Factors Affecting Air Freight Rates
We consider air freight rates when transporting goods quickly across long distances. However, while air shipping is fast and reliable, it can also be costly. Understanding several factors that influence air freight’s price can help us manage their logistics costs more effectively.
Factors affecting Air Freight Costs
- Distance and Route
The most prominent factor affecting air freight rates is the distance between the origin and destination. If the distance is longer, the more fuel the carrier will consume, and the higher the cost of transportation will be. Also, the specific route taken can influence the rate. Some routes may be more direct, while others may require stopovers or detours, increasing the overall cost.
So if you need to manage this cost consider the best route options and how they can consolidate shipments to minimize distance and optimize delivery routes.
- The size matters too
The size and weight of your cargo have a direct impact on the cost of air freight. Air cargo is typically charged by either weight or volume, depending on which is greater. This means that both the weight and the size of the shipment are important. To reduce shipping costs, you need to look for ways to optimize the packaging. Using compact, lightweight packaging can reduce the dimensional weight of the cargo, resulting in fewer charges.
- Mode of Transportation
Through air you can send parcel Sri Lanka and Air cargo costs can also be affected by how goods are transported to and from the airport. For instance, if the cargo needs to be transported by truck for long distances before or after flying, those additional transportation costs will add up. How do you lower these costs? Consider intermodal shipping, which involves using more than one form of transportation (such as combining air and sea freight). This can be a more affordable alternative for long-distance shipments, especially if your delivery is not urgent.
- Need for Speed
Air freight is known for its speed. However, the quicker the delivery, the higher the cost. Express or expedited air freight services, which offer faster delivery times, typically come with premium charges. If you or your business does not require a super-fast delivery, consider a standard air freight services that may help save money.
You need to plan ahead and avoid the need for expedited services whenever possible.
- Fuel Prices
Fuel prices play a significant role in air freight rates. Airlines use a large amount of fuel to power their planes, and fluctuations in fuel prices directly affect the cost of shipping goods. When global fuel prices rise, carriers often pass those extra costs onto their customers in the form of fuel surcharges. This can add a significant amount to the overall shipping cost.
To minimize the impact of fuel fluctuations, keep track of trends in fuel prices and plan their shipments accordingly. They can also consider working with carriers that offer fixed fuel rates or alternative fuel options, such as electric planes, which may provide cost savings in the long term.
- Customs and Regulatory Compliance
We all know that air freight shipments are often subject to customs regulations, especially when shipping overseas. Customs duties, taxes, and other regulatory fees can increase the cost of air freight. The customs process involves paperwork, inspections, and sometimes delays, which can add to the overall shipping expenses.
To reduce the impact of customs-related costs, you should ensure they are fully aware of the import/export regulations for the countries they are shipping to and from. Working with a customs broker or experienced logistics provider can help streamline the process and prevent unnecessary delays or fines.
- Seasonality and Market Conditions
Air freight rates can also vary depending on the time of year. During peak seasons, such as holidays or major sales events, demand for air cargo space increases, which can lead to higher rates. Carriers may prioritize shipments that offer higher profits, meaning that your shipment during peak times may face limited space and higher prices.
To avoid seasonal price hikes, you can plan shipments ahead of time and consider alternative shipping periods. Additionally, building strong relationships with carriers can help secure preferential rates and space during peak times.
- Type of Goods Being Shipped
The nature of the goods being shipped also plays a role in determining air freight rates. Special handling requirements, like refrigeration for perishable goods, or security for high-value items, can add additional charges. Hazardous materials, which require special packaging, labeling, and handling, can also increase costs. Also don’t forge to check our blog on Prohibited and restricted items for International shipping from India.
Reduce these costs by optimizing packaging and labeling to ensure compliance with regulations. If possible, shipping non-perishable or lower-value items during off-peak times can help reduce additional fees associated with special handling.
- Service Type and Accessorial Charges
When using air freight, sometimes you may need additional services such as door-to-door delivery, warehousing, or special handling. These extra services, known as accessorial charges, can add up faster than you imagine if not properly managed. For example, residential deliveries may cost more than commercial deliveries, or the use of a liftgate for loading and unloading may involve additional fees.
To avoid unnecessary accessorial charges, try to minimize the need for additional services. For example, using commercial delivery addresses instead of residential ones, or using existing warehouses instead of requesting temporary storage, can save money.
Managing Air Freight Costs with Teeparam Logistics
Air freight is important for global trade on a larger scale and it is crucial for delivering your personal packages to loved ones around the world, especially if the shipment is time-sensitive or high in value. While it can be expensive, you can manage and reduce air freight costs by understanding the various factors that influence rates.
One easy way you can manage these costs effectively is by partnering with experienced logistics providers like Teeparam Logistics. Teeparam Logistics specializes in providing tailored shipping solutions, helping you to pass through these complexities of air freight. By offering a combination of competitive rates, strategic planning, and personalized services, Teeparam Logistics can help you optimize your air freight costs. Whether you need regular shipments or one-off deliveries, Teeparam Logistics is committed to providing reliable, cost-effective solutions to meet your shipping needs. By choosing Teeparam, you are actually choosing the cheapest way to send parcel.
