Airblox - Digital air cargo capacity exchange
What is a BSA?
A block space agreement (BSA) is the purchase of an agreed capacity or space on the flight of an airline or a carrier. The carrier can be a dedicated carrier plane or a section of a passenger plane (ex: the belly of an aircraft). The agreement product is based on a fixed unit load devices (ULD) position(s) on a specific flight and guaranteed for a defined period of time under medium & long-term contracts.

There are essentially two main types of BSAs, hard BSA and soft BSA. In a soft BSA agreement, the freight forwarder has the right to cancel it’s assigned allocation with no penalty with a mutually agreed upon notice period. In a hard BSA, the freight forwarder owns full responsibility for paying the full cost of its allocated capacity for every lane/flight even if the forwarder tenders no shipments on a particular flight.
What is an eBSA?
An electronic block space agreement (eBSA) is essentially a block space agreement that has a standardized legal language and has economic properties that are variable, which can be set by the issuer i.e. Airline.

An eBSA’s economic value is predominately defined by three elements, the route/ lane, frequency and pivot rate. Depending on lane dynamics, supply and demand of capacity and common factors affecting airline economics, eBSAs are priced.

Each lane displayed on Airblox digital air cargo capacity exchange provides three options for the purchaser of the eBSA: bid, buy and block. A bid allows for buyers to submit offers to a single or multiple lanes where the seller can review and accept the lane to the bidder of their choice. A buy allows buyers to out right purchase a single or multiple lanes at a time and a block allows buyers to reserve a single or multiple lanes for a partial premium of the purchase price set by the seller.