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consignment is just as an important factor as weight because of the limited cargo space, therefore the air freight rates are based on either gross weight or volume weight, whichever is the greater. For example, 50kg of duvet quilts will take up much more space than 50kg of laptops. The air waybill is raised between the shipper and carrier and can be subject to taxes at each airport used and fuel and currency surcharges may be added to freight costs. Further transportation will also be required from the airport to the final destination.
The role of freight forwarders Rather than arranging transport themselves, many organisations use freight forwarders to organise the logistics of shipping goods. Freight forwarders specialise in
arranging storage and shipping of merchandise on behalf of their customers. These agents provide a wide range of services such as tracking inland transportation, the preparation of shipping and export documents, arranging warehousing facilities, as well as booking cargo space and negotiating freight charges, and arranging cargo insurance.
The benefit of using freight
forwarders is that they have detailed knowledge of the rules and regulations of importing and exporting goods to other countries. As they are dealing with a large
volume of shipments from many different customers, they have the ability to negotiate volume discounts on freight costs, and also consolidate smaller shipments to fill a shipping container with others to provide a cost- effective freight forwarding package. Another benefit of using a freight
forwarder is that they have the experience to deal with the complex legal obligations when shipping merchandise across the world. They can arrange shipments under their own bills of lading (for sea transport cargo) or air waybills (for air transport cargo), and can deal with different customs and taxes regimes of different countries. They will also have networks of agents or associate companies at the destination to provide document delivery and freight collection services. Choose a freight forwarder who is a member of the British International Freight Association, as they will be covered by freight liability insurances and follow industry best practice.
Warehousing Strategic use of customs warehousing can help to manage cash flow and reduce costs where items are being imported to be exported later. Goods in a customs warehouse are
temporarily exempt from UK taxes, as they have not officially entered the country. The benefit of using a customs warehouse is that you can delay the payment of import duty and VAT on imported goods, or avoid these costs if you are re-exporting goods that you have imported. There are different types of
warehouses which provide different levels of services, but they must be authorised by HM Revenue & Customs.
Legal obligations There are numerous rules and regulations regarding importing and exporting goods in the UK, which will incur additional costs that will not usually be included into shipping costs. Importing goods into the UK will incur UK custom duties and taxes, as well as fees for customer clearance and possibly handling fees, depending on the service being used. Exporting is more complicated depending on the countries involved. It
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