares a higher value for carriage.
According to the conditions of air carriage, the shipper must prepare an SLI if it is a
direct shipper, and present the document to the airline’s representative for execution of
the airline AWB, also known as the MAWB. The shipper is responsible for the accuracy
of all information, particulars and remarks on the AWB.
N O T E : S H A D E D A R E A S T O B E C O M P L E T E O O N L Y B Y S IA O R S IA A G E N T
A0DACC5 O* I WAYfla t NJMIICH
S H IPP E R ’ S IN S TR U C TIO N S FOR DESPATCH
AIR CARGO
«AMh a A00*C Ml Of COMStGMCC
S in G A P O R E A IR L IH E S
FOR YOU« IMFOHMATlOM
11-11 40=1
AMPCftT Of OrPAHIUTC «FOOfSTCO ROUTMG ACCOUNTING fif ORMATICH
HM.M CAKHCH TO CAMHtH TO CAARiEP CURPtWCV r*Y«tN? O* CKAflCES UCCt.AHCO VALl*

fO n CARAIAOk
so N il, NCV
A:nî*0*fT Of OtSliNAtiC« amount ro R m sjR a n cf
Ft K*MT /OAt fc I KSHl/OATf UJI _£04.l.«C r BflSÄ« „ iv
Of* N il.
MAHStMa r#OhMATlQN
ACCOM» OOC5
PI FA SE î 1ANDI .K W i l l i CARE i
i ja m i tv o r GOODS
350.3 Machinery Spore Parts
DIMS : J0xl2x40inö each
OIMtrfl CHAftOTS
VÜJ4I.W ChaiQa
SMO0«’ Bui*»«!»«* ¿.ngapo'« Air Can lnn>i«c to c:x*>»ate I*t m k *«yr>k and ol*a<- «î
ce«v>»c«.ai wiir. curla«* a»d <3+t-wtty o1 ceoda U'» banal 9» Ifcl 8Mp»«' •undr'
i f evanl al (h* Carnaia Gao«r*t Cc*d‘ W<v*« ol Catr>a{a
»»Ut Othar C>vç«« Ou« AO««'
Sft^par carl'll«« «Bla« Um iimtaol« 0» IW« co*a cn<r>*nt ar* ßtopertf •da Mit «4 br **«■* l*»«»a. as a ir P t't o’ •
’•«Ul oltttf Char««» Cut Ca'■ c c .-.i^M in i tioniaw» «*>*0#ra*s «ooda. pail ia « prop»* cofldttfoa To* ¿aixaâ &r *C«$«d;rtC 1« I
«ppHrab.r DaA0a'Ou< GocJi Reûâiw.i»
S\}Q * ‘ alto ackAOarMâêi I OP?0fUX«tr <o tok* M l C W ilW M n

IclaJ ?reoaM
SIGNATURE OF SiflPPEH
PART 2 A ir Waybills, Im port and Export 127
In addition, the shipper is responsible for any damages suffered by the airline or its
representatives that is due to inaccurate information and/or details. Though the AWB is
executed by the shipper's freight forwarder, the shipper is still liable for any discrepancies
that arise. Upon completion of the AWB by an airline representative, the shipper signs the
document to confirm agreement to the terms and conditions of carriage. It is crucial that
the AWB is carefully and legibly prepared. All particulars must be thoroughly checked
by the shipper and airline before the document is signed.
The significance of the air waybill

In general, the AWB functions as
• a contract of carriage between the airline and the shipper;
• a proof of receipt of cargo for carriage;
• a freight bill;
• a certificate of insurance if the shipper requests for insurance coverage offered by

the airline;
• customs declaration and clearance;
• documentary evidence of all shipment details, and information to guide employees

of the airline and freight forwarder in handling and delivery of the shipment; and
• documentary proof of the higher value for carriage as declared by the shipper.
The difference between the master air

waybill and house air waybill
The M AW B is issued by the airline, whereas the HAWB is issued by the freig ht
forwarder.
The MAWB number consists of two portions. The first is the prefix that represents the
airline, and the second portion is the serial number identifying the individual shipment.
The serial number consists of eight digits, of which the last is the check digit. An AWB
will not be issued by the airline unless the complete shipment is tendered for uplift.
On the actual AWB, the term “ non-negotiable” is clearly printed in the top right-hand
corner - this term is self-explanatory, and must not be crossed out by either the airline
or the freight forwarder.
Let us use the following number as an example: 618-1234567 5.
The first three digits “ 618” are assigned to SIA. Following the prefix are eight digits
1234567 5. To determine the check digit, we use the first seven digits to be divided by
7 using the following division-table format. The remainder must always be the same
as the eighth digit. 5, which is the check digit. This verifies that the serial number is
correct. If the remainder does not tally with the check digit, then the AWB is counterfeit.
For example.
176366
7 j 12 3 4 5 6 7 ~5
7
53
49
44
42
25~
2 1
4?
42
47
42 [remainder 5)
As mentioned earlier, the MAWB covers the carriage of single or direct shipments and
consolidations, built up by the airline’s appointed agent.
On the other hand, the HAWB is issued by the freight forwarder. Freight forwarders build
consolidations to group all the export shipments from various clients that are going to
the same destination, or which are meant for transhipment, to gain better discounts from
airlines. Airlines encourage this so that their appointed agents can move higher tonnage
and enjoy quantity discounts at various weight breaks. This simply means that the heavier
the shipment, the lower the comparative cost. Airlines are also pushing their agents to
buy space from them, in the form of containers and/or pallets, be it lower or main deck
ULDs. The agents then build up these ULDs; this falls under the BUP (buildup pallet)
programme. The shipper or agent is responsible for loading the contents into these units.
The airlines are not accountable for packing, loss, theft, damage, and so on.
As far as BUPs go, the entire unit is treated as one piece. The agent's HAWB must be
accompanied by the house manifest, indicating the HAWB number, number of pieces,
weight, and nature of all goods.
Preparation of a master air waybill

All fields must be correctly filled in by personnel of the airline or cargo agent. Unlike for
preprinted AWBs, the serial number of the neutral AWB should be clearly reflected in
the top right, top left, and bottom right corners. The AWB should show:
PART 2 A ir Waybills. Im port and Export 1 2 9
the shipper's contact details;
the consignee's contact details;
the name, country and/or city of the issuing carrier agent (to be filled up by the
freight forwarder or the airline's GHA);
the IATA agency code (compulsory) e.g. 323-1234;
the airline's account number (optional);
accounting information (to be inserted by the airline representative);
the airport of departure in full;
requested routing (the first airline, followed by the subsequent carrier/s);
the airport of final destination (in IATA three-letter code);
the airport of destination in full;
the three-letter currency code of the country of origin, for example USD (US dollars),
SGD (Singapore dollars);
w eight and valuation charges, that is, whether the shipment is freight prepaid (PP)
or charges collect (CC) - PP means that the consignor pays the charges, whereas
CC means that the consignee pays;
the declared value for carriage;
the declared value for customs (compulsory);
the amount of insurance, if the shipper insures its goods through the airline;
handling information for livestock, perishables, radioactive materials, etc;
the number of pieces;
the shipment’s gross weight in kilograms (kg) or pounds (lb);
the rate class - minimum (M), normal (N). quantity (Q), commodity classification
rate (C), rebate (R), surcharge (S), etc;
the commodity item number, for special commodity rates
rate charges (obtainable from the TACT manual);
total charges;
the nature and quantity of goods, inclusive of dimensions and volume;
the signature of the shipper or agent; and
the name of the airline personnel executing the AWB, the place of issue and the
signature of the staff.
13 0 Guides to International Logistics £ A irfreight Forwarding
Validity and duration

The AWB is only valid when it is read and signed by the consignor or its appointed freight
forwarder. This validity expires when the consignee or appointed freight forwarder verifies
and takes delivery of the consignment at the airport of destination. The shipper’s right
of disposition ends here.
Amendments to the air waybill

The consignor can initiate an amendment to the AWB after uplift of the shipment but
before delivery to the consignee, by officially advising the airline in writing, stating
specifically the item to be amended. Upon receipt of the notification, the airline will
raise a charges collection advice, or CCA in short. This is the fee imposed by airlines for
amendments to the AWB, which has to be borne by either the consignor or its appointed
agent. However, no charge will be imposed for an amendment to a rate or charge if the
change is in accordance with applicable IATA regulations. However, after the shipment
has been accepted, the consignor cannot amend its
• nature of contents;
• declared value for carriage; and
• insurance value.
A ir cargo reservations
To ensure goods can move as planned, the shipper or freight forwarder has to reserve
space with an airline. If a carrier does not operate directly to the destination, it will involve
another carrier at a transit station; the first carrier will arrange the onward booking and
transfer of freight from one carrier to another. Most airlines’ cargo reservations software
are available to freight forwarders so that they can directly and seamlessly book outbound
freight. The space control system automatically confirms the booking if there is space on
the flight requested, or prompts the user if the request fails. In the latter case, the airline
offers an alternative flight; the user either confirms or rejects the vacancy offered. In
order to ensure smooth handling and proper transfer of the goods, the shipper or freight
forwarder has to provide the first carrier with the following information.
M a s t e r ( a i r l i n e ) a ir w a y b ill n u m b e r
The AWB number helps identify the consignment throughout the transportation process,
until delivery is taken by the consignee.
N u m b e r o f p ie c e s , a n d d im e n s io n s
The completeness of the consignment (number of pieces and their dimensions) is crucial
during booking, loading, transfer and delivery to the consignee.
PART 2 A ir Waybills, Im port and Export 1 3 1
W e ig h t o f c o n s ig n m e n t
Space constraints must be considered. Some carriers operate small, conventional aircraft
with limited capacity that require belly loading, and which would be confined to carrying
smaller, lighter freight. Many airlines face severe payloads in winter because of year-end
holidays and festivals. This limits the uplift of cargo, as airlines have to take in more fuel
for the routing. It is necessary to be accurate about the weight of each consignment.
In the case of heavy or bulky shipments, the airline may have to arrange equipment in
advance, such as heavy-duty forklifts or 20-foot pallets; they may also have to prepare
spreaders ( d e v ic e s for lifting containers and unitised cargo) for these heavy items. And
to prevent needless delay to the cargo, the airline has to inform the relevant personnel
at the final destination to have offloading equipment on standby.
N a tu re of g o o d s
The shipper or freight forwarder must state clearly the nature of the goods when placing
cargo reservations with the airline. The customs authorities at the final destination
require all declarations of inbound shipments to be truthful, as it involves duties and
taxes. The nature of goods also allows the airline to decide if the cargo can be carried
on either its passenger service or its freighter aircraft. For example, the airline may not
load dangerous goods like radioactive materials together with perishables like foodstuffs,
chilled meat and livestock. If the consignment is a live animal, the airline loads it into the
heated area of the aircraft belly and ensures that there is sufficient ventilation to prevent
any mortality. In addition, the airline may allocate special storage facilities for certain
goods - valuables, fragile items like paintings and glassware, and so on.
D im e n s io n s a n d v o lu m e
For proper flight planning and space allocation, the dimensions of the consignment
are required. The airline can then decide whether to allocate bulk, container or pallet
space on a particular flight. In general, airlines accept dimensions in either inches or
centimetres, at the airport of origin.
Here are some common conversions:
Volume & Capacity

To convert Multiply by
Cubic inches into cubic centimetres 16.387064
Cubic inches into litres 0.016387
Cubic feet into cubic metres 0.0283168
Cubic feet into litres 28.316847
Length
Inches into millimetres 25.4
Inches into centimetres 25.4
Inches into metres 0.0254
Feet into millimetres 304.8
Feet into centimetres 30.48
Area
Square inches to square millimetres 645.16
Square inches to square centimetres 6.4516
Square feet to square centimetres 929.0304
Square feet to square metres 0.092903
Examples of imperial conversions:
Length: Volume:
1000 milli-inches = 1 inch 1728 cu ins = 1 cu foot
12 inches = 1 foot 46656 cu ins = 1 cu yard
3 feet = 1 yard 27 cu feet = 1 cu yard
Area:
144 sq ins = 1 sq foot
9 sq feet = 1 sq yard
A ir p o r t s o f d e p a r t u r e a n d a r riv a l
To ensure that the right shipment arrives at the right place at the right time and in the
right condition, the airports of departure and destination must be clearly stated on the
AWB. Airlines also need this information to
• arrange correct routing of the consignment:
• provide suitable storage facilities before takeoff, for commodities such as perishables:
• aid effective com m unication between stations for tracking and tracing of the
consignment: and
• arrange special handling during transit, by either the shipper or consignee.

PART 2 A ir Waybills. Im port and Export 1 3 3
R e q u e s t e d r o u t in g
Due to the urgent nature of airfreight, the shipper has to contact the chosen airline to
book the cargo on a specific flight so that it will arrive as scheduled. This enables the
shipper, freight forwarder and consignee to know the flight number of the carrier, and
those of any connecting flights in the course of transportation. The airline making on-
carriage arrangements must ensure that there is sufficient transit time for connections
w ithin its operating network, or with another carrier. Routing of shipments is usually
handled by the airline's cargo reservations unit, whose primary role is to facilitate fast
uplift of goods, w ithout it being held in the airport for too long. In the case of an airline
that carries both passenger and cargo, priority is given to passenger baggage and if
there is insufficient space for cargo, the airline may change the requested routings of
booked shipments by rebooking them on the next available flight. Although airlines
generally endeavour to uplift shippers’ goods according to the SLI, they assume no
obligation to airlift the shipments via any specific route or on any particular aircraft. It
is im portant for shippers to note that there is no fixed time frame for the completion of
carriage by airlines.
E -f r e ig h t a n d E -a i r w a y b il l ( e - A W B )
E-freight is an industry-wide solution system that aims to build paperless and end-to-end
transportation processes for the air cargo industry. It involves the entire supply chain.
E-freight@Singapore was officially launched in June 2013 by Infocomm Development
Authority [IDA) in partnership with Civil Aviation Authority of Singapore (CAAS). This
e-freight solution system w ill enhance the business processes and data to adopt
paperless airfreight processing and improve industry capabilities.
Since December 2011, e-freight was used in 42 locations and 109 airports. IATA’s e-freight
initiative aims to take paper out of the air supply chain operations and replace it with
electronic interchange which is much more accurate and less expensive. The initiative
was largely supported by airlines, government agencies, ground handling agents, freight
forwarders, shippers, consignees, customs brokers, etc.
E-airwaybill (e-AWB] replaces the paper air waybill with an electronic contract of carriage
between freight forwarders and the airlines. In e-freight, the cargo receipt shall be issued
in place of the paper air waybill (AWB).
Import and export - basic principles

Trade is simply the buying and selling of goods and services. If a country cannot produce
a certain type of goods due to lack of resources, they may resort to getting them
from another country. It would appear that each country specialises in manufacturing
certain types of goods in which it has an edge over other countries. To facilitate the fair
134 Guides lo International Logistics A irfreight Forwarding
exchange of goods and services, and to promote trade, governments have established
certain policies for mutual benefit. Most, if not all, governments adopt an economic
philosophy such as
• free trade amongst countries;
• keeping an open market ( fr e e entry and exit);
• fair competition;
• being export-oriented; and
• lowering or minimising duties on imported goods.
National trade agencies, set up by governments, develop their own strategies to turn
their respective countries into international trading hubs where all kinds of trading
activities are practised, including entrepot trade, counter trade, global warehousing
and distribution, and third country trade. Singapore government agencies such as
the Economic Development Board and International Enterprise Singapore place much
emphasis on this.
The basic functions of national trade agencies are to
• promote and enhance trade and services;
• provide trade information to foreign investors; and
• administer trade procedures and documentation.
We will examine how international purchasing triggers the movement of goods from
sellers to buyers in different parts of the world. In any business, sellers are keen to
establish business contacts with potential buyers and it is through this activity that
business transactions are concluded. When buying overseas goods, buyers consider
key elements like
• price of the goods;
• transportation costs;
• methods and timing of payment; and
• insurance coverage.
The buyer and seller enter into a contract in the purchase of goods, to avoid any legal
issues. Both parties are aware of the country’s laws or legal system, which protects each
side from a breach of contract or fraud by the other. The important factors to consider are
that legal costs are high, and lawyers representing either party may not be familiar with
the legal system of another country. This may be further aggravated by different legal
PART 2 z A ir Waybills, Im port and Export 1 3 5
systems, rampant corruption and rigid foreign exchange control. In trading internationally,
the risks involved have to be taken into account. Business risks simply mean "some form
of event which is unpredictable and which may cause some form of danger, adversity
or even suffering in financial losses".
C r e d it ris k
This often occurs due to the im porter's insolvency, defaulting on paym ent and
unwillingness to accept goods. The seller has to determine the buyer’s trading status,
even to the extent of checking his creditworthiness. In some cases, sellers demand that
buyers furnish financial reports, to ascertain their financial status and business reputation.
A word of caution - a financial report from the buyer’s bank may look good, but does not
mean the buyer is in good standing. A buyer may only be good for a single transaction.
F o r e ig n e x c h a n g e ra te ris k
One may expect high risks, especially when shipment costs are quoted in foreign
currencies (US dollars, Euros, Australian dollars). For example, if the price of goods is
quoted in US dollars and there is a drop in that currency, the sellers or exporters who
airfreight the goods may incur losses. Some governments may allow their currencies to
depreciate to make their goods more competitive.
A i r t r a n s p o r t a t io n ris k
Every exporter wants goods to reach consignees as fast as possible, at the right time
and place, and in the right condition. Thus, they prefer to send goods by air, subject to
the method of payment dictated by the buyers. If the goods reach the buyers earlier, the
exporters may anticipate repeat orders. However, there are certain risks that may occur:
strikes by airport workers, airlines, truckers, and handling agents. This could affect the
uplift of goods from the airport of origin, or cause arrived goods to be held back. Another
risk is flimsy packing, leading to insurance claims for damage or theft.
We need to understand why trade terms and trade contracts are so important to both
importers and exporters in international trade. Trade terms or Incoterms refer to the
transportation of goods on different terms, such as CIF (cost, insurance and freight),
FOB (free on board). C&F (cost and freight), ex-works, etc. Most national governments
encourage traders to sell goods on CIF and to purchase on FOB.
A trade contract is a valid agreement where the importer and exporter agree to all terms
and conditions related to the sale of the goods. A trade contract reflects an offer and
acceptance between both sides. It is a legal document and comes under the commonly
used “general standard conditions”.
Both parties have to address issues and make decisions. The responsibilities of the
exporter and importer have to be clarified.
• Who is responsible for the loss or damage of goods during transportation?
• Who pays for the freight from the airport of uplift to the airport of discharge?
• Who arranges the transportation of goods?
• Who pays for import and export licenses?
• Who is liable if the entire operation of handling and moving the goods fails?
How do Incoterms work in the air cargo industry? What are Incoterms? They are generally
known as general standard conditions that need a reference to be incorporated into
the sales contract. They are a set of rules governing the transportation of goods, which
includes insurance coverage.
Common Incoterms
E x -w o r k s CEXIAO
Ex-works (EXW) means that the exporter’s or shipper’s only responsibility is to ensure
that the goods ordered by the importer or consignee are available at the factory or work
premises. In ex-works, the seller and buyer have different responsibilities.
• Seller/consignor/exporter - ensures that the goods are ready at its premises; provides
adequate packing to prevent any damage to contents; pays for checking operations
at airport of uplift.
• Buyer/consignee/importer - arranges to pick up the goods from the seller’s premises;

