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Tips To Better Understand The Freight Shipping Quote Business

Jun 16, 2008
Do you need to use air freight shipping services? The first question that should become obvious to you would be, "How much is this going to cost?" You can get a free freight shipping quote from any cargo airline or cargo agent almost instantly; however, how will you know which offer is the best and which one to choose from among the different cargo airlines available.

To help you decide, you need to learn about how pricing is done and who decides on the rates. Only when you know all this you can best judge which quote is the best for you.

The quote that you receive from a cargo airline or cargo agent is based upon the guidelines laid down by International Air Transport Association or IATA, as it is popularly known. The rates are decided and updated following debates and discussions held during meetings among IATA Regional Tariff Committees the world over.

Though the air freight rates are decided by IATA, their implementation and acceptance in each country depends upon the approval of the governments of each country. Even when these are not followed as recommended, the IATA decisions are used as guidelines in the respective countries.

The freight shipping quote that you will receive on major popular routes will, more often than not, ignore the IATA rules and guideline, with a massive bias towards you, the customer. This is because there is too much competition on these routes, which necessitate drastic measures to attract customers. There are a few more factors that are taken into consideration before the rate is finalized: the weight of the cargo, the class in which it is booked, any special instruction to the cargo airline and the distance it will travel.

The freight shipping quote is normally based upon the rules and guidelines laid down by International Air Transport Association (IATA). There are a few deviations on these rates, mainly in places where the respective country's government chooses, at their own discretion, to set the rates.

However, the IATA guidelines are taken into consideration even though the recommended rates may not be functional. There are other exceptions to the rule, thankfully, in favor of the customer, on routes that attract high traffic, owing to the competition.

In ordinary cases, the IATA rules and guidelines are applicable without any "adjustment." Now that you know how a cargo airline works out its quote, you will be able to bargain for the best deal for any cargo airline services you need.
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