What is the difference between air cargo and freight forwarding?

In the logistics and transport industry, air cargo and freight forwarding are two critical services that businesses often rely on to get goods from one location to another. However, understanding the difference between these two can be confusing, especially if you are new to shipping. In this blog, we’ll clarify what each term means, the key differences, and how they apply to your business shipping needs.

What is Air Cargo?

Air cargo refers specifically to the transportation of goods by air. This involves shipping products using commercial or cargo airlines to get them from point A to point B, often over long distances and across international borders. Air cargo can include anything from small packages to large industrial equipment, making it a versatile option for a wide range of industries.

Air cargo typically falls under two categories:

1. General Cargo: Everyday goods such as electronics, clothing, and consumer products.
2. Special Cargo: Goods that require special handling, such as hazardous materials, perishables, or live animals. These require compliance with stringent safety and regulatory standards.

In the UK, air cargo must adhere to the regulations set out by the International Air Transport Association (IATA) and UK Civil Aviation Authority (CAA), which ensure the safe and secure transport of goods. Air cargo is often chosen for its speed, especially for time-sensitive shipments.

What is Freight Forwarding?

Freight forwarding is a broader logistics service that involves the coordination and management of goods being shipped from one location to another. A freight forwarder does not move the goods themselves but acts as a middleman, handling the logistics of transportation. Freight forwarders use a network of carriers—including air, sea, rail, and road—to get goods to their final destination.

A freight forwarder’s responsibilities often include:

• Customs clearance: Ensuring goods pass smoothly through customs in different countries.
• Warehousing: Storing goods in transit.
• Insurance: Offering protection for goods while they are being shipped.
• Documentation: Managing shipping documents, including bills of lading, export licenses, and packing lists.

Freight forwarding services can provide significant value for e-commerce businesses that need to manage complex international shipments. They act as an all-in-one logistics solution, ensuring that your goods are transported via the most efficient routes and methods, reducing costs and delivery times.

Key Differences Between Air Cargo and Freight Forwarding

While air cargo focuses specifically on transporting goods by air, freight forwarding covers the entire logistics chain, including air cargo as one of its many transport options. Here are some of the main distinctions:

1. Mode of Transport: Air cargo is exclusively focused on air transport, whereas freight forwarding involves multiple modes of transport (air, sea, rail, and road).
2. Service Scope: Air cargo providers mainly handle the movement of goods from one airport to another. Freight forwarders, on the other hand, oversee the entire shipping process from collection at the point of origin to delivery at the final destination.
3. Documentation & Compliance: Freight forwarders deal with complex international shipping documentation and customs procedures. Air cargo companies often handle fewer logistical details, focusing instead on air transport regulations.
4. Flexibility: Freight forwarding is generally more flexible, offering bespoke solutions tailored to your specific shipping requirements, whether it’s a small parcel or a large container. Air cargo, while fast, may be limited in terms of size or the types of goods transported.

Choosing the Right Option for Your Business

For e-commerce companies, both air cargo and freight forwarding can play crucial roles in the supply chain. If your business needs fast, international delivery for smaller or time-sensitive goods, air cargo may be the best choice. However, if you require comprehensive logistics management, including customs clearance, warehousing, and multiple transport options, freight forwarding will provide a more holistic solution.

Regulations to Keep in Mind

If you are shipping goods to or from the UK, it’s important to comply with local and international regulations. Air cargo shipments must meet the standards set by the IATA and CAA, while freight forwarders need to ensure that all goods comply with customs regulations as outlined by HM Revenue and Customs (HMRC). Furthermore, for hazardous or sensitive goods, additional safety and environmental regulations may apply under UK law, such as the Dangerous Goods Regulations (DGR).

Conclusion

Understanding the difference between air cargo and freight forwarding can help you make informed decisions when choosing shipping solutions for your business. Air cargo is best for quick, air-only shipments, while freight forwarding provides a comprehensive logistics service that can manage all aspects of the shipping process. Whether your business operates domestically or internationally, choosing the right service will streamline your operations, reduce costs, and enhance customer satisfaction.

At Freight Agencies, we offer both air cargo services and comprehensive freight forwarding solutions tailored to meet your specific needs. Get in touch with us today to learn more about how we can help with your logistics.