Have you ever been baffled by the dense terminology on an air waybill? Those prominent abbreviations—"PP" and "CC"—can be particularly confusing. Today, we’ll demystify these codes and clarify the rules governing freight payment on air waybills.
"PP" and "CC": The Secret Codes for Freight Payment
In simple terms, "PPD" and "COLL" on an air waybill stand for "Prepaid" and "Collect," respectively. The abbreviations "PP" and "CC" are used in the corresponding "PPD" and "COLL" fields to specify how each fee is paid.
- PP (Prepaid): The shipper has already paid the applicable fees.
- CC (Collect): The consignee will pay the fees upon delivery.
What Are "WT VAL" and "Other" on an Air Waybill?
To fully grasp the application of "PP" and "CC," it’s essential to understand two key sections on the air waybill: "WT VAL" and "Other."
WT VAL (Weight Charge & Valuation Charge): This section covers the freight charge (the basic cost of transporting the goods) and the valuation charge (an additional fee for higher-value goods to secure greater compensation coverage). Note that freight and valuation charges must be paid together—either both prepaid or both collected.
Other (Other Charges): This section includes various additional fees, such as:
- AWC: Air Waybill fee—charged by airlines or freight forwarders for issuing the document.
- MYC: Fuel surcharge—an additional fee based on fluctuating fuel prices.
- SCC: Security surcharge—applied to ensure safe air transport.
- FCC: Freight collect fee—an extra charge when freight is paid upon delivery.
- RAC: Dangerous goods handling fee—applies to hazardous materials.
- ACC: Animal container fee—charged for renting specialized containers for live animals.
How to Correctly Fill Out "PP" and "CC"
Here’s how to properly indicate payment methods on an air waybill:
-
WT VAL Section:
- If freight and valuation charges are prepaid, mark "PP" in the PPD field.
- If they are collected upon delivery, mark "CC" in the COLL field.
-
Other Section:
- If other fees are prepaid, mark "PP" in the PPD field.
- If they are collected upon delivery, mark "CC" in the COLL field.
Why Are There Two "PPD" and "COLL" Fields?
Air waybills categorize fees into "WT VAL" and "Other," allowing different payment methods for each. For example, freight and valuation charges might be prepaid, while other fees could be collected upon delivery, offering greater flexibility.
Conclusion
Understanding "PP," "CC," and their relationship with "WT VAL" and "Other" is fundamental for international air freight. Mastering these terms helps optimize logistics costs and avoid unnecessary complications. Next time you encounter these codes, you’ll know exactly what they mean.