CH 4 PDF

AIR TRANSPORT
CHAPTER - 4
4. Calculation of Air Freight
Learning Objectives :
The student should have knowledge of tariff structure in general, and the TACT
in air cargo transport.
The student should learn how to calculate the air freight, determining the
chargeable weight and the applicable rate and charges in real business.
June,2019
AIR TRANSPORT
Note:
• The term for prices in air transport is tariffs. Tariffs are the prices
for the air carriage plus the conditions that apply to these prices.
• For cargo transport the technical term for price is “rate” (in
passenger carriage it is the “fare”).
June,2019
AIR TRANSPORT
4.1 Airfreight Publications and International Rates
Objectives :
• The student should have knowledge about-

 how to read publications for airfreight,
and be aware of the co-existence of international rates and
domestic rates in airfreight.
June,2019
AIR TRANSPORT
Airfreight Publications
Airlines publish the freight rates & charges applicable to the movement by air.
All rates and charges are published in alphabetical order from airport to
airport, excluding extra charges such as pickup, export and import clearance,
delivery and storage charges.
The rate applies in the direction to be flown, i.e. from place of dispatch
("origin") to place of destination ("destination"), quoted in either per
pound/lb, or per kilogram/kg.
June,2019
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International Rates
• As opposed to the domestic rate, international rates apply to the air shipment
crossing countries.
• As in domestic air transport, the factors influencing the rates for international
air shipment include :
The competition in the air industry,
Competition from other modes of transport,
The market demand, the nature of the goods,
Traffic regularity,
The quantity and value of the goods and so on.
June,2019
AIR TRANPSORT
4.2 TACT and Rules of Calculation
Objectives :
•The student should understand what The Air Cargo Tariff

and Rules (TACT) is, its main structure, and how to read the
TACT Rates.
•The student should know the rules of calculation of TACT, and

