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Air
Freight
Benefits of Air Freight
- Faster delivery
The ports worldwide can be reached in 1
or 2 days or in a few hours by air freight, thus reducing
the risks of theft, pilferage and damage to the goods. Delivery
to certain areas may take several weeks to arrive by ocean
and land freight. Time sensitive or perishable goods, such
as fresh seafood and flowers, often rely on the air freight.
- Better security
Air freight has a tighter control over
its cargo, thus it has better security that reduces the cargo
exposure to theft, pilferage and damage.
- Less packaging
Air freight requires less packaging because
of faster delivery and better security. Less packaging may
mean saving freight, packaging and labor costs.
- Lower insurance
Air freight is faster and has better security
than the land and ocean freight, thus the insurance premium
rate generally is lower.
- Shorter collection time in an
open account trade arrangement
The time to collect payment in an open
account trade arrangement most often
runs from the time the customer receives the goods and not from
the time the goods are dispatched. Air delivery is fast, thus
the collection time is shorter.
Weight or Measure
in the Freight Cost Calculation
The freight rate on export goods is often based on W/M
(weight or measure), that is, based on the weight or
the volume of cargo (the cube or measurement of cargo). The
rate uses the comparative relation between weight and volume
of cargo. A cargo that is large in relation to its weight is
charged according to its total cube, while a cargo that is heavy
in relation to its size is charged according to its gross weight.
In general, light cargo is charged based on measure, while heavy
cargo based on weight. Most sea consignments are charged based
on measure, while most air consignments are charged based on
weight.
The freight cost by weight or measure that will give the carrier
the higher revenue is the rate that applies.
The unit of ton being used in the freight
cost calculation may differ among carriers. It can be a metric
ton (2204.6 lbs. or 1000 kgs.),
a short ton
(2000 lbs. or 907 kgs.), or a long
ton (2240 lbs. or 1016 kgs.).
The exporter must verify with the carrier which unit is being
used. In practice, the most frequently used is the metric ton.
Units of Weight or Measure Commonly
Used
in the Freight Cost Calculation
LEGEND: |
MT |
= |
metric ton
|
kg. |
= |
kilogram
|
lb. |
= |
pound
|
CBM |
= |
cubic meter
|
cu. cms. |
= |
cubic centimeters
|
cu. ft. |
= |
cubic feet
|
cu. ins. |
= |
cubic inches
|
Weight or Measure in the Freight Cost
Calculation
MODE
OF TRANSPORTATION |
WEIGHT |
or |
MEASURE |
Ocean Freight |
1
MT
(1000 kgs.) |
or |
1
CBM
(35.3 cu. ft.) |
|
Air Freight |
1
MT
(1000 kgs.) |
or |
6
CBM
(211.8 cu. ft.) |
1
kg. |
or |
6000
cu. cms.
(366 cu. ins.) |
1
lb. |
or |
166
cu. ins. |
|
Road and Rail Freight |
1
MT
(1000 kgs.) |
or |
3.3
CBM
(116.5 cu. ft.) |
1
kg. |
or |
3300
cu. cms.
(201.3 cu. ins.) |
1
lb. |
or |
91.3
cu. ins. |
|
Some freight carriers may use the (long
ton) 2240 lbs. (as weight)
or 40 cu. ft. (as measure)
in the freight cost calculation.
In ocean freight, some freight carriers may use the terms U.S.
shipping ton and British
shipping ton. One (1) U.S. shipping
ton is equivalent to 40 cubic feet, and one (1) British shipping
ton is equivalent to 42 cubic feet.
Other units may be used in the inland freight
cost calculation. For example, the inland freight could be charged
on a per package basis, but within a maximum allowable weight
and/or cube per package. Some carriers may rate a product on
a weight basis only.
In the case of irregular shaped cargo, the weight or measure
applies, where the measure is determined by taking the three
widest dimensions that describe the smallest cubic space enclosing
the cargo.
Freight Adjustments
Currency Adjustment Factor (CAF)
In times of unstable currency, the freight
rate is often quoted with a currency adjustment
factor (CAF) to cover an additional charge for currency
appreciation. The CAF, if any, is indicated on the bill
of lading. The tariff of most international carriers
uses the U.S. dollar as the basis of the freight cost calculation.
