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
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.
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.
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 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:
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