Navigating the complexities of air freight pricing can be daunting for shippers. With terms like actual weight, volumetric weight, and chargeable weight, it’s easy to feel overwhelmed. Unexpected costs often eat into profit margins, leaving businesses frustrated. This guide breaks down the key components of air freight pricing to help shippers make informed decisions and control logistics expenses.
Core Concept: Chargeable Weight
At the heart of air freight pricing lies the "greater of" principle: carriers compare a shipment’s actual gross weight against its volumetric weight, then charge based on whichever is higher. This chargeable weight becomes the foundation for calculating total shipping costs.
1. Actual Gross Weight
The actual gross weight refers to the total physical weight of goods including packaging, measured in kilograms (typically rounded to one decimal place). Precise measurement using calibrated scales is crucial, as even minor discrepancies can lead to unnecessary charges.
2. Volumetric Weight
Volumetric weight applies to lightweight, bulky items (often called "low-density cargo") such as textiles, plastic products, or certain electronics. These shipments occupy significant cargo space while being relatively light. To account for this, carriers convert volume into an equivalent weight for pricing purposes.
International Standards (IATA Regulations)
Calculation Methods:
- Volumetric weight (kg) = (Length (cm) × Width (cm) × Height (cm)) ÷ 6000
- Alternative method: Volumetric weight (kg) = Volume (m³) × 167
Note: Some airlines or specific routes may use different conversion factors (e.g., 5000 or 5160). Always verify with your freight forwarder before shipping.
3. Determining Chargeable Weight
Compare actual gross weight and volumetric weight, then select the higher value:
- Dense cargo: Actual weight > volumetric weight → charge based on actual weight
- Low-density cargo: Volumetric weight > actual weight → charge based on volumetric weight
Basic Freight Calculation
The primary cost component follows this formula:
Basic freight = Chargeable weight × Unit rate
1. Unit Rates: Weight Brackets
Airlines typically offer tiered pricing based on shipment weight:
- N (Normal Rate): For shipments below 45kg (highest per-kg rate)
- Q45: 45kg and above
- Q100: 100kg and above
- Q300/Q500/Q1000: Progressively lower rates for heavier shipments
Note: Specific brackets and rates vary by carrier, route, and market conditions.
2. Minimum Charges
Most airlines enforce a minimum fee per shipment. If calculated freight falls below this threshold, the minimum charge applies instead.
Example: A $50 minimum charge would override a $20 calculation for a 1kg shipment.
Surcharges
Additional fees compensate carriers for operational expenses:
| Surcharge Type | Calculation Method | Purpose |
|---|---|---|
| Fuel Surcharge | Percentage of basic freight | Covers fluctuating fuel costs |
| Security Fee | Fixed per kg or shipment | Funds cargo screening measures |
| Airport Handling | Variable by location | Terminal operations and staffing |
Understanding these components enables shippers to optimize packaging, consolidate shipments, and negotiate better rates. While air freight remains premium-priced transportation, strategic planning can yield significant savings.