The CAF allows for fluctuations in the value of the dollar against
the currency in which the carrier earns its revenues.
Bunker Adjustment Factor (BAF)
The term bunker refers
to oil. It may also refer to a compartment on a ship for storing
fuel, that is, oil in modern ships and coal in old-time steamships.
In times of unstable oil prices, the freight
is often quoted with a bunker adjustment
factor (BAF) to cover an oil price hike. The BAF, if
any, is indicated on the bill of lading. The BAF allows for
fluctuations in the cost of oil.
Freight Payment
Freight Prepaid and Freight Collect
The term freight used
here refers to transportation charges. The INCOTERMS (International
Commercial Terms) determine whether the shipper or the consignee
is responsible for paying the freight.
Freight Prepaid
Freight
prepaid means the freight
has been paid or prepaid by the shipper. The trade terms
CFR (C&F), CIF,
DAF, CPT,
CIP, DDU,
DDP, DES,
and
DEQ require
a prepayment of the cost of main carriage.
In a prepaid delivery, the letter
of credit (L/C) normally requires that the words "Freight
Prepaid" be marked on
the bill of lading (B/L), clearly indicating payment or prepayment
of freight at port (or point) of origin. The mark may appear
by stamp or be indicated by other means. The words "freight
to be prepaid" or "freight
prepayable" or similar
wording that may appear on the B/L do not prove that the freight
has been paid.
In a prepaid delivery by a courier, the transport document
(i.e., the courier's receipt) issued by a courier or expedited
delivery service must show that the courier charges have been
paid or prepaid by the shipper.
Freight Collect
Freight
collect means that the freight still
has to be paid by the consignee. The trade terms FOB,
FAS, EXW,
and FCA require a collection of
the cost of the main carriage.
In a collect delivery, the letter of credit
(L/C) normally requires that the words "Freight
Collect" be marked on
the bill of lading, clearly indicating freight payable at
destination. The mark may appear by stamp or be indicated
by other means.
A collection
charge usually is included in the freight rate or is collected
separately. Hence, the freight charged on a collect basis
is normally higher than on a prepaid basis.
Shipment Control
Proper control of the date of shipment is very important
in the exporting. A delayed shipment may mean
losing the order and the customer's trust.
In the sample letter of credit (L/C) the latest
shipment is March 19, 2001. The latest negotiation is 15 days
after the date of shipment which would be April 3, 2001, but
the L/C expires on March 26, 2001. Hence, the latest negotiation
date would be March 26, 2001 if the shipment is on March 19,
2001, which means that the UVW Exports
must present the documents to The Moon
Bank within 7 days after the date of shipment.
Seaports of the World
Go to continent or region:
Africa | America
(North) | America (Central)
|
America (South) | Asia
| Middle East |
Europe (Western) | Europe
(Eastern) | Oceania/Australasia
Certain countries are landlocked
and so are inaccessible by deep-sea ocean
vessels. Import and export goods must be transhipped
in other country(ies) by means of truck and/or rail and/or inland
waterway (river, canal or lake) transports. Please see Landlocked
Countries and Transhipping Points.
Some port names may be spelled differently, for
example, Bourgas in Bulgaria may
appear as Burgess.
Certain seaport and country names may contain foreign
(non-English) characters. Please use Internet Explorer browser
to display the foreign characters properly.