learn how to calculate the chargeable weight in given conditions
June,2019
AIR TRANSPORT
The Air Cargo Tariff (TACT):
• It is the result of the effort from IATA and its member airlines,
• It is a joint tariff of IATA members, providing for a reasonable
uniformity of rates and their conditions.
 IATA Manual (TACT) in three volumes: TACT Rules, TACT
Rates North America & TACT Rates Worldwide
June,2019
AIR TRANSPORT
TACT Manual
• TACT Rules -contain all general rules, regulations and procedures, deviating
and/or additional rules
• TACT Rates North America- contains the rates to, from and within the North
and South America and the islands adjacent thereto.
• TACT Rates Worldwide- contains all others rates than those included in TACT
Rates North America.
June,2019
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Rates validity
• The applicable rates are those valid on the day when the shipment is
accepted for carriage by the airline i.e. the date on the air waybill.
• Unless specified otherwise, the rates apply between the two points
specifically designated regardless of the route by which the
transportation takes place.
• For Example: the rate for a shipment from Amsterdam to Nairobi is
the same, whether transportation is done directly or via London.
June,2019
AIR TRANSPORT
TACT -Rules of Calculation
• The air freight of a shipment is calculated by multiplying the "chargeable
weight" by the "applicable rate":
Air Freight = chargeable weight x applicable rate
Chargeable Weight
• The chargeable weight of a shipment is determined by the actual
gross weight or the volumetric weight, whichever is higher.
June,2019
AIR TRANSPORT
Chargeable Weight .....cont’d
• The actual gross weight is the weight of the shipment including its packing.
• The actual gross weight is often used as the chargeable weight in case of cargo
which is heavy in relation to its volume, such as gold, metal parts, machinery,
etc. (high density cargo).
The actual gross weight is expressed:
 In kg- with fractions of a kilogram rounded up to the next higher half kilogram
½ kg, or
 In lb -with fraction of lb rounded to the next higher full pound 1/1 lb
June,2019
AIR TRANSPORT
Chargeable Weight .....cont’d
• For example: Gross weight Chargeable weight
• 4.15 kg => 4.5 kg
• 8.80 kg => 9.0 kg
• 10.40 lb => 11 lbs
• 25.81 lb => 26 lbs
• The volumetric weight is used as the chargeable weight in case of cargo which is
light in relation to its volume, such as woollen pullovers, hats, etc. (low density
cargo).
• Note :To get the right dimensions per package, measurement is always the
greatest length, the greatest width and the greatest height regardless of the
shape of the package. Fractions of dimensions must also be round up or down
to the next higher/lower half centimetre or inch.
June,2019
AIR TRANSPORT
Chargeable weight ...cont’d
• The calculation formula for volumetric weight is, in terms of kg.
• If the volume is measured in centimetres (cm) :L x W x H / 6,000
• If the volume is measured in inches :L x W x H / 366
• If the volume is measured in inches and the weight in terms of lb:
L x W x H / 166.
June,2019
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Chargeable weight ...cont’d
• If a shipment/consignment consists of several packages, the chargeable weight must be
calculated from the total gross weight and the total volume of the shipment , whichever is
higher, provided that if the entire consignment is to be charged at the same rate.
• Therefore, do not calculate the chargeable weight per package
Chargeable weight examples:
• Example-1 1 package, the gross weight of which is 4.70kg and the dimensions are 60 x 20
x 20 (cm³).
• The actual gross weight = 4.70kg => 5 kg
• The volume weight = 60 x 20 x 20 = 4.00 kg,
6,000
• The chargeable weight is the actual gross weight, 5kg.
June,2019
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Example 3:
• If the dimensions of one shipment are 150.2 x 125.5 x 100.6 (cm³), what is the
volume weight in kilogram?
• Volume weight = 150 x 126 x 101 (cm³) = 318.1 kg => 318.5 kg
6,000
Example 4:
• If the dimensions of one shipment are 75 1/8 x 65 1/2 x 55 3/4 (cu. inches),
what is the volume weight in lb?
• Volume weight = 75 x 66 x 56 (cu. inches) = 1,669.8 lbs => 1,670 lbs.
166
June,2019
AIR TRANSPORT
Example 5:
• There is a shipment consisting of two packages. The shipment is to be shipped
from X to Y on one waybill at one rate. Package A: gross weight 30.4 kg;
dimensions 90 x 50 x 60 cm. Package B: gross weight 30.0 kg; dimensions 60 x
50 x 40 cm. What is the chargeable weight?
Total gross weight: A + B = 30.4 + 30.0 = 60.4 kg => 60.5 kg.
Total volume weight: A+B = 90 x 50 x 60 cm + 60 x 50 x 40 cm =
270,000 cm3 + 120,000 cm3 = 390,000 cm3 = 390,000 = 65 kg
6,000
The chargeable weight is the total volume weight, 65 kg
June,2019
AIR TRANSPORT
Method 3 Charging by BEW
• Under normal circumstances cargo tariff rates are lower per kilo as the weight of
consignments increase.
• For clarity refer the rate display from ADD to LIM.
• Consignments weighing 45 kgs or over are charged at a lower rate per kilos than
those weighing less than 45 kgs. Rates also come down for consignments with a
higher minimum weight break of 100 kgs, 300 kgs etc.
June,2019
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Illustration
• A to the point of destination B are shown as follows:
• USD 3.00 for under 45 kgs and
• USD 2.00 for 45 kgs and over.
The charge for 40 kgs will then be:-
USD3.00 x 40 kgs = USD 120.00
while the charge for 45 kgs is :-
USD2.00 x 45 kgs = USD 90.00
• This is obviously unfair and would lead shippers to increasing the weight
of their consignment by putting in sand or other materials merely to
increase the weight to obtain a lower charge.
June,2019
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• Just allow the package of the 40 kgs to be charged as though it weighs
45 kgs.
The shipper will therefore pay USD90.00.
• This is called BREAKEVEN WEIGHT RULE.
• On the AWB the “Actual Gross weight” will be shown as 40 kgs and the
“Chargeable weight” as 45 kgs.
June,2019
AIR TRANSPORT
BEW = HW X LR
HR
• Using the above formula 45 kgs is the higher minimum weight break
point,USD2.00 is the lower rate and USD3.00 is the higher rate.
• Therefore:- BEW = 45 x 2.00 = 30kg
3.00
. The interpretation for 30kg
June,2019
AIR TRANSPORT
Remember:
1.The higher of the actual weight or volumetric weight must be used when
making comparison.
2. When using a lower rate always charge at least the minimum weight
break point at which that rate begins.
BEW rule advocates the following :

ALWAYS GET THE CHEAPEST POSSIBLE CHARGE BUT WITH IN THE
RULE.
June,2019
AIR TRANSPORT
4. 3 Applicable Rates and Charges
Objectives :
The students should understand the different types of air cargo
rates, the differences among them, and the precedence of the rates
in application.
The students should learn in practice how to decide the appropriate
rate applicable to a certain consignment and to calculate the air
freight with given chargeable weight.
June,2019
AIR TRANSPORT
IATA rates
Basically there are three types of cargo rates namely
1. General Cargo Rates (GCR)
2. Commodity Classification Rates (CR)
3. Specific Commodity Rates (SCR)
• As a rule, air cargo rates are quoted per kg and/or per lb. The
rate applies from airport to airport, excluding costs to and
from airports, as well as the outward and inward clearance
costs
June,2019
AIR TRANSPORT
General Cargo Rate (GCR)
• Applies for the carriage of commodities in general.
• Shipments for which no specific commodity rate or class rate applies,
must be charged at the GCR.
• Usually, the calculation of freight fee is based on the chargeable
weight and the GCR.
• Freight charge = package chargeable weight x GCR per lb/kg.
June,2019
AIR TRANSPORT
General Cargo Rates (GCR)….cont’d
Consists of the normal
(N) rate which is usually under 45 Kgs or or 100 kg.
The 45 Kgs and over rates which are called quantity (Q) rates.
Ex. Plus 100 Kgs,250kgs,300kgs,& 500Kgs
• But always compare the result with the minimum charge.
June,2019
AIR TRANSPORT
Commodity Classification Rates (CR)
• Apply to few commodities within or between certain designated areas.
• They are expressed in terms of percentage increase or decrease over

