Calculating air freight costs:
which factors determine the rate?
Air freight costs can vary significantly. Even similar shipments may incur different rates depending on the route, available capacity, cargo dimensions, or the time of booking. Many companies only become aware of this when a quote turns out higher than expected or when additional costs arise during transit.
Air freight is often used for time-critical shipments, leaving little room to rectify errors after the fact. Once a shipment is booked, many costs are fixed. Therefore, it is important to consider the shipment as a whole rather, than just the rate per kilogram beforehand.
Van Thiel Transport reviews your shipment details prior to booking and outlines the expected costs. This ensures you know in advance what costs are involved and where potential uncertainties may lie.
How are air freight costs calculated?
Air freight does not have a fixed price per kilogram. The air freight rate is calculated based on several factors, such as:
Weight of the shipment
The weight of the goods often forms the basis of the transport rate. Generally, the heavier the shipment, the higher the costs.
Volumetric weight
With air freight, it is not just weight that counts, but also the space a shipment occupies. Consequently, a large, light shipment can be more expensive than a small, heavy one. In such cases, airlines calculate costs based on volumetric weight.
Dimensions
The dimensions of the goods affect available flight options. For non-standard sizes or large, heavy shipments, the choice between transport as belly cargo on a passenger aircraft and transport on a dedicated freighter can become significant. The appropriate option depends on the dimensions, weight, and type of cargo.
Destination and route
Air freight rates from China to the Netherlands differ from those for shipments from the US or India. Departure and arrival airports, as well as available capacity, influence the price..
Urgency
When goods require urgent transport, there are often fewer flight options
available. As a result, rates are generally higher.
Type of goods
Not all goods can be transported by air under the same conditions. For instance, batteries, lithium-ion batteries, and other dangerous goods may entail additional transport requirements. This can impact available flight options and costs.
What cost items are associated with air freight?
The total cost of air freight comprises more than just airport-to-airport transport, including:
- Air freight rate
- Fuel surcharges
- Security fees
- Air Waybill (AWB)
- Terminal handling charges
- Customs clearance
- Import duties/clearance fees
- Pre-carriage (pickup from the supplier)
- On-carriage (delivery to the final destination)
- Potential storage fees
The costs applicable to your shipment also depend on the agreed Incoterm. For an EXW shipment, for instance, local handling charges at the foreign airport may be borne by the buyer. If this is not clarified beforehand, the final costs could turn out higher than expected.
The air freight rate alone does not provide a complete picture of the total air transport costs. That is why Van Thiel Transport assesses the shipment’s components in advance, ensuring clarity regarding which costs are included in the quote and which are not.
Why do air freight costs sometimes turn out higher than expected?
Additional costs often arise even before an air freight shipment departs. Common causes include:
Incorrect documentation:
A missing commercial invoice, an incomplete description of goods, or an error in the customs data can lead to additional checks, delays, and storage costs.
Incorrect HS code
An incorrect HS code can affect import duties and customs clearance. Van Thiel Transport verifies prior to arrival whether the declared HS code corresponds to the goods and can advise on the appropriate category. The customer remains responsible for determining the final, complete HS code.
Dangerous goods not identified beforehand
Devices containing lithium batteries, certain liquids, or goods with strongly magnetic components may be subject to dangerous goods regulations. If this is not known in advance, it can affect documentation and available flight options, and the booking may need to be modified.
Limited capacity and short-term rates
Around Black Friday and during the peak season in November and December, Van Thiel Transport observes lower available capacity and higher air freight rates compared to the preceding months. We therefore advise customers to arrange transport ahead of these peak periods whenever possible. Unfortunately, air freight cannot be booked far in advance at the same rate; due to the highly volatile market, air freight rates are valid for a limited time only. At Van Thiel Transport, an air freight quote is typically valid for one week.
Late bookings
When an air freight shipment is booked shortly before departure, less capacity is available. This often has a direct impact on the rate.
Storage costs
If a shipment cannot be processed immediately due to missing documents or additional customs inquiries, storage fees can accumulate rapidly.
Incoterms
With EXW, FCA, and FOB, Van Thiel Transport observes that customers sometimes have different expectations regarding the allocation of local costs. Consequently, costs such as export customs documentation, handling, and terminal charges in the country of origin may unexpectedly fall to the buyer.
Case Study: Avoiding €4,500 in unnecessary import duties by verifying the HS code
An importer wanted to bring in a large shipment of electronic measuring equipment from South Korea. The supplier’s documents listed an HS code for general consumer electronics—a category subject to a higher import duty. Before customs clearance, Van Thiel Transport verified the declared HS code. It turned out that the goods were actually specialized medical diagnostic equipment, meaning the declared code did not match the actual items.
