Air Freight Forward Agreement

As a global leader in freight and raw material futures, FIS works across the transportation sector to help users manage inherent market volatility. With an AFFA, carriers can manage their exposure and get better prices. Asset owners who lease aircraft to airlines can use the ASA to manage their revenue stream in the future by working with lenders to hedge their risk by including front-page coverage. For this reason, the shipping contract generally contains clauses that stipulate that any delay in the delivery of goods is not subject to carrier control and is not responsible for losses incurred by the delay. FFAs provide owners, charterers and traders with a way to protect themselves from the inherent volatility of the freight market. … Since the introduction of the Air Freight Advance Agreement (AFFA) market in July, the FIS has covered its futures futures from price volatility. “The August contract resulted in trade in baskets between China and Hong Kong and Europe at USD 2.50/kg against the TAC index, with the 10 largest carriers and commodity funds traded bilaterally,” said Freight Investor Services. As a general rule, the payment is due on the date indicated on the invoice, which the courier has issued to the customer. Interest is often charged by the forwarder for late payment, and third-party fees incurred by the carrier are generally charged to the customer. Transportation companies generally arrange the transportation of goods from one destination to another. For a client, the definition of the services to be provided ensures the completion of all stages of the order. For a carrier, a service clause is to manage expectations with the customer and make sure they know what they are paying to avoid disputes that arise on the line.

Using the market-neutral TAC index, FIS will publish a price curve in the foreground that will help market participants anticipate and budget, allowing them to better forecast expenses and manage budgets effectively while increasing flexibility. As noted above, the courier is involved in various aspects of the transportation process, through the transportation council and organization and the carrier that transports the goods, by supporting customs and regulatory requirements, and by planning the storage of goods. The integration of a carrier is not absolutely necessary for the transport of goods from one destination to another. However, because the import and export process is highly regulated and can be complex, many companies choose to use a forwarder to cope with the stress of transporting goods to the nearest destination. With the launch of Air Cargo FFAs, FIS brings its expertise in financial risk management to the air cargo market. A shipping contract sometimes allows a forwarder to take a “pawn” on his customers` goods for every money the customer owes the carrier. This means that the carrier can take over and sell the customer`s property if the customer is unable to settle the customer`s claims on the carrier. FIS has partnered with the Air Freight Index (TAC Index) to enable airlines, road hauliers and end-users to make flexible prices for air freight contracts and secure their commitment through forward financial contracts.

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