How to calculate airfreight cost 1
• Determine the Chargeable weight:
• Chargeable weight is the greater of the following 2 weights:
• Actual weight
• Volume weight or dim weight
• How to calculate volume weight?
• Measure Length, Width and Height of the shipment in CM or Inch
• If measure in CM, then (L x W x H) / 6000 = Kilogram or KGs
• If measure in Inch, then (L x W x H) / 366 = Kilogram or KGs
• If measure in Inch, then (L x W x H) / 166 = Pounds or lbs
How to calculate airfreight cost 2
• After the Chargeable weight is determined, then apply the airfreight
rate ++ to the Chargeable weight
• For example:
• The Chargeable weight for a shpt is 120 kgs
• The airfreight rates are listed as follow:
•
•
•
•
Airfreight: $1.2/kg
Fuel: 17c/kg
Navcan: 5c/kg
Security: 3c/kg
• The airfreight charge is:
• 120kgs X ($1.2+0.17+0.05+0.03) = 120 x $1.45 = $174
Airfreight fundamental 1
• Airfreight rates are perfect example of Economics of Scale and
Constraint theory.
• The greater the Chargeable weight enjoy the heavier discount on per kg/lbs
rate.
• But limited by the aircraft’s payload (Maximum weight capacity) and the
aircraft’s door size (maximum shpt size in height and width)
Airfreight fundamental 2
• Airfreight Chargeable weight round-up rule:
• Always round-up and do not round-down
• Round up to the half kilogram or the next whole kilogram, whichever is the
nearest.
• For example:
• 121.3kgs ≈ 121.5kgs
• 71.6kgs ≈ 72kgs
Airfreight exercise
A shpt consists of 8 boxes. Each box measures 75x75x80cm with 10kgs
per box.
The following airfreight rates were provided by the Airline:
•
•
•
•
A/F: $1.15
Fuel: 0.15
Navcan: 0.06
Security: 0.03
What is the total airfreight cost for this shpt?