makes its own arrangements for moving the goods to their destination at its own
costs and risks; pays the seller for documentation costs (customs permits, pro forma
invoices) incurred during import and export.
F re e o n B o a r d ( T O B )
Free on Board (FOB) simply means that the purchased goods are airlifted by the consignor
to the consignee, free of cost, as stipulated in the sales contract.
• Seller/consignor/exporter - delivers the goods to the airline; provides all necessary

documents such as export licenses; pays all export duties and handling fees; obtains a
clean receipt to confirm that the shipment has been accepted by the airline; provides
packing of goods; pays for any inspection required by local authorities.
• Buyer/consignee/importer - nominates an airline to carry the freight; establishes a

contract with the airline for carriage and pays the freight charges; pays the seller
for any costs incurred in handling the shipment; pays the seller for any handling
charges incurred at the point of uplift; pays for any costs incurred for handling of
inbound shipments.
C o s t , I n s u r a n c e , F r e ig h t & C o m m i s s i o n ( C I F C ) , C o s t ,
I n s u r a n c e & F r e ig h t C C IF ), C o s t & F r e ig h t C C & F )
• Seller/exporter/consignor - establishes a contract for carriage with the airline
and pays the freight charges; transfers goods to the airline; pays export taxes and
handling fees; applies for export permit or license; arranges insurance coverage of
goods; provides sufficient packing of goods to prevent damage, theft, etc; pays for
inspection by local authorities; pays all handling costs at airport of departure.
• Buyer/consignee/im porter - receives the AWB, invoice and insurance policy Of any]
from the airline or its GHA and arranges clearance from the airport; reimburses the
consignor for any costs incurred.
D u ty = O M V x d u ty rate
D e liv e r e d a t P la c e C D A P } a n d D e liv e r e d D u t y P a id ( D D P )
• Seller/exporter/consignor - delivers the goods to the predetermined destination;
obtains import licenses and pays all import duties, taxes and handling fees (Tor
DDP); forwards relevant documents to the buyer at the final destination; pays for
inspection of goods prior to uplift; bills buyer for documentation costs.
• Buyer/importer/consignee - retrieves inbound shipments at the final destination;

pays customs duties only (for DAP).
Letter of Credit CL/C)

A Letter of Credit (L/C) is a letter from a bank, stating that payment from the buyer to
the seller will be made on time, and in the right amount. Here are the basic requirements
for a L/C and its benefits to the consignor and consignee.
C o nsigno r/se ller/exporter C o n signee/buyer/im porter
Contract fulfillm ent of sales - assurance

Contract fulfillm ent of sales - assurance
that the buyer does not have to pay
that the seller will be paid in full for
the seller until the seller has fulfilled its
supplying the goods to the buyer.
obligations w ithout default.
Convenience - a third party (the bank)

Convenience - payment from the buyer
that has documentary expertise in
is issued directly to the seller's bank.
handling Letters of Credit.
Prompt payment - on-time payment

Form of credit - a good form of cash-flow
for the goods improves the seller’s
management through bank financing.
business liquidity.
Trade Exchange
As mentioned in Chapter Six, there is a computerised system in Singapore called Trade
Exchange, which is an example of speedy processing of inward and outward declarations.
The diagrams on the facing page show how it works.
D o c u m e n t a t io n p r o c e s s
The trading community uses Trade Exchange to clear documents with government bodies;
Crimson Logic is the main channel for the exchange of documents and information.
Users can get information via Trade Exchange on whether the cargo has been cleared,
loaded, uplifted, etc. This also applies to other modes of transportation: sea, road and rail.
PART 2 A ir Waybills. Import and Export 1 3 9
Import
P ro c e d u re s
The consignee or importer who purchases goods or raw materials from overseas suppliers
or shippers would probably face a standard set of events.
• The importer or consignee confirms the purchase order (PO) or sales contract; this
is followed by payment.
• Upon receipt of the shipment advice, the consignee waits for the arrival notice of the
goods or raw materials from the airline or its GHA. in order to arrange clearance.
• When the goods arrive at the destination, the consignee needs to obtain a true copy
of the MAWB ( c o n s ig n e e ’s copy) from the airline or GHA. If the goods are consigned
to a local bank, the consignee has to settle payment before the bank releases the
AWB to the consignee for arrangement of customs clearance.
• Once the MAWB is received from either the airline or bank, the consignee prepares
the import permit or declaration. This procedure may vary from country to country,
and it is best to check with local customs authorities for proper guidelines. For
consolidations, the consignee appoints its own freight forwarder to take care of
the necessary import documentation and clearance. In some developed countries,
import declarations can be submitted through approved software that automatically
connects to the central trade board or agency. If the inbound goods are dutiable
items, the consignee has to pay the import duty and tax to local customs before the
consignment can leave the checkpoint.
• The trade board sends the approved declaration to the consignee’s electronic
mailbox, where it can be retrieved and printed out for customs clearance and billing
purposes.
• The consignee or freight forwarder proceeds to the airline or GHA with the approved
import declaration and other relevant documents (MAWB. HAWB, pro forma invoices)
to retrieve the goods. The MAWB is surrendered to the airline or its GHA. All inbound
consignments are kept in the airlines’ or freight forwarders' warehouses in the FTZ,
before they are released to the consignee, who may be required to pay fees for
storage, removal, transfer and handling.
• The consignee or freight forwarder proceeds to customs for clearance and inspection.
In some countries where there are no FTZs, inbound shipments are stored in the
central customs warehouse, near the airport or in the city area.
• After the goods have been inspected, with import duty and VAT paid, the consignee
can bring the goods back. Singapore, for example, imposes import duty and the Goods
& Services Tax (GST) for inbound shipments, except for samples of no commercial
IM P O R T PROCESS
C onsole
PART 2
Air Waybills. Import and Export
Console refers to one or more consignors who choose to send
cargo as part o f a consolidation.
Direct refers to a single shipper, w tio sends goods separately
from other consignments.
141
value, i.e. less than S$400. If the inbound shipments are cleared by the consignees’
appointed freight forwarders, they will be sent directly to the consignees.
The flowchart on the previous page illustrates the processes involved in the import of
goods by air, while the flowchart on the facing page shows the collection process.
R e g u la t io n s o n c o n t r o lle d ite m s
Most national government agencies encourage free trade with other countries. However,
certain goods come under import and export controls. Such restrictions are governed by
local laws or statutory instruments. These controlled items may require an import license
or an endorsement from authorities before arrival. The penalty for failure to comply with
local import requirements is confiscation of the prohibited goods, and the consignee may
face a jail term or fine, or both. Importers should check if the goods are allowed entry
into the country before signing any contract or sales agreement. It is advisable to apply
for a license to avoid any inconvenience. The consignee should also send a copy of the
approval to the shipper, who will arrange to airlift the cargo to the final destination.
Some regulations imposed by government agencies on controlled items include the
• Undesirable Publications Act;
• Customs Act;
• Sales of Goods and Drugs Act Oncluding medicinal drugs);
• Poisons Act;
• Films Act;
• Control of Import & Export Act;
• Prohibition of Import, Export and Transhipments Order; and
• Control of Imports ( L ic e n s in g ) Order.
Controlled goods come under a few categories, namely
• prohibited goods (firecrackers, toy guns, currency notes);
• licensed goods (live pigs, poultry, rice); and
• endorsement goods (pharmaceuticals, hazardous chemicals).
D o c u m e n t a t io n
The main reason for moving goods by air is due to their urgent nature. The consignee
needs to clear the goods as quickly as possible. Time-sensitive shipments like magazines,
PART 2 Air Waybills, Im port and Export 14 3
Direct
newspapers, livestock, and perishables have to be cleared immediately. To expedite

clearance, the importer must provide the relevant documents, like
• a pro forma invoice;
• shipping invoices, if any;
• a certificate of origin;
• the import license; and
• MAWB or HAWB.
All information on the import declaration must match the contents of the supporting
documents listed above. Many countries have implemented electronic declarations. With
new technology, shipments can be pre-cleared, even before they arrive.
Inbound shipments must be cleared from the airline or its GHA, and stored in the agent’s
warehouse until the consignee requests for it. Import permits or declarations which have
been approved by local customs authorities should be presented to customs officials

during inspection. In countries like Singapore, the approved import permit is valid for
14 days; unused import permits must be duly returned to customs. Non-compliance is
considered an offence - check with local customs authorities for verification.
Export
P ro c e d u re s
For export shipments, the shipper or appointed freight forwarder must reserve space
with the airline. Airlines have every right to reject unbooked shipments so as to avoid
backlog. To ensure that export consignments are uplifted as booked, the shipper or
freight forwarder must
• book cargo space with the airline, providing full details of the shipment - destination,
number of pieces, weight, dimensions, contents. AWB number, telephone number
of consignee;
• arrange for collection of goods;
• ensure that cargo reservations include consolidations/BUPs;
• compute airfreight charges;
• prepare the SLI for direct customers;
• execute the MAWB and/or HAWB;
• arrange a customs declaration - in some countries, the export declaration or permit

must be approved before the goods can be transferred to the airline or its GHA;
• transfer outbound shipments to the airline or its GHA, accompanied by relevant

documents; and
• sometimes liaise with the buyer to arrange for a L/C, after which the shipper
despatches the goods and arranges for customs clearance.
D o c u m e n t a t io n
Except for controlled goods, which may differ from country to country, some government
agencies allow the shipper or freight forwarder to submit the export declaration within
three working days.
• When subm itting an electronic declaration, the particulars fed into the system
must be accurate and comprehensive; an example is the Trade Exchange system in
Singapore.
• The shipper has to wait for the export permit or declaration to be approved.
• All approved export permits must be returned to customs.

PART 2 Air Waybills. Im port and Export 145
EXPORT PROCESS
146 Guides to International Logistics n A irfreight Forwarding
The shipper has to declare controlled items before re-exporting them to other countries.
Certain controlled items are subject to a quota, to endorsement of a license or completely
prohibited from export. This is especially true for endangered species specified by CITES,
like pandas and arowhanas (commonly known as dragon fish). Shippers are allowed to
airfreight goods to other countries as long as the necessary procedures are followed,
that meet the requirements of the relevant government authorities.
• The shipper or freight forwarder submits the export declaration to the local customs
authority.
• All unused export permits must be returned to the relevant authorities for cancellation
of the expiry date.
• All utilised export permits can be returned to either the airline or its GHA who submits
them to the customs department.
• A penalty will be imposed for late submissions.
M a jo r E x p o rte r S c h e m e ( M E S )
This concept is currently in practice in Singapore. If someone imports and exports a

substantial amount of goods, he would probably have to pay the GST. but is unlikely
to collect any tax back due to the fact that many goods are zero-rated - this means
that the tax to the buyer is 0%. To relieve the impact on the cash flow of the company
or taxpayers, GST is suspended on imports if the company or taxpayer is registered
under the M ajor Exporter Scheme (MES). The application is generally reviewed by the
Comptroller under the following conditions.
• Extent of exports: more than 51% of the importer’s sales of goods and/or services
must be exported, while imports are meant for fulfilling taxable supplies.
• Accounting system: the company’s financial statement must be audited by a certified

public accountant.
• Tax paying record: a taxable person must settle income and property tax. Goods &
Services Tax, and customs and excise duties.
The validity period for the MES is three years; this is renewable. Examples of companies
enjoying such benefits are BMW, GlaxoSmithKline, Hewlett-Packard and Panalpina,
among others.
Computation of the Goods & Services Tax

CGST)
D u t ia b le g o o d s
Duty paid (D D P )/d u ty to be paid (DAP)
GST = [CCIF value -+• last selling price in S$} + customs duty] x 5%
D uty-exem pted goods
GST = (ClF value •+■ last selling price in S$) x 5%
N o n -d u t ia b l e g o o d s
GST = (CIF value ■+■last selling price in S$) x 5°/o
Duty rates
Ad Valorem - Duty is a percentage of the assessed value of the dutiable goods.
Specific - Duty is based on a specified amount per unit weight, volume or quantity of
the dutiable goods.
Composite/compound - This is a combination of Ad Valorem and specific duty rates,

based on the higher of the two amounts.
Just-In-Time (JITD delivery

Freight forwarders and airlines are introducing Just-In-Time delivery to ensure fast,
responsive and reliable service. This is expected in an industry like freight forwarding.
The JIT concept emphasises low inventory levels for customers, and relies totally on
transportation for immediate retrieval and delivery of inbound shipments. Importers or
shippers use different modes of transport to deliver goods to customers who need them.
Late deliveries impact on the im porter’s or shipper’s production, and disrupt operations.
Importers may end up holding high inventories, leading to a surge in inventory costs. In
the current environment, the J IT delivery is necessary, as customers need more frequent
deliveries within tighter tim e-windows. Service providers have to adopt a more flexible
and responsive approach in delivery. Customers measure transport companies in terms of
reliability. Are they on time? How frequently do late deliveries occur? Trucking companies,
some of which are freight forwarders too, must have the capability to reduce delivery
lead-time, in order to handle time-based assignments.
Prohibited goods
Prohibited goods vary between countries. Most governments would not allow
• arms, ammunition and explosives;
• plants and related materials;
• narcotics, drugs, medicinal herbs, etc;
• endangered species;
• live animals;
• meat and meat products; and
• radioactive materials.
Shippers or consignees should check with local authorities if the goods they want to
import are permissible. Information on prohibited goods, sorted by countries, can be
found in the IATA TACT Manuals - Rules, under section 7, sub-section 7.3.
149
lO Commodities, Rates and

Charges
Classification of commodities
Various types of freight are carried by international airlines across the globe. They come
in different shapes and sizes, and some require special handling and storage. These
commodities come under different classifications, for example
• livestock, like live tropical fishes;
• electronic components;
• computers and peripherals;
• perishables such as seafood and chilled meat;
• fresh cut orchids, flowers, etc;
• clothing, textiles, apparel, etc.
As can be seen in the above examples, commodities are grouped differently: each group
is assigned a specific commodity code (C). For instance, C l 024 is assigned to live tropical
fishes while electronic components are classified under C4416 or C4314. The different
types of commodities and ratings will be expanded on later in this chapter.
Rates and charges

Rates and charges are formalised by the International Air Transport Association (IATA),
and are published in the TACT manuals, available worldwide. Airlines and freight
forwarders can subscribe to the ta riff directly or through their national associations.
The main purpose of the IATA standardising published rates and charges is to prevent
or discourage competition amongst member airlines. However, they can still compete in
terms of service quality and flight frequency, among other things. The A ir Cargo Tariff
comes in two publications, namely
• TACT Manuals (published twice a year); and
• TACT Rates (published every two months in two volumes. North America and
Worldwide).
The rate charge for any consignment travelling between the three IATA conference areas
varies by commodity. However, a rate that applies to cargo moving from a point of origin
(Singapore) to a final destination (San Francisco) may not be valid for the same goods
going in the reverse direction, due to changing market conditions. In other words, the
application of a published tariff depends on the routing of the consignment, the type
of commodity, etc.
The rate structure is meant to provide the consignor or shipper with the lowest or most
reasonable rate. Airlines charge the shipper a published rate for carriage of a shipment
based on its weight in either kilograms or pounds. There are currently four types of
formalised rates -
• minimum charges (M);
• general cargo rates (GCRs): normal GCR (N) and quantity GCR (Q);
• specific commodity rates (SCRs); and
• commodity classification rates.
M in im u m c h a rg e s
The minimum charge for a particular shipment is the lowest amount that applies to a
shipment, regardless of weight or volume. That is, if the actual or volumetric w eight
of a shipment is lower than the published minimum weight, the minimum charge will
apply.
G e n e r a l c a r g o ra te s
General cargo rates apply to general commodities that do not come under specific
commodity or commodity classification rates. There are two general cargo rates.
• Normal cargo rate (N) - published rates apply to any consignment weighing 45 kg
and below. However, there are variations. In some countries, the normal cargo rate
can start from 100 kg. It is calculated by multiplying the chargeable w eight by the
published rate per kilogram (kg) or pound (lb).
• Quantity rates (CD - published rates apply to consignments weighing more than a
certain amount, say 45 kg or 100 kg. This rate is further reduced at higher weight
PART 2 Commodities. Rales and Charges 1 5 1
breaks, for example, 300 kg and 500 kg. That is, the heavier the shipment, the lower
the chargeable rate per kilogram or pound.
S p e c if ic c o m m o d it y ra te s
Specific commodity rates are generally lower than published general cargo rates and are
tailored to particular commodities, like live tropical fishes, which are to be carried from
a specific point of origin [e.g. Singapore) to a specific destination (e.g. Sydney). Such
rates are subject to minimum weight, minimum charges and density requirements.
C o m m o d it y c la s s if ic a t io n ra te s
Commodity classification rates are applicable to a few commodities within or between
designated IATA areas. They are expressed as a percentage increase or reduction on
normal general cargo rates (N). Commodities eligible for commodity classification rates
are
• live animals: baby poultry, monkeys and other primates, cold-blooded animals;
• valuable cargo: gold bullion, legal bank notes, jewellery, watches, or any item that has
a declared value for carriage of US$1000 or more per gross kilogram, except in the
United Kingdom, where this value has to be GBP450 or more per gross kilogram;
• newspapers, books, periodicals, catalogues, magazines, etc;
• baggage shipped as freight;
• human remains;
• dehydrated corneas and human eyes; and
• automotive vehicles.
U n it lo a d d e v ic e ra te s ( U L D r a t e s ) o r u n itis e d
c o n s ig n m e n t s
Shipments can be loaded into ULDs by either the shipper or freight forwarder. (It would
be useful to take another look at the AULDs presented in Chapter Seven of this text.) In
general, airlines offer special ULD rates to their appointed freight forwarders under the
BUP programme. Most, if not all, national airlines commonly use
• freight-all-kind (FAK) rates
• container/pallet rates
• deferred cargo rates

