Spot Rate

A spot rate is a pricing structure offered for a specific air cargo shipment on a specific flight, negotiated based on available capacity. Spot rates allow airlines to provide dynamic pricing based on different criteria such as capacity, relationship, and priorities. The actual rate paid by a freight forwarder to an airline may differ from published tariffs, and spot rates are bilaterally agreed and remain confidential. Spot rates are often used when carriers offer shorter-term promotional rates or specific rates for individual shipments, with capacity at the time of booking driving the tariff offered.

A freight forwarder needs to ship 500 kg of electronics from JFK to NRT on short notice. While Emirates SkyCargo's published TACT rate shows $4.20 per kg for this route, the airline offers a spot rate of $3.85 per kg for AWB 176-87654321 due to available capacity on flight EK005. Lufthansa Cargo quotes a spot rate of $2.90 per kg for a 1,200 kg pharmaceutical shipment from FRA to LAX on flight LH441, compared to their published general cargo rate of $3.45 per kg, because they have excess capacity and want to secure the business relationship.

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How do spot rates differ from published TACT rates in air cargo pricing?

Published TACT rates are standardized tariffs filed with aviation authorities and openly accessible, while spot rates are confidential, bilaterally negotiated prices for specific shipments and flights. Spot rates can be higher or lower than TACT rates depending on capacity, market conditions, and carrier relationships, and are often used when airlines have excess capacity or want to secure business.

When should shippers request spot rates instead of using standard air cargo tariffs?

Shippers should request spot rates for urgent, one-off shipments when they need immediate capacity, during low-demand periods when airlines may offer discounts to fill space, or when shipping large volumes that justify negotiation. Spot rates are also beneficial when market conditions are volatile or when the shipper has flexibility in flight timing and can accept rates based on available capacity.