Calculating international air freight rates is complex, primarily involving factors such as chargeable weight, unit rates, and surcharges.
In this article, Weefreight will provide a detailed explanation, hoping it will be helpful.
Determining Chargeable Weight: Chargeable weight is the greater of actual weight and volumetric weight. Actual weight refers to the actual physical weight of the cargo, measured by a weighing device and expressed in kilograms. Volumetric weight is the “virtual weight” created by the cargo occupying air cargo space. The calculation formula is: Volumetric Weight (kg) = Length (cm) × Width (cm) × Height (cm) ÷ 6000. Some airlines or specific routes may use a factor of ÷ 5000 or ÷ 4000. For example, if a piece of cargo is 80cm long, 60cm wide, and 50cm high, and weighs 40kg, its volumetric weight is (80×60×50) ÷ 6000 = 40kg, resulting in a chargeable weight of 40kg. If the chargeable weight is 30kg, the chargeable weight is 40kg.
Determination of Unit Rates: International air freight is divided into multiple “charge zones” based on the origin and destination of the cargo, each with its own unit freight rate. For example, air freight from Shanghai, China to Frankfurt, Germany falls within IATA Zone 1, and the unit rate might be 50 yuan/kg. The specific rate is set by the airline or the International Air Transport Association, with higher rates associated with longer distances and greater transportation difficulties.
Calculation of Surcharges:
Fuel Surcharge: This surcharge is a percentage of the chargeable weight or rate, calculated based on fluctuations in aviation fuel prices. It is updated regularly, such as 3 yuan per kilogram, or 29% of the base freight rate.
Security Surcharge: To cover air freight security inspection costs, this surcharge is typically a fixed amount or a percentage of the billable weight, such as 0.5-2 yuan per kilogram.
Overlength/Overweight Surcharge: Shipments exceeding 120cm (or even 98cm or 100cm for some channels) or weighing over 68kg are subject to an additional fee, such as 20% of the base freight rate per kilogram, or a fixed fee.
Dangerous Goods Surcharge: Dangerous goods such as lithium batteries and chemicals are subject to a higher surcharge based on their category, such as 10-50 yuan per kilogram.
Total Freight Calculation: The formula for calculating the total freight is: Total Freight = Billable Weight × Regional Unit Rate + Various Surcharges.
For example, consider a shipment from Shanghai, China, to Frankfurt, Germany. The actual weight of the shipment is 30 kg, and the volume is 70 cm x 60 cm x 50 cm. The volumetric weight is (70 × 60 × 50) ÷ 6000 = 35 kg, resulting in a chargeable weight of 35 kg. The Shanghai-Frankfurt route falls within IATA Zone 1, with a unit rate of 50 RMB/kg, a fuel surcharge of 10% of the rate, and a security surcharge of 100 RMB/ticket. The total freight is 35 × 50 (basic freight) + 35 × 5 (fuel surcharge) + 100 (security surcharge) = 1750 + 175 + 100 = 2025 RMB.
In addition, airlines may set minimum freight rates. If the freight rate calculated using the above formula is lower than the minimum rate set by the airline, the minimum rate will be charged. For bulk shipments, airlines may offer tiered rates, meaning that the higher the weight, the lower the unit rate.
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