# How Are Freight Shipping Costs Calculated?

In this blog, we will be taking a look at how Air Freight Costs are calculated. International exporters and importers use air cargo to transport goods. Many opt for air freight instead of ocean freight because shipping takes a lot shorter. It is also more reliable, as well as flexible. Since the shipment takes a faster transporting time, businesses are able to react to the change in tastes and preferences of consumers quickly.

However, given the limited space on airline cargo holds, weight and volume are crucial factors. Depending on whichever is more expensive, Air Freight Costs will be charged in either volumetric weight (or dimensional weight) or actual weight (or gross weight). Additionally, costs will differ based on the delivery location, domestic air freight costs being lower than that of international air freight costs

Some items such as plush toys and plastic containers will not be as heavy but still great in volume, that is why they are charged by volume.

## How Air Freight is Calculated?

The product being transported, the carrier and aircraft you use, and the shipment’s chargeable weight influence the rate. The chargeable weight is the gross weight or the volumetric weight, whichever is more. Volumetric weight is determined by using an equation that separates the load’s estimations Length x Width x Height by a dimensional weight factor. Commonly, bigger things that weigh less occupy more room than the little things, which is the reason why air carriers opt for the chargeable weight choice. Airfreight shipment cost is usually determined by the chargeable weight. The chargeable weight applied to a shipment will be either original weight or volumetric weight, whichever number is greater. Volumetric weight is determined at 6000 cubic centimeters for every kilogram. Therefore, isolating the cubic centimeter volume of a shipment i.e the product of Length x Width x Height by 6000 will bring about the volumetric weight.

For instance, suppose you have a shipment that is 60 x 110 x 110 cm with the original load of 400 kg. The following is the computation for volumetric weight:

Volume: 60 x 110 x 110 cm = 726000 cm3
Volumetric Weight: 1,152,000 cm3/6000 = 121 kg
Factors that impact the cost

The multifaceted nature of the air freight business requires a flexible pricing policy that can permit the transporters to rapidly and productively alter their rates because of fluctuating economic situations. The companies that figure out how to do this surely will have a competitive edge in the market.

## Financial Conditions

Economic conditions directly affect imports and exports. These factors are at the core of all pricing choices, no matter which industry is in question. That is surely valid for air load. In bull economies, interest for airship cargo administrations can surpass limits, which prompts more significant expenses. On the other hand, during monetary downturns, and on the low, request drops. Transporters lower costs to occupy space that would somehow or another go unused.

## Social Factors:

The social and regional conditions also play an important role in determining the cost of the sir freight. Conditions like war, common agitation, work strikes, pandemics, and terrorism activities lower the demand and can make it costlier for transporters to work in that area.

## Working Expenses

Working costs can vary depending on a number of elements. The cost of fuel is one of the major factors in determining working expenses. If fuel costs are low and are expected to stay low for some time, then it greatly affects the working expenses. Customers too hope to see that reflected in delivery rates.

Fuel is only one factor. There are numerous other things to consider, including taxes, landing charges, stopping expenses, safety efforts, and so on. In addition, environmental issues costs are increasing the worry on various levels.

## What is air freight volumetric weight?

The air freight volumetric weight, or dimensional weight, is an estimated weight value based on a package’s length, width, and height. It is a theoretical weight calculated using a minimum air cubic conversion factor (167) chosen by the freight carrier.

When using the air cubic conversion factor of 167, that volume and weight need to be metric. That is cubic meters for volume and kilograms for weight.

## How to calculate the airfreight volumetric weight formula?

To calculate the air freight volumetric weight, you have to be careful to ensure the lengths are converted to meters and volumes are in cubic meters. Use this simple illustration below:

## Wrapping up

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Why do entrepreneurs need charisma
Anyone can come up with an innovative idea for a business. To succeed, entrepreneurs also need to convince people to get excited about the vision.

Think about the most successful people in your industry. Successful entrepreneurs don’t do the work solo; they build teams that work hard because they believe in what they’re doing.

As one corporate coach explains, “As an entrepreneur and leader, one needs manpower. And these people take care of your business when it comes to keeping your customers satisfied and happy with products and services.”

