Air Freight Calculation and Charges

Freight or Cargo means merchandise that is transported in bulk; cargo refers to the merchandise being transported by aircraft or ship while freight refers to truck and train. But now the term freight usually refers amount payable for carriage and cargo refers to merchandise only. Garments may be transported on freight-prepaid or freight-collect basis depending on Incoterms.

Air Freight Charges

Airfreight charge refers to the freight rate or the price that is charged by airlines for transporting cargo from the source location to the destination point. The typical airlines and distance between the source and the destination is another factor on which the freight charge depends. Airfreight is calculated on the weight of cargo either in Gross weight (G/Wt.) or Dimensional Weight (V/Kg.) whatever is higher. We send cargo by air when time is the issue.

Gross Weight
Gross weight is the total Freight weight of a product and its packaging such as carton.

Dimensional Weight (Volumetric Kg)
Dimensional weight refers to the overall size of cargo, measured in volumetric kilograms (V/Kg.) Other than gross weight, freight weight for air shipment may be calculated based on the dimension of the carton as cargo also occupy a certain space. To convert volume into dimensional weight, the following formula may be used-

Formula for Dimensional Weight Calculation

1. CM to V/Kg = (L cm X W cm X H cm) ÷ 6000 
2. Inch to V/Kg = (L inch X W inch X H inch) ÷ 366.1424

1 V/Kg. = 6000 cubic cm, is a dimensional weight factor determined by International Air Transport Associations (IATA). [6000 cubic cm = 366.1424 cubic inch (converted)]

Example - 1
Carton Dimension: L = 50 cm, W = 40 cm, H = 30 cm
V/Kg = (50 X 40 X 30) ÷ 6000 = 10

Example - 2
Carton Dimension: L = 22 inch, W = 16 inch, H =14 inch
V/Kg = (22 X 16 X 14) ÷ 366.1424 = 13.45

Air Freight calculation for an order- 

(Option - 1) 

• Order Qty: 36,000 pcs
• Qty per carton: 18 Pcs.
• Carton Dimension: L X W X H = 22 inch X 16 inch X 14 inch
• Gross Weight: 10 Kg
• Airfreight Charges: $4.00 per Kg. (Assumed)

Workout-

1. No. of carton required
2. V/Kg per carton
3. Freight per pc. garment
4. Freight per Dzn. Garment

Solution-

1. No. of carton required = (36,000÷18) = 2000
2. V/Kg per carton = (22 X 16 X 14) ÷ 366.1424 = 13.45
3. Freight per pc. garment = (13.45 X $ 4.00) ÷ 18 = $ 2.99
4. Freight per Dzn. Garment = (13.45 X $ 4.00 X 12) ÷ 18 = $ 35.88

For option - 1, freight is to be paid according to V/Kg. as it is higher than G/Wt.

(Option - 2) 

• Order Qty: 36,000 pcs
• Qty per carton: 18 Pcs.
• Carton Dimension: L X W X H = 22 inch X 16 inch X 14 inch
• Gross Weight: 15 Kg
• Air freight Charges: $4.00 per Kg (Assumed)

Workout-

1. No. of carton required
2. V/Kg per carton
3. Freight per pc. garment
4. Freight per Dzn. Garment

Solution-

1. No. of carton required = (36,000÷18) = 2000
2. V/Kg per carton = (22 X 16 X 14) ÷ 366.1424 = 13.45
3. Freight per pc. garment = (15 X $ 4.00)÷ 18 = $ 3.33
4. Freight per Dzn. Garment = (15 X $ 4.00 X 12) ÷ 18 = $ 40.00

For option - 2, freight is to be paid according to G/ Wt. as it is higher than V/Kg.