By Whom And How Are Air Freight Rates Calculated?


Air Cargo pricing is governed by the International Air Transport Association (IATA), which continues to provide an "official pricing policy" published under the heading "Air Cargo Tariff" (TACT) and its rules governing transportation. Air freight rates are generally calculated from meetings held between regional IATA tariff committees and subject to international intergovernmental agreements on road or country rate levels. Air cargo companies wishing to introduce or apply a new rate must obtain IATA's approval and these rates can often be submitted for approval to the government of the country concerned. But now, they are generally used as guidelines and often neither IATA nor governments are trying to enforce their use.

However, nowadays, the many airfreight companies using the main routes are increasingly ignoring IATA fares due to competition, but continue to serve as a general guide to the world's least developed markets. Often, when most products are involved, an airfreight rate of one kilo of freight is applied (and discounts are given for volumes over 100 and 500 kilograms).

While there are specific freight rates available, these are exceptional and are below normal rates as they are designed to encourage certain types of cargo to be airlifted by specific commercial routes. What would happen is a given product and its rate would be deposited by the air cargo company to IATA, which in turn would get permission to apply that rate on a given route to the countries concerned & # 39; government.

In addition to product-specific rates, there are class rates that apply to products such as human remains, live animals and perishable goods (fresh foods, etc.), and specific rules must be in place. applied for the calculation of fees for each type of product. which is indicated under this list. But as a general rule, the rules are based on the country of origin, the products for which they are intended and the type of product concerned.

There are also airfreight handling tariffs that are based on weight for non-unit load traffic and per unit for unit loads. These tariffs were previously defined by IATA, but most often are now fixed between the handling terminals.

However, the majority of air cargo leaving the United Kingdom uses "net" purchase rates from air carriers. These are confidential air cargo rates. These tariffs follow a structure similar to that of IATA in that there is a tariff per kilo but they are subject to a minimum charge.

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