Glossary

Airline Terminal Fee (ATF)

What is
Airline Terminal Fee (ATF)
?

Airline Terminal Fees” are essential charges levied by airline authorities for the processing and handling of cargo in air shipments. These fees encompass various services, including labor, lifting equipment, warehouse storage, and container use. The fees can be incurred at the departure and destination airports, depending on the airline's specific policies.

Breakdown of Airline Terminal Fees

Airline Terminal Fees are a comprehensive set of charges that cover several key aspects of cargo handling:

  • Labor Costs: These fees include the cost of workers involved in the handling, processing, and documentation of cargo. This includes tasks such as weighing, inspecting, and loading goods onto the aircraft.
  • Lifting Equipment: The use of specialized lifting equipment, such as forklifts and cranes, is necessary for moving heavy or bulky cargo. The fees cover the operation and maintenance of this equipment.
  • Warehouse Charges: Warehousing fees are applied for the storage of cargo before it is loaded onto the aircraft and after it arrives at its destination. This includes maintaining secure and climate-controlled environments for sensitive goods.
  • Container Fees: If cargo is transported using airline containers, there are additional fees for them. This ensures the safe and secure transport of goods.
  • Documentation: The provision and processing of necessary shipping documents, such as air waybills and customs paperwork, are also covered by Airline Terminal Fees. This ensures compliance with international shipping regulations.

Origin Airline Terminal Fee

The Origin Airline Terminal Fee is a specific charge applied at the departure airport. This fee encompasses several critical steps in the cargo handling process:

  • Weighing: Before cargo is loaded onto an aircraft, it must be accurately weighed to ensure it complies with weight restrictions and balance requirements.
  • Inspection: Goods are inspected to verify their condition and to ensure they meet all regulatory and safety standards.
  • Loading: The actual process of loading cargo onto the aircraft is a labor-intensive task that requires precision and care to avoid damage.
  • Shipping Documents: The preparation and provision of all necessary shipping documents, including air waybills and export declarations, are handled at the departure airport.

Destination Airline Terminal Fee

Similarly, the Destination Airline Terminal Fee is charged at the arrival airport and includes:

  • Unloading: The process of carefully unloading cargo from the aircraft and transferring it to storage areas.
  • Inspection: Upon arrival, cargo is inspected to ensure it has not been damaged during transit and that it meets all import regulations.
  • Warehousing: Temporary storage of goods until they are picked up by the consignee or further transported to their destination.
  • Delivery Documentation: Handling of the necessary paperwork to clear customs and facilitate the smooth delivery of goods.

Impact of Airline Terminal Fees on Freight Costs

Airline Terminal Fees can significantly impact on the overall cost of air freight. These fees are necessary to ensure that cargo is handled efficiently and safely, but they can also add to the expense of shipping goods by air. It's crucial for businesses to understand these costs and factor them into their budgeting and pricing strategies.

Managing Airline Terminal Fees

To manage and potentially reduce Airline Terminal Fees, businesses can take several steps:

  • Negotiate with Airlines: Some airlines may offer discounts or more favorable terms for regular customers or bulk shipments.
  • Consolidate Shipments: By consolidating smaller shipments into larger ones, businesses can reduce the frequency of fees and potentially negotiate lower rates.
  • Planning: Proper planning and scheduling can minimize the time cargo spends in storage, thus reducing warehousing fees.
  • Choose Efficient Routes: Selecting routes with fewer stopovers and direct flights can reduce handling fees at intermediate airports.

Conclusion

Airline Terminal Fees are a fundamental aspect of air freight costs, encompassing a range of services required for the efficient handling and processing of cargo. Understanding these fees and how they impact overall shipping costs is crucial for businesses involved in air freight. By managing and negotiating these fees effectively, businesses can optimize their logistics operations and reduce expenses.

If you're looking to streamline your air freight operations and better manage Airline Terminal Fees, contact Shipthis today.  

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