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Air Freight Brief & Calculation

Brief::
International Air Freight 
Basically freight charge under air shipment of garments is totally depends on both gross weight or actual weight and cargo weight. If the gross weight or actual weight is higher than cargo weight, then freight charge is fixed on the basis of gross weight. Again, if cargo weight is higher than gross weight, then freight charge is fixed on the basis of cargo weight. That means, among two weights, gross weight and cargo weight, which one will be higher, freight charge will be fixed on that.Actually Air cargo is used by global importers and exporters when they need to get goods somewhere rapidly and reliably. While 90% of everything is shipped by ocean freight, air freight connects the world faster, cutting China-US freight shipping time from 20-30 days by ocean to only 3 days by air cargo.
Chargeable weight is an equilibrium point, where actual weight and cargo weight are totally balanced. But there is an important reason that why freight charge under air shipment is totally depends on both gross weight or actual weight and cargo weight.


(If you need Calculation Solution please go down ::)


International Air Freight Charges: What Are The Costs For Shipping By Air?
When it comes to air freight, weight and volume are key factors. Air carriers will charge by either cliometric weight (also known as dimensional weight) or actual weight, depending on which is more expensive.
The global rule of thumb is to calculate the volumetric weight is to multiply the item’s volume in cubic meters by 167. The volume is for a package that is W: 40cm, H: 40cm L:40 would have a .064 (the product of all sides divided by one million). Multiple by 167, and you get a volumetric weight of 10.67 kg.
If the volumetric weight exceeds the actual weight of the product, the volumetric weight becomes the chargeable weight. For light shipments, use this chargeable weight calculator to work out whether your shipment will be charged by actual weight or dimensional weight.
Use this free calculator to get instant air cargo estimates.

Why Ship By Air?
·    Speed – Think five days from a factory in China to a warehouse in the United States. Airplanes are about 30 times faster than ocean liners. Passenger jets cruise at 575 mph, while slow-steaming ocean liners move at 16-18 mph. Use this transit time calculator, based on data from real recent shipments, to get estimates of transit times. In general numbers, air freight is usually 5X the price of trucking and 16X the price of ocean freight, according to
      the World Bank.

·    Reliability – People are pickier than packages, which has encouraged the freight market to develop more dependable freight services, and combined with better air freight data movement, shipping by air provides better air freight tracking and the knowledge that your goods will get to the right place at the right time.

·    Protection – While ocean piracy is on the decline, goods are more likely to be damaged in ocean freight shipping than air shipping.

Why Not Ship Cargo By Air?
·    Cost – Simply put, air freight comes with a hefty price tag. Comparing air and ocean freight, a medium size 2000 lbs box from Shenzhen, China to New York, USA, can cost $1,200 by ocean but a whopping $4,000 by air.
·    CO2 freight emissions – Of course, air freight also leads to far more emissions. For example, according to UK government research, 2 tonnes shipped for 5,000 kilometers by ocean will lead to 150 kg of CO2 emissions, compared to 6,605 kg of CO2 emissions by air. Definitely not the greenest way to ship.
·   Heavy Shipments – Ever since the 1960s, freight shipping has revolved around shipping containers, which are great for shipping large, heavy items. Air freight is priced based on both size and weight, which can scale price very quickly.

What Goods Are Generally Shipped By Air Freight?
Since air cargo is prohibitively expensive, it’s usually limited to smaller, high-value goods or time-sensitive items, such as:
·    Electronics. Steve Jobs famously purchased the entire available air freight capacity along key Asia-US
      routes to ship the first iMac prior to holiday season.
·    Apparel. Seasonal trends in clothing can shift fast. As a result, companies generally need to get clothing from factories to stores as quickly as possible. Again, clothing’s small size and high value make it a great tradeoff.
·     Pharmaceuticals. Given their small size and value, medical goods are frequently shipped by air.
·  Documents and Samples. DHL Global Forwarding actually got started by taking ocean freight documents by air to expedite release along a new West Coast-Hawaii ocean line. Air remains the most cost-effective method of shipping documents.
·   Seasonal shipments. Whatever the product is, if there’s high international demand for a product that requires bolstering down a supply chain, it will generally be shipped by air.

