Freight rates keep changing from time to time. However, there is one thing that remains constant -the effect of air freight cargo shipping rates on your overall bottom line. Budgeting for air freight cargo shipping is crucial for any logistics or supply chain company. With the overall rates fluctuating by as much as 50 percent, planning become an overwhelming and time-consuming task.
There is no denying the fact that air freight cargo shipping and forwarding services are convenient, reliable, fast, and highly secure. Transportation of goods through air allows shippers and businesses to respond quickly to customers as well as the respective market demands. However, it is important to note that air freight charges are highly unpredictable at the same time. There are several factors that affect the overall transportation costs.
This article aims at covering the overall overview of international air freight cargo shipping rates.
Air Freight Costs and International Air Freight -Rates Per Kg
Air freight rates are defined as the price at which specific cargo will be delivered from a single point to another. The price of international air freight cargo shipping will depend on the cargo type, the mode of transport, the cargo’s weight, and the distance to the delivery destination. Most shipping services -especially air carriers, make use of the concept of dimensional weight to calculate the overall freight charges -taking into account both volume and weight of the cargo.
If you wish to understand the rates of air freight shipping, it is important to get an idea of the following aspects:
- Express Air Freight: Usually handled by a single company for managing the entire shipment lifecycle while shipping door to door in a matter of few days (usually 4-5 days). Shipments made through express air freight are usually smaller in size in comparison to other air freights.
- Shipments associated with international air freight shipping can be larger in the overall size. Moreover, they might move across multiple carriers in case of a shipment.
Before the pandemic era, international air freight cargo shipping rates usually ranged between around $2.50 to $5 for every kilogram. It ultimately depended on the available space and type of cargo. Costs increased steeply in February 2020 when the global pandemic came over and brought about major disruptions in the overall consumer demand and ocean freight. The air freight cargo rates therefore achieved a range of around $4 to $8 for every kilogram. During early 2023, the air freight rates across the world have decreased substantially to around $3 to $7 for every kilogram. It is still significant than the pre-pandemic era.
Some of the factors that affect the air freight rates are:
- Speed and Flexibility: Since the advent of the global pandemic, delivery turnaround times across the world have decreased significantly. When you are planning for global deliveries, it is important to optimize the respective routes while minimizing idle time for drivers and increasing deliveries to particular locations.
Working with a reliable third-party service provider in the given domain can help in creating ample opportunities for ample speed and flexibility. It will also help in balancing out the overall air freight charges.
- Weight & Density of Shipments: Both density and weight affect freight class -in turn, impacting the overall freight costs. The bigger is your package, the more density it has, the more room it will require for transportation. The more manpower and room needed to transport the goods, the more you will have to pay for it.
- Distance: As the general rule of thumb, the longer is the distance between the pick-up point and the final destination, the higher will be the air freight shipping costs. The freight rates are also reliant on transportation move, geographic location, complexity, and capacity of the delivery.
Air Freight Shipping Prices & Costs
As far as air freight cargo shipping is concerned, volume and weight are primary factors to consider. Air carriers are known to charge by either actual weight or volumetric weight (also known as dimensional weight) -depending on which will turn out to be more expensive.
To calculate the dimensional or volumetric cost for air freight shipping, you are expected to multiply the volume of the product in cubic meters with 167. When the dimensional weight will exceed the actual weight of the cargo, the volumetric weight will eventually becomes the one that is charged.
How to Choose the Best Air Freight Shipping Option?
Air freight forward services differ from the perspective of rates charges and solutions offered by businesses. Some of the ways in which you can choose the most reliable air freight shipping provider are:
- Research About the Provider: Before choosing the air freight forward, you should conduct in-depth research into the track record of the provider -number of shipments delivered, the overall charges, average turnaround time, and extra benefits offered.
- Check for Licensing and Registration: You need to make sure that the freight forwarding company is fully compliant with the rules and regulations of the air freight industry. You would also like to ensure that the company is effectively accredited by the IATA or International Air Transport Association.
- Select a Responsive Air Freight Company: When you are shipping cargo by air, you need to get it delivered to the destination fast. One of the significant assets of an air freight forward company should be that it is highly responsive and capable of expediting complicated steps on the go.
What are the Benefits of Air Freight?
- Speed: Airplanes indeed ply significantly faster than any other form of transportation. Therefore, you can be assured of the overall speed of shipment as it reaches your destination in a matter of few hours or days.
- Reliability: When you ship by air, it offers improved certainty and effective tracking of the goods getting delivered on time.
- Protection: Cargo through air freight remains highly intact and secure throughout the transportation process.
Are International Air Cargo Quotes and Prices Changing?
Since the advent of the pandemic, the prices for air freight cargo shipping have doubled. The changes are driven by factors like limited passenger travel, constrained capacity, increasing consumer demands, and so more.
Understanding Air Freight Insurance
Air cargo insurance can be regarded as a type of insurance policy that helps in protecting the buyer or seller of the cargo that is being transported through the air. It helps in reimbursing the insured for goods that are stolen, damaged, lost, or destroyed. In some cases, compensation is available for transportation delays as well.
The total amount of coverage along with the deductible necessary for air freight insurance will vary depending on the goods as well as the individual provider.
Most of the common types of air freight insurance policies involve different variations of partial coverages. Most of the partial coverages in this case might exclude damages due to improper packing, delivery rejection by the end customers, weather, or infestations.
Different Types of Air Freight Shipping Services
Some of the common types of air freight shipping services are cargo airline (freighter), commercial airline, on-board courier, and expedited charter. They will vary depending on the overall speed, cost, and the risks of arriving late.
What Goods are Generally Shipped Via Air Freight?
Urgent items like radio-pharmaceuticals for medical treatment or diagnosis, high-value items like technological goods, and high-value commodities are usually shipped by air freight cargo shipping.
While air freight cargo shipping rates have increased since the advent of the pandemic, still air freight is still regarded as one of the fastest and the most reliable forms of transportation -especially if you are in the dire need to transport something urgently.
If you are in search for reliable air freight cargo shipping services, VS TransLojistik LLP is your go-to destination. You can check out affordable air freight rates and obtain a quote for your shipment on the go.