What is Air Cargo Freight?

Vietnam is considered a promising market and a worthy candidate in the global investment shift wave. This will be an opportunity for the air cargo transportation industry to “take off” as it witnesses the influx of many foreign giants as well as domestic airlines eager to establish specialized cargo airlines to regain market share… To meet this development, Airport Cargo provides air cargo transportation services with low transportation fees, ensuring timely, safe, and reputable deliveries.

In the field of air transportation, cargo owners may want to hire air cargo service companies. These could be freight forwarders or General Sales Agents (GSAs) appointed by airlines.

Depending on specific needs, you can choose from the following service forms:

• Domestic air transportation
• International air transportation
• Air express delivery

How are air freight rates calculated?

• Air freight rates refer to the amount the shipper must pay to the transportation company to move a batch of goods from the origin port to the destination port (in this case, the airport).
• The freight rates are typically fixed for each kilogram of cargo, with various rate levels defined for different weight ranges.
• For instance, freight rates for general cargo are categorized into different levels: below 45 kg, +45 kg, +100 kg, +300 kg, and so on.
• The formula to calculate air freight rates is as follows:

Airfreight = Unit rate x Charge weight

Unit rate – Air transportation rate.

This is the amount you need to pay for each unit of chargeable weight (e.g., $3/kg).

Transportation companies will publish rate tables based on different weight ranges.

Types of Air Freight Rates

There are various types of rates applied to different types of goods, special cargoes, or specific conditions. Some common types include:

• Normal Rate: The standard rate applied to most cargo shipments.
• Minimum Rate (MR): The lowest rate that the air carrier accepts for transporting a shipment. This is a fixed cost for the carrier, so if the freight rate is lower, it won’t be effective. Typically, the majority of shipments have higher freight fees than the minimum rate.
• General Cargo Rate (GCR): Considered the base rate, applied to shipments not eligible for any discounts or special rates from the carrier. It serves as the basis for calculating rates for items without their own specific rates.
• Class Cargo Rate: Applied to specific types of goods, for example:
  • Valuable items like gold and silver have a rate at 200% of the general cargo rate.
  • Live animals have a rate at 150% of the general cargo rate.
  • Books, newspapers, baggage have a rate at 50% of the general cargo rate.
• Priority Rate: Applied to items that need to be prioritized for faster delivery, resulting in a higher freight cost, typically 30-40% higher. It is the most expensive among the different types of air cargo rates.
• Container Rate: Lower rates applied to shipments transported in containers.

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