The operational process and cost sharing for LCL for international air freight are as follows:
Operational Process
Order Receiving and Reviewing: The logistics company receives the customer’s shipping request and reviews the cargo information, including the name, quantity, weight, and destination. They also understand the cargo’s nature, packaging, and any special requirements to determine whether it meets air transport requirements.
Cargo Receiving and Inspection: After confirming that the information is correct, the logistics company arranges for the cargo to be received. Staff conduct a physical inspection of the cargo to ensure it matches the documents and check that the packaging meets air transport requirements.
Booking and Stowing: The logistics company reserves space with the airline based on the cargo information and arranges appropriate stowage based on the cargo’s nature and destination to ensure safe and stable transportation.
Loading and Departure: After cargo loading is completed, the logistics company delivers the cargo to the airport for loading. A final inspection is conducted before loading to ensure the cargo is intact. The cargo is then loaded into the aircraft’s cargo hold according to the stowage plan.
Transportation and Arrival: After the flight takes off, the logistics company tracks the entire shipment, including flight information and the cargo’s status in transit. Upon arrival at the destination, the airline unloads the cargo and notifies the logistics company to arrange customs clearance and pickup.
Customs Clearance and Pickup: The logistics company assists the customer with customs clearance procedures, ensuring smooth customs clearance. After customs clearance, the customer can collect the cargo.
Cost Sharing Method
International air freight LCL costs typically include base freight, fuel surcharges, airport handling fees, and storage fees. These fees are generally apportioned based on the weight or volume of the cargo. Air freight charges are based on the greater of the “volumetric weight” (length × width × height divided by 6000) and the actual weight. Shippers should calculate the chargeable weight of their cargo in advance. For high-value cargo, a weighted apportionment based on the cargo value may also be considered. Furthermore, the responsibility for any additional costs, such as rectification fees incurred due to non-compliant packaging and demurrage charges incurred due to inspection, must be clearly stated in the LCL agreement.
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