the normal or applicable GCR.
June,2019
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Specific Commodity Rates (SCR)
• These rates are published for specified commodities from specified

point of origin to specified destination point.
June,2019
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GCR ILLUSTRATION
• Sector A.A (ADD)/JEDDAH (JED) (WORLDWIDE RATES Feb.2008 ed.)
• ADDIS ABABA ET ADD
• U.S.DOLLAR USD KGS
• _______________________________________________
• JEDDAH SA M 29.00 MINIMUM
• N 2.55 N rate
• 45 1.53 Q rate
• 0007 500 0.85
• 0007 1000 0.62
• 0300 1000 0.65
• 0600 1000 0.75
• 1200 1000 0.97
• ET 0007 500 1.37
• ET 0007 1000 1.00
• ET 0300 1000 1.05
• ET 0600 1000 1.21
June,2019
AIR TRANSPORT
GCR EXAMPLE 1
• Routing ADD/JED
• Commodity Ceramic kitchen wares
• Total Gross wt 25kg
• Dimension 1box: 40x30x30cm
• Charges code: PP (PREPAID)
• Form Of Payment---CREDIT
June,2019
AIR TRANSPORT
Solution :
• Volumetric wt = 40*30*30/6000 = 6kg(NOT APPLICABLE AS IT
IS < 25KG)
• Applicable rate = N rate = USD2.55/KG (From the World wide
TACT RATE book)
• Chargeable wt = 25 kg
• Charge = 25kg x usd2.55/kg= USD63.75
• Minimum Charge, M =USD29.00
June,2019
AIR TRANSPORT
Rating Portion of the AWB
CHGS
Currency code WT/VAL other
PPD COLL PPD COLL
USD PP X X Accounting Information : CREDIT

Gross Rate Class Rate
No. of Pieces Weight kg Chargeable Total Nature & Quantity of
Goods incl. Dim or
RCP weight Volume)
Commodity item charge
lb no.
CERAMIC KITCHEN
WARES
01 25 K N 25 2.55 63.75 1(40*30*30)CM
01 25 63.75
June,2019
AIR TRANSPORT
Example 2
• Routing ADD/JED
• Total Gross wt 125kg
• Dimension 5boxes: 40x30x30cm ea
• Charges code: PP &
• Form of Payment CASH
June,2019
AIR TRANSPORT
Solution:
• Volumetric wt = 5(40*30*30) /6000 = 30kg (NOT APPLICABLE AS
IT IS < 125KG)
• Applicable rate = Q rate (+45kg rate) = USD1.53/KG (From the
World wide TACT RATE book)
• Chargeable wt = 125 kg
• Charge =125kg x USD1.53/kg= USD191.25
• Minimum Charge = USD29.00
June,2019
AIR TRANSPORT
Rating Portion Of The Awb
CHGS
PPD COLL PPD COLL
USD PP X X Accounting Information : CASH

Goods incl. Dim or
RCP weight Volume)
lb no.
CERAMIC KITCHEN
WARES
05 125 K Q 125 1.53 191.25 5(40*30*30)CM
05 125 191.25
June,2019
AIR TRANSPORT
Example :3
• Routing ADD/JED
• Total Gross wt 2.5kg
• Dimension 1box: 30x15x15cm
• Charges code: PP &
• Form of Payment--- CASH
June,2019
AIR TRANSPORT
Solution
• Volumetric wt = 1(30*15*15) /6000 = 1.5kg (Not Applicable As It
Is < 2.5KG)
• Applicable rate = N rate (<45kg rate) = USD2.55/KG (From the
World wide TACT RATE book)
• Chargeable wt = 2.5 kg
• Charge =2.5kg x USD2.55/kg= USD6.375
• Minimum Charge, M = USD29.00, Hence M will be the total
weight charge as Total Weight charge should not be less
than the minimum.
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
CERAMIC KITCHEN
01 2.5 K M 2.5 29 29 WARES 1(30*15*15)CM
01 2.5 29
June,2019
AIR TRASNPORT
Questions
June,2019
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Commodity Classification Rates (CR)
• are based on general cargo rates
• Percentage increase (surcharge) or a percentage decrease
(rebate) on the GCR.
• Class rates are applicable only on few commodities:-
• Live animals (AVI), Valuable cargo (VAL),
• Newspapers, magazines,periodicals,books,catalogues,braile type
equipment and talking books for blind people (NWP), Baggage
shipped as cargo (BAG)
• Human remains (HUM).
June,2019
AIR TRANSPORT
Commodity Classification Rates (CR)…..cont’d
• Surcharge (S) applies to AVI, VAL & HUM
• Rebate (R) applies on NWP & BAG.
• In the absence of a Specific Commodity Rates for any of these
items, the proper rate is to be determined by applying the
percentage indicated in TACT RULE section 3.7 for the cargo in
question.
June,2019
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CR…Live Animals (AVI)
• Live animals are categorized in to two
• All live animals and
• Baby poultry less than 72 hrs old.
• The appropriate row should be referred before using the surcharged