While we cannot determine the exact HS code for a client ourselves, we can indicate which category the goods fall into. Based on our advice, the client was able to select the correct HS code for customs clearance. This code carried a 0% import duty, allowing the client to avoid €4,500 in unnecessary import taxes and prevent customs delays.
This situation illustrates how an incorrect HS code can impact not only customs processing but also the total cost of an international shipment.
How Van Thiel Transport keeps a grip on air freight costs
To prevent unexpected air freight costs, we verify every shipment before it is booked for:
- Dimensions and weight
- Actual and volumetric weight
- Departure- and arrival airport
- Commercial invoices
- Declared HS codes
- Customs documentation
- Packaging requirements
- Applicable dangerous goods regulations
- Incoterms and allocation of local costs
The route, desired schedule, and timing of the booking also play a role. Available flight options may vary for non-standard dimensions or large, heavy shipments. During peak periods, available capacity can specifically influence the rate.
What is the average cost of air freight?
Air freight costs vary by shipment and depend on several factors, such as weight, dimensions, destination, type of goods, and customs formalities. Rates for an urgent shipment from China differ from those for a standard air freight shipment within Europe. The timing of the booking can also make a difference.
For this reason, Van Thiel Transport does not use standard pricing; instead, we calculate air freight costs on a bespoke basis, tailored to your specific shipment and scheduling requirements.
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Frequently asked questions about air freight costs
Do you have questions about air freight costs? We have already answered many frequently received questions below. Is your question not listed? Then please contact us; our staff will be happy to provide you with further information.
There is no fixed price for air freight. Costs are determined by factors such as actual or volumetric weight, dimensions, destination, available capacity, the type of goods, and the desired delivery time. Additionally, charges for handling, customs, and pre- and on-carriage may apply. Van Thiel Transport therefore calculates the rate for each shipment individually.
Air freight costs are determined by the shipment’s actual or volumetric weight, plus any additional charges for services such as handling, customs, and pre- and on-carriage. Since there is no fixed air freight price per kilogram, Van Thiel Transport prepares a current cost calculation based on your specific shipment.
In addition to the air freight rate, costs may arise for fuel, security, airport handling, customs, clearance, pre-carriage, on-carriage, and storage. Depending on the Incoterm, local charges at the point of departure may also be borne by the buyer. It is therefore important to clarify beforehand which costs are included in the quote.
At Van Thiel Transport, an air freight rate is usually valid for one week. The validity period is short because the market can fluctuate significantly. Consequently, if you book at a later date, the current rate may differ.
Volumetric weight involves converting the space a shipment occupies into a calculable weight. If the volumetric weight exceeds the actual weight, this higher weight may be used as the basis for the air freight rate. That is why, in addition to weight, the exact dimensions of the shipment are required to calculate air freight costs.
Yes, an incorrect HS code can lead to an incorrect calculation of import duties, additional customs inquiries, and delays. Van Thiel Transport checks whether the provided code makes sense for the goods and can offer advice on the category. The customer remains responsible for determining the final, complete HS code.
The cost of air freight from China to the Netherlands is determined by weight, dimensions, the airport of departure, available capacity, and any applicable additional regulations. Van Thiel Transport can provide a current, tailored quote for this.
Air freight rates fluctuate based on the supply and demand for available cargo space. Van Thiel Transport observes that around Black Friday, and during November and December, available capacity is lower and air freight rates are higher than in preceding months. Consequently, air freight quotes often have limited validity.
Incoterms determine which costs are borne by the buyer and which by the seller. Van Thiel Transport often finds that customers do not always anticipate local costs associated with terms like EXW, FCA, and FOB—such as charges for export customs documentation, handling, and terminal fees in the country of origin. Therefore, it is important to clarify beforehand which costs you are responsible for under the agreed Incoterm.
No. While air freight usually carries a higher transport rate, it is not automatically more expensive for every shipment. For smaller volumes or goods with high inventory value, air freight can sometimes prove cost-effective when total logistics costs are taken into account. Van Thiel Transport therefore compares not only the transport rate but also the implications for scheduling.
To calculate air freight costs, Van Thiel Transport requires information regarding the weight, dimensions, number of packages, destination, type of goods, and desired delivery time. With these details, we can prepare a suitable quotation.
Is your question not answered?
Our employees will be happy to help you, so please feel free to contact us.