In other words, charismatic people can assemble groups. But it’s not just about building an amazing team. Landing investors, establishing a customer base, and building trust with the public all require buy-in, which doesn’t just happen because you have a convincing story and a fancy slide deck.

Charisma, or the ability to combine your confidence with warmth, is what draws people into your great idea and keeps them there. Magnetism isn’t just about charm, but sparking authentic connections with people, as my charismatic seatmate did on the early morning flight.

It might feel counterintuitive to focus more on people than numbers, but if you’re looking for long-term growth and success, building authentic relationships is the best way to build a business.

The good news is, researchers, believe charisma is 50% inherent and 50% learned. So if this doesn’t come naturally to you, you can learn it. Here are some of the most effective ways to grow in charisma so you can grow your business along the way.

Step one to growing in charisma: Care about people.

People can see through hollow charm, and they can feel when they’re being used. So instead of empty lip service, focus on building real relationships with people you know and people you meet.

Chances are, you already care about the people in your life. You might just need an extra push to show them.

The simplest way to do that? Really listen. Ask questions, and pay attention to what’s beneath the surface. Remember the small details, like your co-worker’s birthday or your client’s favorite coffee order.

What was so striking about my airplane chat was that my seatmate was actually paying attention. She noticed I was a bit anxious about my presentation, so she empathized with and encouraged me.

Nurturing relationships is also about helping people grow. We all want to be around people who challenge us, encourage us, and help us become the best versions of ourselves.

When you notice what makes other people tick because you genuinely care, you can draw them into an activity connected to their passions — where they’ll be most effective and contribute most authentically.

2. Project confidence
Early on in my career, an old college classmate reached out to share a business idea with me with the hope I’d work with him. We emailed back and forth, and as much as I admired his excitement, I wasn’t sold.

“So are you planning to bootstrap or get investments?” I asked, curious about his plan for getting started.

“I’m not sure yet,” he replied. “But there’s a market for my idea, so I know it’ll work out.”

It didn’t work out, and needless to say, I didn’t quit my job to help him.

To promote buy-in, you need to project confidence. People follow passionate leaders who know where they’re going.

A 2017 article in The Guardian captures it well:

“The charismatic can infect others with their own enthusiasm. They convince us, not only of their own self-belief but make us feel more confident in ourselves too. As an entrepreneur, charisma is a winning formula for your personal brand. If you exude self-belief, angel investors, prospective clients, and the press will see your potential and be more included to invest in your story.”

Keep in mind that confidence doesn’t mean perfection. You don’t have to have it all together. The key isn’t to protect the lie that you won’t make mistakes, but that you’ll figure out how to navigate those mistakes because you’re invested in your vision and the people who contribute to it.

3. Find the sweet spot
Just as too little charisma can impact your growth as an entrepreneur, so can too much of it. A recent study from Ghent University found that there’s a sweet spot when it comes to charisma in leaders.

Researchers found that when charisma increased in a leader, so did employees’ perception of their effectiveness. But leaders with both low and high charisma scores were viewed as less effective than those with “moderate” levels of charisma.

Why? People view their leaders as most effective when they can adapt to challenges. If your charisma is too low, you may not be as strategic and aggressive. On the flip side, if you’re too charming and people-focused, people might perceive you as lacking in actual job-related skills.

So while investing time and energy in your confidence and people skills can help your business, it shouldn’t be at the expense of your actual work. For all the time you spend networking and nurturing relationships, invest as much time with your head down, figuring out solutions and developing your product or service.

Like many areas of life, success in entrepreneurship is all about balance. None of us can do it perfectly, and your focus will naturally ebb and flow as your business grows. Start by giving your full attention to what’s — or who’s — in front of you.

## Wrapping up

We at ShopShipShake have been working with businesses like yours with fulfilling experiences. We offer one-stop services, including an efficient supply chain, over 10 thousand of China’s suppliers, and more.
With a successful track record of over 20,000 clients, we are sure to deliver your orders requirements. Let’s get in touch to build, sustain, and grow your businesses.