rate.
• M should be surcharged 200% of the applicable published M,

excluding ECAA countries.
(TACT Rule June 2015, Edition )
June,2019
AIR TRANSPORT
Illustration 1
• Routing: ADD/JED
• Commodity: 1 Live monkey
• Total Gross Wt: 40kg
• Dims: 1(120x45x45) cm
• Charges Code: PP
• Form of Payment --- CASH
June,2019
AIR TRANSPORT
Solution :
• Volumetric wt: 120*45*45/6000 = 40.5kg
• Chargeable wt: 40.5kg
• ADD & JED are in area 2 so surcharged based on Table Refer
TACT RULE 3.7.2
• Rate = 175% of N GCR
• N=USD2.55/KG M = 29.00
• Surcharged rate = 175% x USD2.55/KG= USD4.46/KG
• Charge = 40.5KG X USD 4.46/KG = USD180.63
• M Charge = 200% OF M = 200% OF 29.00 = USD58.00
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
LIVE MONK
1(120*45*45*)
01 40 K S N175 40.5 4.46 180.63 AVI
01 40 180.63
June,2019
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Illustration 2
• Routing LON/HKG
• Commodity 1 Live Cat
• Total Gross Weight 2.8kg
• Dimension 30x30x30cm
• Charges Code PP
• Form Of Payment Cash
June,2019
AIR TRANSPORT
• Vol. wt 4.5kg = (30*30*30/6000)
• Chargeable wt. 4.5kg
• LON IATA Area 2 and HKG IATA Area 3
• Surcharge percentage 150% of N (Between Area 2 & Area 3)
• Surcharged Minimum 200% of M
• Sector N =GBP7.78/kg
• Sector M=GBP58.00
• Surcharged N =150% of 7.78=GBP11.67/KG
• Surcharged M =200% of 58.00= GBP116.00
• Charge = 4.5kg x GBP 11.67/kg = GBP52.52 (which is < GBP116)
• Therefore weight charge = SM200= GBP116.00
Feb,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL
GBP PP X X Accounting Information : CASH

Goods incl. Dim or
RCP weight Volume)
lb no.
1 LIVE CAT
30*30*30
1 2.8 K S M200 4.5 120 120 AVI
1 3 120
June,2019
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Illustration 3
• Routing KUL/YVR
• Commodity Baby Poultry 35hrs Old
• Total Gross Weight 120kg
• Dimension 10(40x40x40) Cm
• Charges Code PP
• Form of Payment Cash
Calculation
• Volumetric weight 107kg
• Chargeable wt. 120kg
June,2019
AIR TRASNPORT
• KUL IATA Area 3 and YVR IATA Area 1

• Surcharge percentage 100% of N (Between Area 3 & Area 1)
• Surcharged Minimum 200% of M
• Sector N =MYR18.95/kg
• Sector M=MYR110.00
• Surcharged N =100% of 18.95=MYR18.95/KG
• Surcharged M =200% of 110.00= MYR220.00
• Charge = 120kg x MYR18.95/kg = MYR2274.00 (which is
>MYR220.00)
• Therefore weight charge @ SN100= MYR2274.00
June,2019
AIR TRASNPORT
CHGS
PPD COLL PPD COLL
MYR PP X X Accounting Information : CASH

Goods incl. Dim or
RCP weight Volume)
lb no.
BABY P.
24.64 10(40*40*40)CM
10 120 K S N100 120 2956.8 AVI
10 120 2956.8
June,2019
AIR TRANSPORT
Charge for Valuable Cargo - CR Surcharge ( TACT RULE 3.7.6 )
A valuable cargo is any article having a declared value for carriage of USD
1,000.00 (or equivalent) or more per gross kg: except in the UK GBP 450.00,
or more per gross kg.
More definition is found on the tact rule book 3.7.6
The minimum charge for valuables is 200% (from France 400%) of the
published minimum charge provided it is not less than USD50.00 ( in Saudi
Arabia SAR 190) or equivalent. (TACT rule June ,2017)
June,2019
AIR TRANSPORT
Illustration 1
• Routing LON/NBO
• Commodity Gold Watches
• Total Gross Wt. 15kg
• Dimension 40X40X40 cm
• Chgs Code CC
June,2019
AIR TRANSPORT
Solution :
• A Volumetric wt. 40x40x40/6,000=11kg. (N/A)
• Chargeable wt. 15kg.
• LON IATA Area 2
• NBO IATA Area 2
• Surcharge percentage 200% of N GCR Table 3.7.6. TACT RULE BOOK
• Surcharged Minimum 200% of M but not less than USD50.00
• Sector N =GBP 6.45/kg
• Sector M=GBP 60.00
June,2019
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Solution
• Surcharged M =200% of 60= GBP120.00
• Charge =15kg x GBP12.9/kg = GBP193.5 (which is >GBP120.00)
• Therefore weight charge @ SN200= GBP193.5
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL
GBP CC X X Accounting Information : CREDIT

