In the aviation logistics industry, the concept of consolidated cargo has gained significant traction. This approach not only substantially reduces transportation costs but also offers shippers more convenient services.
Consolidated cargo, as the name suggests, involves combining multiple independent shipments into a single consignment for transport. This operation is typically handled by air freight forwarding companies, which aggregate goods from different clients and issue a single Master Air Waybill (MAWB) to airlines, thereby reducing freight costs and improving transport efficiency.
Advantages of Consolidated Cargo
- Cost savings: Consolidated air freight rates are typically lower than official IATA tariffs. This provides shippers with significant cost reductions, ultimately enhancing overall customer satisfaction.
- Enhanced convenience: Consolidated shipments can be delivered to locations beyond airlines' designated points, expanding service networks and providing customers with greater flexibility.
- Expedited payment processing: Shippers receive a House Air Waybill (HAWB) immediately upon handing goods to freight forwarders, enabling faster financial settlements and quicker capital recovery.
Consolidated cargo has become widely adopted globally, evolving into a sophisticated and efficient service system that plays a vital role in international trade and cultural exchange. Particularly in China, it has emerged as one of the primary transportation methods for import and export goods.
Operational Process of Consolidated Cargo
The implementation of consolidated cargo typically follows these steps:
- HAWB preparation: Air freight forwarders generate individual HAWBs for each shipment, ensuring proper documentation of all client cargo.
- MAWB application: Goods are sorted by destination, with a single MAWB created for shipments bound for the same country or city. Both consignor and consignee on the MAWB are the freight forwarding company.
- Manifest compilation: A cargo manifest is created for each shipment, recording critical information including HAWB numbers, piece counts, and weights.
- Airline submission: The MAWB and manifest are submitted to airlines as a single consignment, where one MAWB can accommodate multiple HAWBs, enabling efficient management of multiple receivers.
- Destination handling: Upon arrival, the local freight forwarder (as MAWB consignee) assumes responsibility for receiving and distributing goods, completing necessary formalities for actual consignees.
- Delivery confirmation: After actual consignees sign the HAWB, the destination forwarder provides arrival confirmation, completing the logistics cycle.
Applicability of Consolidated Cargo
While offering numerous benefits, consolidated cargo isn't suitable for all goods. Typically, it's appropriate only for general commodities, excluding valuable items, hazardous materials, live animals, and cultural artifacts. Furthermore, consolidation is generally limited to destinations within the same or adjacent regions—for instance, shipments bound for Japan shouldn't be routed through European transit points.
Conclusion
Consolidated cargo serves not only as a crucial method for reducing air freight costs but also as a key component of efficient logistics distribution. By strategically utilizing consolidation, shippers can access optimized transportation solutions that facilitate business growth. In today's increasingly competitive global logistics landscape, understanding consolidated cargo operations and advantages presents businesses with valuable market opportunities.
