How is Air Freight Priced?

Air freight pricing is comprised of core charges and additional fees. The specific cost items and calculation methods are as follows:

I. Core Charges

Air Freight: This is the fundamental international air freight cost, calculated based on the chargeable weight of the shipment. The chargeable weight is the greater of the actual gross weight or the volumetric weight.

Volumetric Weight Formula: Length (cm) × Width (cm) × Height (cm) ÷ Volumetric Divisor (A common divisor is 6000, but the specific divisor is determined by the airline and route).

Example: If a shipment has an actual gross weight of 50 kg and a calculated volumetric weight of 60 kg, the chargeable weight applied will be 60 kg.

Fuel Surcharge (FSC): A fee levied by airlines to offset fluctuations in fuel prices. The rate is typically a percentage of the air freight charge and is adjusted periodically.

Example: With a fuel surcharge rate of 15% and an air freight charge of ¥1,000, an additional ¥150 would apply.

Security Screening Fee: A fixed fee per shipment covering the labor and equipment costs associated with cargo security checks.

Terminal Handling Charge (THC): Covers the cost of handling goods at the airport cargo terminal, including receiving, moving, palletizing/de-palletizing. It may be a fixed fee or calculated based on weight or number of pieces.

Air Waybill (AWB) Fee: A charge, typically per shipment, for the preparation and issuance of the air waybill (the master air transport document).

II. Additional Fees

Terminal Operations Charge (TOC): Covers operational costs such as warehouse handling and ground transportation at both origin and destination airports.

Customs Clearance Fee: This service fee applies if the shipper entrusts a freight forwarder or customs broker with export customs declaration procedures.

Destination Charges: Fees incurred upon the cargo's arrival in the destination country, including:

Storage and handling fees at the destination airport.

Service fees for import customs clearance agents.

Duties and Taxes (e.g., VAT/GST), levied by destination country customs based on the goods' value and type.

Special Cargo Handling Surcharge: Additional fees for special shipment types such as dangerous goods, temperature-controlled/perishable goods, valuables, or overweight/oversized cargo.

Value-Added Service Fees: Charges for additional services requested by the customer, for example:

Cargo transportation insurance premium.

Expedited fees for shipping on a specified date or flight.

In summary, air freight pricing is dynamic and multifaceted, requiring a comprehensive calculation based on cargo characteristics, route, and service requirements. Shippers are advised to confirm the detailed cost breakdown with their freight forwarder prior to shipment to avoid unexpected charges.