International Carriage of Goods by Air

Goods transported by air differ from those transported by sea. They are often time-sensitive, high-value, or require special handling. Examples include perishable goods such as fresh seafood, temperature-sensitive items such as pharmaceuticals, and high-value goods such as jewellery and precious metals. Items that require supervision during transport, such as diplomatic bags, are also typically carried by air.

Dangerous goods transported by air must meet specific packaging and handling requirements. These are set out in an Annex to the Convention on International Civil Aviation (Chicago Convention, 1944), issued by the International Civil Aviation Organization (ICAO). The International Air Transport Association (IATA) publishes detailed guidance to support the safe transport of these goods.

A significant proportion of air cargo consists of air express consignments — often documents or low-value, low-duty goods of limited interest to customs from a revenue perspective. At the same time, the speed of air transport reduces exposure to risk, making it appropriate for high value goods including pharmaceuticals, medical supplies, prize livestock, artworks, and manuscripts. The need for rapid delivery places pressure on customs services to process these consignments efficiently while ensuring that the speed of air transport is not exploited for the importation of contraband.

While air freight rates are higher than ocean rates, air shipments can generate savings in other cost areas:

  • Insurance: Premiums are generally less than half those for sea transport (approximately 0.3% of cargo value for air versus 0.7% for sea).
  • Customs duties: May be assessed on gross weight, which is typically lower for air shipments due to lighter packaging.
  • Packaging: Much lighter and less costly for air transport.
  • Inventory and warehousing costs: Air transport can greatly reduce or eliminate the need for warehousing at either end of the transit, together with associated tax, insurance, and obsolescence costs.
  • Financing costs: Where the buyer’s payment obligation is triggered by delivery to the buyer’s premises, the seller receives payment significantly sooner with air transport.