Process of Air Shipment! From Picking up cargo to Delivery.

Summary

This video by HPS Trade, a Japanese freight forwarder in Thailand, explains the detailed process of air shipment, highlighting its benefits and the necessary steps for international cargo transportation. It covers how air shipment, despite being more expensive than sea freight, is faster and ideal for perishable goods, medical supplies, and sensitive equipment. The video breaks down the roles of exporters, freight forwarders, and customs processes in ensuring smooth and timely delivery. It emphasizes the importance of speed, accuracy, and collaboration throughout the logistics chain.

Takeaways

• ✈️ Air shipment, alongside sea shipment, is a major method for transporting cargo globally.
• 📊 Although over 90% of cargo is transported by sea, 30% of imports and exports are handled by air for cost and speed advantages.
• ⏩ Air shipment is faster, making it ideal for time-sensitive deliveries like fresh food, medical products, and sensitive equipment.
• 📅 The process starts with the manufacturer deciding the dispatch schedule and requesting a freight forwarder to book a flight.
• 📦 Required documentation for air shipment includes an invoice, packing list, and shipping instructions, which are given to the freight forwarder.
• 🔍 Explosive inspection is mandatory for air cargo, except for exporters with AEO status, who are exempt from this process.
• 🛃 Export customs clearance is conducted at the customs warehouse based on details provided in the invoice and packing list.
• 💼 Before being loaded onto an aircraft, cargo is packed, labeled, and consolidated onto a pallet or container (ULD) for transportation.
• 📑 A house airway bill (HAWB) and master airway bill (MAWB) are issued, facilitating the tracking and export/import processes.
• 🚚 After arriving at the destination, import customs clearance is processed, and the cargo is delivered to the importer's address.

Q & A

What percentage of cargo is transported by sea versus air in terms of volume?

Over 90% of cargo is transported by sea in terms of volume, while about 30% of cargo is transported by air for import and export, from a cost perspective.

What are the key advantages of air shipment compared to sea shipment?

The key advantages of air shipment are its speed, ability to transport cargo quickly, and suitability for fresh food, medical products, and sensitive equipment, ensuring faster delivery to the market.

What is the role of a freight forwarder in air shipment?

A freight forwarder is responsible for booking a flight, collecting required information such as dispatch dates, product details, and destination, and handling documentation like invoices, packing lists, and shipping instructions.

What processes are involved before cargo is loaded onto an aircraft?

Before loading, the cargo undergoes explosive inspection, weighing, labeling with an airway bill, and, if necessary, packing. These processes ensure security and compliance before shipment.

What is the significance of an AEO or specified consignor in air shipment?

An AEO (Authorized Economic Operator) or specified consignor with good security controls and high compliance is exempt from explosive inspections, expediting the shipment process.

What documentation is required for export custom clearance?

Documents such as invoices, packing lists, and shipping instructions are required. These are submitted electronically using the EDI system to declare the exporter, importer, destination, product details, and price for export permit clearance.

What is 'cut time' in the context of air shipment?

'Cut time' refers to the deadline by which cargo must be delivered to the airline, typically a few hours before the flight, allowing time for processing, consolidation onto pallets or containers, and loading onto the aircraft.

What happens after the cargo arrives at the destination country?

Upon arrival, the cargo is unloaded into a storage shed, and import customs clearance is conducted. The cargo is checked for damage and accuracy before being delivered to the importer or designated address.

How does the import custom clearance process work?

The local freight forwarder or designated customs clearance agency handles the import customs clearance using EDI to declare the necessary information. Once the import authorization is issued, the cargo is delivered as domestic cargo.

Why is speed crucial in air shipment processes?

Speed is critical because air shipment is chosen for its quick delivery. The processes of documentation, custom clearance, and transportation must be completed efficiently, often involving collaboration between different departments to avoid delays and mistakes.