Africa |
Country (Area)
|
Seaport |
Algeria |
Algiers
Annaba
Oran
Skikda |
Angola |
Lobito
Luanda
Soyo |
Benin |
Cotonou |
Botswana |
landlocked |
Burkina Faso
(Upper Volta) |
landlocked
|
Burundi |
landlocked |
Cameroon |
Douala |
Cape Verde Islands |
Praia |
Central African Rep. |
landlocked |
Chad |
landlocked |
Congo |
Pointe Noire |
Côte d'Ivoire
(Ivory Coast) |
Abidjan
|
Djibouti |
Djibouti |
Egypt |
Alexandria
Damietta
Port Said |
Equatorial Guinea |
Bata
Malabo |
Ethiopia |
Assab
Massawa |
Gabon |
Libreville (Owendo)
Port Gentil |
Gambia |
Banjul |
Ghana |
Tema |
Guinea |
Conakry |
Guinea-Bissau |
Bissau |
Kenya |
Mombasa |
Lesotho |
landlocked |
Liberia |
Buchanan
Monrovia |
Libya |
Benghazi
Tripoli |
Madagascar |
Majunga
Tamatave |
Malawi |
landlocked |
Mali |
landlocked |
Mauritania |
Nouakchott |
Mauritius |
Port Louis |
Morocco |
Agadir
Casablanca
Ceuta |
Mozambique |
Beira
Maputo
Nacala |
Namibia |
Luderitz |
Niger |
landlocked |
Nigeria |
Calabar
Lagos-Apapa
Port Harcourt
Warri |
Réunion |
Pointe des Galets |
Rwanda |
landlocked |
St. Helena |
Jamestown |
- Ascension |
|
- Tristan da Cunha |
|
Sao Tomé
and Principé |
Sao Tomé
|
Senegal |
Dakar |
Seychelles |
Victoria |
Sierra Leone |
Freetown |
Somalia |
Berbera
Mogadishu |
South Africa |
Cape Town
Durban
East London
Port Elizabeth
Saldanha Bay |
Sudan |
Port Sudan |
Swaziland |
landlocked |
Tanzania |
Dar es Salaam
Mtwara
Tanga
Zanzibar |
Togo |
Lome |
Tunisia |
Sfax
Sousse
Tunis-La Goulette |
Uganda |
landlocked |
Zaire |
Boma
Matadi |
Zambia |
landlocked |
Zimbabwe |
landlocked |
|
|
America - North |
Country (Area)
|
Seaport |
Canada |
Halifax, NS
Montreal, PQ
Quebec, PQ
Saint John, NB
Toronto, ON
Vancouver, BC |
Mexico |
Coatzacoalcos
Guaymas
Lázaro Cárdenas
Manzanillo
Salina Cruz
Tampico
Tuxpan
Veracruz |
U.S.A. |
Baltimore, MD
Baton Rouge, LA
Beaumont, TX
Boston, MA
Brownsville, TX
Buffalo, NY
Canaveral, FL
Charleston, SC
Chicago, IL
Cleveland, OH
Corpus Christi, TX
Detroit, MI
Duluth-Superior, MN
Erie, PA
Freeport, TX
Galveston, TX
Gulfport, MS
Hampton Roads, VA
Honolulu, HI
Houston, TX
Jacksonville, FL
Lake Charles, LA
Long Beach, CA
Los Angeles, CA
Milwaukee, WI
Mobile, AL
New Orleans, LA
New York, NY
Oakland, CA
Orange, TX
Palm Beach, FL
Panama City, FL
Pascagoula, MS
Pensacola, FL
Philadelphia, NJ
Port Arthur, TX
Port Everglades, FL
Portland, ME
Portland, OR
Sacramento, CA
San Diego, CA
San Francisco, CA
Savannah, GA
Seattle, WA
Stockton, CA
Tacoma, WA
Tampa, FL
Toledo, OH |
|
|
America - South |
Country (Area)
|
Seaport |
Argentina |
Bahía Blancar
Buenos Aires
Santa Fe |
Bolivia |
landlocked |
Brazil |
Belem
Fortaleza
Paranagua
Recife
Rio de Janeiro
Rio Grande
Salvador
Santos |
Chile |
Antofagasta
Arica
Iquique
Punta Arenas
San Antonio
Talcahuano
Valparaiso |
Colombia |
Barranquilla
Buenaventura
Cartagena |
Ecuador |
Esmeraldas
Guayaquil |
Falkland Islands
(Malvinas) |
Stanley |
French Guiana |
Cayenne |
Guyana |
Georgetown |
Paraguay |
Asuncion |
Peru |
Callao
Matarani
Paita
Salaverry |
