{"id":15114,"date":"2020-03-25T20:32:17","date_gmt":"2020-03-25T20:32:17","guid":{"rendered":"http:\/\/www.felana.com.mx\/eng\/insights-on-air-freight-and-cost-calculations-in-2019-more-than-shipping\/"},"modified":"2020-03-25T20:32:17","modified_gmt":"2020-03-25T20:32:17","slug":"insights-on-air-freight-and-cost-calculations-in-2019-more-than-shipping","status":"publish","type":"post","link":"https:\/\/www.felana.com.mx\/eng\/insights-on-air-freight-and-cost-calculations-in-2019-more-than-shipping\/","title":{"rendered":"Insights on Air Freight and Cost Calculations in 2019 &#8211; More Than Shipping"},"content":{"rendered":"<h4><span style=\"color: #ff6600;\">Everyone knows that air shipments are much more expensive than shipping via sea or truck, but sometimes, urgent cargo requires a shorter transit time, leaving no other alternatives than shipping by air.<\/span><\/h4>\n<p>In those cases, it is useful to know how airlines build their transportation costs, to make an appropriate decision on what service to prefer and how costs are built up.<\/p>\n<p><strong>Some of the most important cargo airlines in the world are:<\/strong><\/p>\n<ul>\n<li>Cathay Pacific Cargo<\/li>\n<li>Korean Air Cargo<\/li>\n<li>Emirates SkyCargo<\/li>\n<li>Lufthansa Cargo<\/li>\n<li>Singapore Airlines Cargo<\/li>\n<li>China Airlines Cargo<\/li>\n<li>EVA Air Cargo<\/li>\n<li>Air France Cargo<\/li>\n<\/ul>\n<p>For air shipments, the cost is calculated by multiplying the rate (provided per kg\/lbs) for the <strong>\u201cchargeable weight<\/strong>\u201d, which is calculated based on the weight or volume of goods.<\/p>\n<p>The volume\/weight ratio is very simple to calculate: 167 kg is estimated for each <strong>cubic meter of space<\/strong> (formula: 1 <strong>CBM<\/strong> = 167 kg), but if the weight exceeds the chargeable weight, the actual weight will be applied for cost calculation.<\/p>\n<h4><span style=\"color: #ff6600;\"><strong>Rates\/Costs<\/strong><\/span><\/h4>\n<p>Each Cargo airline \u2013 either those dedicated to the transport of goods exclusively or those who transport goods in addition to passengers \u2013 applies different rates based on the type of service chosen and the route offered (direct service versus connecting service).<\/p>\n<h4><span style=\"color: #ff6600;\"><strong>How to Calculate Costs<\/strong><\/span><\/h4>\n<p>Once the cost based on the chargeable weight\/actual weight has been established, simple multiplication will be enough to determine the cost of the shipment (net \u2013 as mentioned above \u2013 of insurance, customs costs, trucking for final delivery, etc.)<\/p>\n<h4><span style=\"color: #ff6600;\"><strong>A Quick Example of Cost Calculator for the Shipment of Goods<\/strong><\/span><\/h4>\n<p>Note: All dimensions\/weights are usually calculated using the Metric system.<\/p>\n<p><strong>Example 1<\/strong><\/p>\n<p>Cost per kg: 2.4kg<br \/> Cargo Dimensions: 1200 mm x 800 mm x 1070 mm<br \/> CBM: 1.027<br \/> Gross weight: 138kg<br \/> Chargeable weight: 1.027 X 167 = 171.5kg<\/p>\n<p>In this case the <strong><em>chargeable weight is greater than the gross weight<\/em><\/strong> so we need to multiply the cost per KG with the chargeable weight.<\/p>\n<p>Final total cost: 171.5 X 2.4 = $411<\/p>\n<p><strong>Example 2<\/strong><\/p>\n<p>Cost per kg: 2.4kg<br \/> Cargo Dimensions: 1200 mm x 800 mm x 1070 mm<br \/> CBM: 1.027<br \/> Gross weight: 230kg<br \/> Chargeable weight: 1.027 X 167 = 171.5kg<\/p>\n<p>In this case the chargeable weight is less than the gross weight so we need to multiply the cost per KG with the gross weight.<\/p>\n<p>Final total cost: 230KG X 2.4 = $552<\/p>\n<h4><span style=\"color: #ff6600;\">Below is an example of how airlines provide rates.<\/span><\/h4>\n<p><strong>Weight Breaks:<\/strong> the different categories of price ranges.