Beyond the air freight, which is calculated based on the cost above, the air freight price will also likely include:
·     Fuel surcharges
·     Security surcharges
·     Container Freight Station / Terminal Handling charges
·     Airport transfers

In addition, for door-to-door costs, the price will also include
·     Customs brokerage
·     Pickup and delivery
·     Cargo Insurance
·     Accessorize charges

Are  Air Freight Quotes & Air Prices Changing?
Air freight usage is growing slowly, with less than 1% growth in 2015 among the world’s top freight forwarders, according to Transport Intelligence. The International Air Transport Association (IATA) said that air freight growth only hit 2.2% in 2015, down from 5% in 2014. One reason for this is increased reliance on ocean freight, which is growing more and more reliable.
Ocean freight has been getting cheaper, driven by massive ocean freight overcapacity, with up to 75% declines on key routes. On the other hand, air passenger travel has grown strongly, pushing carriers to create more and more planes. As a result, there’s more belly cargo space – space under the place to store air freight. However, this means that less than half of air freight capacity is being used.
The result for air cargo shipments is that most companies that need to import do everything in their power to take advantage of cheap ocean freight quotes, leaving only the most urgent shipments for air.


Calculation Solution::
Garments many kinds of goods we imported or exported by air some time. Its dependable many kinds of criteria. If we fail to due time shipment its shipment will proceed by AIR mood etc. So if any person want to shipment by air he must be gather air shipping terms etc.

As like How to shipment ? When Shipment ? How to calculate air freight charge etc. For this reason one example is enough to remove  the condition it. Suppose, we export 1000 kgs cotton another country one export 1000 kgs iron air shipment. We are need more air space for cotton than iron but we look that weight is same. In this case air freight charged on the basis of cargo weight (on the basis of space) then we has to pay more amount of charge than iron exported authenticate person. 

As a result actual weight or gross weight and cargo weight both are in consideration during freight charge, which one is higher that chosen for freight charges.

Chargeable Weight Calculation
At fist we have to find the cargo measurement with Length , Width and Height. Then calculate the CBM of cargo by using below formula -

CBM Calculation :
Length (m) x Weight (m) x Height (m)
>After calculating CBM of cargo its divided by 0.006. This result is termed as cargo weight find out. Now cargo weight is compared to the gross weight of actual weight. Which one is higher that is charge consider for weight.
Now I,ll provide two example to remove the all confusion about the above explanation :-

We may follow that what is shipment ?// what is shipping  ? // International shipping process flow chart
Example :
Supose :
Gross Weight or actual weight is seem 200 kgs

  • Cargo length is 100 cm = 1m
  • Cargo width is 100 cm = 1m
  • Cargo height is 100 cm = 1m
Find out the chargeable weight for air freight of this shipment 

Solution 
Now -
We calculated the cargo CBM = Length (m) x Weight (m) x Height (m)
                                                 = (1x1x1) m3
                                                 = 1m
Now cargo CBM has to divide by 0.006

Cargo weight = Cargo CBM (m333)/0.006
                       = 1/0.006
                       = 166.67 kg

So, the gross weight or actual weight is 200g and cargo weight is  166.67 kg. Among tow weight , gross weight or actual weight is higher than cargo weight. As a result gross weight or actual weight will be chosen chosen for chargeable weight for this shipment.

Example :
Supose ,
Gros weight or actual weight i 140 kgs

  • Cargo length is 98 cm = 0.98 m
  • Cargo width is 95 cm  =  0.95m
  • Cargo height is 96 m   = 0.096m
Find out the chargeable weight for air freight of this shipment.

Solution:
Now we calculate the cargo CBM = Length (m) x Weight (m) x Height (m)
                                                       = (0.98x 0.95 x .096) m3
                                                       0.089376 m3
Now cargo CBM has to divided by 0.006

Cargo weight = Cargo CBM (m3/0.006)
                       = 89376 / 0.006
                       = 148.96 kgs

In this shipment , the gross weight or actual weight is 140 kgs and weight is 148.96 kgs . Among two wight cargo weight is higher than gross weight or actual. As a result cargo wieht will be chosen for 
chargeable weight for this shipment.

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