Suriname |
Paramaribo |
Uruguay |
Montevideo |
Venezuela |
La Guaira
Maracaibo
Puerto Cabello |
|
|
America
- Central |
Country (Area)
|
Seaport |
Anguilla |
Sandy Ground |
Antigua and Barbuda |
St. John's |
Aruba |
Oranjestad |
Bahamas |
Freeport
Nassau |
Barbados |
Bridgetown |
Belize |
Belize City |
Bermuda |
Hamilton |
Cayman Islands |
George Town |
Costa Rica |
Puerto Caldera
Puerto Limon
Puntarenas |
Cuba |
Havana |
Dominica |
Roseau |
Dominican Republic |
Rio Haina
Santo Domingo |
El Salvador |
Acajutla |
Grenada |
St. George's |
Guadeloupe |
Pointe á Pitre |
Guatemala |
Santo Tomas de Castilla |
Haiti |
Cap Haitien
Port au Prince |
Honduras |
Puerto Cortés |
Jamaica |
Kingston |
Martinique |
Fort de France |
Montserrat |
Plymouth |
Netherlands Antilles |
Willemstad
Curacao |
Nicaragua |
Corinto |
Panama |
Balboa
Colon
Cristobal |
Puerto Rico |
Ponce
San Juan |
St. Kitts and Nevis |
Basseterre |
St. Lucia |
Castries |
St. Vincent
and Grenadines |
Kingstown
|
Trinidad and Tobago |
Port of Spain |
Turks and
Caicos Islands |
Grand Turk
|
Virgin Islands (U.S.) |
St. Croix |
|
|
Asia
- Far & Near East |
Country (Area)
|
Seaport |
Afghanistan |
landlocked |
Bangladesh |
Chalna
Chittagong |
Bhutan |
landlocked |
Brunei |
Muara Port |
Cambodia |
Kompong Som |
China |
Dalian
Huangpu
Qingdao
Shanghai
Tianjin
Xiamen |
- Hong Kong |
Hong Kong |
- Macau |
Macau |
East Timor |
--- |
India |
Bombay
Calcutta
Cochin
Madras
Mangalore |
Indonesia |
Balikpapan
Belawan
Jakarta
Palembang
Pontianak
Semarang
Surabaya
Ujung Pandang |
Japan |
Hakata
Hiroshima
Kobe<BR
Moji
Nagoya
Osaka
Shimizu
Tokyo
Yokohama |
Kazakhstan |
Gur'yev |
Korea, North |
Chongjin
Nampo
Wonsan |
Korea, South |
Inchon
Pohang
Pusan (Busan) |
Kyrgyzstan |
landlocked |
Laos |
landlocked |
Malaysia |
Klang (Kelang)
Kota Kinabalu
Kuching
Penang
Sandakan
Sibu |
Maldives |
Male |
Mongolia |
landlocked |
Myanmar (Burma) |
Yangon (Rangoon) |
Nepal |
landlocked |
Pakistan |
Qasim
Karachi |
Philippines |
Cebu
Davao
Iloilo
Legaspi
Manila
Zamboanga |
Singapore |
Singapore |
Sri Lanka |
Colombo |
Taiwan |
Kaohsiung
Keelung
Taichung |
Tajikistan |
landlocked |
Thailand |
Bangkok
(Laem Chabang)
Songkhla |
Turkmenistan |
Krasnovodsk |
Uzbekistan |
landlocked |
Vietnam |
Da Nang
Haiphong
Ho Chi Minh |
|
|
Asia
- Middle East |
Country (Area) |
Seaport |
Bahrain |
Manama |
Irag |
Basra
Um Qasr |
Iran |
Bandar Abbas
Bandar Khomeini |
Israel |
Ashdod
Eilat
Haifa |
Jordan |
Aqaba |
Kuwait |
Shuaiba
Shuwaikh |
Lebanon |
Beirut
Tripoli |
Oman |
Mina Qaboos |
Qatar |
Doha |
Saudi Arabia
|
Dammam
Jeddah
Jubail
Yanbu |
Syria |
Lattakia
Tartous |
Turkey |
Istanbul (port in Europe)
Izmir
Mersin |
United Arab Emirates
|
Abu Dhabi
Dubai
Sharjah |
Yemen |
Aden
Hodeidah |
|
|
Europe
- Western |
Country (Area)
|
Seaport |
Andorra |
landlocked |
Austria |
landlocked |
Belgium |
Antwerp
Ghent
Ostend
Zeebrugge |
Channel Islands |
St. Helier
St. Peter Port |
Cyprus |
Larnaca
Limassol |
Denmark |
Aarhus
Copenhagen
Esbjerg
Odense |
Finland |
Helsinki
