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Basic Cargo Course.

Basic Cargo Course. 2010. BASIC CARGO COURSE 1.1 INTRODUCTION. Explains how to make practical use of the air cargo tariff (TACT) and gives a basic understanding IATA cargo rating principles including; a) establishing the chargeable weight of consignments shipped by air.

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Basic Cargo Course.

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  1. Basic Cargo Course. 2010

  2. BASIC CARGO COURSE1.1 INTRODUCTION • Explains how to make practical use of the air cargo tariff (TACT) and gives a basic understanding IATA cargo rating principles including; • a) establishing the chargeable weight of consignments shipped by air. • b) quoting published rates and charges- minimum charges general cargo rates lower charge in higher weight category

  3. C) applying specific commodity rates ( SCR). • d) applying commodity classification rates ( class rates) and • e) calculating valuation charges and disbursement fees. • Explains how to issue an airway bill (AWB) and hoe to show on the AWB the relevant charges for all types of shipments

  4. 1.2 TACT ARRANGEMENT TACT Publications are • TACT RULES; This book contains all general rules, regulations and procedures, as well as exceptions and / or additional rules and procedures of the publishing and participating carriers. The following chapters / sections are con4tained in this book.

  5. Editorial • Table of contents • Alphabetical index • Section 1 general information • Section 2 acceptance for carriage • Section 3 transportation charges • Section 4 services and related charges • Section 5 payment of rates and charges and currency conversion • Section 6 the air way bill.

  6. Section 7 information by countries ( yellow pages) • Section 8 carriers’ special regulations The TACT rules book is issued twice each year in April and in October b) TACT RATES- NORTH AMERICA. This book contains all rates, including ULD charges from, to and within Canada and the USA . This book contains the following main chapters / sections

  7. Section 1 special rates ( blue pages) • Section 2 descriptions • Section 3 notes ( pink pages) • Section 4 rates • Section 5 construction rates ( yellow pages) • Section 6 domestic/ trans-border rates.

  8. c) TACT RATES- WORLDWIDE ( Except North America) This book contains all rates, including ULD charges except those included in TACT Rates- North America. This book contains the following main chapters/ sections: • Section 1 special rates ( blue pages) • Section 2 descriptions • Section 3 notes ( pink pages)

  9. Section 4 Rates • Section 5 construction rates ( yellow pages) The TACT Rates books are issued every two months, with effective dates February 1, April 1, June 1, August 1, October 1 and December 1.

  10. 1.3 IATA AREAS, CODES ABBBREVIATIONS & TERMS. • Reference TACT Rules, section 1, general information, contains comprehensive information of the tariff and wealth of useful information for easy reference, including Subsection 1.2 IATA areas and CITY/ AIRPORT CODES Subsection 1.3 Abbreviations and codes

  11. Subsection 1.4 coding and decoding of airlines • Subsection 1.5 Terms • Subsection 1.6 conversion of weights and measures. These codes, abbreviations and terms are commonly used in the aviation industry. Section 1 should be consulted whenever you have any doubt about the precise meaning of any code, abbreviation or term bused in the tariff. IATA TRAFFIC CONFERENCE AREAS. Scan world map of IATA TCA

  12. 1.3.1 IATA AREAS & SUB-AREASReference • TACT Rules, section 1.2.2, definitions of areas. When creating the rules governing fares and rates and their application, IATA Airline found it convenient to consider the world in 3 main IATA area and several sub areas contained within these 3 area. These IATA areas and sub-areas are of particular importance. However they do not always coincide with the accepted geographical definitions. TACT rules, section 1.2.2, definitions of areas, explain these boundaries which are also shown on the IATA map reproduced on the previous page. This section should be consulted whenever you have any doubt about the precise meaning of any definitions used in the tariff.

  13. A. IATA AREAS. • The main IATA Areas are: IATA AREA 1 • All of the north and south American continents and the adjacent islands • Central America • Bermuda and Greenland • The west Indies and the islands of the Caribbean sea. • The Hawaiian islands including Midway and Palmyra

  14. IATA AREA 2 • Europe( including the European part of the Russian Federation( former USSR) west of Urals) • Iceland • The Azores • Ascension island • All of African and the adjacent islands. • That part of Asia lying west of and including Iran

  15. IATA AEA 3 • All of Asia east of Iran and the adjacent Islands. • The east Indies • Australia and New Zealand and the adjacent islands • The islands of the pacific ocean except those included in Area 1. B IATA SUB-AREAS IATA areas have been further divided into smaller sub-areas or regions:

  16. IATA AREA 2 SUB-AREAS • Europe, Africa, Middle East IATA AREA 3 SUB-AREAS -South Asian sub continent south east Asia, south west pacific, Japan / Korea. These sub-areas, in the IATA context, may have a different meaning from that generally implied by the geographical term.