• unified cargo rates
• group rates
P iv o t ra te , o v e r -p iv o t ra te a n d s p illo v e r ra te
Airlines impose pivot rates, over-pivot rates (OPR) and spillover rates (S/OR) for different
types of AULDs purchased by freight forwarders and shippers.
The pivot weight is the minimum weight that the airline requires to be loaded into an
AULD, charged at the pivot rate. There are no fixed rules as to the pivot weight set by
airlines - they are free to set their own pivot weights for the types of AULDs used in
their operations. This enables the airlines to maximise the use of AULDs, which results in
better density loading and better yield management. The over-pivot weight of a shipment
is the weight in excess of the pivot weight; the OPR would apply to this amount. As for
the spillover weight, it is the weight that is left over when the ULD has been filled, and
the S/OR would apply.
Freight forwarders benefit from using AULDs, so that they can fulfill the pivot weight
together with over-pivot rate and spillover rates to enjoy lower freight charges.
Precedence of rates and charges

Certain rules have to be followed when applying published rates. Let us examine this
order of precedence.
• Specific commodity rates (SCR) take precedence over general cargo rates (GCR)
and commodity classification rates.
• Commodity classification rates take precedence over general cargo rates.
However, there are some exceptions:
• When the published general cargo rate is lower than the specific commodity rate,
the lower rate applies.
• If the general cargo rate is lower than the specific commodity rate, unless the cargo
is covered by a commodity classification rate (human remains, live animals, valuable
cargo, baggage sent as cargo, etc), the general cargo rate applies.
• If the general cargo rate for newspapers, magazines, books, catalogues, periodicals,
etc is lower than the commodity classification rate, the general cargo rate applies.
PART 2 Commodities, Rates and Charges 1 5 3
Determining weights and charges

Freight charges are based on kilograms Ckg) and, in the US, on pounds Ob). This is very
much dependent on the volumetric weight stated by the shipper. In practice, a shipment
can be a single type of commodity or a combination of goods that may fall under different
rate structures. A mixed shipment cannot include human remains, valuable cargo, live
animals, diplomatic goods, etc. When calculating w eight charges, the given weight,
should be rounded off to the nearest half kilogram or full pound.
R o u n d in g o ff
• A total gross w eight of 555.3 kg should be rounded up to 555.5 kg.
• A total gross w eight of 666.7 kg should be rounded up to 667.0kg.
• A total gross weight of 123.3 lb should be rounded up to 124.0 lb.
• If the dimensions of a package are 215.2 x 188.6 x 345.4 cm. it should be rounded
off to 215.5 x 189 x 345.5 cm.
• If the dimensions of a package are 111.6” x 112.3” x 200.5", it should be rounded off
to 112” x 112.5" x 200.5”.
C u r r e n c y c o n v e r s io n
Apart from learning to compute chargeable weight, it is also necessary to learn currency
conversion, especially when constructing or combining unpublished rates.
Example
Convert S$100 (a) to Australian dollars (AUD) (b ) based on the construction exchange
rates of S$1.732 ( a l ) and A$1.214 ( blj.
b = a x bJ al, where a l and b l are construction exchange rates
100 x 1.214 -s- 1.732
= A$70.0923, or A$70.10 [rounded off to nearest 0.01)
Determinants of volum e/w eight ratio

The volumetric weight of a shipment is determined by multiplying the longest length
CL), the longest width/breadth (B) and the tallest height CH) among the packages in a
shipment. Airlines and their agents calculate freight charges based on actual weight or
volumetric weight, whichever is greater. Volumetric weight takes up more room in the
aircraft, which is why airlines also penalise customers for excessive use of space.
Volumetric weight = Length x Breadth x Height [in inches or centimetres)
Volumetric Weight Conversion:
6000 cm3 = 1 kg
366 in3 = 1 kg
Example
A consignment of tractor spare parts, consisting of 15 pieces with given dimensions 61.2
x 93.5 x 112.7 cm, weighing 1331.6 kg, is to be sent from Singapore to Tokyo. Calculate
the volumetric weight.
Volume
L x B x H x no. of pieces
= 61.2 x 93.5 x 112.7 cm x 15 pieces
« 61.5 x 93.5 x 113 cm x 15
= 9746674 cm3
Volumetric weight
= volume -s- 6000 cm3/kg
= 9746674 - 6000 cm3/ kg
= 1624.5 kg
The consignment’s actual weight is 1331.6 kg but the chargeable volumetric weight is
1624.5 kg.
The breakeven w eight rule

The breakeven weight is the weight at which it is cheaper to apply the rate for a higher
weight break, than to apply the rate for the actual weight of the shipment.
Example
A consignment of automobile parts consisting of 10 boxes weighing 85.0 kg is sent from

Zurich to Bangkok.
Rate charges in Swiss francs (CHF)
M inimum rate CHF120.00
Normal rate ( < 4 5 kg) CHF18.90
Quantity rates ( > 4 5 kg) CH FI 2.45
100 kg CHF6.05
300 kg CHF5.75
500 kg CHF5.50
Based on actual w eight Based on next w eight break

Actual Gross Weight 85.0 kg 85.0 kg
Chargeable weight 85.0 kg 100 kg
Chargeable rate CHF12.45 CHF6.05
Weight charge 85.0 x 12.45 100 x 6.05
Final total charges CHFl 058.25 CHF605.00
To find the breakeven w e ig h t apply the formula:
(Higher Weight x Lower Rate) Higher Rate
= (100 x 6.05) - 12.45
= 48.59
The breakeven point is 48.59 kg.
Construction of add-ons or unpublished

rates
Customers may sometimes wish to send a shipment to a country or city for which there
is no direct published rate from the point of origin. In such circumstances, the airline and
1 5 6 Guides to International Logistics A irfreight Forwarding
freight forwarder have to construct a new rate by combining existing published rates, in
a way that results in the lowest charges for the client.
For example, there are no direct published rates for goods going from Singapore (SIN)
to Ajaccio CAJA). However, there are rates for goods from Singapore to Paris [PAR) and
from Paris to Ajaccio. So one possible solution would be to combine these rates: SIN-
PAR, PAR-AJA.
As this process involves adding the rates between two or more sectors, it is best to refer
to the TACT Rules, Section 3.8 for specific requirements and instructions. To construct
add-ons or unpublished rates,
• check if there is any published rate;
• if there is none, look up section 7 of the TACT Manual, and search for possible
combinations of origins and destinations;
• combine rates correctly; and
Published rates Published rates Constructed rates
GCR: SIN-PAR + GCR: PAR-AJA = GCR: SIN-AJA
SCR: SIN-PAR + SCR: PAR-AJA = SCR: SIN-AJA
ULD: SIN-PAR + ULD: PAR-AJA = ULD: SIN-AJA
* consider other possible combinations.
Published rates Published rates
N: SIN-PAR -f N: PAR-AJA
GCRC> 45): SIN-PAR + N: PAR-AJA
GCR( > 100): SIN-PAR + N: PAR-AJA
N: SIN-PAR -t- GCR( > 45): PAR-AJA
G C R (> 45): SIN-PAR + GCR( > 300): PAR-AJA
SC R (> 100): SIN-PAR + SCRC > 45): PAR-AJA
In the case of large countries like the US or England, there are domestic rates from
place to place within the country itself. So even if there is no direct international rate
PART 2 Commodities, Rates and Charges 1
between the point of origin and the destination, a rate can still be constructed by using
the domestic rates in the destination country.
International rates D om estic rates
GCR: origin to city l + GCR/SCR/CR: city 1 to city 2
SCR: origin to city 1 + GCR/SCR/CR: city 1 to city 2
You will need to refer to Section 3.8 of the TACT Rules for specific requirements.
Valuation and insurance charges

V a lu a t io n c h a r g e s
Does the shipper need to declare a value for carriage? If the shipper does not declare a
value of carriage on any airline, the maximum liability is US$20 per kilogram, as stated in
the Montreal Convention 1999 or SDR 19, Montreal Protocol 4. Therefore, it is essential
for the shipper to declare a higher value for carriage to avoid such low compensation.
This valuation charge is clearly reflected on the MAWB, and is to be borne by the shipper.
This covers the value of the goods and its packaging and transportation costs, and
applies only from airport to airport - from airport of departure to airport of destination.
In the event of loss, theft, damage, or other mishap, the shipper can file a claim with
the airline. The shipper will then have to w ait for some time [months, or even years) to
receive the compensation.
In s u ra n c e c h a rg e s
As for insurance charges, the coverage is comparatively high, from the point of origin
all the way to the final destination (airport-to-airport), or even from the consignor to the
consignee (door-to-door). This takes into account the value of the cargo, plus packaging,
transportation costs, insurance costs, customs duties and tariffs. Some airlines have "all
risks” insurance, often referred to as an “open perils” policy, that covers goods from all
causes of loss that are not specifically excluded. In the event of war, strikes, riots and
civil commotion, a surcharge or additional premium will be imposed.
All insurance premiums m ust be prepaid, even when the consignm ent is being
shipped collect. Insurance coverage sometimes applies to other types of goods such as
livestock, perishables, and arms and explosives. For livestock, the airline is not liable to
compensation if mortality takes place due to natural causes. The shipper’s appointed
freight forwarder or the airline would insert a clause on the MAWB, stating that: “The
carrier will not be responsible for any m ortality or injury due to natural causes”. This
type of compensation can be collected faster, as compared to valuation charges. The
shipper can opt to purchase insurance coverage directly from the airline or through its
appointed insurance company.
The table shows a simple illustration of the differences between valuation charges and
insurance coverage.
Valuation Charge Insurance

Airport-to-airport D oor-to-door
Value of goods, packaging, transportation
Actual value of goods, packaging and
costs, insurance costs, and all o th e r
transportation costs
transport costs and customs duties
Airlines can take months to years to

Faster refund
respond to claims
Lower coverage Higher coverage
C a lc u la t in g v a lu a t io n c h a r g e s
Example 1
A shipment with a gross w eight of 100 kg, transported from San Francisco to Manila,
has a declared value for carriage of US$20,000. Calculate the valuation charges.
Declared value for carriage [VJ = US$20,000
Carrier's liability: 100 kg x US$20 CL) = US$2,000
Amount in excess of US$20 per kg (V - L) = US$18,000
Assuming the valuation charge is 0.5% of (V - L) = US$90
Example 2
A shipment with a gross w eight of 10 kg, sent from Taipei to Hong Kong, has a declared
value for carriage of NT$880,000. Calculate the valuation charges.
Declared value for carriage (V) = NT$880,000
Carrier’s liability: 10 kg x US$20 CL) = US$200 CNT$7,888)
Am ount in excess of US$20 per kg (V - L) = NT$872,112
Assuming the valuation charge is 0.5% of (V - L) = NT$4360.56

C a lc u la t i n g in s u r a n c e p r e m iu m s
To calculate insurance premiums, you will have to refer to the TACT Manual on Rules
under section 8.3 - Information By Carrier.
Example
Calculate the insurance premium for a shipment consisting of 10 packages of disk drives,
weighing 120 kg, shipping from Singapore to London, insured for S$20,000.
Based on the information given, the applicable insurance rate for all risks classified
under rate schedule B is 0.165%.
Am ount of insurance coverage = SS20.000
All risks = 0.165%
War risks = 0.025%
All risks + war risks
= 0.165% + 0.025%
= 0.190%
Insurance premium
= 0.190% of S$20,000
= S$38.00
The mechanics of disbursement fees

Disbursement fees provide coverage of charges in connection with services carried out
by the shipper, freight forwarder or airline prior to uplift of the consignment. Charges
include clearance, insurance premiums, and ground transportation.
Key factors in freight charges

The air cargo industry is truly competitive. Airlines, together with freight forwarders, are
always fighting for a larger market share of shipping traffic. This ultimately leads to price
wars and better service quality. They adopt differential pricing because of
• special handling requirements (livestock, valuable cargo, dangerous goods];
• stiff competition amongst airlines and freight forwarders;
• volume of traffic movement Cmonthly tonnage);

• types and quantities of goods (shipment size, general cargo, etc); and
• cargo value.
Computation of charges between IATA

areas
D ifferent types o f rates and classifications
R a te Type R a te s C la s s ific a tio n

Minimum Charge M
General Cargo Rate ( < 4 5 kg) N
General Cargo Rate ( > 4 5 kg) Q
Specific Commodity Rate (SCR) C (eg Cl 024)
Commodity classification rates - Surcharge S - N - 150%
Commodity classification rates - Rebated R - N - 50%
1 State the minimum charge for a shipment of auto parts consisting of one piece weighing
3 kg, shipped from Singapore (SIN) to London (LON). (M = S G D l00.00)
Minimum charge = S G D l00.00

PART 2 Commodities. Rates and Charges 1 6 1
2 Calculate the general cargo rate for a consignment of 5 pieces of computer parts
weighing a total of 20 kg. to be sent from Hong Kong CHKG) to Helsinki (H E L). (M =
HKD392.00, N = HKD98.24, Q45 = HKD73.69. Q100 = HKD46.00)
General rate
= 98.24 x 20
= HKD1964.80
3 Calculate the general cargo rate for a consignment of 20 pieces of apparel, with a total
weight of 65 kg, going from Zurich (ZRH) to Bangkok CBKK). CM = CHFl 20.00, N =
CHF18.90, QA5 = CHF12.45, Q100 = CHF6.05, Q300 = CHF5.75, Q500 = CHF5.50)
General rate
= 6.05 x 100
= CHF605.00
CNote: the breakeven w eight rule applies here, since the charges for the actual weight
of 65 kg would be higher.)
4 Calculate the specific commodity rate (Cl 0 2 4 ) for a consignment of 20 boxes of live
tropical fishes, weighing a total of 250 kg, to be sent from Singapore CSIN) to London
CLON). (SCR 100 = SGD11.12, SCR250 = SGD10.08, SCR500 = SGD9.08)
Specific commodity rate
= 10.08 x 250
= SGD2520.00
5 Calculate the commodity classification rate (surcharge) for a consignment of 1 live cat
weighing 15 kg, to be shipped from Dubai (DXB) to Amsterdam (SPL). (M = A E D l90.00.
N = AED27.85, Q45 = AED20.90, Q100 = A E D l2.35. Q500 = AED8.85)
Commodity classification rate (surcharge)
= (150% x 27.85) x 15
= 41.78 x 15
= AED626.70
6 Calculate the commodity classification rate (rebate) for a consignment of 5 bundles of

newspapers, weighing a total of 50 kg, to be moved from Singapore (SIN) to Vancouver
(YVR). (M = SGD 170.00, N = SGD19.85. Q45 = SGD15.02, Q100 = SGD14.70, Q300 =
SGD11.75, Q500 = SGD10.69, Q1000 = SGD7.57)
Commodity classification rate (rebate)
= (50% x 19.85) x 50
= SGD496.25
Here are some more general cargo rates. (These are used in the examples on the
following pages.)
Example: Kuala Lumpur (KUL) to New York (NYC)
Published Rates Minimum Weight Local Currency (M YR)

Minimum Charge - 110.00
Normal - 20.22
Quantity 45 15.61
Quantity 100 15.31
Quantity 200 14.06
Quantity 300 12.58
Quantity 400 12.41
Quantity 500 11.60
SCR1429 45 15.63
SCR2195 200 11.28
SCR2195 1000 10.78
SCR4314 300 12.25
SCR4314 500 11.80
SCR4314 1000 11.28
SCR4317 100 12.95
SCR4416 500 11.02
SCR4416 1000 9.71
Source: TACT Manuals-Worldwide Rates
PART 2 ■Commodities. Rates and Charges 167
Examples
1 Normal (N) rate for one automobile part weighing 20 kg.
Normal rate
= 20.22 x 20
= MYR404.40
2 Quantity CQ at < 45kg) rate for one automobile part weighing 42 kg.
Quantity rate
= 15.61 x 45
= MYR702.45
(Note: the breakeven weight rule applies)

