Why choose air freight?

In short, air freight is fast, reliable and flexible. While sea shipping can involve a month or more in transit, air only takes a few days. Moving cargo via air freight allows shippers to respond quickly to customer and market demand, making it a critical component in maintaining an efficient and responsive supply chain.

Reduced travel time means air freight is the perfect solution for moving electronics, pharmaceuticals and seasonal clothing, among other goods. Air freight times also reduce potential losses by extending the shelf life of temperature- and time-sensitive products.

What is the outlook for air freight in 2018?

“Asian air freight export demand has been volatile so far in 2018, with a slower-than-expected recovery following the Chinese Lunar New Year. However, as quarterly demand and strong bookings in the second quarter began to take shape, demand began to firm and air freight prices followed. Overall, market sentiment continues to point to a strong year for air cargo, with demand continuing to outpace capacity and yields, following a similar trajectory to 2017, which was the strongest air cargo market in recent memory.

How is the weight base rate determined for air freight?

Each freight forwarder operates differently and may have different methods of displaying carrier base rates. As a general starting point, carriers use the weight and volume of the shipment when calculating costs. From here, they will determine the rate by choosing the higher of the two options, choosing what is called the chargeable weight.

Actual weight and volumetric weight take the maximum value

To determine chargeable weight, operators have two options:

Actual weight is: the actual weight of the item, also called gross weight.
Dimensional weight (also called dimensional weight) is an estimated weight calculated using the length, width, and height of an item. For freight purposes, dimensional weight is the weight of the package at the minimum density accepted by the carrier.
Calculating this is relatively simple:

Volume weight = length x width x height/5000 or 6000, depending on the requirements of different freight companies.
This method of determining base air freight rates protects carriers from losing money when transporting cargo with a low density-to-weight ratio.

What additional costs can I expect beyond my base rate?
Many different parties handle your shipment throughout its journey from origin to destination. Anywhere goods change hands, carriers may require additional preparation, paperwork, time and fees.
Fuel surcharge (FSC) charges are responsible for regional and seasonal fuel cost fluctuations and are one of the highest expenses for operators. Essentially, this fee protects air, sea and cargo airlines from fluctuating fuel prices.

Fuel surcharges depend on average fuel prices and are usually calculated as a percentage of the cargo’s chargeable weight.
Operators can use their own formulas to assess, calculate and charge relevant fees. Most commonly, FSC is calculated using a base fuel or threshold price, base fuel mileage and price fluctuations.
Container Freight Station (CFS) charges refer to cargo being temporarily stored at a facility while leaving or entering a country. Once the appropriate customs documentation is provided, the shipment is released from the airport CFS warehouse.
Security surcharge covers any additional costs for security measures required at the airport. Fees associated with security surcharges apply to screening and handling procedures that certain cargo must undergo in accordance with Part 108 of the Airline Security Regulations. Security related charges are charged at origin and destination and only apply to air freight rates. Airline terminal handling fees apply to all air cargo and cover the costs associated with the handling of cargo at origin and destination. Terminal handling fees may be included in the air freight accrual or may be listed as a separate item, depending on the airline.

Door-to-door rates include the above plus:

Customs clearance fees are routine fees paid by customs brokers to enter a country. If your shipment is inspected by customs, additional charges may apply.
In addition to the fees incurred at customs, shippers should be aware that any substantial delays may result in additional costs later in the shipment. You should also be prepared to check official shipping documents at any point in your shipment’s journey. Associated freight charges are incurred when goods are picked up from the airport or warehouse and transported to the next point in the cargo’s journey. These are standard fees paid to trucking companies to cover factors such as fuel and driver wages. Cargo insurance is usually arranged through the shipper’s freight forwarder and covers the goods contained in a specific shipment. Since the responsibility lies with the shipper and not the carrier or freight forwarder, cargo insurance is a must.

Other considerations

The above charges represent some of the charges often included in standard air freight rates. If you don’t see these as separate line items in the quote, determine whether they are included in the rate or applied at invoice time. This helps you predict your expenses.
If something goes wrong with the shipment, you may also face fees such as storage fees (when picking up the shipment from the destination at the end of the last free day) and trucking waiting fees (which are incurred when the driver has to wait at least two hours for collection). to or delivering goods).

How to reduce air freight rates?
Time is of the essence when planning any type of freight service, but especially so when it comes to air transport.
Understanding the anatomy of air freight not only helps you gain clarity – it’s also key to reducing supply chain costs. While this list is a great starting point, there is no substitute for building a strong relationship with a reliable freight forwarder. Finding or switching to the right freight forwarder will be key to seeing your shipments take off. Shenzhen J sun Logistics Co., Ltd. is your best choice. You will find that in addition to the basic kilogram charge, we will not incur subsequent additional costs such as landing, saving you transportation costs.

If you have any questions about cross-border transportation of goods, please feel free to contact us at any time:
Company Name: Shenzhen J sun Logistics Co., Ltd
Contacts: Grace
Email:Grace@logisticsalibaba.com

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