  17. Examples The IATA definition of Europe comprises not only geographical Europe but includes also the following countries, parts of countries and islands. • 3 North African countries ie Morocco, Algeria and Tunisia. • The Azores, Madeira and the canary islands • The Asian part of Turkey Thus, cities like Casablanca, Algiers, Tunis, Las Palmas and Ankara are all situated within in the IATA Europe sub- Area 2. Although geographically Egypt and Sudan are situated on the African continent, these countries are included in the IATA middle East sub area. SO is Cyprus

  18. 1.4 CHARGEABLE WEIGHTReference • TACT rules, section 3.9.3, chargeable weight The chargeable weight can be • The gross weight of the shipment • The volume weight of the shipment or • The minimum weight of a rate, whichever is higher. The gross weight and volume weight are explained on the next page. The minimum weight published together with certain rate categories will be explained later in this course The chargeable weight must always be shown on the airway bill.

  19. 1.4.1GROSS WEIGHT ( HIGH DENSITY CARGO) The gross weight is used as the chargeable weight in the case of cargo which is heavy in relation to its volume such s gold, machinery, metal parts etc. This type of cargo is called HIGH DENSITY CARGO. HIGH DENSITY CARGO is cargo which weighs equal or more than 166.666 kgs per m3 or 1kg per 6000cm3, or 1kg per 366 cu. In, or 1ib per 166 cu.in

  20. 1.4.2 VOLUME WEIGHT (LOW DENSITY CARGO) Reference TACT rule , section 3.9.4, volume weight incase of cargo which is bulky in relation to its weight, such as hats, woolen pullovers, etc, the chargeable weight will be established on the basis of volume rather than gross weight. The Volume Weight will be calculated and used as the chargeable weight. This type of cargo is called LOW DENSITY CARGO. Low Density Cargo is cargo which weighs less than 166.666 kgs per m3 or 1kg per 6000cm3.or 1 kg per 366 cu.in or 1 ib per 166 cu.in

  21. Note; From a few countries in IATA area 3, for all or for specified commodities, th3 volume weight is to be calculated with 7000 cm3 for 1 kg.

  22. f) TACT RULES • 3.9.4 volume weight Exceptions For transportation • From Taiwan (all countries) • From Sri Lanka for SCR items 1024, 1401 and 2203 the formula 7000 cubic cms equals 1 kg applies

  23. The chargeable weight must be rounded up as follows: KG: WHEN THE CHARGEABLE WEIGHT IS EXPRESSED IN KILOGRAMS, HALF OR LARGER FRACTIONS OF A KILOGRAM ( 0.501 TO 0.999KGS MUST BE ROUNDED UP RO THE NEXT HIGHER FULL KILOGRAM

  24. LB: WHEN THE CHARGEABLE WEIGHTS IS EXPRESSED IN POUNDS, FRACTIONS OF A POUND MUST BE ROUNDED UP TO THE NEXT HIGHER FULL LB

  25. Examples • Volume/ gross weight 100.2kgs= chargeable weight 100.5kgs • Volume/ gross weight 100.8 kgs= chargeable weight 101kgs • Volume/ gross weight 100 1bs 2 ounces= chargeable weight 101 ibs • Volume/ gross weight 100 ibs 7 ounces= chargeable weight is 101 ibs • Note: A calculated volume weight of 0.501.kgs,0.001kg or 0.001 ib must be rounded up to the next higher full, half kg or higher full pound respectively

  26. Examples • A volume weight of 318.001 kgs muyst be rounded up to 318.5 kgs. • A volume weight of 262.002 kgs must be rounded up to 262.5 kgs. • A volume weight of 1669.001 ibs must be rounded up to 1670 I bs • Avolume weight of 2369.002 ibs must be rounded up to 2370 ibs.

  27. 1.4.3 Establishing the chargeable weight. • Reference, TACT rules, section 3.9.4 volume weight. The following calculations must be made in order to determine the volume weight of one or several pieces of cargo. • Consignments of one place

  28. STEP 1; Measure the piece along its: Greatest Length, greatest width and greatest Height regardless of its geometric shape. Example; For a drum measuring 60cm in diameter with a height of 50cms. Volume=60x60x50cm = 180000cm3

  29. Note To calculate the volume of a drum the diameter should be treated as length and width.

  30. STEP 2 Round off dimensions as follows: CENTIMETER (CM) Half or larger fraction of a centimeter (0.5-0.9cm) must be rounded up to the next higher whole centimeter. A smaller fraction (0.1-0.4 cm) must be rounded down to next lower whole centimeter . Example: One piece measuring 140.3cm x 126.5cm x 100.6 cm =140cm x 127cm x 101cm.

  31. INCH (IN) Half or larger fraction of an inch(1/2, 5/8, ¾, 7/8 IN) must be rounded up to the next higher whole inch. A smaller fraction (1/8, ¼, 3/8 in) shall be rounded down to the next lower inch. Example. One piece measuring 451/8 in 52 ½ in 60 ¾ = 45 x 53 x 61 in.

