How are air freight rates calculated

Sep 20, 2024 Leave a message

Air freight is the most expensive way to ship your goods. Typically, air cargo rates are calculated by weight. In most cases, the air freight itself (carriage of goods) is based on volumetric weight-the volume of the shipment factors into the weight. (You wouldn't pay the same price to ship a pallet of bricks and a pallet of foam; volumetrically, 50 pounds of styrofoam looks very different than 50 pounds of bricks.)

Industry standard formulas help you derive these chargeable volumetric weights, and pricing varies based on airlines and whether the flights are domestic or international. In addition to weight, flat fees for handling, documentation, customs clearance and charges to pick up and deliver goods are involved.

According to The World Bank, the demand for air freight is limited by cost, typically priced four to five times that of road transport and 12 to 16 times that of sea transport. Air freight rates generally range from $1.50–$4.50 per kilogram, while the value of air cargo typically exceeds $4.00 per kilogram.