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International Trade: General Information on Transport and Distribution (Part Five)

Posted on Monday, December 22nd by

Once again, you have analysed your business needs and the several transport options you have at your disposal and come to the conclusion that road, sea and rail transport do not meet your needs fully. You still have one option left, then, and that is air transport. Indeed, this mode of transport will address your business needs in a highly convincing way. Here are a few general facts about this particular shipping option.

Advantages of air transport



First and foremost, you will gain time for air transport enables you to deliver your cargo within a very short amount of time even if it has to travel very long distances. Moreover, the limitations are much fewer when it comes to the types of goods you can or cannot deliver, which goes hand in hand with the increased level of security this particular mode of transport guarantees. Therefore, you can rely on it as a solution to deliver sensitive items to customers worldwide. However, you cannot rely on it as a universal solution in that there are also goods you cannot deliver by air.

Disadvantages of air transport



As expected, the aforementioned advantages come with a price tag, causing air transport to be the most expensive shipping alternative of all. Airport taxes and currency and fuel surcharges, which add to the freight expenses, must not be overlooked either. The potential need for additional transportation should also be mentioned in the context of air transport, as should the possibility of delivery schedules suffering changes if affected by delays or cancelled flights. Once again, you need to verify whether the routes and schedules available meet your needs.

Cargo insurance and required documentation



With air transport, you can identify three different types of general cargo insurance, namely clauses A, B and C, or refer to the Institute Cargo Clauses (Air) as well. Each of these three types of insurance pays a certain premium in case of an unfortunate event, depending on the potential risks your cargo is exposed to and their fragile rating (E.g. sensors usually require more careful packaging). Your freight forwarder or broker should be able to provide you with assistance regarding the general cargo insurance clause that best fits your needs.

As with any other kind of transport, there are a number of documents you need to provide in order for your cargo to be delivered to the destination. In this case, you need to provide an air waybill, which consolidates your agreement with the carrier. You should know that efforts are being made to eliminate the paperwork currently required for air deliveries as part of an e-freight project. This would also prove very useful for businesspeople looking to deliver dangerous goods by air. As is usually the case, they require specific paperwork because of their special status and the increased risks they present. Keep in mind that the regulations are very strict when it comes to dangerous goods, so always make sure that you comply with all the regulations set by IATA (The International Air Transport Association) if you want them delivered.

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General Information on Dispatching Goods within the European Union (Part Three)

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