HOW TO CALCULATE AIR FREIGHT
The freight charges in air freight are regulated in the unified tariff schedules. The International Air Transport Association (IATA) has established rules and methods for calculating and issuing air freight tariffs through the TACT (The Air Cargo Tariff).
The calculation formula is as follows:
Air freight = Unit Rate x Charge Weight
• Unit Rate – Air Freight
This is the amount you must pay per unit of charge weight (e.g., 3 USD/kg).
Transport carriers will publish rate tables based on different weight ranges.
ASL Logistics company will provide customers with the rates and services of various airlines to facilitate their selection.
Each tariff level varies depending on the weight of the cargo and is divided into the following ranges:
Below 45 kgs
From 45 to below 100 kgs
From 100 to below 300 kgs
From 300 to below 500 kgs
From 500 to below 1000 kg
Above 2000 kgs,...
Abbreviations commonly used are: -45, +45, +100, +250, +500 kgs…
• Chargable Weight – Air Freight
Chargeable weight is either the actual weight or the volumetric weight, whichever is greater.
In other words, the charges will be calculated based on the larger quantity of:
Actual weight of the cargo (Actual Weight), e.g., a shipment weighing 100 kg..
Volumetric weight, also known as dimensional weight or size-based weight, which is a conversion from the volume of the shipment according to a formula prescribed by the International Air Transport Association (IATA). For volume measurements in cubic centimeters, the formula is:
FOR REGULAR AIR FREIGHT
Volumetric weight = L x W x H: 6000 (in cm) or L x W x H x 167 (in m)
FOR EXPRESS SHIPMENTS VIA TNT, DHL, FEDEX, UPS, etc.
Volumetric weight = L x W x H : 5000 (in cm) or L x W x H x 200 (in m)
Types of Air freight:
There are various types of charges applicable to general goods, special goods, or specific conditions. The common types of charges are as follows:
Minimum Rate (MR): The lowest rate that an air carrier accepts for transporting a shipment. It is the carrier's fixed cost, so if the rate is lower than this, it is not efficient, and they may refuse to transport it. Generally, most shipments have higher fees than the minimum rate.
General Cargo Rate (GCR): This is considered the basic rate for general cargo shipments that do not receive any discounts or special rates from the carrier. GCR is used as the basis for calculating charges for items without specific rates.
Class Cargo Rate: Applicable to goods classified into specific groups, such as valuable items (gold, silver, etc., with a rate of 200% of the general cargo rate), live animals (150% of the general cargo rate), books, newspapers, luggage (50% of the general cargo rate).
Priority Rate: Higher rate for priority shipments that require faster delivery, usually 30-40% higher than other air cargo rates.
Container Rate: Lower rates applied to goods packed in air frieght containers (different from sea containers).