How Air freight charges are Calculated
Air freight charges are calculated based on several factors. First, the weight and volume of the cargo play a significant role. Many air freight companies use a formula called "yyy/yyy" to determine the volume weight. This is calculated by dividing the volume of the package by 6,000 cubic centimeters. The actual weight and the volume weight are compared, and the higher value is used for billing.
Another important factor is the distance. The farther the destination, the higher the air freight cost. Time-sensitive shipments usually incur additional charges, as delays can impact the overall cost. The type of cargo also affects the charges. Heavy or fragile items may require special handling, which can increase the cost.
Finally, the contract terms and conditions between the freight company and the client are reviewed to ensure all aspects are covered. Insurance and documentation requirements are also part of the calculation. Proper planning and documentation are essential to minimize costs and ensure the shipment arrives on time.
In summary, air freight charges depend on weight, volume, distance, cargo type, and contract terms. Understanding these factors can help in budgeting and negotiating better rates.