Goods incl. Dim or
RCP weight Volume)
lb no.
GOLD WAT
1(40*40*40)cm
1 15 K S N200 15 12.9 193.5 VAL
1 15 193.5
June,2019
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Exercise 1:
• Routing ADD/FRA
• Commodity Gold Bars
• Chgs Code PP
• FOP Cash
June,2019
AIR TRANSPORT
Solution:
• Volumetric wt.:-50(30*30*50)/6000=375kg
• Chargeable wt.:-1200kg
• ADD IATA Area 2
• FRA IATA Area 2
• Surcharge percentage Table 3.7.6. TACT RULE BOOK
• Surcharged Minimum 200% of M BUT NOT LESS THAN USD50.00
• Sector N =5.25
• Sector M=36
• Surcharged N =200%N=200%(5.25)=10.5
• Surcharged M =200%M=200%(36)=72
• Charge = 1200KG*10.5USD/KG=12,600USD (which is > SM200)
• Therefore weight charge will be 12,600USD
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
Commodity charge
lb item no.
GOLD BAR
50(30*30*50)CM
50 1200 K S N200 1200 10.5 12600 VAL
50 1200 12600
June,2019
Air transport
Charge For Human Remains – CR Surcharge TACT RULE 3.7.9
• Human Remains come in either COFFIN or ASHES. Coffin is heavy
while Ashes, packed in urn is very much lighter. Because of its
sensitivity, it is prudent to handle them with high care and
consideration.
• In light with this there should be advance booking, and carriage and
delivery must be done on time.
June,2019
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The normal minimum charges apply; except for transportation wholly within IATA
AREA 2 where minimum charge will be 200% of the published minimum, provided
it is not less than USD65.00 or equivalent. (TACT Rule FEB,2017 EDITION)
June,2019
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Illustration 1
• Routing LON/NBO
• Commodity Human Remains (Coffin)
• Dimension 72X24X18 In
• Chgs Code PP
Calculation
• Volumetric wt.= 72X24X18/366=85kg (Not Applicable)
• Chargeable wt.=135kg
June,2019
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Solution
• LON IATA Area 2
• NBO IATA Area 2
• Surcharge percentage 200% of N GCR Table 3.7.9 TACT RULE BOOK
• Surcharged Minimum 200% of M (for within AREA2) but not less
than USD 65.00
• Sector M=GBP60.00
• Surcharged M =200% of 60.00= GBP120.00= (equivalent USD 238.25)
• Charge =135kg x GBP12.9/kg = GBP1741.5(which is>GBP120.00)
• Therefore weight charge @ SN200 = GBP1741.5
June,2019
AIR TRANSPORT
Currency CHGS code WT/VAL other
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
HUMAN REMAIN
COFFIN
72*24*18IN
1 135 K S N200 135 12.9 1741.5 HUM
1741.5
June,2019
AIR TRANSPORT
Exercise 1
• Routing ADD/HKG
• Commodity Human Remains (Ash)
• Total Gross Wt. 2.8kg
• Chgs Code PP
• FOP - Cash
Calculation
• Volumetric wt. 2kg
• ADD IATA Area 2
• HKG IATA Area 3
June,2019
AIR TRANSPORT
Solution :
• Surcharge percentage Applicable GCR Table 3.7.9 TACT RULE
BOOK
• Surcharged Minimum 100%M but not less than USD65.00
• Sector N =Applicable GCR
• Sector M =100% M but not less than USD 65
• Surcharged N = USD 9.18/kg
• Surcharged M =100% ( 40 USD) = USD 40
• Charge =USD9.18*3 = USD27.54 (which is < SM )
• Therefore weight charge @ SM = USD 65
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
HUMAN REMAIN
ASH
1(20*18*18)cm
1 2.8 K S M100 3 65 65 HUM
1 2.8 65
June,2019
AR TRANSPORT
Charge for Newspapers, Magazines, Books. etc Class Rate –
Rebate Tact Rule3.7.7
• These commodities are given a rebate (percentage decrease) as
they are highly perishable, informative or are meant for helping
the handicap. The rate class is “R”.
• Where a general cargo quantity rate results in a lower charge
than the rebate rate ,such lower rate shall apply.
• Minimum charge for such cargo is the same with the published
minimum charges.
• (TACT rule June 2017, Edition)
June,2019
AIR TRANSPORT
Illustration 1
• Routing LON/NBO
• Commodity Foot Ball Magazines
• Chgs Code PP
• Fop Cash
Calculation
• Volumetric wt. 5(50x50x50)/6000 =104.5kg (Not Applicable)
• LON IATA Area 2
• NBO IATA Area 2
June,2019
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• Routing is within Area 2
• Rebate percentage 50% of N GCR Table 3.7.7 TACT RULE
BOOK
• Rebate Minimum 100% of M
• Sector M =GBP60.00
• Rebated N =50% of 6.45=GBP3.225/KG
• Rebated M =100% of 60.00= GBP60.00
• Charge =150kg x GBP3.225/kg = GBP483.75 (which
is>GBP60.00)
• Therefore weight charge @ RN50 = GBP483.75
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
FOOTBALL MAG
5(50*50*50)
5 150 K R N50 150 3.225 483.7 NWP
5 150 483.7
June,2019
AIR TRANSPORT
Exercise 1
• Routing ADD/JED
• Commodity Fashion Magazines
• Chgs Code PP
• Fop Cash
Calculation
• Volumetric wt. 107
• Chargeable wt. 120
• ADD IATA Area 2
• JED IATA Area 2
June,2019
AIR TRANSPORT
• Routing is within Area 2
• Rebate percentage Table 3.7.7 TACT RULE BOOK
• Rebate Minimum 100% of M
• Sector N =USD2.55/kg
• Sector M = 29
• Rebated N =50%(USD2.55/kg)=USD1.275/kg
• Rebated M =100%M (USD29)
• Charge = USD1.275*120 =USD153 (which is > RM )
• Therefore weight charge will be USD153
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
Fash. Megaz.
8(50*40*40)CM
8 120 K R N50 120 1.275 153 NWP
8 120 153
June,2019
AIR TRANSPORT
Charge for Baggage Shipped as CGO-CR Rebate TACT Rule
3.7.8
• This rebate rating applies for passengers of an airline whose
baggage is being shipped as cargo because the baggage could
not be taken with the passenger due to various reasons.
• Shipments at these rates will be carried only between the same

