Have you ever wondered what makes air freight shipping the go-to choice for transporting goods, especially high-valued ones? Industries like pharmaceuticals, electronics, and advanced manufacturing rely on it for speed, reliability, and security. 

Did you know only 1% of the total goods shipped are transported by air? However, these goods account for 35% of the total trade value. That’s how air cargo plays a vital role in global trade despite high air freight charges. 

You might wonder, what drives air cargo rates? Factors like weight, size, and specific cargo needs play a big role. Let’s explore how to calculate freight charges and what influences these costs.

Key Factors That Affect Air Freight Rates

If you rely on air cargo for your business, you probably want to know why air freight rates can vary so much. So, here are some of the key factors that influence these charges.

Size and Weight of the Shipment: You must have noticed that bigger and heavier shipments cost more. This is because larger shipments take up more space on the aircraft put more strain on cargo capacity. This directly increases the air cargo price. To avoid unnecessary costs, you can focus on efficient packaging and avoid overpacking your goods. Every extra centimeter or kilogram counts, so keeping your shipment compact can make a big difference in air freight rates. 

Optional Services and Extra Fees: Sometimes, you may need extra services, like guaranteed delivery times, shipping to restricted locations, or residential delivery. While these options can be helpful, they also increase your air freight rates.

Distance and Shipping Route: The further your shipment has to travel, the more you’ll pay. However, the route your goods take also affects the cost. Shipping on longer or less common routes tends to be more expensive because of limited carrier options and higher fuel consumption. 

Seasonal Fluctuations and Market Demand: You might find yourself paying higher rates during busy seasons when demand for cargo space spikes. Companies compete for limited space, pushing up costs. On the flip side, rates often drop during off-peak months when there’s less competition for space. Apart from these seasons, unforeseen factors like bad weather can also reduce capacity and temporarily drive up air shipping prices.

Express and International Air Freight Services

When you’re choosing between express and international air freight services, the right choice depends on your shipment needs. If you’re dealing with smaller shipments, that is, under 200 kilograms or one cubic meter, and need quick delivery within five days, express air freight is the best way to go.

For larger shipments, international air freight offers a better solution. It’s designed to handle bulk goods, often involving coordination between multiple carriers. While express services prioritize speed and simplicity, international air freight focuses on efficiency over long distances. Naturally, express air freight tends to have higher air freight rates due to its urgency and streamlined process. Meanwhile, international air freight rates per kg are more affordable for larger volumes but may vary based on the route and shipping complexity.

Understanding Air Freight Shipping Costs

If you’ve ever wondered how air freight costs are calculated, it depends on the weight and size of the shipment. Airlines compare your shipment’s actual or gross weight with its volumetric or dimensional weight and charge based on whichever is higher. This ensures fairness when dealing with bulky but lightweight goods.

But the base rate isn’t the only cost you’ll pay. Fuel surcharges, customs fees, and security charges are added to the mix. Fuel surcharges cover fluctuating fuel prices, customs fees handle border clearance, and security charges ensure the safety of your cargo. Together, these factors shape the total air cargo price.

How to Calculate Air Freight Rates?

If you know how air freight rates are calculated, you can save yourself from unexpected shipping expenses. By grasping the concepts of gross weight, volumetric weight, and chargeable weight, you’ll be better equipped to manage your shipping costs. Let’s understand each of these terms one by one.

Gross Weight or Actual Weight

Gross weight, often referred to as actual weight, is the total weight of your shipment, including the product and its packaging. It plays a critical role in air freight calculations, as it determines the base cost for shipping.

The formula for calculating actual weight is:

Product Weight + Packaging Weight = Gross Weight

Let’s understand by an example:

Suppose your product weighs 18 kg, and the packaging adds another 2 kg.

Gross Weight = 18 kg + 2 kg = 20 kg

Volumetric or Dimensional Weight

Volumetric weight, or dimensional weight, calculates the space your shipment occupies in the aircraft. It’s especially important for lighter items that take up more volume. This method ensures that carriers charge fairly for the space used.

The formula to calculate volumetric weight is:

(Length × Width × Height)/ Divisor = Volumetric Weight

The divisor in the case of air freight is usually 6000.

Let’s understand the concept of volumetric or dimensional weight with the help of an example.

Suppose your shipment has the following dimensions:

Length = 50 cm

Width = 25 cm

Height = 70 cm

By using the formula:

Volumetric Weight = (50 × 25 × 70)/ 6000 = 87,500/ 6000 = 14.58 kg

If you measure dimensions in inches, use the divisor 366 to calculate the volumetric weight.

