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How to find the cheapest air freight services

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When you're shipping products internationally, air freight costs can quickly increase. However, there are ways to find the cheapest air freight possible. Understanding your options and targeting suitable carriers can save significant money on your next shipment.



Here are some tips for finding the cheapest air freight for your business.

What are Air Freight Services?

When you ship goods by air it's known as air freight. Air freight is usually used for urgent deliveries and high-value items. It's also often used for dangerous goods and things that need special handling. Restrictions do exist on what can and can't be shipped using air cargo. Sea freight is generally less expensive than sea freight, and it's not always possible to ship certain types of cargo using air freight.


Air Freight Services Delivery Options

There are several different options for arranging an air freight delivery.


  • Consolidated freight – Consols – where one shipment contains many flights.
  • Direct services - here, a single shipment is shipped directly from one location to another without any intermediate stops
  • Chartering an entire plane for a single delivery is expensive, but it's done occasionally. These shipments might be shipped by air in passenger planes or dedicated freighter planes that can accommodate large amounts of air cargo on one trip.


Air freight has several advantages.

Shipping your products by air has some great advantages. Some of them are:


  • Air freight can be fast – primarily if you use an express service, your shipment can arrive in days, whereas sea freight takes weeks.
  • Air cargo delivery charges and air freight rates are calculated based on weight rather than size. So, larger packages cost less per unit of weight than smaller ones.
  • Air freight carriers will be able to offer you a few different options when it comes to arranging your air freight delivery.
  • Air freight is often the best option when moving something quickly and cheaply. However, it is essential to ensure your product arrives undamaged. If you're shipping delicate items, you may consider using a specialised packing service.
  • Air freight is tracked much like passengers on an aeroplane – security is tight.
  • Shipping goods by air is considered more environmentally friendly than shipping goods by ship.


What are the disadvantages of air freight?

Whether or not air freight works for your shipment depends on precisely what you're shipping and where. Here are some potential downsides you might want to consider before starting.


  • Air freight rates are much more expensive than sea freight – both for the delivery and import duties and VAT, which are calculated at a fixed rate.
  • If you're using a consolidated freight shipment, you'll have to wait until the plane is full before it is shipped. That means it could take a few days, depending on when the next flight is scheduled.
  • Air freight costs are more expensive than ocean freight, and there are strict regulations about what you can move by air. For example, if you're moving a car, you need a special permit. If you're moving a piano, you need a special license. And if you're moving an animal, you need a special certificate.


What can you expect to pay for air freight door-to-door service?

The prices of air freight shipping services are usually based on the weight or volume of goods shipped. If you're shipping something particularly large or oddly shaped, however, this could incur additional fees, increasing air freight prices. Consolidating shipments through a single carrier is usually the cheapest option, but it may take a few days longer.


The best air freight cost is given for goods that fit the standard size unit load devices –

ULDs go into the front part of the hold of a plane, which usually measures around 307cm long, x213cm wide x 193cm high.


How to find the cheapest air freight services

Air cargo prices vary significantly depending on what you're moving to and where. You'll get a good idea of what the range of costs is from different providers using an air freight calculator.


When you're calculating the cost of shipping an item, you'll need to consider the following:


  • Cost of goods
  • Cost of delivery
  • Products imported into the UK incur import duties, usually calculated as a percentage of the total cost of goods plus the delivery cost for the door-to-door service.
  • UK VAT – calculated at 20% of the total cost of goods plus the cost of delivery plus the cost of import duty
  • Import duties and VAT are calculated as percentages of the total cost of goods + the total cost of delivery. So if you buy an item online, you will pay more tax and duty when you import it by air than by sea. This is because the government charges a higher tax and duty rate on imported goods than on domestic goods.


How air freight works

Most air cargo is arranged by experienced freight forwarders. These companies will usually handle all aspects of international shipping, including customs clearance, insurance, and delivery. They may also offer other services like courier services and sea freight.


Here are the general things you'll need to do to arrange for your goods to be shipped by air freight:


  • Choose an air freight forwarder, and agree on a price with them for their service.
  • The freight forwarder collects the goods from your supplier. Either they'll be ready for transport (RFT), or the forwarder will pack them up.
  • Your goods are taken by air to the destination country and must clear customs at entry.
  • Goods arrive at the airport, ready to go. In the case of consolidated shipments, this could take several days.
  • When arriving in the UK, the products must go through customs again and will only be released once all duties and taxes are paid.
  • Goods are delivered to you as agreed by the freight forwarder.


How long does air freight take?

