Exporting goods via airfreight Essay Example | Topics and Well Written Essays - 500 words

merchandise goods via airfreight - Essay ExampleThe higher of the two rates is the class rate, which is the standard rate for all commodities locomote from one destination to other. On the other hand is the commodity rate, sometimes referred to as a particular(prenominal) rate because shippers receive it from carriers as a reward for either large-quality shipment or regular use. Recently, another rate known as a use up or negotiated rate has emerged. This rate is favorable to clear businesses, which do not have the shipping volume required for the above two rates. Under contract rates, a carrier and shipper negotiate a rate for a specific service where the two parties nail the terms of the service, rate and other variables in a contract.Exporting goods by means of airfreight has a tangible effect on international business. A range of damage components may reduce the high follow of goods associated with airfreight. Cost components refer to groupings of cost elements such as process costs, direct labor, materials among others. Different users define these cost components to match needs in their organizations. In other words, cost components vary from one location to another. throng also select cost components as containing variable (proportional) and/or fixed costs (Sedgley & Jackiw, 2007). These cost components take inventorying-holding costs, infrastructure costs, theft and damage costs, congestion costs and Speed and time costs.The business dictionary defines inventory cost as the cost that one incurs by holding goods in stock. This cost includes depreciation, warehousing, insurance, capital, taxation, shrinkage and obsolescence cost. It is usually expressed as a percentage of the inventory value, which is the determination of the cost of inventory that has not been sell at the ending of an accounting period. As one holds goods, their value may depreciate leading to losses. He would also be paying for their storage in a warehouse. The goods also need to be verify