PART 2 ■ Commodities, Rates and Charges 169
3 Quantity CQ at < 100kg) rate for one automobile part weighing 85 kg.
Quantity rate
= 15.31 x 100
= MYR1531.00
4 Volumetric w eight charge for one automobile part weighing 45 kg, with dimensions
55 x 85 x 85 cm.
Volumetric weight
= [55 x 85 x 85) ■+• 6000 cm3/kg
= 66.5 kg [rounded up to nearest 0.5 kg)
Volumetric w eight charge
= 15.61 x 66.5
= MYR1038.10
PART 2 Commodities. Rates and Charges 171
5 Minimum charge (M) for one automobile part weighing 2.5 kg.
Minim um charge = M YRl 10.00

S p e c if ic c o m m o d it y ra te s
We will now explore how specific commodity rates are applied to some commodities. As
stated earlier in this chapter, specific commodity rates are generally lower than general
cargo rates, and are published for certain goods from a particular point of origin to a
particular destination.
Example: Jakarta (JKT) to Amsterdam [AMS) - these charges apply to the examples on
the following pages.
Published Rates Item Minimum Weight Local Currency (USD)

M inim um Charges - M 64.00
General Cargo Rates:
Normal - N 8.84
Quantity - 45 kg 7.09
1024 100 kg 3.68
1024 250 kg 3.46
Specific Commodity Rates 1429 45 kg 3.05
1429 250 kg 2.91
1429 500 kg 2.86
Source: TACT Manuals - Worldwide rates
Note: To qualify for a specific commodity rate, the minimum weight of the specified
commodity must be met.
PART 2 Commodities, Rates and Charges 17 3
Examples
1 The specific commodity rate (C) for 10 cartons of live tropical fishes weighing a total
of 110 kg, with dimensions 40 x 40 x 50 cm each.
Volumetric w eight
= (40 X 40 x 50 X 10) - 6000 cnvVkg
= 133.5 kg (rounded to the nearest 0.5 kg)
= 3.68 x 133.5
= USD491.28
17 4 Guides lo International Logistics A irfreight Forwarding
2 The specific commodity rate CC) is higher than the normal rate (N) for 3 boxes of fresh
cut orchids weighing a total of 15 kg, with dimensions 40 x 30 x 20 cm each.
Chargeable weight for SCR = 45 kg
= 3.05 x 45
= USD 137.25
Normal rate
= 8.84 x 15
= USD132.60
C o m m o d i t y c la s s if ic a t io n ra te s
Commodity classification rates are a percentage increase (s u rc h a rg e ) or percentage
reduction (rebate) on the general rates for the following commodities - the rates apply
to goods from Singapore to Bangkok. (The following examples refer to these rates.)
Surcharge Items Rate Classification

Live animals S - N - 150%, S - Q - 100%
Human remains S - N - 200%
Valuable cargo S - N - 200%
Published Rates
M inimum rate (M) SGD75.00
Normal rate (N) SGD3.75
General cargo rate ( > 45 kg) SGD2.20
Examples
1 Surcharge based on 150% of normal rate (N), for 1 live dog weighing 10 kg with kennel
dimensions 20 x 20 x 20 in.
Volumetric weight
= (2 0 x 20 x 20) ■+• 366 inVkg
= 22 kg (rounded to the nearest 1 kg)
Surcharge
= (150% x 3.75) x 22
= SGD 123.75
2 Surcharge based on 200% of normal rate (N) for 1 package of diamonds weighing
3 kg with dimensions 6" x 4” x 2”.
Surcharge
= 200% x 75
= SGDl 50.00
Rebate (R) items are usually given 50% off the normal rate (N); check the specific
requirements by carriers as stated in the TACT Manuals - Rules. The following rates
apply to goods from Singapore to Geneva. (The following examples refer to these rates.)
Rebate Items Rate Classification

Personal effects [minimum weight 10 kg) R - N - 50%
Magazines, newspapers, catalogues, periodicals, books R - N - 50%
Published Rates
M inimum rate [M) SGDl 00.00
Normal rate [N) SGD21.30
45 kg SGDl 6.43
General
250 kg SGD8.28
cargo rates
500 kg SGD7.50
Examples
1 Rebate CR) charges based on 50% off the normal rate CN) for
• 1 bag of personal effects weighing 10 kg
• 1 bundle of newspapers weighing 15 kg
Rebate charges for 10 kg of personal effects
= [50% x 21.30) x 10
= SGD106.50
2 Rebate charges for 15 kg of newspapers
= C50°/o x 21.30) x 15
= SGDl 59.75
M ix e d c o n s ig n m e n t s
A mixed consignment consists of various commodities, goods or articles qualifying for

different rates and conditions, which move under one MAWB. A mixed consignment
must not include
• live animals;
• human remains;
• valuable/precious cargo;
• diplomatic bags/mail;
• baggage (unaccompanied) sent as cargo;
• dangerous goods; or
• automobiles as specified in the TACT Rules, especially between Area 1 and 3.
To compute freight charges for different commodities in a mixed consignment,
• identify the commodities that can be grouped under the same description and that
qualify for the same rate;
• compute the appropriate weight charges for the individual types of commodities as
if despatched separately;
• compare the weight charges calculated on the basis of total gross weight or total
volumetric weight, whichever is higher or greater; and
• apply the lower weight charge.
Weight charges are computed as in the following example:
A consignment of mixed commodities consisting of the following goods is despatched

from Singapore to Frankfurt.
Packages Actual weight (kg) Nature of Goods Dimensions

8 50 Auto parts 20 x 20 x 20 cm each
15 95 Wigs 20 x 40 x 40 cm each
5 105 Essential oils 20 x 30 x 40 cm each
5 30 Fake eyelashes 20 x 30 x 40 cm each
We need to group the commodities shown in the table into categories, in order to qualify
for the next w eight break and special commodity rates. The wigs and fake eyelashes
can be grouped together to qualify for a special commodity rate (SCR 2700) at 100 kg
w eight break. The essential oils with a total weight of 105 kg would qualify for the special
commodity rate CSCR1716).
Published freight charges for goods from Singapore to Frankfurt are as follows:
Rate type Rate per kg (in SGD)

Minimum (M) 100.00
Normal 21.90
45 16.43
Quantity 250 8.28
500 7.50
Commodity code Weight
1024 100 10.28
1024 250 9.13
1429 45 9.94
Specific
1716 100 8.35
commodity rates
2700 100 12.56
4420 100 13.32
4700 100 14.96
Charges for auto parts
= 16.43 x 50
= SGD821.50
Charges for essential oils
= 8.35 x 105
= SGD876.75
Charges for wigs and fake eyelashes
= 12.56 x (95 + 30)
= SGD1570.00
Total cost
= 821.50 + 876.75 + 1570.00
= SGD3268.25
U n it is e d s h ip m e n t s ( U L D r a t e s )
Example 1
A shipment of tractor spares consisting of 300 pieces weighing 1450 kg, with a total
volume of 3.6 m3 is sent from London (LON), UK to San Jose (SJO), Costa Rica. The
shipment is to be loaded into one Type 8 container CAVE). ABC Airline imposes a pivot
w eight of 755 kg for a Type 8 container. Calculate the ULD charges.
Given published rates from London to San Jose in British pounds (GBP):
M inimum rate GBP39.00
Normal rate ( < 4 5 kg) GBP5.42
Quantity rates ( > 4 5 kg)

100 kg GBP3.48
300 kg GBP2.61
500 kg GBP2.17
Allowable pivot rate GBP1.63
Over-pivot rate GBP1.14
Determine the actual number of units and ULDs to be utilised.
Type 8 (AVE)
Maximum gross weight 1587 kg

Internal volume 4.3 m3/150 ft3
Tare weight 82 kg
Maximum net weight 1587 - 82 = 1505 kg
Actual w eight of shipment 1450 kg
Number of ULDs needed 1
Pivot w eight 755 kg
ULD charges:
M inimum w eight charge for one Type 8
= GBP1.63 x 755 kg
= GBP1230.65
Over-pivot rate
= GBP1.14 x (1450 - 755) kg
= GBPl.14 x 695 kg
= GBP792.30
Total weight charge for this shipment
= G B P l230.65 4- GBP792.30
= GBP2022.95
Next, check if the total weight charge is cheaper or more expensive than when the
appropriate GCR or SCR is used.
Chargeable w eight = 1450 kg
Rate classification = Q500 kg
Applicable rate = GBP2.17/kg
Weight charge
= GBP2.17 x 1450 kg
= GBP3146.50
GCR charges are higher than ULD charges.

Exam ple 2
A shipment of 660 pieces of oil rig drilling parts weighing 5680 kg with a total volumetric
weight of 630 ft3 is sent from Amsterdam CAMS), the Netherlands to Wellington CWLG),
New Zealand. The shipment requires at least one Type 5 ULD CAAU) and one Type 8
ULD CAVE). XYZ Airline imposes a pivot w eight of 2500 kg for Type 5 containers and
1050 kg for Type 8 containers. Calculate the ULD charges.
The published rates for goods sent from Amsterdam to Wellington, in Dutch guilders
CNLG), are as follows:
Minimum rate N LG 150.00
Normal rate C< 45 kg) NLG52.15
Quantity rates C> 45 kg)
45 kg NLG39.10
300 kg NLG13.75
800 kg N LG 12.90
Pivot charge @ 2500 kg NLG25.956.00
Pivot charge @ 1050 kg N LG 12,654.00
Over-pivot rate NLG5.40
Container specifications
Type 5 CAAU)
Tare weight 265 kg
Actual weight loaded 4361 kg
Weight to be loaded in AKE 5680 - 4361 = 1319 kg
Pivot weight 2500 kg

Type 8 (AVE)
Tare weight 82 kg
Actual weight loaded 1319 kg
Pivot weight 1050 kg
Volume verification:
Total volume of shipment = 630 ft3
Total internal volume of ULDs
= 500 -I- 150
= 650 ft3
(The actual volume of shipment comes within the allowable volume of the two ULDs)
1st ULD: Type 5 CAAU)
Total w eight of goods = 4361 kg
Pivot weight of ULD = 2500 kg
Over-pivot w eight [opw)
= 4361 - 2500
=1861 kg
Pivot charge @ 2500 kg = NLG25,956.00
Over-pivot rate
= NLG5.40 x 1861 kg
= N LG 10.049.40
Total charge for 1st ULD
= NLG25,956.00 -I- N L G l0.049.40
= NLG36.005.40
PART 2 Commodities. Rates and Charges 187
2nd ULD: Type 8 CAVED
Total w eight loaded = 1319 kg
Pivot w eight = 1050 kg
Over-pivot weight
= 1319 - 1050
= 269 kg
Pivot charge @ 1050 kg = NLG 12,654.00
Over-pivot charge
= NLG5.40 x 269 kg
= N LG 1,452.60
Total charge for 2nd ULD
= N LG 12,654.00 + N LG 1,452.60
= NLG14,106.60
Total weight charge for this shipment
= 1st ULD + 2nd ULD
= NLG36,005.40 + N LG 14,106.60
= NLG50.112.00
Next, check if the ULD charge is cheaper or higher than the published GCR or SCR.
Chargeable weight = 5680 kg
Rate classification = Q800 kg
Applicable rate = NLG12.90
Weight charge
= NLG 12.90 x 5680 kg
= NLG73.272.00
The result shows that the GCR is higher than the ULD rate.
H o w to c o n s o l i d a t e a i r f r e i g h t s h i p m e n t s
The volume of air cargo that a freight forwarder sends to an airline relates directly to
freight charges. By consolidating all outgoing shipments into one MAWB, the freight
forwarder can enjoy lower rates offered by airlines to cargo agents for movement of large
shipments. Freight forwarders are encouraging customers to allow them to consolidate
smaller export shipments into larger ones, to obtain a fair and reasonable price.
Building a consolidation requires proper planning, for freight forwarders to achieve a

regular consolidation to a particular country. Different charges apply to consolidated
shipments of different w eight breaks. The larger the volume or tonnage, the cheaper
the rate. The airline’s cost per kilogram (kg) carried decreases as shipment tonnage
increases. For example, the consolidated rate for a 250-kg shipment from Singapore (SIN)
to London (LON) is S$8.52/kg, while a 500-kg consignment could cost S$7.75/kg.
Nowadays, shippers are asking their appointed freight forwarders for cheaper consolidated
rates so that they too can merge shipments, in order to withstand competitive market
pressure. By consolidating cargo, shippers from all industries will save on transportation
costs, and be able to offer quantity discounts to bulk purchasers. They could also offer
rate discounts to buyers based on consolidated shipm ent w eight breaks. Freight
forwarders are not allowed to mix general freight with livestock or dangerous goods in
a consolidation.
Consolidation is widely practised by all freight forwarders, and is seen as a means of

controlling airfreight costs. However, we cannot ignore integrators and express operators,
like DHL, UPS, and FedEx. These companies are also consolidating shipments to manage
their airfreight costs, focusing on business-to-consumer (B2C) transactions. These B2C
shipments are relatively small and consigned directly to residences and offices in different
locations. The express freight rates offered by these companies are based on weight and
distance from origin to final destination. For domestic runs, freight charges are based
on zones, especially in the US.
By consolidating parcels, flyers, and other goods, they obtain lower charges from airlines.
These express operators or integrators secure rates on commercial airlines to those
destinations the integrators do not fly to. Some integrators operate a fleet of aircraft
and operate on parallel runs with commercial airlines in some traffic lanes. Some B2C
shipments are charged at higher rates because of their urgent nature.
Another contributing factor is the strong emphasis on transit time improvement; the
emphasis is on speed rather than cost. The fastest possible time that the goods can arrive
at the destination is the same day. Promotional campaigns launched by integrators often
advertise their morning or noon delivery, same-day and next-day deliveries.
190
PART THREE
MANAGING CHALLENGES IN
THE AIR CARGO INDUSTRY
Information and IT
E - c o m m e r c e a n d its o p e r a t i o n s
Computers and the worldwide web (WWW) have enabled service providers (airlines,
freight forwarders and truckers) to make drastic changes to their businesses. Electronic
commerce or e-commerce assists customers in their search for vendors, service providers
and product or service information. E-commerce offers a wide range of online business
activities involving goods and services, which are made available on the internet. Airlines
and freight forwarders set up websites to promote their products and services. The main
e-commerce transactions are
• business-to-business (B2B);
• business-to-consumer (B2C);
• business-to-business-to-consumer (B2B2C);
• consumer-to-consumer (C2C); and
• consumer-to-business (C2B).
The internet is truly a unique technological development. Over the past years, companies
have realised that there is a real need to establish a web presence. The internet improves
interaction between airlines, freight forwarders and shippers or importers, with other
benefits like flexibility, mass customisation, less complexity and affordability. Smaller
forwarders are also creating their own websites to compete with the bigger players.
Freight forwarders and airlines can place their brochures and product catalogues online
to allow customers from around the world to obtain information from wherever they are.
Managers can make quick decisions, deliver value-added service to customers, and
engage in a high level of interaction with customers, airlines, freight forwarders and, in
PART 3 Information and IT 1 9 1
particular, government agencies. The internet revolution has enabled companies to shift
away from the traditional B2B to the B2B2C concept. This concept is ideal, but may cause
conflict between companies and their marketing intermediaries or middlemen.
The majority of e-commerce transactions that shippers, importers, freight forwarders

and airlines engage in are mainly B2B exchanges. With advanced online information
systems, shippers can check on stock availability and order issues, obtain cargo rates,
issue invoices, make payments, and track and trace missing items. Besides, airlines
can now allow shippers and freight forwarders to book shipments online, and assist
shippers and importers to check on the status of incoming and outgoing shipments. At
the m om ent most freight forwarders, including 3PLs, use EDI to link up with customers
lo book shipments, track and trace, process orders, negotiate prices, notify them of
shipment arrival, and issue proofs of delivery (PODsJ.
These service operators are gradually moving away from EDI to more sophisticated
e-commerce applications. E-commerce is still being developed, and we can expect to
see more airlines, freight forwarders and even trucking companies, start implementing
e-commerce procurement.
E-commerce would help service providers lower operating costs, and reduce the huge
amount of paperwork, such as filing, paper processing and storage of documents.
Companies now want to go paperless. With e-commerce, service providers and shippers
can pay via electronic fund transfer (EFT). This eliminates the cost of preparing invoices,
postage and keeping physical copies of invoices and cheque payments. Service providers,
shippers and consignees will see increased productivity as the time taken for processing
and preparation of orders is reduced.
With real-time information, airlines will be able to give customers up-to-date information
of their products and services. Customers can also give feedback to service providers
about their products and services. Established service providers continue to apply new
information technology to improve operational efficiency and effectiveness.
E-commerce allows small and established freight forwarders access to customers, and to
have equal web presence. Customers can easily surf company websites in any location
or time zone. The size of a company has become irrelevant. Everyone competes on a
level playing field. In fact, the internet appears to work in favour of small companies,
given their innovative operating style and flexibility, which gives them an advantage over
bigger companies - small companies react faster than larger ones to customer demands.
Besides, the internal infrastructure of small forwarders is more adaptable than that of
multinationals; these big forwarders may have to review their infrastructure so that they
can be more flexible, to stay competitive in a rapidly changing business.
Freight forwarders and global customers can now access each other’s websites, which
outsiders cannot. This is known as an extranet system, and fits the B2B exchange.
A password is required for security reasons. An extranet system allows both parties
access to vital information, as well as e-commerce applications. Shippers can place
cargo reservations, check order records, find out about incentive schemes, and get
other relevant information.
Within the organisation itself, another network is in place - the intranet system. It is
tailored for internal use, especially for employees to access organisational information
like job vacancies, the company’s annual performance, and staff movement. Material
that can be placed on the intranet by departments in the organisation include
• information services (Internal technical support through online documentation, e-

mail, computer-based training);
• general information - employee movement, organisational charts, employee directory,

newsletters;
• customer service related information - complaints, feedback, promotions, prices,

products and services;
• sales and marketing information - prices, products/services, network, delivery

services, sales training, forecasts, press releases; and
• management functions - placement of new employees, terminations, promotions,

transfers.
M a k e e -c o m m e r c e a success for you r

company
The key measurement of success is the real dollar earned. Profitability spurs businesses
to fight for survival in a competitive environment. A website determines the success or
failure of a business.
As mentioned earlier, the purpose of creating a website is to promote products and

services. How much the customer knows of what the company offers depends on the
amount of information available. Companies in the air cargo market are bombarding
customers with detailed information on services, facilities, financing, supply network,
and accreditation. The quality of data presented and how well customers receive it also
affects the success rate. A well-planned website would show how customers use the
company’s services, especially in handling inbound or outbound cargo, or both. In other
words, the website must provide customers with all relevant information.
PART 3 Information and IT 1 9 3
It is important to know as well the amount and type of information requested by customers
from different industries (electronics, pharmaceuticals, heavy machinery, computers and
peripherals, perishables, livestock), so as to cater to their specific needs.
A company can use its website to make its presence felt, and show the public the industrial
awards it has received. The objective is to reach out to a greater pool of customers in
various industries and attract them to the company’s services. Existing customers would
probably lend their continuous support, to the extent of forming alliances. As the number
of customers increases, revenue will also increase, resulting in better profitability.
Some benefits that e-commerce brings to companies include
• better understanding of customers' needs and wants;
• the ability to make more informed decisions for organisational improvement;
• being an ideal avenue for launching new products and services;
• opportunities for partnerships, alliances, collaborations;
• ability to track industry trends and forecasts;
• more effective allocation of company resources;
• access to customers’ production forecasts;
• being an education site for employees' skills development;
• easy access for global customers, 24/7;
• revenue generation;
• enhancement of internal and external communication;
• more personal, one-to-one communication;
• close and long-lasting relationships;
• increased overall profitability; and
• customer loyalty.
While the benefits of e-commerce are obvious, there are limitations too. Companies are
equally concerned that e-commerce may adversely impact performance, because
• procurement through the internet lacks security coverage;
• there is no face-to-face interaction;

