For small and medium-sized enterprises, achieving low-cost shipping and avoiding pitfalls in international air freight requires comprehensive consideration of multiple factors. In this article, Weefreight will provide detailed explanations and hope they will be helpful.
Choosing the Right Transport Method and Service Provider
Comparing Airlines and Freight Forwarders: Different airlines offer varying rates and services. Small and medium-sized enterprises can create a dynamic airline price comparison database to comprehensively evaluate rates, timeliness, and additional services. Furthermore, choosing a reputable freight forwarder with international air transport qualifications and years of dedicated line experience can sometimes offer more flexible rates and services.
Consider dedicated air lines and palletizing: Dedicated air lines combine large shipments by chartering or consolidating cargo, often resulting in lower per-ticket costs than traditional commercial express delivery. “Palletizing” combines smaller shipments from multiple sellers onto a single pallet for transport, saving sellers up to 40% in head-haul costs.
Plan Cargo Packaging Properly
Optimize Packaging Dimensions and Materials: According to the International Air Transport Association (IATA) standard, the formula for calculating dimensional weight is length (cm) × width (cm) × height (cm) ÷ 6000. If the dimensional weight exceeds the actual weight, the freight rate will be based on the dimensional weight. Therefore, for lightweight and bulky cargo, choose lightweight, high-strength packaging materials, such as honeycomb cardboard, and optimize the packaging structure to reduce the volume. For removable items, such as furniture, separate them for transportation to reduce dimensional weight.
Measure and declare cargo dimensions correctly: Ensure accurate measurements to avoid overestimating dimensional weight due to measurement errors. Also, declare cargo dimensions and weight accurately to avoid fines and shipping issues caused by false reporting.
Understand and control cost structures
Clarify the quote inclusions: When choosing a freight forwarder or airline, request a detailed quote to confirm whether the quote includes fuel surcharges, security fees, customs clearance fees, and delivery charges. Fuel surcharges typically adjust monthly. When signing a contract, include a clause such as “fuel surcharge increases shall not exceed 15% of the contract price” to avoid significant cost fluctuations.
Note the method used to calculate dimensional weight: Different airlines and freight forwarders may use different methods for calculating dimensional weight. For example, DHL/FedEx uses length, width, and height / 5000, while an average freight forwarder may use length, width, and height / 6000, and a reputable consolidator may use length, width, and height / 7000. Choosing the right method can help save on freight.
Understand customs clearance and delivery costs at the destination: After arriving at the destination, customs clearance and final delivery are significant costs. Customs clearance fees typically include customs broker service fees, customs inspection fees, and storage fees. Delivery fees vary significantly depending on the remoteness of the region and the method of delivery. When signing a contract, be sure to clearly specify the scope of “DDU” or “DDP” service and inquire about the local agent’s standard rates.
Prepare Goods Cargo Documents
Prepare all necessary documents: Incomplete or incorrect cargo information may result in additional costs and shipping delays. Prepare documents such as the packing list, commercial invoice, dangerous goods package certificate (for electrical products), MSDS report (for chemicals), and certificate of origin, ensuring their accuracy.
Accurately declare cargo information: Declare the name, quantity, and value of the goods truthfully to avoid customs inspections and detentions due to false declarations. For example, avoid listing “Bluetooth headphones” as “plastic products,” as this can lead to customs detention and high storage fees.
Reasonably plan your shipping schedule.
Book space during peak periods: Create a flight price calendar to understand freight rates at different times of the year. Secure space 45 days in advance during peak seasons (such as the Christmas season and around the Canton Fair). Quotes during these times are 25%-30% lower than last-minute bookings. Also, avoid shipping around holidays and peak periods to reduce transportation costs.
Utilize return flight resources: Monitor empty-load rate data on major trade routes and work with freight forwarders to develop a “two-way logistics” solution. Utilize available space on return flights, potentially reducing freight rates by 30% compared to outbound flights.
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