Forwarders welcome airline’s “all-in” rates

The International Federation of Freight Forwarders Associations (FIATA) has welcomed recent statements of some airlines’ freight divisions announcing their policy to return to a simplified “all-in” rate structure that eliminates the various surcharges like fuel, security etc.


Forwarders welcome airline’s “all-in” rates


The International Federation of Freight Forwarders Associations (FIATA) has welcomed recent statements of some airlines’ freight divisions announcing their policy to return to a simplified “all-in” rate structure that eliminates the various surcharges like fuel, security etc.

“The simplification of rate structures will be a significant benefit to forwarders and shippers alike,” FIATA said in a statement. “Forwarders have for a very long time desired these surcharges be removed as they are opaque and complex and thereby making it difficult to quote a definite price for air cargo transportation, which the shippers are able to understand.”

It went on to note that the fuel surcharge, in particular, has come under significant criticism in recent months as fuel prices continue to fall. Rodolfo Sagel, FIATA’s Airfreight Institute chairman believes this is a long-awaited move in the right direction that may be supportive of transparency. “Transparency in the entire supply chain is generally applauded by FIATA, its members and by the international freight forwarders client,” it added saying it believes that this may be the precursor to many other airlines following suit.

Similarly, the British International Freight Association (BIFA) has welcomed SkyCargo’s move to return to an all-in pricing on air freight shipments to and from Europe from 1 February and on the airline’s global network from 1 March. The cargo arm of Dubai-based Emirates said the single “all-in” charge would be based on weight plus the current fuel and security fees. This would eliminate the present setup of a base rate plus surcharges for fuel and security. The new policy would also eliminate surcharges for other criteria, such as volume.