• the constant advent of more advanced technology means regular upgrading;
• there is a lack of resources to finance expansion in e-commerce;
• hackers may affect the firm ’s operations;
• an increase in internet traffic can lead to system overload;
• there is always the risk of system failure and lack of reliability; and
• unwillingness to invest in new technology.
A u t o m a t e d d a ta collection
B a r c o d e s a n d r a d io f r e q u e n c y s c a n n e r s
Bar codes and radio frequency scanners are popular among airlines, GHAs and freight
forwarders. A bar code, sometimes called automatic identification technology, is a series
of parallel black and white bars with different widths, and its sequence represents
figures and letters. This sequence can only be read by a radio frequency CRD scanner,
which translates the bar code into information like the AWB number, shipper’s name,
consignee’s name, number of pieces, weight and contents, and destination.
Bar codes and RF scanners are easy to use, fast and accurate. A large amount of data
can be stored, and they can be used for goods stored in warehouses and distribution
centres, where they help keep track of inventory movement. Cargo can also be scanned
individually.
There are two types of RF scanners: handheld and automated. Automated scanners
are normally installed in a fixed position, and scan packages as they move through a
conveyor belt. These scanners are used daily by postal authorities, 3PLs, warehouse
operators, and express operators/integrators. Handheld scanners are used by live tropical
fish exporters, airlines, GHAs, and freight forwarders. Operations personnel can carry
this portable equipment freely when working in the warehouse, ramp, or plant. The
scanners read bar codes by directing laser beams onto them. The information is then
transferred to memory in the form of electrical signals, which capture the data in terms
of binary digits; that is, Os and Is. Bar coding has been especially effective and useful
in inventory control.
Bar codes and scanners enable freight forwarders and airlines to m onitor the movement
of cargo in and out of warehouses. It improves data collection accuracy, enhances
operating time, provides information on worker movement and integrates all activities
within organisations.
PARTS Information and IT 195
However, there have been other developments in the field of RF technology. The Straits
Times carried a report on 27 January 2004 with the heading “ Radio tags may signal the
end of barcodes: Philips makes radio chips, IBM offers computer services in tie-up.”
Handheld RF scanner 0eft), used on bar codes (right)
The tiny radio chip or radio frequency identification CRFIDJ chip can be tagged to parts,
clothing, and even livestock. In time to come, shippers, airlines, freight forwarders and
GHAs will be able to track their inventories even more effectively. In Singapore, Qian
Hu Corporation Ltd has started embedding such chips in the bodies of live arowhanas.
The chip includes data such as product design, product description, expiry date, colour,
and packaging.
In v e n t o r y m a n a g e m e n t
Freight forwarders and airlines are facing higher expectations; customers want high
responsiveness and a shorter cycle time for delivery of quality goods and services. Service
providers have thus invested in state-of-the-art technology. Information technology is
more in demand, to complement new warehouse facilities built by freight forwarders
and airlines, including GHAs. Service providers are learning that with new technology,
they are able to reduce the time taken to fulfil customer requests for pick-up of cargo,
booking of cargo space, and delivery of inbound goods. It also allows freight forwarders
to introduce mass customisation.
19 6
12 Marketing Management
and Logistics
M an a g in g change
Shippers, including multinational companies, have changed the nature of logistics by
demanding high-quality, customised, flexible services from freight forwarders, to meet
their special needs for import and export traffic, at the lowest possible prices. These
shippers and freight forwarders, together with airlines, are reshaping supply chain
logistics.
Freight forwarders are considered key players in the air cargo supply chain. They are
involved in areas such as customer service, information sharing, inventory cost reduction
and collaborative relationships or partnerships. All these require special attention, and
freight forwarders, including 3PLs, have invested heavily in modern warehouses or
distribution centres to meet shippers’ expectations.
The success of the supply chain very much depends on the level of customer service,
which in turn depends largely on information technology. This enables service providers
to stay competitive, lower operating costs and achieve larger market share. In general,
customer service in the current environment creates opportunities for freight forwarders
and airlines to focus on reliability of service, on-time delivery and accurate filling of
customer orders.
All service providers want to retain customers. A saying goes, “ it is easy to lose a customer,
but difficult to get one back". To keep customers coming back, service providers have
to be highly responsive to their needs and special requests. This entails prompt delivery
of shipments, and keeping customers informed of their movement. Other functions and
services include kitting, palletising, pick and pack capability, and efficient track and
trace results. Customers today expect service providers to perform value-added services,
including vendor-managed inventory (VMI) and collaborative planning, forecasting and
replenishment (CPFR). These functions are already in practice among 3PLs; it is up to
service providers to identify the potential of all existing clients, and explore ways to
PART 3 M arketing Management and Logistics 1
retain them. This would also include new prospects to which service providers have the
chance to offer their services. Service providers have to set priorities for different groups
of customers, especially global or key accounts.
Partnerships are another possible avenue for service providers and shippers; collaborations,
alliances and partnerships have become common. They provide a w in-win situation for
all parties concerned, in a rapidly changing industry. Successful service providers should
concentrate on their core competencies and outsource non-core activities to other service
providers, so that they can be more flexible.
S ervice o rie n ta tion

The service-oriented approach means meeting customer service objectives. Successful
service providers have invested in mega-warehouses that implement a wide range of
logistics activities and functions designed to suit shippers’ requirements in the areas of
scheduled delivery, after-sales service, quick response to problems, and stock availability.
However, small- and medium-sized sen/ice providers may not have the capacity to match
established multinational companies in terms of financing, networking, management
expertise, and facilities.
Logically, costs would increase in tandem with an improvement in customer service, so

that companies have to take in more revenue to offset the higher operating costs. This
increases competition among the big service providers, who offer customers one-stop
service; small- and medium-sized service providers do not have the resources to do the
same. For these latter companies, designing an outstanding logistics service system does
not necessarily require special techniques, but a sharp and creative mind.
A more proactive approach is called for in setting organisational goals and understanding
customer service requirements. How well-planned a logistics service system is and
how it integrates with other processes in the organisation would determine its success
or failure. Logistics service strategies have to be closely monitored, and amended if
necessary to stay competitive.
A llia n ce s , c o llab o ratio ns, m e rg e r s

Airlines, freight forwarders and shippers are spending much time trying to evaluate their
supply chain partners to develop possible alliances, and have been successful in this
approach. For example, the w o w alliance consists of airlines such as SIA Cargo, SAS
Cargo, Lufthansa Cargo and JAL Cargo.
Alliances enable all parties to share not only products and services, but capabilities
as well. Members can gain from the services provided by multiple partners, with wider
networks and capacity. The initiating move will ultimately set the pace for other airlines
to follow suit. The long-term benefits include
• shared management expertise;
• a w ider supply network;
• shared capacity;
• shared costs;
• elimination of competition;
• consolidated marketing efforts;
• personnel capabilities;
• increased operational efficiency;
• shared market intelligence;
• shared information technology;
• join t product or service promotion, advertising, etc; and
• profit sharing.
While there is so much emphasis on airline alliances, freight forwarders have also
adopted this approach. Although they compete aggressively for their own market share,
some have formed alliances just to handle a specific account or shipper. One example
is the alliance between Schenker and Panalpina, to handle Hewlett-Packard’s traffic
to Europe. A successful strategic move may create other business opportunities that
both forwarders can tap on in other areas. Another such decision is Deutsche Post’s
acquisition of Danzas, DHL, Airborne and Speedmail.
However, there has to be a fair amount of trust between members for the arrangement
to be fruitful. Trust is not as simple as it seems, and does not boil down to just the two
parties, but to their employees as well, who must be duly informed of the partnership
and how their contributions can further strengthen the bond. To develop a trusting
relationship, consider each party’s
• competence;
• reliability, in terms of honesty, integrity, etc, of individuals;
• commitment to a successful relationship;
• openness with other partners; and
• show of loyalty.
In a synergistic business environment, all parties must be willing to collaborate and share
resources to improve operational efficiency in areas like transport, warehousing and
PART 3 M arketing Managem ent and Logistics 1 9 9
distribution, and communication. This allows shippers, freight forwarders and airlines to
identify business opportunities and possible solutions for future expansion.
Plans are afoot to form an air cargo alliance sometime in 2014. This initiative was first
presented in November 2013 by Lufthansa. This air cargo alliance will enable airline
members to have better access to new emerging markets and also to open up new
routes. The air cargo alliance is quite similar to those of the Star Alliance and One World
in the passenger traffic segment.
H o w t o r e t a i n c u s t o m e r s in a c o m p e t i t i v e
e n v iro n m e n t
Companies can take different approaches in trying to retain shippers or customers for
indefinite periods, but not all are successful. These days, shippers expect total logistics
services, 24/7. In other words, service providers’ personnel must be easily reached
anywhere, anytime.
In the air cargo business, companies often secure new accounts but find it hard to keep
them. However, some freight forwarders are keener on winning over new customers
than maintaining old ones: they are only interested in short-term gain, and overlook
the importance of long-term benefits. We sometimes need to ask, "How many shippers
or customers secured over the years are still with us today?” And the answer would
probably be: only a handful. This section discusses how service providers can ideally run
their business, but the facl is that companies should learn from one another in order to
grow. To prevent shippers from switching to a competitor, companies can gain loyalty
by closely monitoring
ẽ reliability of deliveries;
• flexibility in meeting market changes;
• after-sales support - easy contact anytime, anywhere;
• implementation of advanced information technology, especially in materials handling;
• performance reviews;
• consistency of service; and
• joint business development in new traffic lanes.
Ironically, it is cheaper to maintain an existing account than to create a new one. For
new accounts, the company has to invest manpower, equipment, and information
technology. However, this w ill not and should not deter freight companies from looking
for new customers.
The issue of partnerships has been discussed, and service providers should develop a
good relationship with customers, who can influence their counterparts or contacts to
use the services of a particular company. As marketing guru Theodore Levitt once said,
“What people are buying are not quarter-inch drills but quarter-inch holes.” It is not the
product, but the benefits.
To m e a s u r e o r b e m e a s u r e d -
it’s y o u r d e s t i n y
Shippers monitor the performance of their appointed service providers, specifically freight
forwarders, including 3PLs, trucking companies, and airlines, by introducing their own
“scorecards” to measure service levels. Such performance reviews are carried out every
three months; some do it every half year. During the appraisal, service providers will be
officially told of shortcomings in their service delivery. Failures could include frequent
late deliveries, mishandling, documentation errors, slow response to enquiries, invoicing
errors, equipment failure, and a host of other problems. To avoid poor reports, service
providers should install guidelines that could assist them in delivering customers’ desired
services. These could include
• reviewing current processes in areas like import, export, traffic, warehousing or

distribution, space bookings, customer service performance, freight costs, etc;
• skills development of operational staff;
• implementation of new information technology for tracking, tracing, documentation,

invoicing, back orders, etc;
• developing performance measurement scorecards directed at operations, sales,

finance, etc;
• measuring on-time delivery and receipt of goods; and
• forecasting and planning of loads.
These guidelines need to be made known to the freight forwarders’ employees, so as

to get them involved. If the company does not have its own performance matrix, it may
consider the balanced scorecard concept, developed by Drs. Roberts. Kaplan and David
P. Norton. A balanced scorecard measures four areas: financial performance, customer
knowledge, internal business processes, and learning and growth. These combine to
give a clear picture of a company’s performance.
S k ills d e v e l o p m e n t
Proper training reduces the time taken for workers to become proficient in their respective
tasks. In the air cargo industry, courses are frequently conducted by national associations,
the most common courses offered being the IATA/FIATA diplomas in cargo handling
PART 3 M arketing Managem ent and Logistics 2 0 1
and rating, and the Dangerous Goods Regulations course. For those who need to excel,
there are degree programmes relating to logistics and supply chain management run
by national universities.
These ongoing courses help employees understand topics like materials handling,
inbound/outbound transportation, warehouse and distribution operations, customer
service, reverse logistics (re tu rn management), and traffic operations. In addition, airlines
also run cargo courses and seminars for personnel of freight forwarders.
A successful B2B exchange, as mentioned in Chapter Eleven, would spend most of

its resources on building a strong customer care and support programme, and has to
focus on regular training to ensure that employees can operate with new information
technology.
All these programmes are specially designed to assist individuals, groups and even
entire companies to be effective professionals; they are needed because workers, jobs
and companies in the air cargo industry are always changing. Training and development
should begin with new employees joining the air cargo industry; companies can also
look into career planning for existing employees. Most importantly, identified deficiencies
can be eliminated through these programmes.
P rofessionalism
Air cargo professionals are rewarded for the knowledge they bring to organisations.
Many eventually become managers in warehousing, sales and marketing, business
development, operations, traffic, customer service, import, export, and IT.
Companies should craft the career paths of their workers - in preparing the career
curves, the more experience an individual has, the higher the salary structure. The air
cargo industry will then be able to develop a pool of professional service providers.
Cargo space is frequently purchased from airlines by professionally trained employees

who spend most of their time sourcing for space to meet the surge in traffic volume,
especially during the most critical period of the calendar year, which is usually the last
quarter. Fortunately, the air cargo industry is not that complex, but professional purchasing
can be difficult, especially when airlines are facing space constraints. In some countries,
government agencies, together with professional bodies, have designed certification
programmes for air cargo practitioners that offer recognition to practitioners who have
successfully completed the scheduled programmes.
I sincerely hope that air cargo professionals will be recognised as people with vast trade
experience and skills, and dedication to the future development of global air cargo.
Profiles
C iv il A v ia t io n A u t h o r it y o f S in g a p o r e ( C A A S )
In 1984, the Department of Civil Aviation CDCA) was renamed the Civil Aviation Authority
of Singapore (CAAS). It is the statutory board of the Singapore Government that is
responsible for the development of civil aviation in Singapore, and for dealing with
those challenges in the aviation industry that have made Singapore a successful air
communication hub in the Asia-Pacific region.
As part of the Singapore Government, CAAS is involved in negotiating air services

