By Whom And How Are Air Freight Rates Calculated?
The pricing of air freight is governed by the International Air Transport Association (IATA) who continues to provide an “Official Rates Policy” which they publish under the title of “The Air Cargo Tariff” (TACT) along with their rules governing transportation. The air freight rates are generally derived from meetings that are held between IATA Regional Tariff Committees and which are subject to international inter-governmental agreements on rate levels by route or country. Those air freight companies who wish to introduce or apply a new rate require the permission of IATA and these rates can often be subject to the relevant country’s government approval. But now generally they are used as guide lines and often no attempt is made by either IATA or governments to enforce their use.
