How Air freight charges are calculated?

Air freight charges are calculated based on several factors, including weight, volume, destination, time, and type of cargo. Understanding how these charges are determined is essential for businesses to plan and budget effectively.

1. Weight-based Charges

The most common way to calculate air freight charges is by weight. Air companies typically charge based on the actual weight of the cargo. However, they also consider the "volume weight," which is calculated by dividing the volume of the cargo by a set standard (e.g., 6000 cubic centimeters per kilogram). The higher of the two weight figures is used to determine the cost.

2. Volume-based Charges

For bulky goods that take up a lot of space but have a low actual weight, volume-based charges may apply. These charges are based on the size and shape of the cargo, which can increase the cost significantly.

3. Distance and Time Charges

Air freight charges may also include distance and time-based rates. Longer distances and shorter timelines can increase the cost, as air companies charge based on fuel consumption and time spent en route.

4. Cargo Type

Special handling charges may apply for certain types of cargo, such as temperature-sensitive goods (e.g., dry ice) or oversized/bulky items. These charges are typically added to the base air freight rate.

5. Insurance and Documentation

Insurance fees and additional documentation (e.g., shipping manifests, customs declarations) may also be included in the air freight charges.

Conclusion

Calculating air freight charges involves considering multiple factors, from weight and volume to distance and cargo type. By understanding these factors, businesses can make informed decisions and optimize their logistics. Proper planning and coordination with air freight carriers can help minimize costs while ensuring timely delivery.