points for which the passenger holds a ticket, provided that the
baggage is delivered to the airline not later than the date of the
passenger’s departure.
June,2019
AIR TRANSPORT
BAG Shipped as CGO
• Such baggage shall consist of only personal effects (wearing apparel
and articles ) of a passenger excluding the following.
• Machinery;
• Machine or spare parts;
• Money;
• Securities;
• Jewellery;
• Watches;
• Plate and plated wares;
• Furs,films,camers,tickets,documents,liquors,perfumes &
• Articles of household furnishing, merchandise and salesman samples
June,2019
AIR TRANSPORT
BAG Shipped as CGO
• The baggage may or may not be loaded in the same flight with
the passenger.
• The accompanying AWB must indicate the passenger’s ticket
no., routing and flight no.
• Currently, almost all states have ceased providing such service
and are applying the applicable rates. However TACT rule 3.7.8
need to be referred always whenever there is such a case.
• Minimum charge for baggage shipped as cargo is the same as
the published minimum.
• TACT rule June 2016 edition
June,2019
AIR TRANSPORT
Illustration 1
• Routing LON/NBO
• Commodity Baggage Shipped
As Cargo
• Chgs Code Pp
• Fop Cash
• Tkt No. 0125 9755688919 5
LON/NBO BA423/NOV.15,2015
June,2019
AIR TRANSPORT
Calculation
• Volumetric wt. 70x50x20/6000=12kg (N/A) Chargeable
wt. 25kg
• Rebated rate Applicable GCR (No rebate, we
just apply the appropriate GCR)
(Refer TACT RULE 3.7.8. “From all IATA areas”)
• Applicable rate N GCR as wt. of shipment is <
45kg
• Sector N GBP6.45/kg
• Sector M GBP60.00
• Charge 25kgxGBP6.45/kg
=GBP161.25
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL Accounting Information : CASH
TKT NO 0125 97556889195 LON/NBO
GBP PP X X BA423/NOV15,2015
Goods incl. Dim or
RCP weight Volume)
lb no.
BAGG AS CARGO
70*50*20CM
1 25 K R N100 25 6.45 161.25 BAG
1 161.25
June,2019
AIR TRANSPORT
Exercise 1
• Routing ADD/MRS
• Commodity Personal Effects
• Total Gross Wt. 18.3kg
• DIMENSION 50X40X30 Cm
• Chgs Code PP FOP ----Cash
• Tkt No. 057 21273365033 ADD/MRS
AF149/10dec.2015
June,2019
AIR TRANSPORT
Calculation
• Volumetric wt.:-10
• Chargeable wt. :-18.5
• Rebated rate :- 100%N
• (Refer TACT RULE 3.7.8. “From all IATA areas”)
• Sector N USD4.84/KG
• Sector M USD36
• Charge = USD4.84*18.5=87.12
• Weight charge should be USD87.12 which is >RM)
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL
Accounting Information : CASH
USD PP X X 05721273365033 ADD/MRS AF149/10DEC 2008
Goods incl. Dim or
RCP weight Volume)
lb no.
PERS. EFFECT
50*40*30CM
1 18.3 K R N100 18.5 4.84 87.12 BAG
1 18.3 87.12
June,2019
Questions
AIR TRANSPORT
Specific Commodity Rates (SCR)
• Mainly apply to so called “national products” of a country where
by producers / manufacturers are encouraged to sell them
overseas and earn revenue.
• Are usually cheaper than GCR and CR.
• With a rate class of C.
• SCR appear in four digit numbers under the “item” column of
the rate display.
• Details can be found in Section 2.3 & 2.4 of the TACT RATE
BOOKS.
June,2019
AIR TRANSPORT
Specific Commodity Rates (SCR)..cont’d
• Mainly apply to so called “national products” of a country where
by producers / manufacturers are encouraged to sell them
overseas and earn revenue.
• Are usually cheaper than GCR and CR.
• With a rate class of C.
• SCR appear in four digit numbers under the “item” column of
the rate display.
• Details can be found in Section 2.3 & 2.4 of the TACT RATE
BOOKS.
June,2019
AIR TRANSPORT
SCR Illustration
• Sector ADD/JED (WORLDWIDE RATES Feb.2008 ed.)
• ADDIS ABABA ET ADD
• U.S.DOLLAR USD KGS
• _______________________________________________
• JEDDAH SA M 29.00 MINIMUM
• N 2.55 N rate
• 45 1.53 Q rate
• 0007 500 0.85
• 0007 1000 0.62
• 0300 1000 0.65
• 0600 1000 0.75
• 1200 1000 0.97
• ET 0007 500 1.37 Flagged SCR
• ET 0007 1000 1.00 Flagged SCR
• ET 0300 1000 1.05 Flagged SCR
• ET 0600 1000 1.21 Flagged SCR
June,2019
AIR TRANSPORT
SCR..cont’d
• When a commodity can be classified under more than one
description, the most specific description, provided the weight
break is satisfied, shall prevail, even if this means a higher charge.
(TACT RULE 3.6)
Two requirements must be met in order to apply a SCR.
a. The item to be shipped must match with the one listed under
the corresponding item number ,&
b. The minimum weight break must be satisfied.
June,2019
AIR TRANSPORT
Illustration 1
• Routing LON/NBO
• Commodity Aircraft Tyres
• Dimension 4(125x125x30)cm
• Chgs Code PP
• FOP Cash
June,2019
AIR TRANSPORT
Solution
• Volumetric wt:- 4(125x125x30)/6000 = 312.5kg (Applicable)
• Chargeable wt. 312.5kg
• SCR 4110(+250kg) = GBP4.31/kg
• Charge = 312.5kg X GBP4.31/kg = GBP 1,346.88
• Minimum charge = GBP 60.00
June,2019
AIR TRANSPORT
RATING PORTION OF THE AWB
CHGS
PPD COLL PPD COLL

