In today’s economy, businesses face a constant balancing act: finding the most affordable way to ship goods without compromising on having products available to market quickly and meeting ever-growing customer demands. For many, air freight is the answer. It’s the fastest way to transport goods across borders, but it often comes at a higher cost compared to other methods.
What Influences Air Freight Shipping Costs?
There are lots of different factors that will influence air shipping costs, so being aware of them will help you plan and manage your shipment better.
Air Cargo Weight and Volume
Weight and volume are two of the biggest things that impact your shipping costs. Carriers use what’s called “chargeable weight,” which is either the actual weight of your cargo or its volumetric (or dimensional) weight – whichever is higher. Volumetric weight is based on how much space your shipment takes up, so large but lightweight items could end up costing more than expected.
For example, a box full of pillows doesn’t weigh much, but it’s bulky. Because of that, the cost would be calculated based on the space the box takes up, not just its weight.
Distance and Shipping Routes
The further your cargo has to travel via air, the higher the cost of shipping will be.
But it’s not just about distance – shipping routes can also make a difference. Some routes are more common and straightforward, making them more cost-effective, while others may require multiple stopovers, connections, or passing through less-travelled paths, which can add to both the journey time and cost.
For instance, shipping from UK to Singapore is a popular route and often has plenty of flights, making it more affordable. However, if you’re shipping to a smaller or more remote location with fewer flights, the cost is likely to go up since the cargo might need to pass through several hubs or be handled by multiple carriers.
Shipping Speed: Standard vs. Express Air Freight
Need your goods delivered fast? Express air freight will get your shipment there quickly, sometimes even overnight, but you’ll pay a premium for that speed. Standard shipping is more budget-friendly and much faster than sea freight, but it’ll take longer to arrive.
If your shipment isn’t super urgent, going with standard shipping can be a good way to save money while still getting your goods delivered relatively quickly.
Seasonality and Market Demand
Air freight costs can fluctuate a lot throughout the year. Peak seasons like the run-up to Christmas, Lunar New Year or other big shopping events mean higher demand for air transport, and prices usually rise as a result. Market demand can also be affected by unexpected events like natural disasters or political situations, which can make finding space on planes more expensive.
If possible, plan your air shipments for off-peak times to take advantage of lower rates and more predictable delivery times.
Type of Cargo
What you’re shipping can have a big impact on freight prices. Dangerous cargo, perishable cargo, fragile items or anything temperature-sensitive often need extra care and handling, which means added fees. Carriers have to take extra steps to keep these items safe, and that adds to the overall cost of shipping.
When To Choose Air Shipping
When planning a shipment, choosing the right shipping method is all about finding the right balance between speed, cost, and the type of cargo.
Time-Sensitive Goods
Air freight is perfect for items that need to reach their destination fast. If you’re shipping perishable goods like fresh produce, flowers, or pharmaceutical products, air shipping will mean they arrive quickly and in good condition.
For example, a company shipping speciality British cheeses from the UK to gourmet stores and high-end restaurants in Singapore will benefit from air freight’s speed to maintain freshness.
High-Value or Fragile Items
For smaller, high-value items that need secure and safe transport, sending goods by air is a great option. The shorter transit times reduce the risk of damage or theft, and most airlines have special procedures to handle fragile or sensitive goods.
For instance, electronics like laptops, smartphones, or medical equipment are better shipped by air to minimise transit time and guarantee secure handling.
Small or Lightweight Shipments
If your cargo is small or lightweight, air freight can be a cost-effective and efficient choice. Since air cargo rates are priced per kilogram (kg) and on volume, it’s often more economical for smaller packages that still need fast delivery.
A good example would be a box of luxury fashion accessories or samples for an urgent trade show, which can be quickly and affordably delivered by air.
Urgent Replenishments or Parts
When you need to restock inventory quickly or send spare parts to keep operations running, air cargo shipping is the quickest mode of transportation to get those items to where they’re needed.
Take a manufacturer in need of a crucial machine part. Shipping via air freight means they can quickly deliver to minimise downtime and keep production running.
Breakdown of Air Freight Charges
Air shipping costs are made up of different fees, each covering a different aspect of getting your cargo safely to its destination. Getting familiar with what makes up your air freight bill will help you plan your budget better and avoid surprises.
Base Rate
The base rate is the main part of your air freight shipping price and is worked out based on the weight and size of your shipment. This rate varies depending on the airline, the route, and what you’re shipping. It typically covers the main transport from the departure airport to the destination airport.
Fuel Surcharge
Fuel prices change all the time, and airlines add a fuel surcharge to cover these costs. This fee is a percentage of the base rate and can vary quite a bit depending on how fuel prices are doing in the market.
Security and Handling Fees
Airlines and airports have to make sure your cargo is secure and properly handled, so security fees will cover things like cargo screening and safety checks. Cargo handling fees can increase if your goods need special attention, like fragile handling or temperature control, but this depends on the airline or airport rules.
Customs Clearance and Duties
When shipping internationally, clearing customs is part of the process. Customs clearance fees cover the paperwork and the work involved in getting your goods across borders. On top of that, there are duties and taxes based on the type of cargo, its value, and the regulations of the destination country. These fees can vary a lot, so it’s important to know the rules for both where you’re shipping from and where it’s going.
Insurance
Things can sometimes go wrong in transit, and that’s where freight cargo insurance comes in. Insurance costs protect against any damage or loss to your cargo during the shipment. It’s not required but highly recommended, especially if your goods are valuable or fragile. The cost of insurance is usually a small percentage of the total value of what you’re shipping.
Tips to Reduce Air Freight Rates
Air freight offers speed and reliability, and there are plenty of ways to make it even more cost-effective. Here are a few simple tips to help you save on your air shipping:
Bulk Shipping
Shipping larger quantities at once can save you money. Carriers often offer better rates for bigger cargo shipments, so combining your products into fewer, larger shipments is a good way to reduce costs.
Select Off-Peak Times For Shipping
If you can, try to plan your shipments during quieter periods when there’s less demand. This not only helps you reduce shipping charges, but it can also mean quicker transit times since there’s more cargo capacity on flights.
Compare Air and Sea Freight
Air freight is fast, but sea freight can be a more cost-effective cargo shipping method, especially for larger or heavier items. If your delivery isn’t time-sensitive, look at the costs and benefits of both options. Choosing ocean shipping when time isn’t an issue can help save you money while still meeting your shipping needs.
Negotiate Rates With Carriers For Regular Shipments
If you ship often, it’s worth having a conversation with your freight forwarders. They’re usually open to offering better rates for regular business, so try negotiating. You might be able to lock in a deal or shipping contract that can give you lower rates over time.
Choose SLG Logistics as Your International Air Freight Forwarder
Moving your goods quickly and affordably is easier when you have a reliable logistics partner. At SLG Logistics, we offer air freight solutions designed to match your business needs. Whether you need express shipping to meet a tight deadline or an affordable option for larger shipments, we’re here to help.
Ready to get started with your air freight needs? Reach out to us today to get a quote based on your specific shipping requirements.