The published direct freight rate for air freight.

The published direct rates refer to the specific amounts an airline directly indicates in its tariff for transporting cargo from point A to point B.

I. Types

1. Specific Commodity Rates (SCR)

Specific Commodity Rates are usually preferential rates offered by carriers, with the approval of the International Air Transport Association (IATA), either at the request of shippers who regularly transport a certain type of cargo on a specific route, or to promote the transportation of a certain type of cargo between regions.

When IATA publishes Specific Commodity Rates, cargo is divided into the following categories:

0001-0999 Edible animal and vegetable products;

1000-1999 Live animals and inedible animal and vegetable products;

2000-2999 Textiles, fibers, and their products;

3000-3999 Metals and their products, excluding machinery, vehicles, and electrical equipment;

4000-4999 Machinery, vehicles, and electrical equipment;

5000-5999 Non-metallic minerals and their products;

6000-6999 Chemical and related products;

7000-7999 Paper, reeds, rubber, and wood products;

8000-8999 Scientific and precision instruments, apparatus, and accessories;

9000-9999 Other goods.

Each group is further subdivided into 10 sub-groups, and each sub-group is subdivided further, giving almost every commodity a corresponding group number. When publishing a Specific Commodity Rate, it is sufficient to indicate which group of goods the rate applies to.

Since the carrier's original intention in setting Specific Commodity Rates was mainly to make the rates more competitive, attract more customers to use air freight, and make better use of the airline's capacity, these rates are generally lower than General Cargo Rates. Therefore, in addition to meeting the requirements for route and cargo type, goods applying for Specific Commodity Rates must also meet the carrier's stipulated minimum weight (e.g., 100 kg). If the shipment weight is insufficient and the shipper still wishes to apply the Specific Commodity Rate, the chargeable weight will be the stipulated minimum weight (100 kg). The freight for the shipment is then the product of the chargeable weight (in this case, the minimum weight) and the applicable Specific Commodity Rate.

2. Class Rates or Commodity Classification Rates (CCR)

Class Rates apply to the transportation of a limited number of goods within or between specified areas. They are usually expressed as a percentage increase or decrease based on the General Cargo Rate.

Goods typically subject to Class Rates include:

(1) Live animals, and containers/cages for live animals;

(2) Valuable cargo;

(3) Human remains or ash;

(4) Newspapers, magazines, periodicals, books, catalogs, publications and specially equipped appliances for the blind and deaf;

(5) Baggage shipped as cargo.

Items (1)-(3) usually incur a percentage increase over the General Cargo Rate; items (4)-(5) involve a percentage reduction over the General Cargo Rate.

3. General Cargo Rates (GCR)

General Cargo Rates are the most widely applicable rate. When a shipment does not qualify for Specific Commodity Rates or Class Rates, General Cargo Rates should be applied.

Typically, airlines publishing General Cargo Rates establish several breakpoints concerning the weight of the cargo. The most common breakpoint is 45 kg, dividing cargo into shipments under 45 kg (this rate is also known as Normal General Cargo Rates, or "N") and shipments of 45 kg or more. Depending on the cargo traffic on a given route, additional breakpoints such as 100 kg, 300 kg, or more can also be established. The rate level decreases as the shipment volume increases, which is a notable feature of airfreight rates.

Because lower rates are provided for higher-volume shipments, we can easily find that for a 75 kg shipment, the freight calculated at the rate for shipments above 45 kg (e.g., 9.82 * 75 = 736.50) might be higher than the freight for a 100 kg shipment (e.g., 7.14 * 100 = 714.00). This situation is somewhat unreasonable. Thus, airlines allow that, besides comparing the actual gross weight and volumetric weight and using the higher as the chargeable weight, if a higher chargeable weight breakpoint results in a lower overall freight cost, the rate of the higher breakpoint can be used. In this case, the chargeable weight of the shipment shall be the minimum weight of that higher breakpoint. That is, in the example above, the 75 kg shipment could also be subject to a rate of £7.14 per kg, but the chargeable weight would then be 100 kg, giving a total charge of £714.

4. Minimum Charges (M)

Minimum Charges are the lowest freight an airline will accept for handling a single shipment, set after considering the fixed costs incurred even for a very small consignment.

If the freight collected by the carrier is lower than the Minimum Charge, it would fail to cover transportation costs. Accordingly, airlines stipulate that regardless of the applicable air freight rate, the total calculated freight cannot be lower than the Minimum Charge. If the calculated amount falls below the Minimum Charge, the Minimum Charge is collected unless otherwise specified.

Beside the four types of published direct rates introduced above, a special type of rate exists: the rate for unit load devices (ULD), applicable to shipments on pallets or in containers.

II. Usage of Published Direct Rates

1. Except for Minimum Charges, published direct rates are quoted per kilogram or pound.

2. In calculating air freight, Specific Commodity Rates should be applied first, followed by Class Rates, and finally by General Cargo Rates.

3. If the total freight calculated using Specific Commodity Rates, Class Rates, or General Cargo Rates is less than the prescribed Minimum Charge, the freight is collected at the Minimum Charge amount.

4. The chargeable weight for the cargo can be either its actual weight or volumetric weight, whichever is higher; if a rate stipulates a minimum weight and neither the actual weight nor volumetric weight meets it, the stipulated minimum weight shall be the chargeable weight.

5. Published direct rates are point-to-point rates between two airports and apply only in one direction.

6. Published direct rates refer strictly to basic freight charges and do not include ancillary fees like storage.

7. In principle, published direct rates are independent of the flight route taken, but might be affected by the carrier's different choice of routing.

8. The currency or the rate is generally the local currency unit of the place of departure, and the applicable rate is determined as of the time the air waybill is issued by the carrier or its authorized agent.