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Tag: air cargo

11 Jan 2024
Luggage being loaded onto a large airplane with Determining Air Freight Rates

8 Factors Determining Air Freight Rates and Charges

Air shipping offers a fast and reliable way to transport goods globally. However, the costs associated with air cargo can differ significantly depending on several key factors. As a shipper looking to move products by air, it’s important to understand what determines Costs for air freight rates and charges. Nissin Belgium allows you to estimate better and control your shipping budget.

This post will explore the top 8 factors influencing air freight logistics pricing. Reaching out to a knowledgeable provider like Nissin Belgium can also help provide valuable insight into current market rates.

Weight and Dimensions

A key determinant is the actual weight and dimensions of your shipment. Bulky or heavy cargo will cost more to transport by air. Air logistics carriers need to optimize limited cargo capacity. Density ratios are used to take into account both weight and dimensions.

Transportation Route

Longer transport distances mean higher fuel costs for the airline. Popular routes with high competition may be cheaper. Less common lanes can be more expensive. The origin and destination airports also impact costs. Busy international hubs charge higher fees.

Perishability

Temperature-sensitive goods like fresh produce or pharmaceuticals require special handling, which comes at a premium. Refrigeration and monitoring equipment is needed for cold chain shipments. Time-critical deliveries also cost more to expedite.

Seasonality

Air freight rates fluctuate based on supply and demand. Peak holiday shipping seasons drive up pricing as more companies compete for space. Low-volume months offer better deals. Weather disruptions can also constrain capacity at certain times of the year.

Commodity Type

Some products incur higher security and handling fees. Dangerous goods require certified packaging and loading procedures. Oversized cargo may need special equipment and handling that increases cost. High-value electronics and other attractive targets face higher risk rates, too.

Shipment Mode

Exclusive use of an entire aircraft is the fastest option but comes at a premium. Consolidating with other freight on commercial passenger planes offers a more economical alternative. Chartering part of an aircraft can be a middle-ground based on volume needs.

Fuel Prices

Since fuel accounts for up to 40% of airline operating costs, the fluctuating price of jet fuel heavily impacts air shipping rates. Airlines adjust their rates frequently based on global oil and gas markets. Fuel surcharges may be added if prices spike.

Customs Processing

Shipments that cross international borders can rack up fees for customs inspections, duties, taxes and more. Brokerage costs are also incurred when clearing customs at destination airports. Simplified customs protocols can reduce these costs.

Let Nissin Belgium Be Your Air Freight Navigator

Understanding these key factors gives you greater insight into the components that determine pricing for air freight. A logistics partner like Nissin Belgium has the expertise to help optimize your shipments by consolidating loads, using efficient routing, meeting deadlines, navigating customs, and more. Our seamless air shipping services ensure your cargo arrives safely and cost-effectively.

Contact us today at + 32 2 751 44 99 or HowCanIHelpYou@nissin.be to get a competitive quote tailored to your air freight needs.