| The pricing of air freight is governed by the | | | | rates as they are designed to encourage certain |
| International Air Transport Association (IATA) who | | | | types of cargo to be air freighted on specific trade |
| continues to provide an "Official Rates Policy" which | | | | routes. What would happen is a given commodity and |
| they publish under the title of "The Air Cargo Tariff" | | | | its rate would be filed by the air freight company to |
| (TACT) along with their rules governing | | | | IATA and they in turn would obtain permission to |
| transportation. The air freight rates are generally | | | | apply that commodity rate on a given route to the |
| derived from meetings that are held between IATA | | | | relevant countries' government. |
| Regional Tariff Committees and which are subject to | | | | Also in addition to the specific commodity rates there |
| international inter-governmental agreements on rate | | | | are class rates which are for such commodities as |
| levels by route or country. Those air freight | | | | human remains, live animals and perishable cargo |
| companies who wish to introduce or apply a new | | | | (fresh food etc) and there are specific rules that |
| rate require the permission of IATA and these rates | | | | need to be applied for calculating the charges for |
| can often be subject to the relevant country's | | | | each type of commodity that is shown under this list. |
| government approval. But now generally they are | | | | But generally the rules are based on the country of |
| used as guide lines and often no attempt is made by | | | | origin, were the goods are destined for and what |
| either IATA or governments to enforce their use. | | | | type of product it is. |
| However today IATA tariffs are being increasingly | | | | There are also air freight handling rates which are |
| ignored by the many air freight companies on the | | | | based on weight for non unit load traffic and per unit |
| major routes because there is so much competition, | | | | for unit loads and these rates used to be set by |
| but they still continue to provide a general guideline | | | | IATA but more often than not are now set |
| for those lesser developed markets around the | | | | between the handling terminals. |
| world. Often where most commodities are concerned | | | | However the majority of air cargo leaving the UK |
| an air freight rate of a charge per kilo of cargo is | | | | uses "net" airline buying rates and these are |
| applied (and discounts are provided for volumes over | | | | confidential air freight rates and these rates follow a |
| 100 and 500 kilos). | | | | similar structure to the IATA rates in that there is a |
| Although there are specific commodity rates available | | | | rate per kilo but they are subject to a minimum |
| these are the exception and are lower than normal | | | | charge. |