agreements with various government bodies, and has successfully increased trade and
investment between Singapore and other countries through its liberal aviation policy.
More than 60 airlines, including freighter operators, fly in and out of Singapore, serving
almost 140 cities in more than 50 countries. This effort has gained Singapore a place as
the most successful air transportation hub in the Asia-Pacific region. Thanks to the full
commitment of CAAS, on 23 September 2003, Changi International Airport was named
"Best Airport Worldwide” for the sixteenth consecutive year.
While Changi Airport's passenger handling has gained much recognition, its air cargo
services too have garnered awards and made it the "Best Airport Asia” and "Airport of
the Year". By maintaining a strong presence in developing Singapore as an air cargo and
transhipment hub. CAAS has been constantly upgrading its airfreight facilities to gain
a competitive advantage. It has also transformed Singapore into a leading integrated
logistics and distribution hub in the Asia-Pacific region. Other initiatives include the
setting up of the Airport Logistics Park of Singapore (ALPS). Changi Megaplex 1 in the
Changi Airfreight Centre, and the Live Animal Handling Centre which is in the pipeline,
just to name a few.
In the 1980s, CAAS, Singapore Airlines (SIA), Neptune Orient Line CNOL), the Port of
Singapore Authority (PSA) and members of the Singapore Aircargo Agents Association
(SAAA) jointly explored the feasibility of making Singapore a transhipment hub to compete
with those in North Asia and the M iddle East. This effort paid dividends, as Singapore
experienced a rush of both sea-air and air-sea transhipment traffic, en route to Europe and
the United States. The overwhelming success meant that airlines were obliged to operate
Profiles
more full freighters (T)C8s, B707s and B747s) and B747-Combis. while air cargo agents
busily mounted charters, in response to demand and the expected flood in loads.
With the dedication of the Air Cargo Department at CAAS. an increasing number of
airlines, including express integrators, have stepped up operations with Singapore as
their air cargo hub. CAAS will continue to maintain Singapore’s status as the region’s
major air cargo and transhipment hub. Airfreight terminals within the free trade zone
will be upgraded gradually to cater for additional cargo handling in a bid to improve
operational efficiency and effectiveness.
C h a n g i I n t e r n a t io n a l A i r p o r t S e r v ic e s ( C I A S 3
CIAS was created in December 1977 to provide ground handling to the major international
airlines served by the old Paya Lebar Airport. By the 1980s, CIAS had grown, offering a full
range of ground handling functions, including cargo, apron, technical ramp, passenger,
flight operations, aircraft interior cleaning, in-flight catering and security services at the
new Singapore Changi Airport. CIAS is now owned by Dubai Air Travel Agency (DNATA).
In today’s context, CIAS has gained a good reputation as a world leader in airport
operations. Its efficiency, speed, reliability, c r e d ib ilit y and versatility, in addition to its
dedication to service excellence, have become the hallmarks of its success.
CIAS is committed to providing customers with efficient and effective cargo operations,
with a m ulti-million dollar cargo management system housed in a modern, spacious
Cargo Centre, located in the Changi Airfreight Centre. With this sophisticated computer
system, CIAS is able to accept export shipments and release incoming shipments quickly
and accurately The Cargo Centre is well-equipped - a shippers’ Loaded Unit station,
special facilities for handling livestock, a cold room for frozen food and perishables,
dangerous goods storage, and security vaults are all available.
Throughout the years, CIAS has met the expectations of its customers, which has further
enhanced its reputation as “ Best A ir Cargo Terminal Operator - Asia” ; it lias won the
accolade at the Asian Freight & Supply Chain Awards in 1992, 1995, 2000, 2001 and
2003.
DHL
For years, DHL has stood for reliability, speed and global service. DHL Worldwide Express
is a market leader in global express delivery with special expertise in air-express services,
and a worldwide network spanning more than 220 countries over five continents. It
is also an established leader in the dynamic Asia-Pacific market. Now, as part of the
Deutsche Post World Net group. DHL brings the group closer to its goal of becoming
the top provider of global logistics services.
The new DHL brand brings together three major express and logistics companies:
Deutsche Post Euro Express, foremost in European parcel delivery; DHL Worldwide
Express, world market leader in air-express services; and Danzas, heading the field
of air and ocean freight as well as European surface transport. Thus, DHL is able to
run an integrated delivery service that covers every link in the logistics chain, a crucial
advantage for customers.
DHL’s top-flight national and international services are built on a solid infrastructure,
which makes the company’s services comprehensive and attractive. The closely linked
national and international distribution network, combined with the dedication and
customer focus of over 150,000 employees, the readiness of more than 60,000 vehicles
and 250 aircraft, and the seamless coverage of over 4,000 branches and stations, all
add up to a powerful force capable of serving over 120,000 destinations with speed and
precision.
DHL offers four strong service pillars under one roof: DHL Express. DHL Freight, DHL
Danzas A ir & Ocean, and DHL Solutions. DHL Express covers all parcel, express and
general cargo services. DHL Freight takes care of part- and full-load as well as special
shipments for the whole of Europe. DHL Danzas Air & Ocean concentrates on air and
ocean freight, and industry-specific project cargo, while DHL Solutions meets every
challenge of supply chain management. Together, they carry annually some two million
shipments, equivalent to around 40 million tons of freight, to over a million customers
in Europe alone.
E m ir a te s S k y C a r g o
Emirates Airlines’ 64-strong fleet, one of the youngest in the skies, is made up of 59
wide-bodied passenger jets and five freighters - three 747-400Fs and two 747-200Fs.
Emirates SkyCargo now serves 74 destinations in 52 countries in Europe, the Middle
East. Africa, the Indian subcontinent, the Far East and North America.
Emirates SkyCargo returned remarkable financial figures for 2002-2003 - it carried

525,188 tons of cargo (up 31.1% over the previous year) and earned DHS1.708 billion in
revenue (an increase of 48.8%), constituting 19.3% of the airline’s total revenue.
The first half of the 2003-2004 financial year saw Emirates SkyCargo’s revenue rise by
49% and its tonnage by 29% to 315,000 tons.
Emirates SkyCargo’s efforts have been recognised throughout the industry. Air Cargo
News voted Emirates Cargo Airline of the Year in 1995, 2000 and 2001, Best Cargo Airline
to the M iddle East for the last 15 consecutive years and the Best Cargo Airline to the
Indian subcontinent for the last five consecutive years. In 2003, it won the Best Cargo
Profiles 2 0 5
Airline to the Far East from A ir Cargo News, and Best Cargo Airline to the M iddle East
at the Airfreight Asia Supply Chain Awards.
Emirates SkyCargo's Priority Service assures on-time delivery throughout the world, while
the extensive trucking and offline partner networks ensure comprehensive coverage
where customers need it most. SkyChain, the one-stop web shop with many value-added
features, enables customers to obtain information as well as transact business online.
EXEL
Exel is the global leader in supply chain management, providing customer-focused
solutions to a wide range of manufacturing and retail industries. Exel’s comprehensive
variety of innovative logistics solutions encompasses the complete supply chain, from
design and consulting through to freight forwarding, warehousing and distribution
services, all the way to integrated information management and e-commerce support.
Exel, a UK-listed, FTSE 100 company, has a turnover of £5.1 billion CUS$8 billion) and
employs around 74,000 people in 1,600 locations in over 120 countries worldwide. Exel’s
customers include over 70°/o of the w orld’s largest quoted non-financial companies.
Exel’s Supply Chain Solutions Group provides professional expertise in designing optimal
value chain solutions for organisations across a wide range of industries. Exel focuses
primarily on these key industrial segments:
• Automotive
• Chemical
• Consumer
• Healthcare
• Industrial
• Retail
• Technology
Q ia n H u C o r p o r a t io n L td
Qian Hu Corporation Limited is the leading exporter of ornamental fish; with other
Singapore exporters, it supplies more than 30% of the w orld’s aquarium fish. This
homegrown company has played a significant role over the past decade, in helping
Singapore achieve its prestigious status as the world’s leading exporter of ornamental
fish and recognition as the ornamental fish capital of the world. Qian Hu currently exports
more than 500 species of ornamental fish, and more than 5,000 types of aquarium and
pet accessories, direct to more than 60 countries.
Once a humble pig farming business. Qian Hu has undergone massive transformations.
It has become one of the most diversified local companies dealing in the import and
export, farming, breeding, quarantine, wholesale, and distribution of ornamental fish. The
company has capitalised on opportunities to expand operations into the manufacturing
and distribution of aquarium and pet-related accessories. Qian Hu also caters to retail
outlets and exporters in Singapore.
Qian Hu Corporation is privileged to be one of the few local farms licensed under CITES
(Commercial International Trade of Endangered Species) to breed arowhanas. In addition.
Qian Hu’s farm houses an Agro-Education Centre, which is frequented by schools and
the general public.
S IA C a rg o
Singapore International Airlines has been in the air cargo business for over 50 years,
since the first Airspeed Consuls were flown in 1947. In July 1992, a fully-fledged cargo
division was formed to devote even more attention to the cargo business. As a further
step in its evolution, SIA Cargo was formed as an independently managed subsidiary of
SIA on 1 July 2001. This development brings about greater management accountability
and provides even greater motivation for its staff to provide solutions to best meet the
customers’ airfreight requirements.
SIA Cargo places great emphasis on high standards of customer service. Since 1994,
the company has consistently been voted Best Global Air Cargo Carrier and Best Air
Cargo Carrier in Asia at the Asian Freight & Supply Chain Awards. In 1998. Air Cargo
News named SIA Cargo the Cargo Airline of the Year in the Far East category. In the
Financial Times 2000 survey, it was rated World's Most Respected Transport Company.
This feat was largely attributed to its team of dedicated and professionally trained staff
as well as business partners in the air cargo industry.
With its extensive network, strategic alliances and fleet of sophisticated aircraft, customers
will no doubt consider SIA Cargo the ultimate airfreight carrier. SIA Cargo believes that
“you can count on them as an international partner in international trade.”
Schenker
Schenker, a German-based company, is a leading international provider of integrated
logistics services. The company supports trade and industry in the global exchange of
goods - in land transport, in worldwide air and sea freight, and in all the associated
logistics services. It achieves an annual turnover of 6.7 billion euros, through 36,000
employees in about 1,100 locations throughout the world.
Profiles 2 0 7
Schenker’s integrated logistics centres located in global cargo hubs create an effective
link between all carriers, allowing it a broad range of value-added services. Its experts
provide complete solutions, tailored to the industry requirements of today and tomorrow.
International teams of specialists integrate the group’s individual service modules to
create complex chains and webs that ensure a reliable flow of material and information
in both the new economy and the old.
Schenker delivers services and solutions on a local, regional or global basis. Its supply
chain management solutions create a distinct competitive advantage for its customers,
allowing them to make a difference in their respective markets.
With its global network and extensive experience, Schenker is able to help its customers
design, optimise and integrate the processes, supported by the best in class freight,
warehousing and distribution solutions.
S w is s W o r l d C a r g o
"We are comm itted to seeking m utually beneficial relationships with international
logistics service providers and their customers by exploiting our Swiss hubs, air and
road network, and other assets to provide a unique range of competitive, reliable and
diversified products.”
Swiss WorldCargo:
• is the airfreight division of Swiss International A ir Lines Ltd, with headquarters at

Zurich Airport
• acts as a capacity wholesaler, concentrating on airport-to-airport airfreight
• is geared to niches and products with high value-add
• m arkets an a irfre ig h t n etw ork w ith over 150 d estinations in more than 80
countries
• made a substantial contribution to the results of SWISS in 2002 [from April 1, 2002)
with around 400 employees
T o h O r c h id s
Toh Orchids has grown naturally into a truly international name in floriculture.
With a combination of up-to-date technology, Toh Orchids is able to provide the market
with products and services that reflect its commitment to the Singapore orchid industry,
with its dedication to quality, innovation, and service.
Over the past 25 years, Toh Orchids has grown into a modern research and development
centre for tropical orchids, especially cut flowers. The company has earned its name as
the Top Quality Orchids Grower and Exporter.
Toh Orchids’ service is aided by close cooperation with various authorities and research
agencies, and relentless upgrading of its dedicated staff and experienced growers.
The company’s product quality control satisfies the world standards set under the
Accredited Certification Scheme audited by the Agri-Food & Veterinary Authority of
Singapore.
Toh Orchids’ quality management system has been awarded the IS09001 certification
in recognition of their fulfillm ent of certified standards in orchid research, development,
production, and packing.
The company’s mission is to provide personalised service and more orchid species of
uncompromising quality.
U -F re ig h t
U-Freight was established in Hong Kong in 1968 as a transportation solutions provider.
Since its inception, it has grown from strength to strength, to become a US$500 million
group with 132 worldwide stations and offices, employing more than 1500 professionals
worldwide and offering solutions in supply chain analysis and design, warehousing
design, freight design and management, and process analysis and design.
U-Freight considers logistics and supply chain design one of its core competencies.
The foundation for this lies in its Solutions Group. The U-Freight Group is a fully staffed,
experienced organisation, providing logistics solutions through state-of-the-art processes,
technology, team intelligence and best practice.
U-Freight offers three scopes of services, namely:
• Transportation Management: international airfreight, seafreight, local and cross-

border ground transportation, customs management, expedited clearance and
delivery services, high value, time-sensitive shipments
• Supply Chain Design and Management: U-Freight delivers supply chain management
services regionally, extending across the supply chain or focusing on specific activities
such as reverse logistics (collection of used, damaged or outdated products and/or
packaging from end-users), JIT hub, vendor drop-ship and vendor management
• Warehousing and Distribution: pick/pack, parts distribution and return programmes,

finished goods distribution, cross docking, kitting and assembly
Profiles 2 0 9
The com pany has good w orking relationships, and has received Top A gent and
Outstanding Performance awards from major airlines, which bear testimony to the
organisation’s ability to meet customers’ unexpected large orders or ramp-up periods
for airline space uplift capacity.
Its motto is “To make our customer’s logistics network a competitive advantage”.
210
GLOSSARY
aircraft unit load device CAULDJ Structural carriage Transportation of cargo by air.
and no n-structura l equipm ent used to load
cargo aircraft Aircraft that specifically carries
cargo onto aircraft.
cargo only.
air waybill CAWB) Non-negotiable document
carrier Company that transports people and
showing the contract between the carrier and
cargo.
the shipper. Used in transportation of individual
shipments and consolidated freight. carrier’s liability Responsibility of an airline for
loss, damage, delay, theft, etc.
all-c a rg o c a rrie r A irline that carries cargo
only. Charges Correction Advice CCCA) Document
that notifies airlines of changes to charges or
“all risks” policy Insurance policy covering
other forms of payment originally stated on a
cargo from all risks of loss or damage, except
master air waybill.
where specifically excluded.
comm odity classification rates Special rates
Autom ated Storage and Retrieval System
for carriage of particular products, for example
CASRS] Mechanised system for moving goods
valuable cargo, newspapers and livestock.
into storage locations and retrieving them when
needed. c e rtific a te of o rigin In te rn a tio n a l tra d in g
document that certifies the shipment's country
bar code Series of lines of various widths and
of origin.
spacings, scanned electronically to identify a
piece of cargo in the warehouse. chargeable weight Actual or volumetric weight
of a consignment.
bar code scanner Device to read bar codes and
transmit data to a computer system. Conditions of Contract Agreement whereby
all airlines carry or undertake to carry the goods
bill of lading (B /L ) see air waybill
from point of origin to final destination.
b re a k -b u lk S ep ara tion o f a co n so lid a te d
consignor Sender of the goods.
shipment into individual shipments for delivery
to the consignee. Involves the re-consignment consignee Receiver of the goods.
of a shipment for export.
consignment see air cargo
breakeven w eight rule The breakeven weight
consolidation Grouping of smaller individual
is the weight at which it is cheaper to pay the
rate for the next higher weight break than to pay consignments into a larger one for carriage as
a larger unit, to obtain better rates.
for the actual weight of the cargo.
container see unit load device
buildup program m e CBUP) Common practice
of airlines who encourage their appointed agents courier service Door-to-door delivery service
and shippers to load up AULDs with freight. for high-value goods and documents.
bulk hold Storage area at the end of the lower cross docking Movement of freight directly
com partm ent of the aircraft, fo r last-m inute from import to export to avoid storage in the
baggage, postal mail and flight spares. warehouse.
cabotage Traffic that originates from one point customs Authority designated to collect taxes,
to another w ithin the same country. duties and tariffs levied on all import and export
shipments.
21 1
dangerous goods Materials that pose a threat collects and delivers shipments, consolidates
to people and equipm ent or the environment, or shipments of various sizes and uses various
any other property. modes of transportation, and handles mport,
export, clearance, customs declarations and
deadfreight Space on an aircraft that has been transfers.
paid for but which is not used.
freighter see cargo aircraft
delivery order (D /O ) Document of authorisation
issued by a freight forwarder or ground handling freight prepaid A irfreight charges have been
agent for delivery of the consignm ent to the paid by the shipper at point of origin.
consignee or its appointed agent as shown in
freight collect Airfreight charges are to be paid
the master or house air waybill.
by the consignee at final destination.
D elivered at Place (D A P ) The buyer pays
general cargo rate (G CR) Rate applicable to
customs duties, taxes and other charges, and
general freight, except for goods that qualify
clears the goods for import.
for com modity classification rates or specific
Delivered Duty Paid (D D P ) The seller pays commodity rates.
customs duties, taxes and other charges, and
goods Cargo or finished goods received from
clears the goods for import.
shippers for despatch to final destination.
discrep an cy re p o rt D ocum ent stating the
G re e n w ic h M e a n T im e (G M T ) This was
differences between the items that are declared
o rig in a lly based on th e tim e at th e zero
in the air waybill and the items that are found
M eridian crossing G reenwich in the United
in the shipment.
Kingdom (UK).
distribution centre Post-production warehouse
hub A irport that serves as the focal point for
for cargo held for distribution to customers.
origin and term ination of flights, and serves
duties Taxes levied on all imported cargo. as a transit point for passengers and cargo
between flights.
Electronic Data Interchange (E D I) Computer-
to-com puter com m unication between two or IATA cargo agent A freight forwarder officially
more organisations. registered as member of IATA.
ex-works (EXW ) The buyer has to arrange to Incotern is International term s de fining the
take possession of the freight at the point of responsibilities of shipper and consignee.
origin and has to bear all the costs of sending
interline Two or more airlines working together
the freight to its destination.
to carry a consignment to its final destination.
export declaration Document required by local
inventory Detailed list of goods held by a freight
Customs Authority stating the nature and value
forwarder or airline.
of an export shipment.
Just-In-Tim e (JIT ) Movement and delivery of
fo u rth p a rty lo g is tic s p ro v id e r (4 P L )
materials and goods to the right place at the
Company that integrates resources of 3PLs
right time.
and IT companies to provide comprehensive
logistics services. kitting A process by which individual items or
components are grouped or packed together to
Free on Board (FOB) The consignor airlifts the
form a single item or component.
goods to the consignee free of cost.
le tt e r o f c r e d it ( L /C ) An in te rn a tio n a l
free trade zone (FTZ) An area or zone at or
document issued by a bank that guarantees
near the airport which comes under the control
payment to the seller.
of the government.
m anifest Document listing the specifications
fre ig h t-a ll-k in d (FAK) General term for air
of goods carried.
cargo.
m a te r ia ls h a n d lin g e q u ip m e n t ( M H E )
fr e ig h t fo rw a rd e r A g e n t w h o a cts as a
Equipm ent used to move goods w ith in the
middleman for shippers and airlines. The agent
warehouse or distribution centre.
212
m inim um rale M inim um amount charged for shipper see consignor