Air freight can usually take days compared to weeks if you decide to ship by sea. For best results it's important to use the services of a freight forwarder. Freight forwarders are companies that specialise in shipping cargo around the world. They provide services like customs clearance, insurance, and other logistics-related services. Freight forwarders are not necessarily associated with any particular country. Some of them operate internationally, while others focus on specific regions.


What to do if you can't use Air Freight

If your products can't be shipped by air freight, you may want to consider sending them by sea freight instead. Products shipped have far fewer restrictions; although all items must be declared appropriately and labelled, the importer must have the proper licenses if necessary, and the goods must be packed and transported safely.


Air freight quote

There are usually two options when you want something shipped overseas. You can go through a freight forwarder or an online quotation tool to get a range of prices from multiple carriers. If you're shipping a large number of goods, then you might want to consider using a freight forwarder. These companies will handle all the logistics of getting your goods to their destination safely and efficiently. However, if you need to send a small package, you can probably save money by going directly to the carrier.


Air freight tracking

Air freight shipments travel via airliners, cargo planes, helicopters, and other aircraft. It is tracked electronically throughout its journey. You can track your shipment online and even get updates on when it will arrive at its final destination. Security is tight, and safety inspections are thorough on cargo precisely as they would be with passengers. After all, your goods could be shipped in the belly section of a regular passenger plane, and you wouldn't want anything wrong happening to them.


Summary

Air freight can be an excellent choice for high-value or urgent deliveries. Speak to specialist freight forwarders to help decide if air freight shipments are the best route for your business.

UK Freight Forwarding: Changes in the Industry as the European Economy Becomes Increasingly Difficult

By Chris Gant • May 24, 2019
With the economy facing difficulties, the global freight market has been struggling with freight-ton-kilometers declining by as much as two percent. Despite some declines, there have also been increases for some companies in the market. In the ever-evolving freight industry, it is clear companies must rise to the challenges and implement innovative strategies to compete on a global scale. Freight Shipping Is the Foundation of a Solid Global Economy Although the cries of purchasing local still resound, global shipping continues to be at the forefront of economic progress all around the world. Faster shipping demands are more insistent than ever before, leading companies to seek superior and ever-evolving options for improvement. Despite struggles in the current market, UK freight forwarders remain instrumental in international logistics. In the UK, almost all the businesses that trade internationally fully rely on freight forwarding to act as a middle man between the trade companies and the carriers. As the world's population continues to grow, cost-effective transport of goods becomes increasingly essential. Shipping is the backbone of the economy in the UK and on a global level. Most of the failures in the shipping industry come from avoidable mistakes companies could overcome with access to the right data. Freight Forwarding Must Integrate New Technology While some believe freight forwarding has become somewhat antiquated, the concern lies more in the lack of technology. Freight companies that are remaining strong in this tough economy are those who have embraced technology and are striving to improve efficiency in operation. Many believe it is time for freight shipping to evolve to meet the demands of consumers worldwide. The industry has seen very few changes since the 1950s and companies still rely on outdated means of record-keeping, including paper trails and faxes. Although many other industries have been using advanced technology over the last ten to twenty years, the shipping industry continues to remain bogged in the past. It has been reported a single air shipment can produce as many as thirty paper documents. These documents create about 7,800 tons of paper a year. The United Nations has reported the time it takes to ship goods could be reduced by as much as 40% simply by forgoing paper records and going digital. Digitization Is the Answer The freight forwarding industry is taking a hard hit due to economic changes and increased demands. There is now more competition than ever before and customer demand is rising. Companies that cannot find sound methods of addressing these issues will likely continue to see decreasing margins. Eliminating unnecessary inefficiencies will be the key to success for freight forwarding companies. According to the Global Freight Forwarding 2017 Report, 86% of logistics experts agree digitization will help freight forwarding companies remain relevant and strong in the global shipping market. Digital solutions are necessary for today's economy. Many of the top forwarders are now selling their services online. With the many different elements involved in shipping cargo, freight forwarders must do all they can to reduce costs and improve customer experience. Many believe this can only be accomplished with cloud-based platforms. With digital tools available, freight forwarders are proactive in avoiding problems, instead of being reactive because of them. With a digital platform, companies benefit from digitally-based analytics which helps in making key decisions that benefit the company and the customer. Outlook for Freight Forwarding Although the global freight forwarding market is experiencing struggles, there is hope on the horizon. It is expected slight increases will begin occurring around the time of the Brexit deadline on October 31. Increases are also expected around that time with the normal seasonal demands. Improvements in chain efficiency, reduced rates, and reduced costs will help to stimulate growth. The companies that rise to the challenge and can effectively manage risk reduction and increased profitability will remain successful. The business of freight forwarding is certainly evolving and outdated methods are being replaced with advanced technology that is changing the scope of services manufacturers and freight movers provide. The more the shipping process becomes automated, the more mistakes reduce. By utilizing the data acquired from the shipping process, manufacturers can better serve their customers and diminish wastefulness that has left the industry stagnant for so many years. For any company to be able to compete at the global level, overhauls in shipping become chief. Conclusion There have been noticeable struggles in the global freight market. With the UK economy still struggling, legacy brokers are starting to fade away. There is hope for legacy brokers if they transform their shipping platform into digital. Incumbents are also poised to go digital and those who are already pursuing digital processes are finding they are better able to compete on the global scale. While some changes are taking place, companies cannot expect to go half-way. Full digitization is critical for success and this is naturally followed by automated integration in back-end operations.

