Air freight plays a crucial role in supply chain success for many businesses worldwide. With widespread disruption plaguing global logistics in recent years, the importance of air cargo has become even more evident. In this article, we explain how to calculate chargeable weight. We also show you how to use it to your advantage. What is chargeable weight in air freight logistics? Chargeable weight is the quantified weight used to calculate the freight rate. In short, it’s the number that appears on your invoice identifying what the carrier will charge to move your cargo. How are air freight charges calculated? The chargeable weight, and the freight charge, is based on the higher of two values. These values are actual weight (gross weight) or volumetric weight (also called dimensional or volume weight). The reason to compare both types of weight and adjust the price is simple. The cost of shipping by air depends on both weight and space. For example, a small but heavy item affects capacity while a large but lightweight shipment takes up significant space. By calculating and pricing based on both types of weight, carriers can optimize aircraft capacity. This also helps ensure fair pricing and safe cargo operations. Air cargo volumetric weight formula Most commercial airlines and freight carriers use a standard formula to convert package dimensions into volumetric weight. The formula, using centimetres (cm) and kilograms (kg), is: Volumetric Weight (kg) = (Length × Width × Height) ÷ 6000 The divisor of 6,000 is an industry standard, set by the International Air Transport Association (IATA) to ensure fairness. To determine pricing, you need to compare the volumetric weight to the actual weight. The cost of shipping your cargo will be based on the higher value. Example calculation Suppose you have a 50kg package measuring 100cm in length, 60cm in width, and 30cm in height. The volumetric weight is calculated as: (100 x 60 x 30) ÷ 6000 = 30kg Since the volumetric weight (30kg) is lower than the actual weight (50kg), the freight charge will be based on 50kg. If the package weighed only 20kg, the price would be based on the volumetric weight of 30kg instead. Expressed differently, here’s a visual example of how a large, lightweight item can incur the same freight charge as a small, heavy package: Carriers may use different formulas based on the imperial or metric system. However, the results are still similar. The imperial formula in pounds (lbs) and inches (in) is: Volumetric Weight (lbs) = (Length × Width × Height) ÷ 366 How different airlines apply chargeable weight rules Although IATA provides a standard divisor, not all airlines apply the same calculation. Some carriers use a divisor of 5,000 instead of 6,000. This change affects how they calculate volumetric weight. As a result, bulkier shipments may cost more. Others adjust charges based on demand, aircraft type, or industry-specific agreements. Express carriers also have their own formulas, particularly for small parcels. These formulas can vary based on origin and destination. To avoid surprise costs, check the volumetric weight formula used by carriers ahead of time. This is important if you plan to send light but bulky cargo. Understanding these variations helps you plan freight budgets and choose the best shipping option. Key advantages of calculating chargeable weight Calculating the volumetric weight of air cargo and comparing it to the actual weight has many benefits Ensures aircraft safety and efficiency: Airlines have strict weight and space limitations for safety. Calculating volumetric weight ensures cargo is evenly distributed, preventing underloading (wasting space) or overloading (exceeding limits). Promotes fair pricing: Chargeable weight calculation helps businesses pay for the space their cargo takes up, not just its weight. Improves cost predictability: Using a standard formula helps businesses anticipate shipping costs, reducing unexpected charges. Minimizes human error: Manual miscalculations can lead to incorrect pricing, causing businesses to overpay or underpay for shipments. Proper volumetric weight calculation prevents such issues. Optimises cargo space utilisation: Accurate calculation prevents wasted space, ensuring that aircraft capacity is used efficiently and keeping logistics costs manageable. Enhances supply chain transparency: Businesses that accurately calculate chargeable weight gain better cost visibility and can budget more effectively. Reduces processing time: Technology like digital scales and dimensional scanners automates calculations. This speeds up cargo check-in and cuts delays. Allows quick changes: Advanced systems work with scanners to compare weights right away. This lets you make fast adjustments before finalizing shipments. Supports easy international shipping: Shipping around the world is getting more complicated. Accurate weight measurement can help make shipping cheaper and easier. Tips to optimize your air freight costs using chargeable weight Here are some steps you can take to reduce air freight costs and maximize efficiency: Use efficient packaging: Avoid oversized boxes that increase volumetric weight. Custom-fit or collapsible packaging can help minimize charges. Consolidate shipments: Combining multiple small shipments into a single larger shipment reduces wasted space and lowers costs. Choose a carrier with the right divisor: Save money by selecting a carrier that uses the 6,000 divisor recommended by IATA. Leverage technology: Many logistics providers offer digital tools that automatically calculate and compare chargeable weights before booking. Applying these strategies will help you control freight costs and avoid unnecessary charges. Ready to explore air freight services? As global supply chains get more complex, it is important to calculate the chargeable weight of air cargo. This helps with cost savings, aircraft safety, and smooth international shipping. At Foon Chaser Express Ltd, we can help you stay on top of your air cargo costs and eliminate any surprises. Our in-house cargo airline and high standards help us connect all hubs and gateways worldwide. This allows us to ensure fast and efficient deliveries that your customers expect. Keep your goods moving with Standard Air Freight, Air Charter, and Sea-Air Services. You can use our own air freight network or work with our partners at Foon Chaser Freight.
Air cargo market unusually busy as pre-tariff shipments pick up
The air cargo market is unusually busy as 2024 draws to a close as shippers have been exporting goods out of China to the US ahead of expected new tariffs in January. In its latest market update, Taiwan-based freight forwarder Dimerco Express said the air cargo market was unusually busy due to electronics demand, general cargo volumes and a rise in pre-tariff shipments. Dimerco vice president of global sales and marketing Kathy Liu said: “Starting mid-December, we’ve seen a significant uptick in cargo volumes, particularly for consumer electronics. This is unusual, as the market typically slows down after December 5. However, this year, the peak is expected to extend all the way to late January, just ahead of Chinese New Year. What’s interesting is how general cargo has avoided the usual October-November e-commerce rush to better optimise capacity and costs — this could indicate a new trend going in to 2025. At the same time, many shippers are rushing to move stock via airfreight from China to the US, hoping to beat potential tariff increases before January 20 under the Trump administration. This has created a surge in demand, pushing capacity to critical levels.” https://www.youtube.com/watch?v=-woYgdKY34g Donald Trump is set to take office in January and last month said he will sign an executive order imposing tariffs of 25% on all goods from Mexico and Canada and an additional 10% on imports from China, above any additional tariffs. On the capacity front, one airline was reporting that one of its China routes to the US is full until the end of December. Others had cancelled a series of freighter flights out of the country, the forwarder reported. Meanwhile, there are also concerns that US east coast and Gulf Coast container port workers could launch a second round of strike action in January. The latest data from TAC Index shows that airfreight rates have also continued to increase in recent weeks, reflecting market demand. The overall global Baltic Air Freight Index calculated by TAC was up another 0.8% in the week to December 16, leaving it ahead by 0.5% from where it was at this time last year, when there was a pronounced peak season spike. “The data thus far matches expectations of a strong peak season this year, despite a rise in capacity and a lot of planning ahead this year by shippers and freight forwarders,” TAC said. Rates from China were slightly higher again – led by rising spot rates to the US – with the boom in e-commerce, which has been a dominant theme all year, continuing.