Chargeable Weight

The chargeable weight determines the final cost of shipping. Airline companies always consider the higher value between gross weight and volumetric weight as the chargeable weight. This ensures fairness for shipments that are either heavy or occupy a lot of space.

How Chargeable Weight Works:

Let’s use the same example where:

Gross Weight = 30 kg

Volumetric Weight = 24.8 kg

Since 30 kg is greater than 24.8 kg, the chargeable weight will be 30 kg. 

Benefits of Air Freight Shipping

Air freight is the perfect shipping mode for businesses that prioritize speed, reliability, and security when transporting goods. Some of its key advantages are mentioned below:

Fast Delivery: Air freight ensures the fastest delivery which makes it perfect for time-sensitive shipments like medical supplies, perishables, or urgent business orders. With minimal transit time and efficient airline schedules, your goods reach their destination quickly and help you stay ahead of deadlines or market demands.  

Secure Transport: Air freight offers high-security standards for valuable items like electronics, jewelry, or confidential documents. Airports have strict regulations, advanced tracking, and minimal handling, ensuring your cargo remains safe throughout its journey.

Global Reach: Air cargo provides an extensive network by connecting almost every corner of the world. This global access makes international shipping seamless and helps businesses expand into new markets. 

High Reliability: Airlines operate on fixed schedules with fewer delays which ensure reliable deliveries of your shipment. In air freight shipping, your goods are handled carefully during loading and unloading. And, this reduces the chances of damage compared to other shipping modes. 

What are Air Freight Calculators?

Air freight calculators are tools provided by shipping companies to evaluate the estimation of shipping costs. These calculators consider factors like air cargo charges, comparing volumetric and gross weights to determine the chargeable weight. They provide businesses with quick and accurate cost approximations by helping them calculate international air freight rates per kg.

To use the calculator, you need to input shipment details such as dimensions, weight, origin, and destination. Based on this data, the tool computes the volumetric weight, compares it with the actual weight, and determines the air freight charges.

These tools also incorporate taxes, surcharges, and other additional costs, giving a near-complete estimate of total expenses. This transparency helps businesses plan budgets effectively while shipping goods internationally.

Latest Trends in International Air Cargo Price

In January 2024, air freight volumes experienced a 10% year-over-year rise. However, this increase didn’t push up air freight rates due to sufficient capacity in the market. The increase in air cargo price for January was partly driven by industries like garment and manufacturing switching to air transport to meet Lunar New Year deadlines.

As more cargo space in passenger planes becomes available, air freight rates are expected to decline further. As more cargo space opens up in passenger planes, air freight rates are expected to drop further from 2023 levels. In January, global air cargo rates fell by 12% to an average of 2.27 USD per kg. Following this decline, the global load factor also dropped by 3%, reaching 56% in January 2024 compared to December 2023.

Goods Commonly Shipped via Air Cargo

Air cargo is the preferred shipping method for goods that require fast, reliable, and secure transportation. Here are some of the most common items shipped via air:

Perishable Goods: Items like fresh food, flowers, and seafood are time-sensitive and must reach their destination quickly to maintain quality. Air transport ensures these goods arrive fresh and ready for use.

High-Value Electronics: Products such as laptops, smartphones, and other electronics are often shipped by air to meet market demand quickly. Their compact size and high value make air freight a practical choice.

Pharmaceuticals and Medical Supplies: Medicines, vaccines, and medical equipment require special handling and swift delivery to meet urgent healthcare needs. Air cargo provides the reliability required for these critical shipments.

Urgent Documents or Parcels: Important documents, such as legal papers, often need expedited delivery. For such documents, air freight remains the fastest and most efficient method of transportation.

Simplify Your Air Freight Bookings with Bigship

Air freight charges can often feel confusing, with calculations involving weight, dimensions, taxes, and surcharges. However, this complexity is necessary to ensure accurate pricing for speedy as well as secure deliveries. If you’re searching for a reliable partner to simplify this process, Bigship is your answer.

Bigship, with access to 19+ trusted courier partners, offers streamlined air freight solutions, covering 29,000+ pin codes in India and 220+ countries & territories globally. You’ll benefit from competitive pricing, a user-friendly shipping calculator to estimate costs, and dedicated customer support to guide you every step of the way.

Sign up with Bigship and simplify your air freight bookings!