<br \/> Destinations, Origins and Carriers, and Costs are made up.<\/p>\n<p><strong><em>Lower Deck Rates<\/em><\/strong><\/p>\n<p><img class=\"alignnone size-full wp-image-13561\" data-cfsrc=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/lower-deck-rates.png\" alt=\"\" width=\"1206\" height=\"388\"   style=\"display:none;visibility:hidden;\" \/><noscript><img loading=\"lazy\" class=\"alignnone size-full wp-image-13561\" src=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/lower-deck-rates.png\" alt=\"\" width=\"1206\" height=\"388\"   \/><\/noscript><\/p>\n<p><strong><em>Main Deck Rates<\/em><\/strong><\/p>\n<p><img class=\"alignnone size-full wp-image-13562\" data-cfsrc=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/main-deck-rates.png\" alt=\"\" width=\"1200\" height=\"350\"   style=\"display:none;visibility:hidden;\" \/><noscript><img loading=\"lazy\" class=\"alignnone size-full wp-image-13562\" src=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/main-deck-rates.png\" alt=\"\" width=\"1200\" height=\"350\"   \/><\/noscript><\/p>\n<h4><span style=\"color: #ff6600;\">The Importance of Packaging \u2013 how goods can be loaded.<\/span><\/h4>\n<p>The non-optimization of packaging is a widespread practice, as well as one of the main sources of profit for airlines. Volumetric Cargo (High CBM \u2013 Low Weight) is what airlines are after because they can fill the aircraft with low cargo weight and save on fuel.<\/p>\n<p>Goods can be loaded in different ways: in the lower or upper compartment (in passenger aircraft adapted for cargo) or in all-cargo aircraft. In the lower compartment of passenger aircraft there are compartments of various sizes to contain baggage, mail, etc.<\/p>\n<h4><span style=\"color: #ff6600;\">Below is a cross-section of a typical cargo aircraft:<\/span><\/h4>\n<p><img class=\"alignnone size-full wp-image-13563\" data-cfsrc=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/inside-a-cargo-plane.png\" alt=\"\" width=\"1100\" height=\"645\"   style=\"display:none;visibility:hidden;\" \/><noscript><img loading=\"lazy\" class=\"alignnone size-full wp-image-13563\" src=\"https:\/\/073bddbe7aa062defd37fde3-cwzdvdpfea.netdna-ssl.com\/wp-content\/uploads\/2019\/06\/inside-a-cargo-plane.png\" alt=\"\" width=\"1100\" height=\"645\"   \/><\/noscript><\/p>\n<div class=\"essb_links essb_counters essb_displayed_bottom essb_share essb_template_metro-retina essb_1210834123 print-no\" id=\"essb_displayed_bottom_1210834123\" data-essb-postid=\"13557\" data-essb-position=\"bottom\" data-essb-button-style=\"button\" data-essb-template=\"metro-retina\" data-essb-counter-pos=\"insidebeforename\" data-essb-url=\"https:\/\/www.morethanshipping.com\/insights-on-air-freight-and-cost-calculations-in-2019\/\" data-essb-fullurl=\"https:\/\/www.morethanshipping.com\/insights-on-air-freight-and-cost-calculations-in-2019\/\" data-essb-instance=\"1210834123\">\n<ul class=\"essb_links_list\">\n<li class=\"essb_item essb_totalcount_item\" data-counter-pos=\"insidebeforename\"><span class=\"essb_totalcount essb_t_l_big\" title=\"\" data-shares-text=\"shares\"><span class=\"essb_t_nb\">35<span class=\"essb_t_nb_after\">shares<\/span><\/span><\/span><\/li>\n<li class=\"essb_item essb_link_facebook nolightbox\"> <a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.morethanshipping.com%2Finsights-on-air-freight-and-cost-calculations-in-2019%2F&#038;t=Insights+on+Air+Freight+and+Cost+Calculations+in+2019+-+More+Than+Shipping\" title=\"Share on Facebook\" onclick=\"essb.window(&#39;https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.morethanshipping.com%2Finsights-on-air-freight-and-cost-calculations-in-2019%2F&#038;t=Insights+on+Air+Freight+and+Cost+Calculations+in+2019+-+More+Than+Shipping&#39;,&#39;facebook&#39;,&#39;1210834123&#39;); 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