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Air Shipment Process Flow

Jul 15, 2024

Air Shipment Process Flow

Introduction

  • Discussed by: HPS Trade, Japanese Freight Forwarder in Thailand
  • Presenter: Eno
  • Topic: Process flow for air shipment (as an alternative to sea shipment)

Key Points

  • Trade Shipment Modes
    • 90% of cargo transported by sea
    • 30% of cargo by cost transported by air
  • Advantages of Air Shipment
    • Quick transport speeds
    • Suitable for fresh food, medical products, sensitive equipment
    • Faster delivery to market
  • Disadvantages
    • Higher cost than sea shipment

Export Process Using Air Shipment

  1. Cargo Dispatch Schedule
    • Manufacturer decides schedule and delivery time for overseas customer
    • Exporter selects freight forwarder and books flight
  2. Information Provided to Freight Forwarder
    • Dispatch date, desired flight date, product contents, weight, and delivery destination
    • Required documentation: invoice, packing list, shipping instruction (SI)
  3. Warehouse Delivery
    • Cargo delivered to freight forwarder or packing company near airport
    • Same-day or one-day-prior delivery schedule

Pre-Flight Processes

  • Explosive Inspection
    • Mandatory for security, exempt for AEO (Authorized Economic Operator)
  • Labeling
    • Attach label (airway bill number, destination)
    • Include hazard label for dangerous goods
  • Packing
    • Cargo packed completely with carton, pallet, or wooden box
  • Custom Clearance
    • Conducted at customs warehouse
    • Exporter provides invoice and packing list details via EDI system
    • Receive export permit
  • Storage to Airline
    • Cargo moved to airline's storage shed before loading
    • Consolidated into ULD (Unit Load Device)
    • Cut time (deadline) based on airline/flight schedule

Documentation

  • Consolidated Airway Bill
    • Freight forwarder issues House Airway Bill to exporter
    • Master Airway Bill issued by airline to freight forwarder

Import Process

  1. Arrival and Unloading
    • Cargo unloaded into storage shed at destination
    • ULD removed and cargo checked (break bulk)
  2. Import Custom Clearance
    • Local freight forwarder/agency processes clearance
    • Documentation handed from exporting freight forwarder to local agency
    • EDI used for declaration
    • Receive import authorization
  3. Delivery to Importer
    • Cargo loaded onto truck and delivered to importer or designated address
    • AEO importers can obtain authorization outside bonded area

Summary

  • Exporter requests freight forwarder for air shipment arrangements
  • Freight forwarder handles collection, weighing, packing, clearance, and delivery
  • Proper documentation is crucial
  • Collaboration between different personnel is necessary for accuracy and speed in the process

Conclusion

  • Importance of speed and accuracy in air shipment processes
  • Encouragement for viewer engagement and contact for shipments to/from Thailand

Channel's Purpose: Explain international logistics for better understanding and support logistics roles.