an air consignment.
Shipper’s Letter of Instruction for Despatch
m in im u m w eig h t W eight specified by the CSLI) D o cu m e n t g iv in g d e ta ils of the a ir
airline as the minimum required to qualify for shipment and handling requirements.
the freight rate.
shortlanded cargo Cargo that has been left
mixed consignm ent Shipment that consists behind at the point of origin instead of being
of various types of commodities that qualify for loaded onto the aircraft.
different ratings, but which ship under one air
specific com m odity code Code describing
waybill.
a commodity or group of commodities that is
normal rate Rate that applies to a shipment carried by air.
without any quantity discount.
specific commodity rate (SCR) Rate assigned
over-pivot rate (O P R ) The rate applying to to a specific commodity at the airport of origin.
the w eight exceeding the pivot weight, [see
spillover w eight Weight left over when the ULD
pivot weight)
has been filled.
over-pivot weight The weight in excess of the
spreaders Devices for lifting containers and
pivot weight, regardless of container type, (see
unitised cargo.
pivot weight)
tare w eight Weight of the container, pallet or
outsourcing Obtaining a logistics service from
main deck unit when it is empty.
an external company instead of performing the
task in-house. transhipment freight Freight that is transferred
from one mode of transport to another.
overcarried cargo Cargo that has been left on
board when it should be unloaded. third party logistics provider (3P L ) Service
provider that performs all logistics functions.
pallet Platform on which goods can be stacked
for easy movement by forklifts or slings. tim etable Schedule of arrival and departure
of airlines.
partnership Customised business relationship
amongst trading partners. track and trace Close monitoring and recording
of air shipments from point of origin to final
perishable cargo Goods that are easily spoilt
destination.
or damaged when exposed to adverse weather
conditions. u n itis e d s h ip m e n t C o m bin atio n of many
packages or shipments into one unit.
pick and pack Involves selecting and packing
items into containers or pallet skids. unit load device (U L D ) The type of container
o r p a lle t in w h ic h a s h ip m e n t is b e in g
pivot w eight The minimum chargeable weight
transported.
assigned to anyAULD.
Universal Time Coordinated (UTC) Standard
p re-clearan ce Permission for import of cargo
time and date.
before arrival of the shipment.
valuable cargo Goods of high value such as
pro fo rm a invoice D raft invoice th a t can
gold bars and jewellery.
be used to obtain im port licences or to state
consignment value for letters of cre d it valuation charge Freight charge based on its
declared value for carriage.
quantity w eight W eight of a shipm ent that
qualifies for a quantity discount. w arehouse Place where goods are stored.
reservation Space request made by either the w eight break The w eight interval at which a
shipper or its appointed agents for transportation lower freight rate is charged.
of goods. zero-rated The tax to the buyer is 0% on zero-
reverse logistics Collection of used, damaged rated goods.
or outdated products and/or packages
A B B R E V IA T IO N S
GENERAL
3PL third party logistics provider MES M ajor Exporter Scheme

4PL fourth party logistics provider OPR over-pivot rate
ACCESS Advance Clearance for Courier and PO purchase order
Express Shipments System RF radio frequency
AGV automated guided vehicle S/OR spillover rate
AULD aircraft unit loading device SCR specific commodity rate
AVI live animals SDT Shipper’s Declaration for the
AWB air waybill Transport of Dangerous Goods
B/L bill of lading SIC Shipper’s Intermodal Weight
B2B business to business Certificate
B2B2C business to business to consumer SLI Shipper’s Letter of Instructions for
B2C business to consumer Despatch
BUP buildup pallets STC standard trading conditions
C2B consumer to business UTC Universal Time Coordinated
C2C consumer to consumer VAL valuable cargo
CASS Cargo Accounts Settlement System VAT value-added tax
CCA charges collection advice VMI vendor-managed inventory
CET Central European Time WOW
COD cash on delivery
CPFR collaborative planning, forecasting
ORGANISATIONS
and replenishment
DAP delivered at place
ABDG Advisory Body Dangerous Goods
DDP delivered duty paid
CFIATA)
DGR Dangerous Goods Regulations
ABIT Advisory Body Information
EDI electronic data exchange
Technology CFIATA)
EFT electronic fund transfer
ABLM Advisory Body Legal Matters
FAK freight ail kinds
CFIATA)
FBL FIATA M ultim odal Transport Bill of
ABPR Advisory Body Public Relations
Lading
CFIATA)
FCR Forwarders’ Certificate of Receipt
ABVT Advisory Body Vocational Traininq
FCT Forwarders’ Certificate of Transport
CFIATA)
FFI FIATA Forwarding Instructions
AFFA ASEAN Federation of Forwarders
FTA free trade agreement
Associations
FTZ free trade zone
AFI Airfreight Institute (FIATA)
FWB FIATA M ultim odal Transport
AVA Agri-Food and Veterinary Authority
Waybill
CAAS Civil Aviation Authority of
FWR FIATA Warehouse Receipt
Singapore
GCR general cargo rate
CAConf Cargo Agency Conference OATA)
G HA ground handling agent
CAI Customs Affairs Institute CFIATA)
GMT Greenwich Mean Time
CIAS Changi International A irport
GST Goods & Services Tax
Services
HUM human remains
CITES Convention on International Trade
LAR Live Animals Regulations
in Endangered Species of Wild
L/C letter of credit
Flora and Fauna
2 14
DCA Department of Civil Aviation OIE Office International des Epizooties

ECOSOC United Nations Economic and PSA Port of Singapore Authority
Social Council SAAA Singapore Aircargo Agents
Fl ATA International Federation of Freight Association
Forwarders Association SIA Singapore International Airlines
IATA International A ir Transport SLA Singapore Logistics Association
Association SNS Singapore Network Services
ICAO International Civil Aviation UIC International Union Airways
Organisation UNCITAL United Nations Commission on
ICC International Chamber of International Trade Law
Commerce UNCTAD United Nations Conference on
IRU International Road Transport Union Trade and Development
MTI M ultimodal Transport Institute UNO United Nations Organisation
CFIATA) WCO World Customs Organisation
NOL Neptune Orient Lines WTO World Trade Organisation
215
IN D E X
reservations 55, 76, 119, 130-131, 133, 144,
Abu Dhabi 53 192
ACCESS see Advance Clearance for Courier and urgent goods 20. 73, 76, 133, 142, 189
Express Shipments System A ir waybill (AWB) 27.28. 32-33, 37, 55, 66, 69-71,
Add-ons see constructed rates 76, 79,125-130, 132, 133, 137, 140, 143, 144,
Adelaide 56 157, 180, 189, 194
Advance Cargo Information Programme 24 amendments 129-130
Advance Clearance for Courier and Express direct air waybill 125
Shipments System 74 e-airwaybill 133
Advanced M anifest System 24 house air waybill 125, 127-128, 140. 143-
AFFA see ASEAN Federation o f Forwarders 144
Associations master air waybill 33, 69-71. 76, 125-128,
Affordability 190 140, 143-144, 157, 180, 189
Afghanistan 53 neutral air waybill 69, 128
Africa 17-19. 27. 29, 52-53 number 127-128. 130. 144, 194
Central 53 validity and duration 129
Eastern 53 Airborne 198
Indian Ocean Islands 53 Aircraft 16-17, 22, 24-25, 55. 65-66, 69-72, 81.
Southern 53 85, 154
Western 53 freighter 16-19, 67. 72-73, 76. 85-86, 122,
After-sales service 197, 199 131, 202-204
Agricultural products 23 types 66-67. 85-96. 130
A ir cargo 16-20, 22-27. 31. 33, 36-37, 52, 55. A irfreight see air cargo
65-71, 81, 85-87. 112-114. 116-119, 121, Airline geography 56
123-125. 127, 131, 133, 13 6-1 38, 140. Airlines 16-20, 22-27, 32-33, 55-56, 62, 65-80,
142, 144. 147, 149-153, 157, 160, 172, 175, 85-87, 112-113, 116-125. 127-131, 133,
180-181, 189, 192, 194-196 135-137, 140, 143-144, 146-147, 149-155,
acceptance 66. 68. 70-72. 119-120, 122, 157-159, 177, 189, 190-191, 194-201
124-125, 130, 135-136 codes 55-56
companies 16, 22, 28, 75, 80, 115, 146-147, A irp o rts 22-25, 56. 67, 69, 73-75. 117. 120,
189-193, 196-197, 199-201 128-129. 131-133, 135-137, 140, 157-158
growth 16-20. 22-23, 25. 95 codes 56-57, 66, 128
handling 20. 23-24, 26-27, 55, 65. 66-68, 71, Ajaccio 156
75. 77-78. 81. 113-114. 116-118, 120, Ajman 53
123-124, 128, 129-130. 133, 135-137, Albania 53
140, 149, 159. 192, 199-201 Alliances 25, 31, 33, 193, 197-198
inbound 68-70,74. 77,81,131. 137-138, 140, America 27, 29 see United States, the
142-143. 147, 193, 196, 202 intra North America 17, 19
management 16, 68, 80, 86-87, 124, 196 Latin America 17-19
manifest 69, 72, 128 North America 17-19, 52
market perform ance!8-20 South America 52
mixed commodities 24, 153, 180 A m m unition see controlled items, dangerous
movement 16-17. 22, 24, 29, 65, 69-70, 86, goods
134. 136, 159, 189, 194, 196 AM S see Advanced Manifest System
outbound 24, 68, 72, 76, 81, 130, 144, 192, Amsterdam 23. 57. 164. 172-175. 185. 188
201 Andorra 53
24-hour cooling period 24 Angola 53
216
Animals 19. 26. 55, 67-69, 76. 78. 81, 117-119, Belgium 53
129, 131, 142-143, 148-149, 151-153. 157. Belize 52
159, 175, 180. 189. 193, 195 Benin 53
certification 67 Bermuda 52
container requirements 67 Bhutan 23. 53
fats 23 Birds see animals
health restrictions 67 BMW 80, 146
Apparel 23. 149, 162, 195 Boeing Company, the 17-20
Argentina 52 Bolivia 52
Armenia 53 Booking slips 70-71
Arms see controlled items, dangerous goods Books 151-152. 177
Arowhanas see animals Bosnia and Herzegovina 53
ASEAN see Association o f Southeast Asian Botswana 53
Nations Brazil 52
ASEAN Federation of Forwarders Associations Break-bulk 73, 82
30 agents 79
w orking programmes 30 Breakeven weight 154-155, 162, 168
Asia 17-19, 27, 52-53, 81, 113 British Royal Navy 57
intra Asia 17-19 Brunei Darussalam 53
Asia-Pacific region 29 Bulgaria 53
South Asia 17, 19 Buildup pallet ( B L I P ) 69, 71. 76. 87, 128, 144,
Southeast Asia 81 151
ASRS see a u tom ated storage and retrie val Bullion see valuables
systems Burkina Faso 53
Association of Southeast Asian Nations 23, 30 Burundi 53
Associations, roles of 25-31 Business-to-business (B2B) ig o
Australia 18, 52-53, 56, 60, 63, 113, 135, 153 B usine ss-to -busine ss-to -con sum er CB2B2C)
Austria 28, 53 190
Automated storage and retrieval systems 114, Business-to-consumer CB2C) 189-190
116 Buyers 20. 22, 77. 79. 120. 134-138, 144, 146,
Automated data collection 194 189
Automated M anifest System 24
A uto m atic id en tification technology see bar C
codes CAAS see Civil Aviation Authority o f Singapore
Automobile parts 167-171 Cabotage 63-64
Aviation 22-23 C A C o n f see I n te rn a tio n a l A ir T ra n sp o rt
civil aviation 16. 25 Association: Cargo Agency Conference
authorities 24 Cairo 59
Azerbaijan 53 Cameroon 53
Azores 53 Canada 52
Canary Islands, the 53
B Cape Verde 53
Back orders 200 Cargo see air cargo
Baggage 16, 71, 86, 133, 151-152, 180 valuable cargo see valuables
Bahamas, the 52 Cargo Accounts Settlement System 27
Bahrain 53 Cargo Community Network 27
Balanced scorecard see scorecard Cargo rates 66.149-150, 152, 156, 166. 172, 175,
Banff 56 177, 183, 185, 191
Bangkok 57. 61. 155, 162, 175-177 commodity classification rates 150-152,160,
Bangladesh 53 175
Bank notes see valuables general cargo rates 66. 150-152, 160-162,
Banker guarantees 27 166. 172. 175, 177
Bar codes 28. 70. 195 normal cargo rates 150, 155, 167,
Beer 118 174-178, 183, 185
Belarus 53 quantity rates 66,150, 155, 168-169,
183. 185
217
minimum charges 66. 150-151, 160, 166, Columbia 52

171-172 Commodities see air cargo
precedence of rates 66. 152 Comoros 53
specific comm odity rates 66, 150-152, 160, Competitive global environm ent 16, 75, 159,
163, 172-174 189, 191
ULD rates 151-152, 183-188 Complaints 33, 192
container/pallet rates 151 Complexity 190, 201
deferred cargo rates 151 Computers 27, 68-69, 74, 138, 190, 192
freight-all-kind rates 151 networks 74
group rates 152 peripherals 26, 80, 155, 193
unified cargo rates 152 Conditions of carriage/contract 32-33,35,37-39,
Caribbean Islands, the 52 41-42, 125-127
Carriers see airlines Congo-Brazzaville 53
Cash-on-delivery 79 Congo-Kinshasa 53
CASS see Cargo Accounts Settlement System Consignee 23, 31-33, 35-36, 56, 67-70, 76-79,
Catalogues 151, 152, 177, 190 85, 118, 128-130. 133, 135-138, 140, 142-
Cats see animals 144, 148. 157, 191, 194
CCA see charges collection advice Consignor 35. 67, 76, 78, 129. 136-138, 150,
CCN see Cargo Community Network 157
Central African Republic, the 53 Consistency 199
Central European Time [CET] 59 Consolidations 72-73, 75-76, 79, 82, 125. 128.
Chad 53 140, 144, 189
Change 16, 190, 196, 199 partial 24
Changi International A irport 22, 68 Constructed rates 155-157
Changi Airport Group 25 Consumer-to-business CC2B) 190
Changi International Airport Services 68. 203 Consumer-to-consumer (C2C) 190
Cargo Centre 68 Container 67, 69. 71-72, 76, 86-87, 97-106, 112,
Singapore Changi A irfreight Centre 22, 84 117-119, 128, 131, 151, 183, 185
Airport Logistics Park 22 containerisation 112
Charges collection advice 129 Control of Import & Export A ct 142
Chem icals 23, 71, 142 see controlled item s: Control of Imports [Licensing) Order 142
endorsement goods Controlled items 78, 140, 142, 144, 146
Chennai 61 endorsement goods 23, 71, 142
C hicago C o nve ntion on In te rn a tio n a l Civil licensed goods 118, 142, 151
Aviation 25. 62 prohibited goods 26, 33, 65, 68-69. 71, 76,
International Air Services Transit Agreements 78. 118-119, 122-123,129. 131, 142.146,
62 148-149, 151, 157
Chile 52, 60 Convention on International Trade in Endangered
China 17-19. 23. 53 Species of Wild Fauna and Flora 67. 69, 118,
China Airlines 56 146, 206
Chinese Taipei 53 Conveyors 87. 113-114, 194
CIAS see Changi International Airport: Changi Cook Islands, the 53
International Airport Services Coolport@Changi 84
CITES see Convention on International Trade Corneas, dried 151
in Endangered Species o f Wild Fauna and Corrosive substances see dangerous goods
Flora Corruption 135
City codes 56, 66 Cost & Freight (C&F) 135. 137
Civil Aviation A uthority of Singapore 22, 25, Cost, Insurance & Freight CCIF) 135, 137, 147
74, 133 Cost, Insurance, Freight & Commission CCIFC)
Claims 33, 36, 69, 79, 135, 157-158 137
Clock, 12-hour 61 Costa Rica 52. 183
Clock. 24-hour 59 Cote d'Ivoire 53
Clock, atomic 57 C o un tries 24-25, 27. 33, 36, 62 -64 , 72-73,
Clothing see apparel 124-125, 128. 133-134, 140, 142-144, 146,
Co-loading 75 148, 155-156. 189
Collaborations 31, 193, 197 code 56, 125
218
Courses 24, 27, 77-78, 124, 200-201 Diplomatic goods 153

