CHAPTER 4CHAPTER 4AIRFREIGHT AND DOCUMENTSAIRFREIGHT AND DOCUMENTS

If your shipments are small, light, If your shipments are small, light, expensive, need fast speed, the best way to expensive, need fast speed, the best way to send them is by air. The international carriage of send them is by air. The international carriage of goods by air is governed by Warsaw Convention goods by air is governed by Warsaw Convention Agreements (WCA) 1929. it was originally made Agreements (WCA) 1929. it was originally made in Warsaw Poland country.in Warsaw Poland country.

The Warsaw conventions apply where The Warsaw conventions apply where international air carriage occurs between the international air carriage occurs between the nations who are parties to the conventions. nations who are parties to the conventions. Cambodia is a party to these conventions.Cambodia is a party to these conventions.

International transportation by air needs necessary the detail advices (information) for consignments and schedules for flights that carry the goods..

I. Preparing Document

1- Documents provided by shipper

- commercial invoice

- Packing list

- Freight release

- Customs declaration document

- Inspection document

- Others…..

2. Documents issued by forwarder- Pick up and delivery note- Departure condition of shipment- Others…..

Note: Forwarder can prepare the documents on behalf of the cargo’s principal when the shipping instruction.

II. Air Way Bill (AWB)The standard contract of carriage of goods in the

airfreight is the Air Way Bill or Air Freight Consignment Note. It serves simply the contract for carriage of the goods between the carrier and the shipper.

Note: The carrier has duty to release the goods against the original AWB to the consignee that is designated on the Air Way Bill.

1. Format of Air Way Bill

Format of Air Way Bill is international standard and issued in sets. The full sets contain 12 copies in different colors and are designated as follow:

- 1 original copy for carrier

- 1 original copy for consignor

- 1 original copy for consignee

Note: Original AWB copy for consignee is usually sent the consignee with the goods via the destination station forwarder.

III. Airfreight Rate1- Chargeable airfreight

Airfreight may be charged by shipping surfacc with actual weight (Gross weight) and actual volume (W/V) whichever is greater and necessary. Volume per Weight is called volumetric weight and is based on the greatest dimensions of length (L), width (W) and height (H) of every single piece of each consignment or considered with volume minimums cubic centimeters per kilogram of each consignment.

Note: Ratio volumetric weight is calculated in Kilogram and may be compared to actual weight to obtain the chargeable weight. Consignor and consignee should know correctly how to pack their consignments.

2- Airfreight calculation- Find out Actual volume:Actual volume = (Length) x (Width) x (Height)- Find out Volumetric weight kilogram:Actual volume cubic centimeter \Volume minimum cubic centimeter per kilogram- Find out Airfreight paid:Volumetric weight kilogram x Airfreight rate per kilogram

3- ExerciseDHL Co. sent 6 sets of computers

equipments by air from USA to Cambodia via Bangkok Thailand. The sets are packed in 6 boxes of cartons. Each box composed: length 35cm, width 30 cm and height 10cm. The tariff of airfreight in

Volume minimum cubic centimeter per kilogram of the computers equipments equals Cm3/6,000.

The price of airfreight rate per kilogram from USA to Cambodia via BK Thailand is 48 US$.

Find out the total of airfreight rate, how much DHL Co will pay for their shipments?

Answers:

- Calculate the actual volume of 6 sets of computersActual volume = (Length) x (Width) x (Height)

= 35cm x 30cm x 10cm= 10,500 Cm3 x 6 sets= 63,000 C m3

- Calculate the volumetric weight of 6sets of computers, if tariff of Volume minimum cubic centimeter per kilogram is Cm3/6,000

= 63,000 Cm3/6,000= 10.50 Kgs

- Calculate the total of airfreight rate from USA to Cambodia via BK ThailandTotal Airfreight = 48US$ x 10.50 Kgs

= 504.00 US$