Kotka
Rauma
Turku |
France |
Bordeaux
Calais
Dunkirk
Le Havre
Marseilles
Paris
Sete |
Germany |
Bremen
Bremerhaven
Hamburg
Kiel
Rostock |
Gibraltar |
Gibraltar |
Greece |
Piraeus
Thessaloniki (Salonika) |
Iceland |
Reykjavik |
Ireland |
Cork
Dublin
Waterford |
Isle of Man |
Douglas |
Italy |
Genoa
La Spezia
Leghorn (Livorno)
Naples
Palermo
Trieste
Venice |
Liechtenstein |
landlocked |
Luxembourg |
landlocked |
Malta |
Valletta |
Netherlands
(Holland) |
Amsterdam
Rotterdam |
Norway |
Aalesund
Bergen
Drammen
Kristiansand
Oslo
Stavanger |
Portugal |
Leixoes
Lisbon
Oporto
Setubal |
San Marino |
landlocked |
Spain |
Algeciras
Alicante
Barcelona
Bilbao
Cadiz
Las Palmas
Valencia |
Sweden |
Gothenburg
Helsingborg
Malmo
Stockholm |
Switzerland |
landlocked |
United Kingdom |
Aberdeen
Belfast
Cardiff
Clyde Ports
(Glasgow, Greenock)
Felixstowe
Forth Ports
(Grangemouth, etc.)
Grimsby
Hull
Liverpool
London
Manchester
Southampton |
|
|
Europe
- Eastern |
Country (Area)
|
Seaport |
Albania |
Durrés |
Armenia |
landlocked |
Azerbaijan |
Baku |
Belarus
(Byelorussia) |
landlocked
|
Bosnia-Herzegovina |
landlocked |
Bulgaria |
Bourgas (Burgess)
Varna |
Croatia |
Rijeka
Split |
Czech Republic |
landlocked |
Estonia |
Tallinn |
Georgia |
Batumi
Sukhumi |
Hungary |
landlocked |
Latvia |
Riga |
Lithuania |
Klaipeda |
Macedonia,
Former Yugos. Rep. |
landlocked |
Moldova |
landlocked |
Poland |
Gdansk
Gdynia
Szczecin |
Romania |
Constantza |
Russian Federation |
Nachodka (port
in Asia)
Murmansk
St. Petersburg
Arkhangelsk (Archangels)
Vladivostok (port in Asia)
|
Slovak Republic |
landlocked |
Slovenia |
Koper |
Ukraine |
Odessa |
Yugoslavia, Fed. Rep.
- Serbia
- Montenegro |
Kotor (Cattaro) |
|
|
Oceania
/ Australasia |
Country (Area)
|
Seaport |
American Samoa |
Pago Pago |
Australia |
Adelaide, SA
Brisbane, QLD
Darwin, NT
Fremantle, WA
Geelong, VIC
Hobart, TAS
Melbourne, VIC
Newcastle, NSW
Perth, WA
Sydney, NSW
Townsville, QLD |
Christmas Island |
Kiritimati |
Cook Islands |
Mangaia
Rarotonga |
Fiji |
Lautoka
Suva |
French Polynesia
(Tahiti) |
Papeete |
Guam |
Apra (Agana) |
Hawaii |
Honolulu |
Kiribati |
Tarawa |
Marshall Islands |
Majuro |
Nauru |
Nauru |
New Caledonia |
Noumea |
New Zealand |
Auckland
Christchurch
Dunedin
Lyttelton
Napier
Timaru
Wellington |
Niue |
Alofi |
Papua New Guinea |
Lae
Madang
Port Moresby
Rabaul |
Samoa
(Western Samoa) |
Apia |
Solomon Islands |
Honiara |
Tonga |
Nuku'alofa |
Tuvalu |
Funafuti |
Vanuatu |
Vila |
|
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Export Shipping Instructions
When an exporter engages a custom broker or forwarder
to handle the customs declaration, he/she must give instructions
on what to do with the shipment in the shipping instructions.
The format of the shipping instructions varies, but all the
forms essentially contain the same information. One form is
often used in different modes of transportation.
Request Blank form of shipping instruction, ---link
to contact us.
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