In 1999, it is estimated about 42 percent of the approximately $5.8 trillion worth of goods that were traded internationally were shipped by air. Published by Praxis Communications Ltd. Asia Inc. July, 2000 Vol.9. No.4, page 42, Contact: editors @ team.asia-inc.com

The advantages of using air transportation are:

1. Speed of delivery (e.g. breeding cattle, fish or perishable goods)

2. Permits lower inventories at branch warehouse, etc.

3. Reduces working capital tied up in "goods in transit" and reduces packaging costs.

4. Avoids conditions of extreme heat, dampness, and vermin, often found in ocean-going vessels.

5. Both scheduled and non-scheduled air carriers offer a great variety of air cargo flights.

6. Reduces pilferage of and damage to goods being shipped compared with other methods.

7. Reduces insurance costs because of less theft, damage, etc.

The disadvantages are:

1. The cost is prohibitively high for many goods.

2. Unsuitability for certain types of products as altitude and temperature can cause damage e.g. liquids may leak as pressure decreases with altitude and goods may become frozen.

Air shipment can be arrange by using the services of an airfreight forwarder, for a fee, which usually offers a lower rates through consolidation of shipments from several exporters and handle the booking and paperwork.

In calculating airfreight charges, the airlines use what is known as the "cube rule" namely, that every 194 cubic inches of space occupied by the shipment is considered equivalent to one pound.

They then compare this dimensional weight with the actual weight of the shipment and base their charges on the greater of the two.

An example: suppose a box being shipped weighs 60 pounds and measures 20 x 20 x 40 inches, or 16,000 cubic inches. The dimension weight, will be 82 LBS. and is thus greater than the actual weight.

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