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Air Freight Rates and Factors Affecting Your Bottom-line:
- kelcey anderson
- Aug 18
- 3 min read
Understanding how to calculate air freight rates and the factors influencing them is pivotal for businesses aiming to expand globally. When deciding to use air freight, it is important to understand the pros and cons of doing so.
Time is money, and air freight is the quickest way to get your products from point A to point B; however, the convenience and speed of air freight come at an extra cost that needs to be considered when deciding on your global logistics strategy.
Calculating Air Freight Rates:
Because the cost of shipping cargo via air is influenced by both weight and space, determining air freight rates involves comparing actual weight and volumetric weight.
Actual weight is the gross weight (including packaging) of your cargo.
Volumetric weight accounts for the space that the cargo occupies on the airplane.
Most freight carriers use the industry standard formula to determine the volumetric weight:
Volumetric Weight (kg) = (Length x Width x Height)cm ÷ 6000
Chargeable weight is the greater of the two values: actual weight and volumetric weight and is the amount the carrier charges to move your goods.
Understanding chargeable weight plays a central role in determining air freight rates and their effect on your bottom line. Ensuring that your goods are packaged optimally could mean lower chargeable weight, meaning lower air freight rates.
Factors Affecting Air Freight Rates:
Getting rates for moving your goods can be a time-consuming process because of the many factors affecting these rates. By making use of instant freight rate tools, one can save both time and money.
Besides the weight and space of the cargo, air freight rates are determined by several other variables, which all need to be looked at closely when determining what it would cost to get your goods across borders.
Distance and Destination:
Longer distances and remote airports lead to increased fuel consumption and longer work hours for airline staff, which are especially apparent when long layovers are required. This means higher air freight rates.
Type of Goods:
Non-general cargo, such as hazardous goods, requires additional handling and documentation, which means additional fees are applied when moving your cargo. Some items, such as perishable goods, may require temperature-controlled storage, which also adds to your air freight rates. It is important to understand when your goods will result in additional requirements and fees.
Type of Air Freight:
If time is of the essence, express air freight services offer shorter transit times and priority handling. However, this comes at a premium; if longer transit times are acceptable, opting for an economy service could result in lower air freight rates while still ensuring the reliable delivery associated with air freight.
Fuel Prices:
Fluctuations in global oil prices mean higher air freight rates for shippers as airlines cover the increase in operating costs by charging a fuel surcharge. Although global oil prices are out of the shipper’s control, it is helpful to monitor trends in global fuel prices to better estimate your air freight rates.
Airport Fees and Regulations:
Landing charges, handling fees, and security fees contribute to the overall air freight rates charged by the airline. These vary by country and by airport and are influenced by the airport’s infrastructure and policies as well as external environmental and customs requirements.
Seasonal Demand:
As with most things, air freight rates are affected by market fluctuations and will peak during holidays or during times of economic growth. Demand for limited space increases, which results in increased competition and higher rates.
Taking The Guesswork out of Air Freight Rates:
Navigating the world of ever-changing air freight rates can be complex and overwhelming. SendIt’s freight rate tool enables you to determine your freight rate instantly.
No need to calculate your chargeable weight or scour the internet for global oil trends, this is all done automatically for you. If you are ready to expand globally, get an instant air freight rate below:
