Air cargo is a vital component of the global trade ecosystem, facilitating the transportation of goods across international borders in the most time-efficient manner possible. The air cargo industry has seen a significant rise in demand over the past decade, primarily driven by the growth of e-commerce and the need for faster, more efficient shipping methods.
When it comes to air cargo, the cost is one of the most critical factors that businesses need to consider. Air cargo is charged based on weight and volume, and the cost is typically calculated on a per kg basis. In this blog post, we will explore what per kg charges are for air cargo, how they are calculated, and what factors can impact them.
What Are Per Kg Charges for Air Cargo?
Per kg charges for air cargo refer to the cost of shipping goods via air transport, calculated on a per kilogram basis. This cost includes all the expenses involved in transporting the cargo from the origin to the destination, including handling, security, fuel, and other related expenses.
The per kg charges for air cargo vary depending on various factors, such as the weight and volume of the shipment, the destination, the mode of transport, and the service provider. The cost can also be affected by factors such as the time of year, the distance between the origin and destination, and the type of goods being transported.
How Are Per Kg Charges for Air Cargo Calculated?
The per kg charges for air cargo are calculated using a formula that considers the weight and volume of the shipment, as well as other related expenses. Typically, the cost is calculated based on the greater of the actual weight or volumetric weight of the cargo.
The actual weight of the cargo is the weight of the shipment as it is, while the volumetric weight is calculated based on the size of the shipment. To calculate the volumetric weight, the length, width, and height of the shipment are measured in centimeters, and the result is divided by 6000.
The formula used to calculate the cost of air cargo is as follows:
Total cost = (Actual weight or volumetric weight) x per kg rate + other expenses
The per kg rate is set by the service provider and varies depending on various factors, such as the destination, the mode of transport, and the type of goods being transported. Other expenses include handling charges, security fees, fuel surcharges, and customs clearance fees.
Factors That Impact Per Kg Charges for Air Cargo
Several factors can impact per kg charges for air cargo. Some of the most significant factors are discussed below:
- Weight and Volume of the Shipment: The weight and volume of the shipment are the primary factors that determine the cost of air cargo. The heavier and more substantial the shipment, the higher the cost will be.
- Destination: The destination of the shipment also plays a significant role in determining the per kg charges for air cargo. The further the destination, the higher the cost will be due to higher fuel costs and longer transport times.
- Mode of Transport: The mode of transport used to ship the cargo can also impact the cost. For example, using a dedicated cargo aircraft may be more expensive than shipping via a commercial passenger flight.
- Type of Goods: The type of goods being transported can also affect the per kg charges for air cargo. Certain goods, such as hazardous materials, may require additional handling, storage, and security measures, leading to higher costs.
- Time of Year: The time of year can also impact the cost of air cargo. For example, during peak seasons such as the holiday season, demand for air cargo increases, leading to higher prices.
- Distance: The distance between the origin and destination can also affect the cost of air cargo. The longer the distance, the higher the cost will be due to increased fuel costs
- Carrier and Service Level: The carrier and service level selected by the shipper also impact the per kg charges for air cargo. Different carriers have different pricing structures and service levels, and the cost will vary based on the level of service selected.
- Currency Fluctuations: Currency fluctuations can also impact the cost of air cargo, especially for international shipments. If the currency of the destination country is strong, the cost of shipping will be higher, and if it is weak, the cost will be lower.
- Customs and Regulatory Compliance: Compliance with customs and regulatory requirements can also impact the cost of air cargo. Certain countries have specific regulations and requirements that must be met, and failure to comply with them can result in additional fees and delays.
- Insurance and Value-added Services: Finally, insurance and value-added services such as tracking, packaging, and labeling can also impact the per kg charges for air cargo. These services come at an additional cost, and the shipper must decide if they are necessary based on their specific requirements.
Per kg charges for air cargo play a vital role in determining the cost of shipping goods via air transport. The cost is calculated based on the weight and volume of the shipment, as well as other related expenses. The per kg rate varies depending on various factors, such as the destination, mode of transport, and type of goods being transported.
Several factors can impact per kg charges for air cargo, such as the weight and volume of the shipment, destination, mode of transport, type of goods, time of year, distance, carrier and service level, currency fluctuations, and customs and regulatory compliance. Understanding these factors can help shippers make informed decisions and choose the most cost-effective shipping options.