How to calculate air freight charges?

Calculating air freight charges is a crucial aspect of the logistics and shipping industry. As an air freight supplier, I understand the importance of providing customers with clear and accurate information about how these charges are determined. In this blog post, I will break down the key factors that influence air freight charges and provide a step-by-step guide on how to calculate them.

Key Factors Affecting Air Freight Charges

1. Weight and Volume

The weight and volume of the cargo are two primary factors in determining air freight charges. Airlines typically use a concept called "chargeable weight," which takes into account both the actual weight and the volumetric weight of the shipment.

The actual weight is simply the physical weight of the cargo, measured in kilograms or pounds. However, due to the limited space in an aircraft's cargo hold, airlines also consider the volumetric weight. Volumetric weight is calculated based on the size of the package. The formula for calculating volumetric weight varies by airline, but a common standard is to divide the volume (length x width x height in centimeters) by a conversion factor. For example, a common conversion factor is 6000 for general cargo.

If the volumetric weight is greater than the actual weight, the airline will charge based on the volumetric weight. This is because large but lightweight items take up a significant amount of space in the aircraft.

2. Origin and Destination

The distance between the origin and destination airports plays a significant role in air freight charges. Longer distances generally result in higher costs due to increased fuel consumption and flight time. Additionally, some airports may have higher handling fees, taxes, or surcharges, which can also impact the overall cost.

For example, shipping from a major international hub like Hong Kong International Airport to a well - connected European airport may be more cost - effective than shipping to a remote regional airport in Africa.

3. Type of Cargo

The nature of the cargo also affects the air freight charges. Hazardous materials, perishable goods, and oversized or overweight items often incur additional fees. Hazardous materials require special handling and compliance with strict safety regulations, which increases the cost. Perishable goods need to be transported under specific temperature and humidity conditions, and airlines may charge extra for the necessary equipment and monitoring.

Oversized or overweight cargo may require special loading and unloading procedures, as well as additional space on the aircraft, leading to higher charges.

4. Seasonal and Market Conditions

Air freight rates can fluctuate based on seasonal and market conditions. During peak seasons, such as the holiday shopping season or the harvest season for perishable goods, demand for air freight services increases, which can drive up prices. Additionally, factors like fuel prices, geopolitical events, and economic conditions can also impact air freight rates.

Step - by - Step Guide to Calculating Air Freight Charges

Step 1: Determine the Actual Weight and Volumetric Weight

First, weigh the cargo to get the actual weight. Then, measure the length, width, and height of the package and calculate the volume. Use the appropriate conversion factor (e.g., 6000) to calculate the volumetric weight. Compare the actual weight and the volumetric weight, and select the higher value as the chargeable weight.

For example, if you have a package with an actual weight of 20 kg and dimensions of 50 cm x 40 cm x 30 cm, the volume is 50 x 40 x 30 = 60000 cubic centimeters. The volumetric weight is 60000 / 6000 = 10 kg. In this case, the chargeable weight is 20 kg.

Step 2: Identify the Origin and Destination

Locate the origin and destination airports and check the airline's published rates for the route. You can also consult with an air freight forwarder or use online freight rate calculators to get an estimate.

Step 3: Consider the Type of Cargo

Determine if the cargo falls into any special categories, such as hazardous materials or perishable goods. If so, find out the additional fees associated with these types of cargo.

Step 4: Check for Additional Fees and Surcharges

In addition to the base rate based on the chargeable weight and route, there may be other fees and surcharges. These can include fuel surcharges, security fees, airport handling fees, and customs clearance fees. Make sure to factor in these additional costs when calculating the total air freight charges.

Step 5: Calculate the Total Charge

Multiply the chargeable weight by the applicable rate per kilogram or pound for the route. Then, add all the additional fees and surcharges to get the total air freight charge.

Real - World Examples

Let's assume we are shipping a package from Shanghai Pudong International Airport to Los Angeles International Airport. The package has an actual weight of 30 kg and dimensions of 80 cm x 60 cm x 50 cm.

First, calculate the volumetric weight: Volume = 80 x 60 x 50 = 240000 cubic centimeters. Volumetric weight = 240000 / 6000 = 40 kg. Since the volumetric weight (40 kg) is greater than the actual weight (30 kg), the chargeable weight is 40 kg.

Let's say the airline's base rate for this route is $5 per kg. The base charge is 40 x $5 = $200.

There is a fuel surcharge of 20% of the base charge, which is $200 x 0.2 = $40. Airport handling fees amount to $30, and customs clearance fees are $50.

The total air freight charge is $200 + $40+ $30 + $50 = $320.

How Our Air Freight Services Can Help

As an air freight supplier, we offer a range of services to simplify the process of calculating and managing air freight charges. Our experienced team can help you accurately determine the chargeable weight of your cargo, select the most cost - effective routes, and handle all the necessary paperwork and customs clearance.

We have partnerships with major airlines around the world, which allows us to negotiate competitive rates for our customers. Whether you are shipping small parcels or large - scale cargo, we can provide you with a customized solution that meets your specific needs.

If you are interested in our Fast Air Freight Agent Cargo Express services, which offer quick and reliable delivery, or our Ddp Air Sea Freight Courier Shipping Agent services for door - to - door delivery, or our International FBA Air Freight Forwarder DDP services for Amazon sellers, please feel free to contact us. We are here to assist you with all your air freight needs.

Conclusion

Calculating air freight charges is a complex process that involves multiple factors. By understanding the key elements that influence these charges and following the step - by - step guide, you can make more informed decisions when shipping your cargo by air. As an air freight supplier, we are committed to providing our customers with transparent and competitive pricing, as well as high - quality service. If you have any questions or need assistance with your air freight shipments, don't hesitate to reach out to us for a quote and further discussion.

References

• Airline Cargo Tariff Publications
• International Air Transport Association (IATA) Guidelines
• Customs and Border Protection Regulations