The Main Players in Air Freight

Air cargo transportation involves many stakeholders, each with a specific role in the logistics chain. Understanding the responsibilities and interactions between these different players is essential for optimizing your air freight operations.

Shipper

The shipper is the entity sending the goods. It can be the manufacturer, seller, or any party wishing to ship goods.

Main Responsibilities:

  • Prepare goods for shipment (packaging, labeling)
  • Provide accurate information about the goods (nature, weight, dimensions)
  • Prepare or provide necessary export documents
  • Comply with regulations regarding dangerous goods if applicable

The shipper is usually the starting point of the logistics chain, and their actions significantly impact the entire process.

Consignee

The consignee is the entity receiving the goods at the end of the transport. It can be the final buyer, a distributor, or a designated agent.

Main Responsibilities:

  • Receive goods at the destination
  • Perform or supervise import formalities
  • Check the condition of goods upon arrival
  • Report any issues or damages found

The consignee is the endpoint of the logistics chain and must be prepared to efficiently manage the receipt of goods.

Freight Forwarder

The freight forwarder is an intermediary who organizes the shipment of goods on behalf of the shipper. They play a central role in coordinating the entire logistics chain.

Main Responsibilities:

  • Advise the shipper on the best transport options
  • Book freight space with airlines
  • Prepare and verify transport documents
  • Organize ground transport before and after the flight
  • Manage customs formalities (directly or via a customs broker)
  • Track the shipment and inform the client of its status

The freight forwarder brings expertise and a network to optimize the transport of goods in terms of cost and time.

Airline

The airline is responsible for the physical transport of goods by air. They may operate dedicated cargo planes or use the holds of passenger aircraft.

Main Responsibilities:

  • Transport goods from the departure airport to the arrival airport
  • Ensure the safety and integrity of goods during transport
  • Issue the air waybill (AWB)
  • Comply with international air regulations
  • Inform of any delays or issues

Airlines may offer different service levels, from standard solutions to express or specialized services.

Ground Handling Agent (GHA)

The GHA is responsible for the physical handling of goods at airports. They usually act on behalf of airlines.

Main Responsibilities:

  • Receive and check goods at the departure airport
  • Prepare goods for loading (palletization, containerization)
  • Load and unload aircraft
  • Temporarily store goods in airport warehouses
  • Perform required security checks

The GHA plays a crucial role in the smooth operation of airport processes and in meeting transit deadlines.

Customs Broker

The customs broker specializes in customs formalities and acts as an intermediary between importers/exporters and customs authorities.

Main Responsibilities:

  • Prepare and submit customs declarations
  • Calculate and pay duties and taxes on behalf of the client
  • Advise on customs regulations and tariff classifications
  • Facilitate the customs clearance of goods
  • Represent the client to customs authorities

The customs broker can be a service provided by the freight forwarder or an independent specialized entity.

General Sales Agent (GSA)

The GSA represents an airline in a country or region where the airline does not have a direct presence. They act as the airline's commercial representative for freight capacity sales.

Main Responsibilities:

  • Market the airline's freight services
  • Manage freight capacity bookings
  • Negotiate rates with clients or freight forwarders
  • Represent the airline to local stakeholders
  • Provide information on the airline's services and schedules

The GSA allows airlines to extend their commercial presence without establishing their own offices in each market.

Read the article on GSA by clicking here

Interactions Between the Different Players

The air freight logistics chain functions through close collaboration among all these players. Here's how they generally interact:

  1. Initiation: The shipper contacts a freight forwarder to organize the shipment of their goods.
  2. Planning: The freight forwarder advises the shipper and books freight space with an airline, directly or via a GSA.
  3. Preparation: The shipper prepares the goods and necessary documents, often with the help of the freight forwarder.
  4. Transport to the Airport: The freight forwarder organizes the transport of goods to the departure airport.
  5. Airport Processing: The GHA receives the goods, performs necessary checks, and prepares for loading.
  6. Export: The customs broker handles export formalities.
  7. Air Transport: The airline transports the goods to the destination airport.
  8. Arrival: The GHA at the destination unloads the goods and temporarily stores them.
  9. Import: The customs broker handles import formalities.
  10. Final Delivery: The freight forwarder organizes the transport of goods from the airport to the consignee.
  11. Reception: The consignee receives the goods and checks their condition.

How to Choose the Right Partners?

Choosing the appropriate logistics partners is crucial for the success of your air freight operations. Here are some criteria to consider:

For Choosing a Freight Forwarder:

  • Experience and expertise in your industry
  • Geographical coverage and network of partners
  • Range of services offered (transport, customs, insurance, etc.)
  • Tracking and communication systems
  • Reputation and client references
  • Certifications and accreditations (IATA, ISO, etc.)

For Choosing an Airline:

  • Frequency and reliability of flights to your destination
  • Types of aircraft used and loading capacities
  • Specialized services for your types of goods
  • Performance history (punctuality, safety)
  • Rates and commercial terms

Practical Advice

Establishing long-term relationships with your logistics partners can bring many benefits: better understanding of your needs, preferential rates, priority during high demand, and faster resolution of potential issues. Regular meetings to evaluate performance and discuss improvements can be beneficial.