September 2, 2024
Air Freight
Understanding air cargo tariffs and rules is essential for any business that imports or exports goods internationally. Air freight offers unparalleled speed and efficiency for moving cargo around the world, but navigating the complexities of pricing and regulations can be a challenge. This comprehensive guide will equip you with the knowledge you need to make informed decisions about your air cargo shipments!
What are air freight tariffs?
Air freight tariffs encompass the fees charged by airlines for transporting goods on their aircraft. These tariffs detail the rates and regulations governing the movement of cargo between airports. It’s important to remember that tariffs typically only cover the transportation itself, not additional services like customs clearance, pick-up, delivery, terminal handling, or storage. These additional charges may be outlined in the tariff but are often billed separately.
There are two main types of air freight tariffs:
General Cargo Tariffs: These tariffs apply to the vast majority of goods shipped by air. They outline the pricing structure based on factors like weight, dimensions, destination, and the type of service (e.g. standard or expedited).
Specific Cargo Tariffs: Certain commodities, such as perishables, live animals, pharmaceuticals, valuables, or dangerous goods, may have their own unique set of regulations and pricing structures outlined in separate specific cargo tariffs.
What is an air cargo tariff document?
An air cargo tariff document is a detailed document issued by individual airlines or airline associations that outlines the specific rates, rules, and regulations for shipping goods by air.
These documents can be lengthy and complex, often containing technical jargon and specific conditions. While most freight forwarders have access to and can interpret these documents for their customers, having a basic understanding of the information they contain can be helpful. Here’s a breakdown of some key elements typically found in an air cargo tariff document, which we’ll go into a bit more detail in shortly:
- Routes and destinations
- Rates
- Fuel surcharges
- Security fees
- Special service charges
- Prohibitions and restrictions
How is air freight calculated?
Calculating air freight costs can seem complex due to the various factors involved. Let’s explore a breakdown of the key elements that influence the final price when shipping via air freight:
Weight
This is a primary factor, with rates typically increasing proportionally with weight. However, some airlines may have minimum weight charges, regardless of the actual weight of the shipment.
Dimensional weight (volumetric weight)
Airlines also consider the dimensional weight of your cargo, which takes into account the package size, rather than just the actual weight. This is because space on an aircraft is limited, and a bulky lightweight package can occupy the same space as a heavier, denser one.
Whichever is higher out of the actual weight and the volumetric weight will be used to determine the final chargeable weight for your shipment. The calculation for volumetric weight typically involves multiplying the package length, width, and height and dividing by a specific conversion factor (which can vary depending on the chosen airline).
Origin and destination
The distance between the origin and destination airports significantly impacts the cost. Longer routes naturally incur higher transportation charges!
Fuel surcharges
Fuel surcharges can fluctuate based on global oil prices, and are added to the base rate.
Security fees
Government-imposed security fees are typically a fixed cost applied to each shipment.
Commodity type
Certain commodities, such as perishables, live animals, or dangerous goods, may be subject to specific rates or surcharges due to additional handling requirements.
Special services
Any additional services requested, such as priority handling, cold chain transportation, the use of cold blankets, or cargo insurance, will add to the overall cost.
Common air freight fees and charges
Whilst each tariff is different, there are some common charges you’ll find on most bills. Here’s a breakdown of some of the most common fees and charges you might encounter in air cargo tariffs:
Terminal handling charges: These fees cover the costs associated with loading and unloading cargo at the airport terminals.
Documentation fees: Charges may apply for processing paperwork such as airway bills, customs declarations, and other required documents.
Valuation charges: Airlines typically offer limited liability for lost or damaged cargo. For higher-value goods, you can declare a higher valuation for an additional fee. This additional valuation provides increased compensation in case of an issue.
Customs clearance fees: Charges associated with clearing your shipment through customs at the destination airport. These fees can vary depending on the complexity of the customs process and the value of the goods.
Delivery charges: The cost of delivering your shipment from the destination airport to its final destination. This can be arranged through the airline or a separate delivery service provider.
International air freight rates per kg
Unfortunately, providing specific international air freight rates per kg is difficult due to the numerous factors influencing the final cost, however, you can use our online quote tool to supply all of the relevant details, and we’ll find the perfect solution for your cargo!
Understanding air cargo tariffs and rules is crucial for businesses getting involved in international trade. By familiarising yourself with the key factors influencing air freight costs and the resources available for obtaining quotes, you can make informed decisions about your air cargo shipments. Partnering with a reputable freight forwarder can provide valuable expertise in navigating air cargo regulations and ensuring your goods reach their destination efficiently and cost-effectively.
Air Cargo Screening
Irrespective of the goods you are shipping, it is worth noting that all cargo being shipped by air will undergo security screening. A mandatory fee is charged, and this is based on the weight of the goods being shipped but it can vary by airline. The scanning of cargo ensures any prohibited or dangerous goods are flagged prior to being loaded onto the aircraft.
If you are ready to get a quote for your next air cargo shipment, contact our team of air freight specialists today! And if you have regular air shipments, we can even assist with pre-booked space (or PB), to ensure your goods are prioritised; shipping rates can also be more attractive too!
Let our team help you navigate the complexities of air cargo tariffs and rules and ensure your shipment arrives safely and on time. And be sure to follow us on LinkedIn and Facebook for all of the latest air, road and sea freight news!