Page 263 - DCAP312_WEB_TECHNOLOGIES_II

Unit 13: Adding E-Commerce Essentials

As the freight rate quoted by the airline is R18.00 per kg, we calculate the price as follows: Notes
306 kg  R18/kg = R5 508.00
The freight rate will not be calculated on the actual mass 300 kg  R18.00 = R5 400.00 as the
airline will always use the greater amount either the kg, or volumetric weight.
Consolidation

Consolidation is an economical method of moving cargo by employing a consolidator. The
consolidator receives cargo from a number of suppliers/shippers and then combines these
cargoes into one consignment by packing the goods into a Unit Load Device. The consolidator
then books the Unit Load Device with an airline. The supplier/shipper would have a contract
of carriage with the consolidator of the cargo and in turn the airline would have a contract of
carriage with the consolidator. The airline would issue an air waybill to the consolidator when
accepting the Unit Load Device and in turn the consolidator would issue the supplier/shipper
with a house air waybill.
The Air Waybill
The air waybill, unlike the ocean bill of lading is not a document of title to the goods described
therein, however it does perform several similar functions these are:
• It is a receipt for the goods

• It is evidence of the contract of carriage between the exporter and the carrier
• It incorporates full details of the consignor/shipper, the consignee/receiver and the
consignment/goods

• It is an invoice showing the full freight amount
• It must be produced, be it in an electronic format, at the airport of discharge for clearing
purposes.
All copies of the air waybill, together with the commercial invoice, packing list, certificate of
origin and any other document which may be necessary for clearing the goods through customs,
these documents are carried in the flight captain's bag.

13.2.2 Sea Freight Calculations
Seafreight calculations can broadly be divided into two main components; breakbulk and
containerised. In this section we deal with how you should calculate the freight costs of both
of these two types of seafreight.

Break Bulk Cargo Calculations
Break bulk cargo, is cargo that is unitised, palletised or strapped. This cargo is measured along
the greatest length, width and height of the entire shipment. The cargo is also weighed. Shipping
lines quote break bulk cargo per “freight ton”, which is either 1 metric ton or 1 cubic metre,
which ever yields the greatest revenue.

A case has a gross mass of 2 Mt.
The dimensions of the cargo are:
2.5 × 1 × 2 metres

The tariff rate quoted by the shipping line is: INR 110.00 weight or measure (freight ton)
Step 1: Multiply the metres 2.5 × 1 × 2 = 5 metres Compare to the mass = 2 Mt.

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