Freight Rate

A freight rate is the fee charged by airlines for the transportation of goods on their aircraft from one airport to another. Freight rates serve as the foundation for Air Waybill rating, calculation of special commodities charges, and airline interlining activities under the MITA convention. These standardized rates are openly accessible as General Cargo Rates (GCR) or TACT Rates, providing uniform pricing structures for air cargo operations. Freight rates cover airport-to-airport transportation only and exclude ancillary services such as customs clearance, pickup, delivery, terminal handling, or storage unless specifically indicated.

An electronics shipment from Los Angeles (LAX) to Frankfurt (FRA) with chargeable weight of 150 kg would use Emirates SkyCargo's (176 prefix) Normal rate (N) of $6.50/kg, resulting in freight charges of $975 before surcharges. A pharmaceutical shipment from Singapore (SIN) to Dubai (DXB) weighing 85 kg might apply Korean Air Cargo's (180 prefix) Q100 rate of $4.20/kg instead of the higher Normal rate, yielding freight charges of $357.

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What is the difference between M, N, and Q freight rate classes in IATA TACT?

M represents the minimum charge regardless of weight, N is the normal rate for standard shipments, and Q denotes quantity rates with lower charges for higher weight breakpoints (typically 45kg, 100kg, 300kg, 500kg, 1000kg). IATA TACT rules specify that freight charges may never be lower than the published minimum charge for the origin-destination pair.

How do freight forwarders get different freight rates than published TACT tariffs?

The actual rate paid by freight forwarders to airlines may differ from published tariffs through bilaterally agreed confidential rates. These negotiated rates are commonly known as 'rates' and are accessible via IATA Net Rates systems. Forwarders consolidate multiple shipments under one Master Air Waybill to secure bulk capacity at lower per-kg rates, especially beneficial for shipments under 500 kg.