The basics of Air Freight costing

Air Freight costing is the focus of this module. These costs and more will be outlined so that at the end of this learning, you will have acquired a sound overview of Air Freight costs to be considered for effective cost management.

There are many line items in a typical Air Freight quote, but what do they all mean? Rates don’t tell the whole story. Visibility into all ongoing costs, once-off fees and potential penalty charges is essential. Failure to maintain this awareness could negatively affect a relationship with customers, not to mention hurting the bottom-line. Knowledge and understanding of how these rates are calculated and add up are important. One of the first steps in this process is understanding how base rates are determined. Carriers use a shipment’s weight and volume to calculate what is known as chargeable weight.
In this course, you will be introduced to all the Air Freight cost elements as well as charges additional to freight. Examples of weight calculations and costings examples will be presented.

Target Group
Employees working in Air Freight Departments and Freight finance

Learning Outcomes

• Cost elements of Air Freight charges
• Charges additional to freight
• Air Freight charges
• Air Freight tariffs
• Routing requirements
• Weight calculations
• Checking Air Freight costings in an example
• Consequences of inaccurate costing