How is the air freight cost calculated?

1, Basic components of air freight costs
The air freight cost mainly consists of the following parts:
Basic freight: This is the main component of air freight costs, usually calculated based on the weight class of the goods. Airlines will classify goods into different grades based on their weight, such as+45KG,+100kG,+300KG,+500kG,+1000KG, etc., with each grade corresponding to a different unit price.
Fuel Surcharge: Due to fluctuations in fuel prices, airlines will adjust fuel surcharges based on market conditions. This part of the cost is usually charged based on the weight of the goods or transportation distance, and the specific rate is determined by the airline based on international oil prices and its own costs.
Security Surcharge: In order to address security risks, airlines may impose security surcharges. This part of the cost is usually related to the nature of the goods, packaging, and transportation method, and the rate is determined by the airline based on the actual situation.
Miscellaneous expenses: Miscellaneous expenses include storage fees, customs clearance fees, document processing fees, etc. Storage fees refer to the expenses incurred when goods are stored at airports or warehouses; The customs clearance fee refers to the relevant procedures and fees that need to be handled for the import and export of goods; The document processing fee refers to the cost required to process transportation documents.
2, Calculation method of air freight cost
There are usually two methods for calculating air freight costs: by weight and by volume.
Calculated by weight:
Air freight cost=Air freight unit price x Total weight of goods
Among them, the air freight unit price is determined by the airline based on the weight grade of the goods, while the total weight of the goods is the actual weight of the goods.
Calculated by volume:
When the volume of goods is large and the weight is light, airlines may use volumetric weight to calculate freight charges.
The calculation formula for volumetric weight is usually: volumetric weight=length x width x height/volumetric weight coefficient (may vary from company to company, generally 6000 or 5000, etc.).
If the volumetric weight of the goods is greater than the actual weight, billing will be based on volumetric weight; On the contrary, billing will be based on the actual weight.
3, Factors affecting air freight costs
The fluctuation of air freight costs is influenced by various factors, mainly including:
The weight and volume of goods: The weight and volume of goods are key factors determining air freight costs. The larger the weight and volume of the goods, the higher the shipping cost required.
Transportation distance: Although the direct role of transportation distance in air freight costs may not be as significant as sea freight, long-distance flights still increase transportation costs.
The nature of the goods: The nature of the goods can also affect air freight costs. For example, special goods such as dangerous goods and fragile items require special packaging and transportation methods, which may result in higher shipping fees.
The pricing strategy of airlines: Different airlines may have different freight policies and pricing strategies, so the freight cost of the same batch of goods may vary between different airlines.
Seasonal factors: During holidays, freight rates may increase due to concentrated shipments and tight transportation capacity. During the off-season, due to a decrease in cargo volume and excess transportation capacity, freight rates may decrease.
4, Example analysis
Assuming there is a batch of goods with an actual weight of 100 kilograms and dimensions of 100cm × 80cm × 60cm. We need to calculate the air freight cost for this batch of goods.
Calculate volumetric weight:
Volume weight=100 × 80 × 60/6000=80 kilograms
Compare actual weight and volumetric weight:
Due to the actual weight being greater than the volumetric weight, billing will be based on the actual weight.
Assuming cost:
Assuming the air freight is $5 per kilogram, the fuel surcharge is $1 per kilogram, the safety surcharge is $0.5 per kilogram, and the terminal handling fee is $1 per kilogram.
Calculate total cost:
Total cost=(5+1+0.5+1) x 100=$750
Through the above steps, we can accurately calculate the air freight cost of this batch of goods.