Goods incl. Dim or
RCP weight Volume)
lb no.
A/C TYRE
4(125*125*30)CM
4 306 K C 4110 312.5 4.53 1415.62
4 306 1415.62
June,2019
AIR TRANSPORT
Illustration 2
• Routing LON/NBO
• Commodity Photo Copy Machine
• Total Gross Wt. 86 kg
• Chgs Code PP
• FOP Cash
June,2019
AIR TRANSPORT
Solution
• Volumetric wt. 100x50x30/6000 = 25kg (N/A)
• Chargeable wt. 100kg (the minimum weight
break for SCR4327)
• Rate (+100kg) GBP4.88/kg SCR for office
machines(SCR4327)
• Charge @ SCR 100kg X GBP4.88/kg =GBP488.00
• Minimum charge GBP60.00
• Charge @ GCR (BEW RULE) = 100kg x GBP5.37/kg =GBP537.00
(Which is expensive than the SCR Charge of GBP488.00)
June,2019
AIR TRANSPORT
PPD COLL PPD COLL

Rate Class Rate
No. of Pieces Gross Weight kg Chargeable Total Nature & Quantity of
Goods incl. Dim or
RCP weight Volume)
lb no.
Photo copy machine

1 86 K C 4327 100 4.88 488 100*50*30
1 86 488
June,2019
AIR TRANSPORT
Precedence of Rates, TACT rule 3.3
As a rule the following order of precedence applies to the published
through rates.
• RULE 1. Specific Commodity rates (SCR) take precedence over
Class rates (CR) and General Cargo rates (GCR).
• RULE 2. Class rates (CR) take precedence over General Cargo
Rates (GCR).
• RULE 3. When the applicable GCR is lower than the SCR, such
lower rate can be applied EXCEPT where the SCR has been
established for items covered by a CR.
June,2019
AIR TRANSPORT
Precedence of Rates, TACT rule 3.3…..cont’d
• RULE 4. For Class rate Rebate (R) items i.e