Creditability 27, 75 Disbursement fees 66. 159
Crimson Logic 74, 138 Discrepancy report 70
Croatia 53 Distribution centres 22, 82. 113-116, 195, 197
Cross docking 82. 208 Djibouti 53
Currency notes see controlled items Documentation 28, 33. 55. 66. 73-74, 77-78, 80.
Customer service 20, 76, 82, 116, 193, 196-198, 125, 134, 136-138. 140. 142-143. 144, 200
200-201, 206 electronic documentation 37, 68, 192
Customs 24. 28-29. 36, 43. 69. 72-78. 80. 125. Dogs see animals
127, 129, 131, 136-137, 140, 144, 146, 208 Dollies 87
duties, levies, taxes 36, 73, 77. 131, 134, 136, Dolphins see animals
138, 140, 146. 157-158 Drugs see controlled items: prohibited goods
duty rates 147 Dubai 53. 63. 164
Ad Valorem 147 Dubai A irport 23
composite/compound 147 Dubai Air Travel Agency 203
specific 147
Customs Act 142 E
Cyprus 53 E-commerce 28. 31, 190-194, 205
Czech Republic, the 53 Economic Development Board 134
ECOSOC see Economic and Social Council
D Ecuador 52
Dairy products see perishables EDB see Economic Development Board
Damage 32. 33, 36. 65. 70, 72. 78-79. 117-118. EDI see Electronic Data Interchange
120, 125. 127-128, 135-137, 157 Efficiency 16, 19, 22, 25, 29, 55. 68. 85. 113-114,
Dangerous goods 26-27, 29-30, 33, 36. 55, 65, 191, 196, 198-199
67.68, 76-78,81, 117-118, 121-124, 129. 131. Effectiveness 16. 25. 86, 133, 191, 193-195, 201
148, 157, 159, 180, 189, 200, 203 E-freight 133
danger levels 123 E-freight@Singapore 133
Danzas 198 EFT see electronic fund transfer
db-eBills 27 Egypt 59
Deadfreight 76 El Salvador 52
Declared value 32-33. 125. 127. 129-130, 151, Electrical products 23
157-158 Electronic Data Interchange 29, 35. 281
Delay 32, 33, 85, 125. 130 Electronic fund transfer 27, 191
Delhi 57 Electronic Payment Invoicing for Cargo 27
Delivered at Place CDAP) 77, 138. 147 Electronics 22. 26. 149. 193
Delivered Duty Paid (DDP) 77, 138 E-mail 140, 192
Delivery 33. 76, 78,80,82. 116, 120.127.129-130. Emirates Airlines 56
136, 138. 140. 192, 195, 197, 199 Endangered species see animals, controlled
delivery advice 36 items: prohibited goods
express delivery 81. 115 Engines 71
Just-In-Time delivery 147 EPIC see E le ctro nic Paym ent Invo icin g fo r
late delivery 147. 200 Cargo
non-delivery 33 Eritrea 53
proof of delivery 192 Essential oils 180-182
same-day delivery 20, 189 Estonia 53
Denmark 53 Ethiopia 53
Designators 56 Equatorial Guinea 53
tw o-letter 55-56 Europe 17-19, 27, 29, 52-53, 81. 113, 198
three-letter 55-56 Central 59
Deutsche Bank 27 intra Europe 17-19
Deutsche Post 198 Ex-works [EXW) 135-136
DHL 75. 81-82. 189, 198 Excess cargo 70, 153
Dimensions 71, 119, 129-131, 144, 153 Exchange rates 66, 86, 134-135, 153
conversions 131-132 Exel 80. 115
219
Explosives see controlled items: prohibited goods, G

dangerous goods Gabon 53
Export 65, 70. 72, 74-77, 118-119, 124, 128, 133, Gambia 53
136-138, 140. 144, 146, 148, 189, 196 Garments see apparel
Express freight see delivery: express delivery Georgia 53
Express operators 19. 74-75, 80-81, 189, 194 Germany 53
Extranet 192 GHAs see ground handling agents
Eyes, human 151 Ghana 53
Gibraltar 53
F GlaxoSmithKline 146
Fabrics 23 Global marketplace 16
Fake eyelashes 180-182 Goats see animals
Fédération Internationale des Associations de Goods see air cargo
Transitaires et Assimilés see International Goods & Services Tax [GST] 77, 140, 146
Federatio n o f F reight Forwarders Government 20. 22, 26, 28, 30-31, 33. 67, 75.
Associations 78, 118-119, 124, 133-135, 138, 144, 146,
FedEx see Federal Express 148, 191, 201
Federal Express 80-81, 189 agencies 24. 27. 74, 78. 118. 134, 142. 144,
Feedback 28, 191-192 191, 201
FIATA see International Federation o f Freight involvement 22
Forwarders Associations statutory boards 74
Fiji Islands, the 53 Greece 53
Films 78 Greenwich 57
Films Act 142 Mean Time [GMT) 57, 59, 61
Finland 53 Meridian 57
Firearms see dangerous goods Ground handling agents 20, 22, 67-73, 76-78,
Firecrackers see controlled item s: prohibited 80. 86-87, 113. 116. 122-123. 128, 137, 140.
goods 143-144, 194-195
Flammable material see dangerous goods Guam 53
Flexibility 148. 190-191, 196-197, 199 Guatemala 52
Flight time 61 Guinea Bissau 53
Flowers see perishables Guyana 52
Foreign exhange see exchange rates
Fourth party logistics providers [4PLs) 75. 81 H
Fragile items 131 Hague Protocol 37
France 53 Hazardous goods see dangerous goods
Free on Board [FOB) 135-136 Helsinki 161
Free trade agreement [FTA) Herbs 76. 78. 148
China-ASEAN FTA 23 Hewlett-Packard 80, 146
Free trade zone [FTZ) 23, 70, 73-75, 140 Honduras 52
facilities 73 Hong Kong 18. 24. 53. 57. 158. 161
Freight see air cargo Horses see animals
charges 36, 52, 66, 137, 144. 152-153, 159, Houston 56
180-181, 189 Hum an rem a ins 19, 26, 69, 117-1 19. 124,
prepaid 66. 129 151-153, 175, 179
collect 66, 129 coffin 124
forwarders 16, 19-20, 23-24, 26-28, 30-32, death certificate 124
3 5 -3 6 , 56, 67. 68 -76 . 78 -79 , 86-87, em balming/m edical certificate 124
112-114, 116. 118. 120, 124-125, 127- undertaker 124
131, 133, 140, 142, 144, 146-147, 149, Hungary 53
151-152, 156, 158-159, 189, 190-192,
194-201 I
French Guiana 52 IATA see International A ir Transport Association
French Polynesia 53 IBM 81, 195
Fuel surcharges 17, 23 ICAO see International Civil Aviation
Fujairah 53 Organisation
220
ICC see International Chamber o f Commerce International Civil Aviation Organisation 24-25,
Iceland 53 67
Import 65.69, 73-78, 118, 124. 134-138, 140. 142, Technical Instructions for the Safe Transport
146-148, 190-191, 196, 200-201 of Dangerous Goods by Air 65, 118
license 76, 119. 136. 138. 140, 142-143 International dateline 57
Incoterms 76, 78, 135-137 International Enterprise Singapore 134
India 23, 53 International Federation of Freight Forwarders
Indonesia 18, 23, 53 Associations 27-30. 200
Industry 20, 22-23, 25. 27-28, 31, 75, 80. 85. 136, Advisory Body Dangerous Goods (ABDG)
147, 159, 193, 197. 200-201 29
accreditation 26, 192 A dvisory Body In fo rm a tio n T echnology
products and services 26, 190-193, 197 [ABIT) 29
standards and procedures 26, 30, 31, 55, Advisory Body Legal Matters (ABLM ) 29
74-75, 77-78, 118. 121, 134 Advisory Body Public Relations (ABPR) 29
support 26. 55 Advisory Body Vocational Training [ABVT)
viability and recognition. 26, 55 29
Infocomm Development Authority 133 Airfreight Institute (AFI) 29
Inform ation technology [IT) 29, 69, 80, 191, Customs Affairs Institute (CAI) 29
195-196. 198-201 Forwarders Certificate of Receipt (FCR) 29
Infrastructure 22, 191, 204 Forwarders Certificate of Transport (FCT) 30
Insulated container see container Forwarding Instructions [FFI] 30
Insurance 17.30.36. 66, 71, 79.124, 127,129-130, Multimodal Transport Institute (MTI) 29
134-137, 157-159 Multim odal Transport Bill of Lading (FBL)
"all risks”/"shipp er’s interest” 79. 157 30
charges 157 Multimodal Transport Waybill (FWB) 30
“open policy” 79 National Association 29
Integrators see express operators Shippers Declaration for the Transport of
Interline arrangement 33, 55, 66, 125 Dangerous Goods [SDT) 30
International A ir Transport Association 23-28, Shippers In te r-M o d a l W eight C e rtificate
37, 55-56, 86. 117-118, 121-124. 128-130, (SIC) 30
133, 149, 200 Warehouse Receipt (FWR) 30
Agency Adm inistrator 27 World Congress 29
Agents’ Handbook 26 International Road Transport Union 28
areas 52-53, 57, 66, 151, 160 International Union Airways 28
Cargo Agency Conference 26 Internet 190-191, 193-194
Cargo Agency Programme 26 revolution 191
Cargo Agent 27 Intranet 192
Cargo Legal Working Group 37 Inventory 82, 147, 194, 196
Dangerous Goods Regulations 26-27. 65,67. management 80. 195
118, 121, 124. 200 vendor-managed 196
Global Aviation Security Action Group 23 Investors 22, 134
Legal Advisory Council 37 Iran 26. 53
Live Animals Regulations 26. 67. 118-119 Iraq 53
Perishable Cargo Manual 26 Ireland 53
Recommended Security Standards 23 IRU see International Road Transport Union
Resolutions 26, 37 ISO certification 20
Security Committee 23 Israel 53
Security Manual 24 Italy 53
Security Resolution 23
Standard Interline Traffic Agreement 55 J
TACT (The A ir Cargo Tariff) M anuals 56, Jakarta 57, 172-175
65-66. 125, 129, 148-150, 156-157, 159, JAL Cargo 33, 197
177, 180 Japan 18, 53, 56
International Chamber of Commerce 28, 76 Jewellery see valuables
Jordan 53
221
K Market share 159, 196, 198

Kampuchea 53 Marshall Islands, the 53
Kaplan. Robert S. 200 Mass customisation 181, 187-188
Kenya 53 Materials handling see air cargo handling
Kitting 80, 196, 208 equipment CMHE) 68, 114
KLM Royal Dutch Airlines 56 Mauritania 53
Korea, North 53 M auritius 53
Korea, South 18. 53 Mayotte 53
Kuala Lumpur 57, 166-171 Meat see controlled items: prohibited goods,
Kuwait 53 perishables
Mechanical parts 23
L Melbourne 60
La Plata 56 Merger 197
Labelling 67. 117-120. 123-124 MES see Major Exporter Scheme
Laos 53 Mexico 52
Latvia 53 Micronesia 53
Lebanon 53 M iddle East 17-19, 27, 29, 52-53
Legal considerations 32, 124, 134, 142 Mineral products 23
Letters of credit CL/Cs) 76. 138. 144 Missing cargo 70-72, 76, 191
Lestotho 53 Mixing 73, 82. 189 see air cargo: mixed
Levitt. Theodore 200 commodities
Liability 28, 33, 36, 67, 79, 125, 157-158 Moldova 53
limitations 32-33. 37, 125 M ongolia 53
Liberia 53 Monkeys see animals
Liechtenstein 53 Montreal Convention 32-33, 37, 157
Lithuania 53 Morocco 53
Livestock see animats Mozambique 53
Load-sheet 69 M ultim odal transport 117
Lobsters see animats Myanmar 23, 53
Lodgement 24. 67, 72. 80
London 52, 57. 159-160. 163. 183-184, 189 N
Los Angeles 61 Narcotics see controlled items: prohibited
Lost goods 33, 78 goods
Lufthansa Cargo 33, 197, 199 Narita 62
Luxembourg 53 Nauru 53
Nepal 23
M Netherlands, the 53. 185
Macau 53 New Caledonia 53
Macedonia 53 New York 52, 60-61, 166-171
Machines 23, 71. 115, 193 New Zealand 52-53, 185
Madagascar 53 Newspapers 143, 151-152, 165. 177-179
Madeira 53 Nicaragua 52
Magazines 142, 151-152, 177 Niger 53
Magnetised material see dangerous goods Nigeria 53
M ajor Exporter Scheme 146 Niue 53
Mail, electronic see e-m ail Northern Mariana Islands, the 53
Mail, postal 16, 22. 25, 55, 71, 73, 180 Norton, David P. 200
Malawi 53 Norway 53
Malaysia 18. 23. 53, 56
Mali 53 O
M alta 53 OAG, Cargo Guide W orldwide 65. 67
Mammals see animals OAG, Cargo Rules Supplement 65, 67
Manila 57, 158 Odd-sized cargo 112
Manuals see publications Office International des Epizooties 67
M anufacturing 22, 80, 133 Offloading 72, 87, 131
222
01E see Office International des Epizooties PRC (People's Republic of China) see China
Oil prices 23 Pre-clearance 69, 74. 76
Oil rig drilling parts 185. 188 Prefix numbers see airline codes
Oman 53 Pro forma invoices 76, 136, 140, 143
One-stop service 75, 198 Productivity 85, 116, 191
"Open sky” policy 22 Professionalism 30, 201
Over-pivot rate 152 Profitability 20, 192-193
Over-pivot w eight 152 Prohibited goods see controlled items
Overcarried cargo 70. 78 Prohibition of Import, Export and Transhipments
Order 142
P Proof of delivery see delivery
Pacific. Southwest 53, 81 Publications 26. 56. 65-67. 78, 118, 149
Packing 26. 33, 41. 44, 65, 67. 71. 76, 80, 113, Published rates see cargo rates
116-124, 128, 135-137, 208
Packaging 35. 117-118. 157-158. 195. 208 Q
Pakistan 53 Qatar 53
Palau 53 Qian Hu Corporation Limited 195
Palestinian Territory, the 53
Pallets 68-69, 71-72, 76. 86-96, 105-114, 128, R
131, 151, 196 Radio frequency identification chips 195
Panalpina 146, 198 Radio frequency scanners 28. 69, 194
Panama 52 R adioactive m aterials see co n tro lle d item s:
Pandas see animals prohibited goods, dangerous goods
Papua New Guinea 53 RAR see Regulated Agents Regime
Paraguay 52 Ras al Khaimah 53
Paris 156 RCAR see Regulated Cargo Agent Regime
Part-to-picker systems 115 Records 119, 125, 192
Partnerships 31, 193. 196-199 electronic 37
People’s Developer 22 Regulated Agents Regime 24
Performance matrix 200 Regulated Cargo Agent Regime 24, 124
P erfo rm a nce m easurem ent sco re ca rd see Regulations 26, 31. 33, 52. 55. 65-67, 118-119,
scorecard 121-122, 124. 130, 142
Performance reviews 199-200 Reliability 27. 75. 80. 85. 148, 194. 196. 198-199
Periodicals 78, 151-152, 177 Responsiveness 16, 195
Perishables 19, 26, 36. 54. 68-69. 71. 76, 78. Reunion Island 53
103-104, 117-120, 129, 131, 133, 143, 149, Reverse logistics 201, 208
157, 193, 203 Rice see controlled items
Peru 52 Rights 25-26, 33, 36. 62, 129, 144
Pharmaceuticals see controlled items: nine freedoms 62-64
endorsement goods Risks 124, 134-136. 159, 195
Philippines, the 18, 53, 56 Romania 53
Pick and pack 115, 196 Routing 128, 130, 133, 150
Picker-to-part systems 116 Russia 53
Pigs see controlled items: licensed goods Rwanda 53
Pivot rate 152, 183
Pivot w eight 112, 152, 183, 185-187 S
Plants see controlled items: prohibited goods SAAA see Singapore Aircargo Agents
oil 23 Association
POD see delivery: p ro o f o f delivery Safety 25-26, 55, 67. 77-78, 87, 116, 121-122,
Poisons Act 142 124, 147
Poland 53 Sales of Goods and Drugs Act 142
Poultry see animals, controlled items: licensed Samoa 53
goods Samoa. American 53
Portugal 53 San Francisco 57, 150, 158
Poultry see animals San M arino 53

02 Airfreight Forwarding

Uploaded by

Copyright:

Available Formats

02 Airfreight Forwarding

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

02 Airfreight Forwarding

Uploaded by

Copyright:

Available Formats

G u id e s to In te rn a tio n a l Logistics

Straits Times Press

Author The Singapore Logistics Association with

Straits Times Press Team

A ll rig h ts rese rve d. No p a rt o f th is p u b lic a tio n may be re p ro d u c e d ,

ISBN 978 981 4266 25 3

National Library Board (Singapore] Cataloguing in Publication Data

Ho, Chee Mun.

I. Aeronautics, Commercial - Freight. 2. Freight and freightage - Management.

her love, dedication and support,

and whose life has really inspired

To all my business associates and

friends for their unfailing support

Message from the SLA

Message from the SAAA

About the SLA

• promote, protect and develop a sound logistics industry:

• develop, promote and enhance Singapore as a premier regional and international

• represent, protect and promote the general interests of members.

These publications add to the association's publication series of Guides to International

In all, twelve crucial topics have been mapped out.

Chapter One: This is an introduction to the government agencies and associations

logistics providers, and integrators/express operators. The process of cross docking is

Chapter Eleven: The importance of e-commerce in today’s business environment is

I would like to express my heartfelt appreciation to the organisations involved -

• Changi International Airport Services [CIAS)

• Civil Aviation Authority of Singapore (CAAS)

• Customs & Excise Department, Singapore

• Economic Development Board

• Health Sciences Authority

• International A ir Transport Association (IATA)

• International Civil Aviation Authority [ICAO)

• Qian Hu Corporation Ltd

• Singapore Aircargo Agents Association (SAAA)

Introduction Evolution of air cargo 16

Chapter Five Ground Handling Agents 68

• Nature of goods 131

Construction of add-ons or unpublished rates 155

Chapter Eleven Inform ation and IT 190

dramatic change too - companies focused increasingly on getting goods to customers

2011 Air Cargo Growth by M ajo r M ark et (°/o)

Air Cargo M ark et Performance - Contributions to Regional Traffic (°/o)

Asian Cargo M arkets:

Historical & Forecast Air Cargo Growth Rate

Forces and Constraints for Air Cargo Growth

World Airfreight Market Will More Than Triple in 20 Years*

* Excludes countries of the former Soviet Union

Baseline Cargo Forecast 2001 Baseline Cargo Forecast 2021

C2001 - U S/29.7% , N o n -U S /7 0 .3 % ) C2021 u s / 2 6 -1%- N o n -U S /7 3 .9 % )

• Recommended Security Standards;

• a Security Committee (SEC); and

• the Global Aviation Security Action Group (GASAG).

• East Coast ports of entry: August 2004

• Central US ports of entry: October 2004

• West Coast ports of entry: December 2004

Changi Airport Group (S} Pte Ltd

• ensure the safety and orderly growth of worldwide civil aviation;

• encourage the development of airways, airport and air navigation facilities;

• eliminate unfair competition and practices; and

• promote flight safety and further developments in international civil aviation.