• 25-08-2021

Guide to Air Freight Rates and Cost Calculations

A freight forwarder serves as an agent in the logistics system, facilitating commerce on account of exporters, importers, and other interested parties. These agents allow commodities to be moved securely, cost-effectively, and efficiently from one site to another. It could occur within a country or beyond borders. The top shipping and logistics companies in UAE can serve your logistics needs with zero hassles and lesser time.

Why You Should Ship by Air?

For urgent or time-sensitive logistical difficulties, air freight can help minimise total logistics costs. By integrating the speed of air with the cost reductions of other modes, you may minimise inventory and increase your service offerings by providing quick reaction times at a low cost. The transportation of any form of commodity by air from one location to another around the world is known as air cargo transport. The planes utilised in these circumstances have a broader fuselage than the passengers, allowing them to carry more people. They also have more wheels, better landing stability, and the capacity to land on less-prepared tracks, as well as multiple huge doors for a comfortable and efficient landing.

Because most businesses ship modest quantities of low-value commodities, demand for air freight exports has been limited from landlocked underdeveloped countries. Cut flowers, electrical equipment, and fresh fruits and vegetables are the most common air exports from underdeveloped countries. Air imports are typically high-value consumer products. Inbound air freight charges are greater without a strong outbound flow, limiting the types and quantities of commodities that can be delivered by air.

Nowadays, air transportation, both goods and people, aims to have a lower environmental impact. Currently, airplane models with new materials, hybrids, and various sources of energy, such as solar or electric, are obtainable. Freight forwarding companies in Dubai can offer you efficient logistics solutions regarding air freight.

Benefits of Air Freight

  • It allows you to travel to any location on the globe in a matter of hours.
  • Flexible timetables and dates that allow any shipment to arrive on time and in good condition.
  • Although cargo capacity is limited compared to maritime transport, freight airplanes can transport a wide range of small, medium, and big items.
  • From velocity to combustion, the air sector has undergone significant developments in recent years.
  • Physical obstacles and customs are not as prevalent in air travel as they are in other modes of transportation.
  • The plane allows you to travel to regions that are practically inaccessible by other modes of transportation.
  • It's the best option for transporting perishable, fragile, or high-value items.
  • It is the safest mode of cargo transportation.
  • If necessary, a certain temperature can be maintained.

Goods Commonly Transported by Air

Because air freight has a significant advantage in terms of transit times, cargo must flow swiftly through an airport. The time it takes for cargo operations is determined by four factors: customs clearance operations, cargo inspection procedures, cargo handling effectiveness, and storage facility layout. Here are the common types of goods that are carried across air

  • Electronics
  • Apparel
  • Pharmaceuticals
  • Documents
  • Live animals
  • Luxury products
  • Artworks
  • Plants
  • Machinery
  • Perishable foods
  • Spare parts of vehicles
  • Good in large quantities
  • Goods that need to be transported quickly

Costs of Air Freight Forwarding

Fuel currently accounts for nearly half of the yearly cost of running an aircraft, either for cargo or passengers, as a response to the recent surge in oil prices. The marginal cost of carrying cargo is calculated sold by weight and target since fuel consumption is roughly proportionate to aircraft weight and distance travelled. The added distance traveled, especially empty legs, and the mix across demand and available capacity, are frequently reflected in increased rates for charter services.

Because a larger portion of the flight is devoted on the ground and much more time in the air is spent rising and descending, air freight prices per kilometre are higher for shorter trips. As a result, on the leg between some of the local source or destination and the commercial shipping hub, it is frequently preferred to use over road transport. Freight forwarders in Dubai like Skyocean offers air cargo services at standard prices.

How shipping charges for freight calculated?

Calculating air freight costs is a straightforward method that requires just two variables: the billable weight and the appropriate rate per chargeable weight. The main task, on the other hand, is to calculate the chargeable weight as well as the appropriate rate. When it comes to air freight delivery, size and weight are important considerations. Based on which is more costly, air carriers will charge by volumetric weight or actual weight.

The universal rule of thumb for calculating volumetric weight in air freight is to multiply the item's volume in cubic metres by 167. A package with dimensions of W: 40cm, H: 40cm, and L: 40 would have a volume of.064 litres . The volumetric weight is 10.67 kg when multiplied by 167.

If the volumetric load of a product is greater than its actual weight, the volumetric mass becomes the billable weight. Use this for minor air cargo. According to Transport Intelligence, worldwide air freight usage is rising slowly, with an obvious percentage of growth among the world's best air freight companies. One explanation for this is a rising reliance on ocean freight, which is becoming increasingly dependable.

Ocean freight has become cheaper as a result of enormous ocean freight overcapacity, with prices dropping by up to 75% on major routes. Air passenger traffic, on the other hand, has increased dramatically, forcing airlines to build an increasing number of planes. As a result, there is additional belly cargo room — storage space beneath the plane.

Air freight is extensively regulated on a global scale. As a result, many people choose a freight forwarder who specializes in air shipments. A worldwide air freight forwarder can assist you with all important freight documentation, insurance, inspections, air freight logistics, and any instability that may arise. An international air freight carrier can also assure that your goods are packaged to fit a plane's non-traditional shape, maximizing the space you pay for.

Why you need the help of a freight forwarding company like Skyocean?

A freight forwarder can assist you with a variety of services to ensure that your shipment is transported securely and safely. Freight forwarders operate as your representatives for transporting your cargo from one country to another. To transfer cargo, the transportation procedure necessitates a great deal of extra attention.

Individuals may not be able to manage your situation, so freight forwarding may be required. Now, the freight forwarder will guide you through the process of end-to-end cargo delivery. Freight forwarders take care of everything for you, reducing you time and effort. They take care of scheduling cargo space at a low cost, arranging and storing cargo warehousing, discussing freight rates, organizing cargo insurance, and providing tracking systems for your consignment. A freight forwarder is also responsible for ships that are covered by bills of lading or airway bills. A freight forwarder is a company that manages the process of documenting, clearing, and delivering goods to a warehouse at the destination port.

Within the logistics system, a freight forwarder operates as an agent to facilitate commerce on behalf of exporters, importers, and other concerned parties. They make it possible to move commodities from one location to another in a secure, cost-effective, and efficient manner. It could happen within a country or between countries.

Freight forwarding businesses have developed excellent partnerships with carriers, allowing them to obtain better pricing and more efficient communication in order to deliver goods on time. Due to a lack of knowledge about service experience, selecting the correct freight forwarder can be difficult. Being one of the best air freight companies in GCC countries, Skyocean can take care of your logistics requirement via air.