What is allotment Cargo

Allotment cargo, also known as block space cargo, is a system in which a cargo carrier reserves capacity on its flights for regular and frequent shipments from its clients. This allows the carrier to offer its clients a guaranteed amount of cargo space on its flights for a set period of time, typically up to six months in advance. The amount of allotment space offered by the carrier is based on factors such as the frequency of shipments, the volume of cargo, and the length of the contract. This system provides benefits for both the carrier and its clients, as it allows the carrier to plan its cargo operations more effectively, and it provides its clients with a reliable way to transport their goods.

Allotments offered in an aircraft is based on:

• Origin
• Destination
• Weight
• Volume
• Flights
• Weekdays assortment
• Special contents, if applicable

What is a block space agreement?

A block space agreement, or BSA, is a type of contract between a cargo carrier and a shipper that guarantees a certain amount of cargo space on the carrier's flights for a specified period of time. In a BSA, the shipper provides regular and frequent shipments to the carrier, and the carrier reserves a certain amount of space on its flights for those shipments. The BSA typically covers a set period of time, such as six months, and the carrier and shipper agree on the amount of cargo space that will be reserved for the shipper's shipments during that time. The BSA is a useful tool for carriers and shippers because it allows the carrier to plan its cargo operations more effectively, and it provides the shipper with a reliable way to transport its goods.

There are 2 sorts of block agreements:

Soft block space agreement

A soft agreement is based on:

• Weight charges
• Fuel Security charge
• Security Charges
• Other miscellaneous charges (where applicable)

With soft block space agreement the forwarder can cancel without a financial penalty

Hard block space agreement

A hard block agreement is based on:

• Weight Charges will be invoiced for the entire allotment
• Fuel and security surcharges will be invoiced for the entire allotment, 
• Irrespective of degree of utilization

With hard block space agreement the forwarder is financially responsible for every allocated space whether utilized or not.