With the challenges taking place affecting the Suez Canal, air shipping has become a necessity for many. Many customers use air when goods are required to be at a destination that ground surface transportation transit times will not permit. In many cases, air will be required when the OTR (over the road) has challenges either picking up on time or equipment failure while in transit. There are many shippers or consignees that have fines or penalties for a plant shut down, automotive for example shut down fines can be as much as $250,000.00 per occurrence.
If we look at the difference between a domestic air shipment and an international one to ensure companies looking to utilize air shipping have an understanding of the differences.
Domestic Air Shipping:
Simple definition: when shipping air domestically, goods or documents are shipped from point A to point B within a country’s borders. Air services compared to all other modes are very fast, certain companies and destinations can be serviced on the same day. Generally, most air services are 2-3 days across the US or Canada. Most shippers start using air shipping domestically as it is much easier to ship within the borders of your own country. When shipping air domestically packages get where they need to be quickly without any customs requirements or additional documentation. Air shipping domestically is very reliable, delays are uncommon as there are NO borders so we avoid documentation delays.
International Air Shipping:
Simple definition: when shipping air internationally from a country outside of your country. Shipping from China to the USA is an example of an air lane that is shipped several times per day. International air shipping 2–3-day service is considered exceptional and is far more costly than a domestic shipment. International shipping unlike domestic can see delays as they can be held at borders with customs delays at either the origin country or the destination country.
Document Requirements:
Domestic shipments generally do not require any documents other than a shipping label, or export/import documents showing the country of origin. The domestic shipper may still pay for certification of shipment, tracking, or handling fees. Certain shippers due to sensitivity and cost may ask for a tracking number to manage directly, the majority will contract so the air supplier manages the entire process.
International Air Shipping:
With the exception of documents, international shipments have several more requirements to ship goods. The document list below will be required to complete a successful international air shipment.
- Commercial invoice including the value of the goods, and harmonized shipping code of each shipment.
- A detailed and accurate packing list for each shipment and all goods being shipped.
- EEI (Electronic Export Information) for any shipment over $2500.00 USD
- A certificate of origin (country the goods are manufactured in) is required to prove the origin as well FTA (Free Trade Agreement) between countries. Some countries have very specific requirements requirements.
Customs for Domestic:
When shipping air domestically as per the above it is very rare that customs would ever be required.
Customs for International:
Every country has specific rules and places that have customs in place to receive and process shipments. All international shipments even FTA shipments require a customs clearance. The Customs Department's responsibility is to collect all taxes applicable to both import and export. This requires the shipper to comply with both countries' export and import regulations and taxes. This process for many can be confusing as every country can have very different rules, the shipper or their air supplier are required to understand all. The other portion is understanding each country's process of how long a shipment may be held for inspection and processing, again every country's process can vary. There are many cases when shippers do not have a 3PL, Freight Forwarder working with them, and their air shipment is stuck for 15 days or more, which clearly defeats the purpose of expediting by air.
If you are a shipper looking to start shipping by air, make sure you employ the services of a strong Freight Forwarder or 3PL. Make sure they do have an air division, when vetting make sure they can demonstrate their understanding of your paperwork, and customs process. They are the experts who can manage the process fully. Our air team is handling 30% more volume by air each week with all the challenges supply chains are facing.
