Tag: logistics

Posted on in Business

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

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.

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Posted on in Business

What types of goods or cargo are ideal to transport by air?

Nowadays air transport, both cargo and passengers, has the aim to reduce the impact it has on the environment. Currently, aircraft models are available with new materials, hybrids and powered by other types of energy, such as solar or electric.

Air cargo transport: Advantages and disadvantages

Air cargo transport has many advantages over other means of transport such as maritime or land transport. However, it also has some disadvantages. We detail it below.

Advantages of cargo air transport

  • Speed. It allows you to reach any point in the world in just a few hours.
  • Flexibility. Flexible schedules and dates that allow any merchandise to reach its destination quickly and efficiently.
  • Loading capacity. Although cargo is more limited than in the case of maritime transport, freight aircraft allow the transfer of numerous goods of small, medium and large size.
  • Innovation. The air sector is one of the biggest changes in recent years from its speed to its combustion.
  • Borders. In the air transport there are not as many physical barriers or customs, as it happens with the rest of means of transport.
  • Accessibility. The plane makes it possible to reach practically hidden places, where other means of transport are not able to reach.
  • Cargo. It is the ideal way to transport perishable, fragile or high value merchandise.
  • Security. It is the safest for the transportation of goods.
  • Temperature. It is possible to ensure a specific temperature if necessary.

Disadvantages of cargo air transport

  • High cost. It is significantly more expensive than other means of transport.
  • Weather. Conditioned by the weather which can cause delays.
  • Law. Legal restrictions that must be taken into account depending on the different countries of destination of the merchandise.
  • Independence. Air  transport must be complemented by land, train or truck. So, it does not count by itself as the only means of transport in commercial operations.
  • Limited load. Although the charge is wide it is not infinite.
  • Cargo. It does not allow to send all kinds of merchandise. Lithium batteries, liquid products such as fuels or oils, or hazardous materials, such as explosives, gases and other toxic substances, can not be transported.
  • Documentation. It is not exempt from paperwork. Declarations, certificates of origin etc., must be completed by the different agents that operate along the entire transport chain.

In which situations should you opt for cargo air transport?

As we have mentioned, air transport is not suitable for all types of merchandise. Generally, the goods that are usually transferred through this means of transport are the following:

  • Urgent goods
  • High volume goods
  • Intercontinental urgent mail
  • Spare parts and spare parts for land vehicles
  • Spare parts for the aerospace industry
  • Perishable food
  • Materials for fairs and events
  • Plants
  • Drugs, vaccines and pharmaceutical products
  • Live animals
  • Luxury products
  • Artworks
  • Machinery and accessories for medical use

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.

If you would like to know more details about us, please contact with us: 

www.shopshipshake.co.za

If you are interested in cooperating with us. Please register on:

https://bit.ly/3ks0m1M

Posted on in Business

China’s Golden Week and its Impact on Logistics

Chinese National Day is celebrated on the 1st of October every year to commemorate the founding of the People’s Republic of China. While in other countries, a national bank holiday is no big deal, if you ‘re-importing from China, it’s important you have this date on your calendar, because this national holiday lasts for seven days! Many people in China take time off work during the national holiday to make the most of the special events all over the country and visit their families. The impact on this for importers is that your Chinese suppliers will likely shut down for the week and your usual contacts won’t be available. As a result, cargo flights are canceled, ports operate with skeleton crews, and carriers reduce their sailings to approximately 40% of the average weekly capacity, which means little product gets in or out of China during this time. Inevitably, large backlogs of orders and freight tend to pile up in the days before and after the holiday (especially as retailers plan for Christmas) which can leave importers fighting for space and rates at a premium. If you have goods to ship from China before, during, or after Golden Week, speak to your freight forwarder as soon as possible to book your cargo and secure your space. So, if you can’t get hold of your Chinese supplier during Golden Week – don’t panic, it’s completely normal! And remember it’s an annual holiday that falls on the same date every year, so mark it on your calendar, so you’re prepared for it every time.

How does Chinese Golden Week affect logistics?


Prices for the ocean and air freight will go up As demand for Chinese exports rises due to importers attempting to get their exports out of the country before the factories completely shut down their operations, this will further constrain space which is already in a tight situation due to the peak season.

Trucking services at origin will also experience high demands, so naturally, prices for trucking will be higher than usual.

Immediately after the Golden Week, carriers will announce blank sailings in order to optimize their vessel utilization. Because factories will be closed during this week-long holiday, blank sailings are inevitable until operations resume their labor and new shipments can be booked.

How importers can prepare for Golden Weeks?


Either it is for the winter holiday or just to keep your inventory stocked, as an importer your main concern is for your cargo to arrive in time if you’re shipping via ocean. During the Chinese Golden Weeks, we recommend booking your shipments with at least 2 weeks of anticipation of the holidays, plan ahead, and work closely with your logistics provider to avoid any unnecessary delays.

Book 1 week prior to Golden Week if you’re shipping by air.
Book 2-3 weeks prior to Golden Week if you’re shipping by ocean
Share your forecast with your logistics partner as soon as you can.
Define which shipments are the most urgent and communicate them to your logistics partner.

Consider alternative options.

Services with longer transit are less keen to be overbooked, consider a slightly longer transit in order for your cargo to not be rolled.
An alternate port of discharge might be a good option (if your cargo is moving inland) as this will give you more sailing options to choose from.
Also, consider air shipments if you’re in a rush. Keep in mind that prices for air shipments are considerably higher compared to ocean shipments, especially during peak season where tight capacity has made the prices rise above the usual market.

Golden Week, known as National Day Golden Week, in 2021 will be celebrated from October 1st. to October 7. Factories will close for the extended holiday week, and operations will resume on Tuesday, October 8.

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.

If you would like to know more details about us, please contact with us: 

www.shopshipshake.co.za

If you are interested in cooperating with us. Please register on:

https://bit.ly/3ks0m1M