What is the most common air freight pricing?

May 21, 2024

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1, The basic principles of air freight pricing
Air freight pricing usually follows market supply and demand relationships and cost-effectiveness principles. Airlines formulate reasonable air freight prices based on factors such as the weight, volume, transportation distance, and utilization of flight seats, combined with their own operating costs and market strategies. At the same time, air freight prices are also regulated and guided by the International Air Transport Association (IATA) and air transport management departments of various countries.
2, Common air freight pricing models
Billing by weight
Weight based pricing is one of the most common methods in air freight pricing. Airlines usually classify goods according to different weight levels, such as within 45 kilograms, above 45 kilograms, above 100 kilograms, etc., and set corresponding unit prices for each level. The total shipping cost of goods is the weight multiplied by the unit price of the corresponding level. This method is simple, intuitive, easy to calculate, and suitable for the transportation of most goods.
Billing by volume
When the volume of goods is large but the actual weight is light, airlines may adopt a volume based billing method. The airline will calculate the volumetric weight of the cargo based on its volume and density, and use this as the basis for billing. The calculation formula for volumetric weight is usually: length (cm) x width (cm) x height (cm)/6000 (or 5000, depending on the airline). The volume based billing method can ensure that airlines fully utilize flight space resources while avoiding freight losses caused by the weight of goods being too light.
Comprehensive billing
In practical operation, airlines may adopt a comprehensive billing method based on the actual situation of the goods. Considering both the weight and volume factors of the goods, select the larger one as the billing basis. This method can more accurately reflect the transportation cost of goods and ensure that airlines obtain reasonable profits.
3, The influencing factors of air freight pricing
Nature of goods
The nature of the goods is one of the important factors affecting air freight pricing. Different types of goods may require different packaging, loading and unloading, and storage methods during transportation, which will increase the operating costs of airlines. Therefore, for some special goods such as dangerous goods, perishable goods, etc., airlines may charge higher shipping fees.
Transportation distance
Transportation distance is also an important factor affecting air freight pricing. Generally speaking, the longer the transportation distance, the higher the cost that airlines need to invest, resulting in a corresponding increase in shipping costs. At the same time, the market demand and competitive situation of different routes will also affect air freight pricing.
Flight seat utilization rate
The utilization rate of flight seats is also one of the factors affecting air freight pricing. When the utilization rate of flight seats is high, airlines may increase freight rates to regulate market supply and demand; On the contrary, when the utilization rate of cabin is low, airlines may reduce freight rates to attract customers.
 

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