Air Freight Shipping Process

Among the modes of international cargo transportation—besides road, sea, rail, and pipeline—air transport is equally important and is heavily utilized, second only to sea freight. In terms of volume, over 90% of goods are transported by sea, but in terms of value, 30% of import-export goods are shipped by air. Additionally, the cost of air freight is many times higher than sea freight, but it offers numerous advantages such as speed, ensuring goods meet market supply deadlines, and providing a suitable environment for fresh foods, medical equipment, fragile items, sensitive goods, and more.

The air freight process can be summarized as follows:

The manufacturer first needs to decide on a shipping schedule to ensure timely delivery to the overseas customer and find a freight forwarder to handle the shipment. The exporter must provide the forwarder with information about the goods, such as origin and destination, the date the goods are ready to book the earliest flight, product name, and weight. Note that for air freight, you must provide the dimensions and quantity of cartons/packages for the forwarder to accurately calculate the cost for your shipment. Additionally, the exporter needs to provide the invoice, packing list, and Shipping Instructions (SI) for the forwarder to create the House Air Waybill (HAWB). The goods will then be transferred to the forwarder’s warehouse or a packaging company, which is usually located at the airport.

In HCMC, there are two air cargo terminals: TCS and SCSC.

In Hanoi, there are terminals such as ALSC, ACSV, and NTCS.

How to Calculate Air Freight Costs

Rates in air transport are stipulated in unified tariff schedules. The International Air Transport Association (IATA) has established rules and methods for calculating freight charges, which are published in The Air Cargo Tariff (TACT).

The rates vary depending on the weight of the cargo, divided into the following tiers:

Under 45kg: -45

From 45kg to under 100kg: +45

From 100kg to under 250kg: +100

From 250kg to under 500kg: +250

From 500kg to under 1000kg: +500

Chargeable Weight

The freight cost will be calculated based on whichever is greater:
Actual Weight of the cargo
Dimensional Weight (also known as volumetric weight), which is converted from the shipment’s volume according to a formula regulated by the International Air Transport Association (IATA).

Conversion Formula: Length x Width x Height x Number of Packages / 6000

Because aircraft capacity is limited by both weight and volume, airlines seek to maximize their revenue. Therefore, they will charge based on either actual weight or dimensional weight, depending on whether the cargo is heavy or light. Dimensional weight targets bulky goods that take up a lot of space. Typically, cargo is transported on passenger aircraft (lower deck). If an item is too tall (height limit of 160cm), it must be shipped on a dedicated cargo aircraft (main deck), which incurs higher costs.

After the goods arrive at the warehouse, several procedures must be completed to export the shipment by air, such as: additional packing if needed, inspection, weighing, applying the AWB label, and X-ray screening.

The AWB label is attached to the shipment so the airline can identify which aircraft the cargo should be loaded onto. The label is created based on information like the AWB number and destination, with a dangerous goods sticker added if the cargo is hazardous. Regarding packaging, goods must be packed in cartons, on pallets, or in wooden crates that comply with air transport regulations and are cost-effective.

Export customs clearance is carried out after the goods have been moved to a customs warehouse. A customs warehouse is an authorized domestic location used to store foreign-bound goods. Clearance is done here because once the export permit is granted, the goods are considered foreign goods rather than domestic ones. The export declaration is filed with customs based on information from the invoice and packing list provided by the exporter using an EDI system, in this case, by filing the Manifest.

Cargo cannot be loaded onto an aircraft in its raw state. Before being loaded, goods are consolidated onto a large pallet or into a container called a “ULD” (Unit Load Device) or placed on wooden pallets and shrink-wrapped.

Cargo Shipped in Unit Load Devices (ULDs)

First and foremost, this packing method is only performed by airlines. By using ULDs, airlines gain specific benefits. They can encourage the loading of large, bulky items. Additionally, small packages can be consolidated into larger units. Therefore, ULDs help carriers maximize the use of cargo space in the aircraft’s hold. Besides convenience in transport, loading, and unloading, ULDs also offer packaging benefits. These devices protect the goods inside from damage and loss during transit.

After customs procedures are completed and the goods are loaded onto the plane, they travel via direct or transit flights to the importing country and are unloaded at the destination warehouse. After the importer declares customs, the goods are inspected to ensure there was no damage during transport and that the quantity is correct. The importer can then transport the goods to their own warehouse.

Note for air imports: in addition to air freight charges, the cargo owner must also pay other fees such as Delivery Order (DO) fees, handling charges, and airport fees for heavy or dangerous goods. You can visit each cargo terminal’s website to view their service price list.

In summary, due to the nature of air transport, speed and accuracy are the two most important factors in the shipping process. Therefore, both exporters and importers need to coordinate closely and avoid errors on the waybill, as amendment fees are very high.

Air Freight Services

Plato Logistics is a leading and reputable partner specializing in providing customers with fast air transport services from Vietnam to the world and vice versa. Thanks to our deep experience, dedicated and highly qualified team of experts, a dynamic global agent network, and being a trusted partner of international airlines, air freight services are also a core service of Plato Logistics in this era of integration.

Plato Logistics is a cargo agent for many renowned international air carriers, offering a comprehensive air freight service package with large cargo capacity and high flight frequency to most countries and territories worldwide. Our partner airlines include: Vietnam Airlines, Asiana Airlines, China Airlines, Qatar Airways, Singapore Airlines, Korean Air, and more.

To provide our customers with more options, Plato Logistics offers multimodal transport solutions, such as combining air and sea freight services, to deliver fast transport at reasonable prices.

Plato Logistics handles a variety of logistics services from the sender’s warehouse to the airport or the recipient’s warehouse, including: Airport to Airport, Door to Airport, Airport to Door, and Door to Door.

Our Air Freight Services

We provide air transport services for many types of goods, such as:

• Transporting dry goods, apparel
• Transporting high-value goods
• Transporting fresh/perishable goods
• Transporting frozen seafood
• Transporting live animals

In particular, Plato Logistics offers services for transporting dangerous goods by air. Our air freight team holds DGR (Dangerous Goods Regulations) certification issued by the International Air Transport Association (IATA) and has the full capability and experience to handle dangerous goods by air, from guiding the packing process and providing necessary documents for airline checks to ensuring the goods are transported quickly and arrive safely.

Additionally, we provide accompanying services such as: all-inclusive customs procedures, cargo insurance, applying for certificates of origin, quarantine certificates, fumigation, wooden crating, and more.