Newspapers,magazines,periodicals,books,catalogues,braille type
equipment, talking books for the blind and Baggage shipped as
cargo , if there is a GCR which is cheaper than the CR, such
GCR can be applied.
June,2019
AIR TRANSPORT
June,2019
AIR TRANSPORT
• Exercise 1
• ROUTING MGQ/CTA
• COMMODITY Fresh Bananas
• TOTAL GROSS WT. 360kg
• DIMENSION 25(48x40x42) cm
• CHGS CODE PP FOP ----CASH
June,2019
AIR TRANSPORT
Solution :
1) Chargeable weight-CW ?
Vol.wt= 25(48x40x42) cm/6000=336kg (no applicable)
CW=360kg
2) Is SCR ? Yes
Rate for (+500 kg)= 1.01USD/KG SCR for Bananas (Item #0420)
Charge @SCR=500kg*1.01usd/kg=505USD
Minimum=53 USD
Is it CR(S)? No
Is GCR cheaper ?
June,2019
AIR TRANSPORT
Solution………cont’d
• Charge @Applicable GCR
• Q Rate =4.82 usd/kg
• Charge =4.82usd/kg*360kg=1735.2 USD
• Is GCR cheaper ? NO
• Apply SCR
• Therefore charge =505USD
June,2019
AIR TRANSPORT
PPD COLL PPD COLL

Rate Class Rate
No. of Pieces Gross Weight kg Chargeable Total Nature & Quantity of
Goods incl. Dim or
RCP weight Volume)
lb no.
Fresh Bananas
25(48x40x42) cm
25 360 K C 0420 500 1.01 505
25 360 505
June,2019
AIR TRANSPORT
EXERCISE 1.
• ROUTING MIL/SYR
• COMMODITY Text Books
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL
EUR PP X X Accounting Information : CASH

Goods incl. Dim or
RCP weight Volume)
lb no.
TEXT BOOK
16(58*41*20)CM
16 368 K Q 368 2.26 831.68
16 368 831.68
June,2019
AIR TRANSPORT
EXERCISE 2.
• ROUTING TUN/AMS
• COMMODITY Live Shellfish for aquarium
June,2019
AIR TRANSPORT
CHGS
PPD COLL PPD COLL
TND PP X X Accounting Information : CASH

Goods incl. Dim or
RCP weight Volume)
lb no.
LIVE FISH FOR AQU
6(43*35*28)CM
6 72 K S N175 72 2.45 176.4 AVI
6 72 176.4
June,2019
AIR TRANSPORT
• Carrier Specific Rates
• Adhoc/Spot Rate:- These are normally non-standard rates which
is offered as a special onetime rates for first time.
• It generally signifies a rate designed for a specific shipment, a
specific sector , for a specific airway bill or shipper. It is non-
generalizable, and not intended to be able to be adapted to
other time.
• Street Rate- These are rates which is given for any walking
customer for a specific shipment for a specific origin destination.
June,2019
AIR TRANSPORT
Other Charges
• Other charges incurred at origin shall be inserted at the time of
Air Waybill issuance as either wholly prepaid or wholly collect.
• Other charges may be applicable on actual or volumetric weight

depending on the specific carrier’s and station’s rule.
• In some cases they could also be flat charges like for example
AWB fee which is applied per document basis.
June,2019
AIR TRANSPORT
• Other charge
• When inserted on the AWB other charges are represented by
three letter codes the last digit representing whether the
amount accrues to the agent issuing the AWB or to the carrier.
The following are very few examples.
• AW – AWB Documentation Fee .. Sec 4.4
• MY – Fuel Surcharge
• MO – Miscellaneous Charge
• SC – Security Charge…. e.t.c
• E.g – AWC- USD4.00
June,2019
Question

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AIR TRANSPORT

• The student should have knowledge about-

•The student should understand what The Air Cargo Tariff

•The student should know the rules of calculation of TACT, and

• The calculation formula for volumetric weight is, in terms of kg.

• If the volume is measured in centimetres (cm) :L x W x H / 6,000

• If the volume is measured in inches :L x W x H / 366

• If the volume is measured in inches and the weight in terms of lb:

• For clarity refer the rate display from ADD to LIM.

• This is called BREAKEVEN WEIGHT RULE.

. The interpretation for 30kg

BEW rule advocates the following :

• Apply to few commodities within or between certain designated areas.

• They are expressed in terms of percentage increase or decrease over

• These rates are published for specified commodities from specified

USD PP X X Accounting Information : CREDIT

USD PP X X Accounting Information : CASH

USD PP X X Accounting Information : CASH

• The appropriate row should be referred before using the surcharged

• M should be surcharged 200% of the applicable published M,

USD PP X X Accounting Information : CASH

GBP PP X X Accounting Information : CASH

• KUL IATA Area 3 and YVR IATA Area 1

MYR PP X X Accounting Information : CASH

More definition is found on the tact rule book 3.7.6

GBP CC X X Accounting Information : CREDIT

USD PP X X Accounting Information : CASH

GBP PP X X Accounting Information : CASH

USD PP X X Accounting Information : CASH

GBP PP X X Accounting Information : CASH

USD PP X X Accounting Information : CASH

• Shipments at these rates will be carried only between the same

Two requirements must be met in order to apply a SCR.

b. The minimum weight break must be satisfied.

GBP PP X X Accounting Information : CASH

GBP PP X X Accounting Information : CASH

Photo copy machine

• RULE 4. For Class rate Rebate (R) items i.e

USD PP X X Accounting Information : CASH

EUR PP X X Accounting Information : CASH

TND PP X X Accounting Information : CASH

• Other charges may be applicable on actual or volumetric weight

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