(1) Meaning of Designated Commodity Rates
Designated commodity rates are preferential rates offered by carriers upon request of shippers who frequently transport a certain type of cargo on a certain route, or to promote the transportation of a certain type of cargo between regions, with the agreement of the International Air Transport Association. They are indicated by the letter “C”.
The grouping and product number of designated commodity cargoes published by the International Air Transport Association are as follows:
0001-0999 Edible animals and plant products.
1000-1999 Live animals and inedible animals and plant products.
2000-2999 Textiles, fibres and articles thereof.
3000-3999 Metals and articles thereof, but excluding machinery, vehicles and electrical equipment.
4000-4999 Machinery, vehicles and electrical equipment.
5000-5999 Non-metallic minerals and articles thereof.
6000-6999 Chemical products and related products.
7000-7999 Paper, reed, rubber and wood products.
8000-8999 Scientific and precision instruments, apparatus and accessories.
9000-9999 Other goods.
(2) Requirements for the use of designated commodity freight rates
The use of designated commodity freight rates must meet three requirements at the same time: first, there must be a published designated commodity freight rate between the origin and destination of the transport; second, the name of the goods delivered by the consignor must match the name of the goods in the relevant designated commodity freight rate; third, the billable weight of the goods must meet the minimum weight requirement for the use of designated commodity freight rates.
(3) Steps for calculating designated commodity freight rates
① First query the freight rate table. If there is a designated commodity code in the transport route, the designated commodity freight rate can be considered for calculation.
② Look up the Tact Rates Books commodity name table and find the designated commodity code corresponding to the name of the transported goods.
③ If the billable weight of the goods exceeds the minimum weight of the designated commodity freight rate, the designated commodity freight rate will be used first.
④ If the billable weight of the goods does not reach the minimum weight of the designated commodity freight rate, it is necessary to compare the ordinary cargo freight rate method with the designated commodity minimum weight freight rate method and choose the one with the lower freight rate.