US More than Doubles China's Tariff Levels and China, In Turn, Hampers Custom Clearance for US Companies

By David Lavery • May 6, 2019
While trade relations with China have been strained for some time, the latest tariff hikes significantly escalated the customs clearance situation. President Trump's move to raise tariffs from 10% to 25% on $200 billion of Chinese products dramatically upped the tensions between the United States and China and raised the specter of additional sanctions. China's Commerce Ministry quickly responded by imposing countermeasures on $60 billion of US goods. China's response will increase tariffs up to 25% on more than 5,000 US products. Sources also report duties on other US goods will increase to 20%. Those increases were enacted following the failure of talks in Washington designed to end the trade dispute that's clouded global financial markets for months. The US alleged that the Chinese delegation was backtracking on agreements made during previous negotiations. Asian markets have been mixed since the announcements, as investors struggle to understand where the market is likely to go now. The over-riding fear is that the estrangement between the two financial powerhouses would stifle international economic growth. Many of the issues at the heart of the disagreement between the two nations are based on long-standing complaints that China has been erecting barriers to their markets and making it virtually impossible for outsiders to compete with Chinese companies. American companies are insisting China's regulatory system be updated to provide a more level playing field for companies doing business in China. However, that country has been unwilling in the past to negotiate significant changes in the way foreign businesses are allowed to do business in China. On the upside, negotiators are suggesting the Chinese government doesn't have much more to threaten US companies with. Conversely, the penalties added to China's goods entering the United States impact a large percentage of that country's market. Both sides of the conflict publicly stated, after the talks fell apart, that they sincerely wanted to resolve the conflict and establish a policy both countries would find acceptable. China's Vice Premier, the leader of the Chinese delegation, publicly stated China wanted to avoid increasing the tariffs as they would cause more harm to world trade conditions. President Trump also made a statement following the talks and suggested he and Chinese President Xi Jinping would almost certainly be speaking by phone in the near future. One of the major issues remaining is the US claim that China has, for years, been taking advantage of American companies. The allegations include claims the Chinese have consistently forced US trade partners to revealing trade secrets and advanced technologies to Chinese companies. According to US representatives, those moves are in place to assist China's ambition to become a global technology powerhouse. In addition, US exporters charge the Chinese government has routinely instituted policies that slow customs clearances for US products entering China and hampered production efforts by increasing regulatory oversight. Even though both sides of the current conflict refused to share details of the backsliding claim, business leaders and negotiators all appeared to be unhappy over the situation. Without more information coming from the negotiators, it's not likely onlookers will ever know what problems arose during the talks. Chinese negotiators also want the new tariffs lifted immediately if an accord can be reached. In response, US negotiators want the tariffs to be left in place until it's proven the Chinese are living up any new agreement. There is some logic to the US stance, as the Chinese government has a long history of breaking commitments agreed to during similar types of negotiations. The American Chamber of Commerce in Shanghai weighed in by suggesting "A real enforcement mechanism is crucial to ensure that neither side can go back on their commitments." That statement suggests US companies may be willing to participate in a verification process if such an agreement can be reached. However, to this point, neither the negotiators nor President Trump have responded to the Chamber's statement. On the Monday following the breakdown of negotiations, Treasury Secretary Steven Mnuchin stated both sides were still trying to move the negotiations forward. Mnuchin announced the discussions were productive but the two sides were, to that point, unable to reach an accord. President Trump has also commented, stating China must take steps to address grievances involving technology transfer issues and ongoing trade deficits. Trump continues to insist the new tariffs will be bad for China and that country should not retaliate. Now, Trump is taking the situation to a new level, threatening to impose tariffs on Chinese goods that, so far, have not been penalized. At the same time, the President signaled he the tariffs would remain in place and, ultimately, hurt China more than the United States. That's a claim many people dispute, retorting that the real burden of the Chinese tariffs will, instead, fall on American consumers and businesses.
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