  32. STEP 3 • Multiply rounded-off measurements in order to obtain the volume of the piece. Examples. 140 x 127 x 101cm= 1795780 cm3 45 x 53 x 61 in = 145485 cu.in

  33. STEP 4 The limit between high and low density cargo being: 6000cm3 per kg or 366cu.in per kg or 166 CU.IN per lb. The volume weight is established by dividing the volume of the piece by the appropriate factor, ie -if the weight is given in kg and volume in cm3-divide by 6000 -if the weight is given in kg and volume in CU.IN – divide by 366 -if the weight is given in LB and volume in CU.IN –divide by 166

  34. IMPORTANT THE VOLUME WEIGHT SHALL BE CALCULATED UP TO THREE DECIMAL PLACES BEFORE ROUNDING OFF. Examples. 1795780cm3: 6000=volume weight 299.000kgs 145485cu.in:366=volume weight 398.000kgs 145485 cu.IN: 166=volume weight 876.000kgs.

  35. One piece measuring 150cm x126cm x 101 cm Volume= 1908900cm3 • 75 in x 66 in x 56 in = 277200cu.in Hence volume weight • 1908900cm3: 6000 = 318.150 kgs • 277200 cu.in: 366 = 757.377 kgs For pounds. 277200 cu.in 166= 1669.879 ibs

  36. STEP 5. Round off volume weight in the same manner as gross weight Examples 200.001 kgs = 200.5 kgs 418.250 kgs= 418.5 kgs 305.501 kgs=306kgs 498.0011bs = 499ibs 629.472 kgs= 629.5 kgs 2693.829ibs= 2694 ibs.

  37. B. Consignments of two or more pieces A consignment may consist of several pieces representing both high and low density cargo if the entire consignment is to be charged at the same rate then the chargeable weight will be the total gross weight or the total volume weight, whichever is higher. Example 2 packages sent as one consignment: Gross weight Dimension Package A; 1 box 30kgs 90x50x70cm Package B: 1drum 40kgs Diameter 50cm; Height 80cm 70kgs

  38. STEP 1 Establish the total volume weight of the entire consignment and round it off if necessary ie 515000cm3:6000=85.833kgs=86kgs. In this example the total volume weight 86kgs is higher than the total gross weight and will be therefore chargeable weight for this shipment. Total gross weight: 70kgs. Total volume weight: 86kgs. Total volume weight: 86kgs.

  39. The possibility of shipping both high and low density cargo as one consignment charged at the same rate, constitutes a saving for the shipper and a source of income for a consolidator for instance, if the two packages above had to be sent as two individual consignments, the following chargeable weights would apply.

  40. Package A Gross weight = 30kgs Volume weight = 315000cm3: 6000=52.5kgs Chargeable weight=volume weight =62.5kgs Package B: Gross weight = 40kgs Volume weight =200000cm3:6000=33.333kgs rounded up to Chargeable weight= gross weight = 40kgs Total A+B: chargeable weight = 92.5kgs. Hence 6.5kgs more than their combined chargeable weight (86kgs)

  41. 1.4.4 Summary Chargeable weight Ref. TACT Rules, section 3.9.3 Low density cargo high density cargo 6000cm3< 1 kg 6000cm3=or > 1kg 366 cu.in < 1kg 366cu.in = or > 1kg 166 cu.in < 1 kg 166 cu.in = or >1kg

  42. ONE PIECE • Determine • Gross weight • Volume Rounded off measurements of greatest length, greatest width and greatest height. C. VOLUME WEIGHT Dividing volume by appropriate factor

  43. A. Total gross weight • B. Total volume • C. Total volume weight ONE OR MORE PIECES

  44. Volume weight Volume weight higher than less than or equal Gross weight Gross weight Chargeable weight = Volume weight Chargeable weight = Gross weight

  45. 1.5 MINIMUM CHARGE Reference: TACT Rules, section 3.4, minimum charges. The weight charges of a consignment, calculated by multiplying the chargeable weight by the applicable rate per KG or per LB may never be lower than the published minimum charge from the point of origin to the point of destination of the shipment.

  46. The level of the minimum charge depends on the IATA Area with in or between which transportation takes place and is indicated on the rate line, immediately after the name of the destination city, with designator M( minimum) in the min. weight column. The minimum charges to destinations not shown in the rates pages are indicated in TACT rules, section 3.4

  47. 3.4 minimum charge

  48. Example Sector (Routing): Dubai (U.A.E) to Dar es salaam (TZ) Commodity: children Toys No of pieces: 1 box Gross weight: 2.6 kgs Dimensions: 10x 60x 10cm x1 Payment: All charges prepaid Volume 10 x 60x 330cm = 18000cm3 Volume weight 6000cm3;6000=3kg Applicable rate: GCR NAED 30.30 per kg Chargeable weight: 3 kgs ( since volume weight is higher) Weight charge: 3 x 30.30 AED = 90.90 AED. Minimum charge :AED 190.00. Applies

  49. Use transparency to complete the rate boxes of the AWB. Rate class column: Enter the code M for minimum Rate/ charge column: Enter the minimum charge Nature of quantity of goods box: The entry of the dimensions on the AWB is mandatory (volume weight)

  50. 1.6 General Cargo Rates • Reference TACT rules, sections 3.1.b and 3.5, general cargo rates. General cargo rates ( GCR) apply for commodities for which there are no specific rates( specific commodity and class rates) available. Note that special rates are not offered between every point of origin and destination

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