AF3—Air Freight Forwarding Services and Operations

Subscriber price: $210.00, Non-subscriber price: $275.00
Estimated total study time: 15 hours 15 minutes

This course addresses the functions and operational tasks of an air forwarder. It is focused on air forwarder services, relationships with airlines and other service providers, and organization and tasks performed, with special attention to customer service and the operational requirements to process and delivery shipments.

Air Forwarder Services Overview

(Estimated study time: 1 hour 11 minutes)

Airfreight Forwarder Services—Overview
- What Is an Air Forwarder?
- Air Forwarding—a Knowledge-based Business
- The Air Forwarding Process
  - Process Overview
  - The Key Players
- Introduction to Technical Terminology

Forwarding as Part of Supply Chain Logistics

(Estimated study time: 40 minutes)

Introduction
Extended Logistics Services
- What is "Logistics"?
- Cargo Assembly
- Warehousing & Distribution
- Dedicated & Implanted Services
- End-to-End Supply Chain Management
Forwarder Relationship with Other Transport Service Providers—General

Forwarder-Airline Relationships

(Estimated study time: 55 minutes)

History as Dual Agent
Operational Relationship—Shipment Routing
Operational Relationship—Shipment Booking and Air waybill(s)
Forwarder-Airline Cargo Pricing Relationship
- Forwarders and Airlines Face Very Different Circumstances

Forwarder-Airline Pricing Relationship

(Estimated study time: 1 hour 2 minutes)

Forwarder Approach to Pricing—Driven by Shipper Relationships
Airline Approach to Pricing—Driven by Revenue Yield
- Airline Imperatives
- Revenue Management Strategies and Methods
- Priority Transport Pricing
Air Cargo Rate (Price) Determination

Forwarder-Truckers Relationships

(Estimated study time: 58 minutes)

General—Forwarders Select and Depend on Truckers
Trucker Selection; Diligence in Hiring
Pricing of Trucking Services
Surcharges and Special Services/Accessorial Charges

Forwarder Networks & Other Relationships

(Estimated study time: 1 hour 3 minutes)

Air Forwarder Operational Networks—Offices & Agents
- Operational Requirements at Origin and Destination Airports
- Competitive Concerns When Using Agents—Sales Neutrality, Cooperation
Cargo Insurance
- Relationship with Insurance Broker
- Insuring International Air Shipments
- "Insuring" Domestic Air Shipments
Customs Brokers
Other Mode Forwarders/Logistics Services
Government Regulation of Air Forwarders

Forwarder Organizations; Conducting Customer Service

(Estimated study time: 1 hour 3 minutes)

General—Forwarder Organization Varies Considerably
Customer Service
- Customer Service Tasks
- Means of Communication
- Required Knowledge, Skills and Success Factors
- Typical Customer Service Organization
  - Centralized Customer Service
  - Decentralized Customer Service
  - Typical Customer Service Job Titles

Origin Station Clerical Operations—Always Required Tasks

(Estimated study time: 1 hour 0 minutes)

Scope of Origin Station Responsibilities
Always-Required Origin Station Clerical & Communications Tasks
- Initialize the Shipment Transaction
- Route and Book Shipment
- Accept Cargo
- Issue Contract of Carriage (Air Waybill)
- Issue Freight Invoice

Origin Station Tasks Sometimes Required; Origin Station Job Titles

(Estimated study time: 1 hour 0 minutes)

SOMETIMES-Required Origin Station Clerical & Communications Tasks
- Cargo Consolidation
- For International shipments
- Additional Services at Shipper's Request
Origin Station Clerical Job Descriptions/Titles

Origin Air Forwarder Terminal Functions (Physical Cargo Handling)

(Estimated study time: 55 minutes)

Origin Air Forwarder Terminal Functions (Physical Cargo Handling)
- Fucntions of an Origin Cargo Terminal
- Forwarder-Handled Air Shipments Delivered Directly from Shipper to Airline
- Forwarder-Operated Terminals vs. Sub-Contracted Terminal Services
- Reasons for a Forwarder to Operate Its Own Cargo Terminal
- Typical Cargo Terminal Job Titles

Consolidation Gateway Functions

(Estimated study time: 46 minutes)

Consolidation Gateway Functions
- What Is a Gateway?
- Operational Requirements

Destination Agent Functions; Air Forwarder Management

(Estimated study time: 45 minutes)

Functions of Air Forwarder Destination Agent
- Cargo Consolidation "Breakbulk"
- Cargo Assembly Breakout
- Shipment Delivery
- Customs Clearance for International Free Domicile Shipment
- Mutual Sales
Air Forwarder Management Functions
- General—Functions of Management

Air Forwarder Management, cont.

(Estimated study time: 45 minutes)

Company-Wide Responsibilities
- General Management
- Management Structure
- Sales & Marketing Management
- Specialized (Staff) Functions/Managers
Station/Branch/Terminal Management
- Tasks Performed
- Typical Job Titles
Department and Work Group Supervision
- Tasks Performed
- Typical Job Titles

Air Forwarder Sales

(Estimated study time: 1 hour 10 minutes)

General—Sales Purpose and Typical Forwarder Strategy
Generic Sales Process—New Customers
Generic Sales Process—Existing Customers
Product Knowledge + Sales Skills
"Inside" Sales Work & Representatives
- Business Prospecting
- "Inside" Sales Representatives
- Typical Job Titles
"Outside" Sales Representative
- Tasks Performed
- Required Skills & Knowledge
- Typical Job Titles
Combination of Inside and Outside Sales Process
Account Managers
Sales Management

IATA Cargo Agency (International Shipments)

(Estimated study time: 41 minutes)

Agent Relationship with IATA Member Airlines
- What Is an IATA Cargo Agent?
- Criteria to Become an IATA Cargo Agent
- Benefits in Being an IATA Cargo Agent
- CASS
- IATA Cargo Agent Responsibilities

Use of Direct vs. House AWB; Direct AWB Freight Rates (International Shipments)

(Estimated study time: 1 hour 2 minutes)

Use of a Direct IATA Airwaybill vs. a House Airwaybill
- Forwarders Issue House AWBs for Most Shipments
- Shipments for Which Direct AWBs are Used
Direct AWB Freight Rates
- Negotiated Rates
- TACT Rates
  - Rates To Apply in Absence of Lower Contract Rate
  - Steps in Using the TACT

Air Shipment Routing Exercise (International)

(Estimated study time: 19 minutes)

International Air Cargo Routing Exercise
- Exercise Overview
- Summary of Research Problem and Required Findings:
- Exercise Conditions/Assumptions:
- Recommended Methods and Task Sequence:
- Required Routings
- Report Requirements
- Report Format (Template)
  - Heading
  - Routing solutions:
  - Process description:
  - Conclusions:
  - Recommendations:
  - Enter your solution here