How to Calculate Air Freight

Shipping your items by air is often one of the fastest options and sometimes the only option depending on where you are shipping to. Shipping items by air often involves multiple modes of transportation to get to their final destination, complex logistics, and various fees for taxes, insurance, customs, and more. This can get confusing when budgeting for and looking at a final bill.

However, when you work with a trusted carrier with an established network, this process becomes much easier and cost effective. In this article, we will look at the fees that are involved with air freight and how Ontario Container Transport can help you manage your air freight shipping.

What is Included in an Air Freight Bill?

Calculating an air freight bill has many components including obvious costs based on the weight of items to less obvious considerations such as airline security and customs fees. While predicting the exact air freight may be difficult before you actually send the items, understanding each charge and how it is figured can give you a much better idea of what total costs will be.

Pre Shipment Documentation Fee

Before your shipment can be loaded and taken to its destination, documentation of the contents is required. A fee is charged to cover the cost of preparing this document.

Proper documentation is very important to ensure smooth transportation for your shipment. When items are properly documented, there is less chance that there will be delays due to customs inspections. Mislabeled items are much more likely to be subjected to additional inspection which will also incur extra fees.

Chargeable Weight

Known officially as “chargeable weight,” the weight of your shipment can refer to either the actual weight of your shipment or the dimensional weight of your shipment which is, essentially, the amount of room that your shipment will take up. Whichever number is greater, becomes your chargeable weight.

Dimensional weight is found by calculating the volume of your shipment (length X width X height) then assigning a weight equivalent to the volume. For example, 6000 cubic cm is the equivalent of 1kg of actual weight.

Therefore, if you have an item that has a volume of 2,500,279 cm3 you divide this by 6000 to get a dimensional weight of 417 kg. If the actual weight of the object is less than 417 kg then your chargeable weight is the dimensional weight. Note, dimensional weight is also sometimes referred to as volumetric weight.

This is why you may be able to send a 1kg heavy metal object for less than 1kg of cotton. Though they weigh the same, the metal object has a lower dimensional weight because it takes up less space.

Fuel Charges for Air Freight

Fuel costs are fairly straightforward though they will change based on current market prices for oil.

Insurance

While insurance is not required, it is highly recommended. This will cover your items should they be lost, stolen, or damaged. Insurance rates will depend on the value of the items and be charged based on a percentage of the value.

EX Works (EXW)

EX Works will appear as EXW on your air freight bill. This charge covers customs clearance, licensing,  and all other fees associated with getting your shipment from the supplier to the departure port.

Customs Entry, Duties, and Taxes

Customs Entry: Customs fees to get your items safely cleared can get complicated. In order to do this properly, a customs expert known as a customs broker is assigned to ensure all necessary fees are paid and that your items are given the right classification. Customs entry covers the broker’s fee. If your items need approval from any other government agency, they will also be included here.

Duties and Taxes: These are fees that are charged based on what goods you are shipping. The value of the goods, country of origin, final destination, type of goods all factor into the duties and taxes owed. Certain items like alcohol may have higher fees associated with them due to various taxes.

Cargo Handling Fee

At both the origin and destination airports there will be a fee for handling your shipment at the terminal. Sometimes the two airports will be billed as one item, sometimes they will be billed separately.

Destination Airport to Your Door Costs

Known as “door delivery,” this fee includes any costs necessary to transport your shipment from the airport to the final destination. For example, this can include the fee for a lift gate or loading dock. Similarly, special handling charges may also apply here. Fragile or hazardous items will take additional time and precautions and will, therefore, require extra time and fees.

Storage

Unable to pick up a shipment upon arrival? Storage options are available for a fee.

Air Freight

Air Freight Q&A

Are there Weight Restrictions on Air Freight?

With Ontario Container Transport, there are no limitations on shipment weights or dimensions.  We make this possible by having a well-established and growing network of carriers which allows us to offer the most flexible options for even the largest shipments.

Is Expedited Shipping Available for Air Freight?

Get your items to their destination in as little as three days with our expedited air freight shipping. As industry-leading experts in air freight shipping, we understand how important it is to get your items where they need to be on time. We work with our established network of air freight carriers along with other modes of transportation to ensure both speed and safety for your shipment.

Can I Send Refrigerated Items by Plane?

Yes! OCT offers temperature controlled air freight shipping to keep your temperature sensitive items safe. Typically, items requiring temperature control are best sent via expedited shipping.

Is Intermodal Shipping Available with Air Freight?

OCT offers multiple modes of shipping which can all be combined with air freight. This means your items may start their journey on a plane but may get to their final destination by truck, boat, or train.

Can I Get my Shipment Delivered to an Airport?

Absolutely. With OCT’s flexible delivery options, you can get your shipment delivered almost anywhere. Ship from one airport to another, from your warehouse to an airport or from one warehouse to another as needed.

How to Estimate Air Freight

With so many variables involved in air freight shipping, it can be difficult to estimate the amount before the final bill. Fuel costs can easily change and make a significant impact from one week to the next on large shipments. There are also multiple fees you may or may not need to pay depending on what you are shipping.

For the most accurate estimates, Ontario Container Transport is here to help. Through our years of experience, we have the knowledge necessary to provide estimates including on potential customs fees and other variable rates.

We also work with you to get the best rates and fastest shipping for your cargo. Speak with our team today to request a free quote at  905-695-1501.

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