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.

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

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Five secrets to starting a successful kids’ clothing line in South Africa.

Five secrets to starting a successful kids clothing line

The retail sector can be one of the toughest industries to crack, mainly because it is such a competitive space with many fast fashion stores. These stores produce inexpensive clothes for the mass market, featuring the latest trends. Fast fashion clothing stores often sell clothing that is of very low quality because they’re always chasing the latest fashion trends. But many people love these stores as they can get the latest item at a reasonable price.

Therefore, it can be challenging for new business owners, like yourself, to grow your clothing line successfully. However, like everything else in life, nothing is impossible. With passion and the right skills, you can successfully run your children’s clothing line.

One of the few things you have done right so far is knowing which niche you want to break into. Children’s clothing is a lucrative business, as it’s a market that will never cease to disappoint. Children grow every day and require new clothes, so you won’t have to worry about not having customers. But for your clothing line to thrive amongst other international and local designers, you need to follow these five steps.

 

Build a strong online presence

An online presence plays an important role in any successful business, especially one that does not have a strong legacy behind it. People, especially parents, purchase from stores that they trust, knowing that they will be getting high-quality clothes for their babies.

Since you don’t have the advantage of being around for a decade or more, you need to convince parents and future parents that your line is the best. And what better way to do that then to have a presence in a place where everyone is active: on the internet.

Having an online presence offers your line several benefits. It offers your business accessibility, a greater audience, brand building, and easier marketing. But you need to keep in mind that because you’re only starting out, many buyers will want to go in-store before purchasing online. This is to ensure they are purchasing products that have the quality they are looking for. But, make sure your physical store is as appealing as your website.

 

The location of your store

There are many places in South Africa where you can open up a clothing store. However, for your first store, the preferred choice would be opening up a kids clothing store in Cape Town or any other big city. Having a clothing shop in Cape Town can help you retain more customers at a faster pace than if you opened in small towns. Although you may pay more in rent, the foot traffic will be worth it. While looking for a location for your clothing store, take note of stores nearby. It would be ideal for you to find a location that doesn’t have many clothing stores, so if you’re next to a footwear store in Cape Town, then you won’t have to worry too much about direct competition.

 

Have a business plan

Every business needs to have a thoroughly thought-out business plan. Not only will a business plan help you get the right investors and finance, but it will also assist you by giving you a road map of your business’s goals. This will be helpful whenever you wish to reflect on your business and see how well you have done to achieve your short and long term goals.

A business plan will also help you see your business’s shortfalls and how you can rectify them. Without a good business plan, you might end up running your business to the ground, or it may fail to reach its full potential.

 

Create loyalty among your customers

Parents are an important part of your business, and it is part of your job to ensure that they are happy. Yes, it’s impossible to make everyone happy, but you need to ensure that they know they can count on your store and product. You also need to be available to your customers; your clothing store needs to have active social media accounts.

This will allow your customers to interact with your business on a personal level to build long-lasting relationships. Your social media accounts will also help you build an online presence and help you get to the same level fields as your competitors. You should also offer your customers a few rewards once in a while. Many stores that have loyal customers understand that they need to be rewarded.

Ways which your clothing store can attract their customers:

  • Loyalty reward cards
  • Sales and specials
  • Treat them with respect
  • Have employees who love and respect kids

Final thoughts

Owning a kids clothing line can be both fulfilling and lucrative. Especially now, when social media has a big presence. Parents can tag your store to show you how much their kids love your clothing. And seeing a child smile is one of the most fulfilling things in the world. So, make sure you plan things properly to ensure that your clothing line can make a mark.

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