Air freight is vital to global trade, allowing businesses to ship goods quickly and efficiently across borders. However, when it comes to air freight costs, there's more to consider than just the size and weight of your shipment. The chargeable weight of your cargo can have a significant impact on your overall expenses.
Chargeable weight is the calculated weight used by airlines to determine the cost of transporting your goods. It includes not only the actual weight of your shipment but also the dimensional weight based on the package size. This means that even if your package is lightweight, you may be charged for a higher weight category if it takes up a lot of space.
Understanding chargeable weight and its effect on air freight costs is essential for cost-effective shipping. In this article, we'll explain how to calculate it and offer tips to reduce it, helping you save on air freight
Air freight charges aren’t solely based on the actual weight of your shipment; they also consider the volumetric weight, reflecting the space your package takes up on the aircraft. This is where the volumetric or dimensional weight comes into play. To calculate this, multiply the package's dimensions and divide by the airline's volumetric factor — typically around 6000 cubic centimeters per kilogram.
Now, let's examine the example provided. Looking at the example below. what would an airline calculate as the chargeable weight in this scenario?
If you answered 40.83 kg, you're spot on. Although the actual weight of the microwave is only 8 kg, the volumetric weight exceeds the actual weight. Consequently, airlines will use the larger volumetric weight as the basis for the chargeable weight.
In the air freight industry, space is just as valuable as weight. That's why the chargeable weight, which considers both the actual and the volumetric weight, becomes the yardstick for pricing.
Airlines, with their limited cargo hold capacity, seek to optimize the profitability of each flight. They do so by charging for cargo based on whichever is greater—the package's actual weight or its volumetric counterpart. This ensures that an airline is compensated fairly whether the cargo is dense and heavy or light but bulky. It’s a system designed to balance the scales, ensuring that cargo that takes up a significant amount of space doesn't fly at a bargain just because it's light.
This pricing strategy is not arbitrary; it's a deliberate move to encourage shippers like us to think strategically about our packaging and loading. If a shipment is bulky, it may be more cost-effective to increase its actual weight rather than waste precious space. Conversely, for dense and heavy items, minimizing the volume can lead to better rates.
From a business perspective, understanding the relationship between chargeable weight and air freight costs is essential for effective budgeting and cost management. Knowing the chargeable weight helps businesses avoid unexpected shipping costs, which can affect overall profitability. It also enables better negotiations with air freight providers and can lead to more competitive pricing in the broader market.
Small efficiencies in how cargo is packaged and loaded for companies that frequently ship goods can lead to significant cost savings over time. This can be a game-changer in industries where margins are tight and competition is fierce
Several factors can affect the chargeable weight of your air freight shipments. Understanding these factors will help you identify areas where you can optimize and reduce your chargeable weight, ultimately saving money on your air freight costs.
| Factor | Explanation |
|---|---|
| Actual Weight | The actual weight is the weight of the goods alone. The higher the actual weight, the higher the potential chargeable weight. |
| Dimensional Weight | Calculated from the package's dimensions (length, width, height). If this is higher than the actual weight, it becomes the chargeable weight. |
| Density of the Goods | Refers to the space the goods occupy in relation to their weight. Higher-density goods (like metals) usually have a lower chargeable weight than lower-density items (like foam). |
| Packaging Materials | The type and weight of packaging materials used. Lighter materials can reduce the total shipment weight, thus potentially lowering the chargeable weight. |
| Palletization and Stacking | How goods are organized and stacked on pallets. Efficient palletization can lead to better space use and a reduced chargeable weight. |
One effective way to reduce the chargeable weight of your air freight shipments is to focus on packaging that lessens volumetric weight. Smaller, optimally shaped packages take up less room, reducing costs.
Here are some strategies to consider:When it comes to air freight, choosing the right airline is crucial for cost-effective shipping. With various airlines operating under different pricing models and specific policies around chargeable weight, navigating these waters with a partner with the expertise and the connections to match is vital. This is where Kerry Logistics Oceania excels. Our strong relationships with top-tier airlines across regional and global networks allow us to provide you with an extensive range of options tailored to your specific shipping needs and budget requirements, ensuring you benefit from the most cost-efficient and reliable air freight solutions.
Here are a few factors to consider when selecting an air freight provider:
Let's explore some real-life case studies from specific industries to further illustrate the impact of chargeable weight on air freight costs.
Company A ships 500 smartphones to a distributor. The shipment's actual weight is 100 kg, but the dimensional weight is calculated at 140 kg due to bulky protective packaging. After redesigning the packaging to a custom fit, they reduce the dimensional weight to 110 kg, achieving significant cost savings on air freight.
Company B is sending a batch of tablets. The tablets weigh 200 kg, but the dimensional weight comes to 260 kg because of large, non-optimized boxes. By switching to slimmer, tailored packaging, Company B reduces the chargeable weight to 220 kg, thus lowering the air freight costs.
Company D has a shipment of suits with an actual weight of 250 kg, and the dimensional weight is 400 kg due to spacious garment bags. They decide to use collapsible garment bags, which reduces the dimensional weight to 300 kg, cutting down air freight expenses.
Company E needs to ship a variety of spare parts. The parts weigh 500 kg, but the mix of irregular shapes leads to a dimensional weight of 650 kg. They introduce stackable containers, which optimize the shipment's layout, and the chargeable weight is reduced to 550 kg.
Company F is sending various automotive components. The actual weight of these components is 800 kg, but the chargeable weight is 1000 kg due to inefficient packaging. By redesigning the packing to be more space-efficient, they manage to lower the chargeable weight to 850 kg.