This article covers some of the key factors that contribute to air freight costs. Have a glance
through it once. It will help you get an idea of how expensive or cheap your air freight shipments
would be.

Fuel

The cost of air freight forwarding service depends on the fuel price. As fuel prices
increase,
transportation becomes costlier to operate. And of course, if the fuel price decreases the operating
cost becomes cheaper. Savings or losses are then passed on to consumers – indirectly or through a
fuel cost component built by the logistics company or the air freight forwarder.

Weight and Volume

Weight and volume are crucial factors when quoting a price. A shipment that is light in weight but
large in volume takes up space that could be used for other shipments. This thereby reduces the
revenue for the flight.

So for example, if you are transporting some furniture, and the warehouse packages them in a
considerably larger box than needed – you will be charged much more for this package based on the
dimensional weight pricing. Because although the package is very light, it is taking up unnecessary
amounts of space that could be used for other goods.

Economic Conditions

Economic conditions do affect air freight forwarding pricing. In times of economic downturn the
air freight demand decreases which in turn lowers the prices as carriers try to fill unused cargo
space. Conversely, in times of economic prosperity, the demand rises, leading to higher service
prices.

Government Regulations

Traditional government regulations contribute to the overall cost structure. For example, some
governments often set maximum driving hours for commercial operators.

Even environmental regulations affect the overall operating expenses and profitability.
Environmental and sustainability policies aimed at improving carbon efficiency and cutting emissions
are becoming more prevalent around the world. Some airports even impose environmental surcharges.
For example, recently London’s Heathrow, proposed increasing environmental charges to address noise
pollution. Complying with these restrictions can affect everything from material usage to handling
costs etc.

Distance/ Destination

Destination/route does affect the marginal cost of air freight forwarding service. So more
the
distance more will be the cost of shipping. However, the cost varies from place to place. Rates also
apply based on the type of route offered i.e. direct service versus connecting service. Even cargo
transfers that involve several carriers also contribute to the final cost.

The air freight forwarding service is a highly complex task. Setting the service rate that is both
profitable and competitive requires proper analysis.

New Globe Logistik LLP is one such firm that offer air freight forwarding services at an
affordable
price range. The air freight services in India are executed by a team of well-qualified and highly
trained professionals who work closely to execute each task with a high level of efficiency. The
expertly managed team also pays strict attention to environmental, health, and safety issues at
every stage.

To know more about this air freight forwarder – contact the team today!