How You Should Pay Air Freight Companies

In: Business

22 May 2009

Whether you run an import or export business, or even if you just have a substantial shipment to send overseas, you may be considering using an air freight company. An air freight company simply refers to an organization dedicated to transporting goods (cargo) by aircraft. While the cost of shipping goods via air is generally more expensive than other methods, shipping times are almost always shorter. There is a huge market for cargo transport by air, not only for commercial purposes, but for personal ones as well. Before you start comparing air freight companies and shopping around for a cargo airline that will suit your needs, you must understand how these companies expect to be paid.

One Rate Air freight is typically charged at the same rate no matter what class of merchandise or other goods are included in the shipment. When rates are quoted for air cargo shipments, they are typically quoted on an airport to airport basis. The three most common ways that air freight companies break down their charges are as follows: Weight Volume

Chargeable Weight In the cargo shipment industry, chargeable weight refers to the actual gross weight or actual volume weight of any given shipment. The cost to send goods internationally by air freight will be based on either the gross weight or volume weight. Which measurement is used to determine the cost depends on which is better. Because of this, for exporters of dense goods, such as food products, toiletries, bottled drinks, clothing, etcetera, the shipments gross weight is of utmost importance. For shippers who are exporting bulk items such as home furnishings or building materials, the volume weight of the cargo will be more relevant to the final cost.

How is Chargeable Weight Calculated?

Gross Weight Gross weight is the easiest to determine because it is straightforward. The actual weight as indicated on the cargo scale represents the gross weight that will be the chargeable weight provided the gross weight is greater than the volume weight.

Volume Weight To calculate the volume weight, a bit of simple geometry is required. The dimensions of the shipment must be measured ” specifically, the length, the width and the height. The measurements should be taken in either inches or centimeters depending on where the shipment is originating. Then, the following formula is applied:

If measurements are taken in inches: Length x Width x Height / 165 = Volume Weight (in pounds)

If measurements are taken in centimeters: Length x Width x Height / 6,000 = Volume Weight (in kilograms)

For example, if you shipment is 60 inches long by 40 inches wide and 70 inches tall, the equation would be: 60 x 40 x 70 = (168,000) / 165 = 1018 lbs

Say the volume weight for this shipment is 1018 pounds. If the gross weight is more than 1018 pounds, then the freight rate will be applied to the gross weight. If the gross weight is less than 1018 pounds, then the rate will be applied to the volume weight.

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