23/02/2024
CARGO PRICING EXPLAINED (And why British Airways has no soul)
Over the past several days, I’ve been contacted by people in different parts of the world, asking my thoughts on the shocking actions taken by British Airway and their IAG cargo division when they decided to raise their pet transport costs by 400%, suddenly and without warning. Here's the REAL reason:
In the photo, you see two pallets prepared for loading on a plane, full with the maximum cargo allowed to load by air regulations. Do you see a difference?
The pet crate for this particular dog is 56 cm (23 inches) tall. There’s a regular sized pug in there. If the dog were a German Shepherd, the crate would be 89cm (35 in).
The airline shipping the pet, like all airlines, sets the rate based on the volume contained in the equation of height X width X length. Each customer sending a package pays the airline based on the total volume of the cargo hold occupied by their package.
In the stack of boxes, there are a couple dozen separate boxes, wrapped by one single shipper, for which their owners have paid a volume rate. The entire package of multiple boxes is around 167 cms (5.5 ft) tall. I know because I stood next to it (Yes, I’m that short). So the math equation is forming in your head, right?
FYI, the volume rate is set DIFFERENT according to the contents of the cargo. There’s also regulations on if cargo is stackable or not. Pet crates are required to be placed on the aircraft floor, and nothing can be stacked on top of them.
You see the issue now, right? The pet crate is paying volume rate for its actual length, width, and….. well, the cargo hold ceiling is WAY above the height of the crate… so, a pet crate is using its entire footprint PLUS the height to the ceiling… while only paying for the much smaller actual height!
This means that the potential earnings of the volume used by every pet crate is A LOT more than the actual earnings, assuming that the crate would not have been given the space, and instead they load much more lucrative STACKABLE cargo… Things requiring temperature control like produce, boxed insects or live fish, day-old chicks, fresh food, etc.
So, this week, British Airways decided enough is enough, and raised their Live Animal costs by an obscene 400%, for ONE OBJECTIVE: To discourage people from shipping pets in order to replace that lost height volume by stuff that gives them MORE PROFIT.
That’s it. Greed. Nothing more than pure capitalism.
No one at British Airways/ IAG Cargo cares that families might be broken up. They don’t care that pets that last week cost $3,000 to ship now can cost 10 to 12 Thousand dollars. They don’t care that the majority of their pet customers are US military families, students, or immigrants.
They care about making more money.
So, what’s my opinion? Well, that’s their mandate as a for-profit company. To make money. Thus, I have just one simple recommendation for people suffering: Use a different airline. Lufthansa Cargo and KLM Cargo are excellent options. So are Emirates Cargo, Qatar Cargo, Etihad Cargo, Turkish Cargo, JAL and ANA.. the list goes on. I’ll leave it up you to decide if you want to use British Airways for anything ever again…
But that’s it. That’s reality. It is all about money. Now you know why.
PS We don’t use BA to/from Korea, but… this industry moves in trends. BA was first, but I have a feeling they won’t be the last.