Understanding the Basics
When it comes to calculating air freight rates, several factors come into play, shaping the final cost. Let’s delve deeper into this complex process:
Key Factors in Air Freight Rate Calculation
Here are the primary factors that influence the calculation of air freight rates:
- Weight and Volume: The weight and volume of the cargo are fundamental. Airlines charge based on either the actual weight or the volumetric weight, depending on which is higher. Volumetric weight is calculated using the length, width, and height of the package.
- Distance: The distance between the origin and destination is a significant factor. Longer distances typically result in higher air freight rates.
- Type of Cargo: The type of cargo being shipped plays a crucial role in determining the rate. Perishable or hazardous goods may incur additional charges.
- Service Level: Different service levels are available, such as standard or express. Faster service levels usually come at a higher cost.
- Fuel Costs: Air freight rates are also influenced by fluctuations in fuel prices. When fuel prices rise, shipping costs tend to increase.
- Customs and Handling Fees: Various customs and handling fees, like documentation and inspection costs, can add to the total freight rate.
