GeneralAir Freight Rate – 5 Major Elements

June 1, 2018by Bhupathi0

5 Major Elements That Affect Prices of Air Freight Rate

The cost of sending parcels, packages and cargoes does not follow a straight line. This inconsistency is brought about by a lot of factors that affect their prices. If you are a regular shipper of goods, you need to be familiar with these elements. Knowing them can help you to maximize shipping costs. Here are some of the most common factors that affect Air Freight costs:

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1. Demand The principle of economics dictates that demand is one of the biggest influencers of prices of goods and services. In the courier business, there is a “peak season” when the demand for courier services is unusually high. This includes Christmas, Valentines Day, Thanksgiving Day and other celebrations. The high demand during these seasons gives most couriers the chance to raise Air Freight prices. You should ship only the important or urgent packages during these times to avoid additional costs.

2. Shipping Container The type of shipping container you want to contain your, Air Freight, cargo while in transit can make a difference in the delivery cost. But this can sometimes depend on the type of cargo you want to transport. Fragile cargoes require special containers and special handling. This is to ensure the safe delivery of your goods to their destination. The services made to meet these special needs are charged accordingly.

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3. Skills and Number of People Required to Move Cargo If your cargo needs people with special skills to handle them while in transit, additional charges are also levied. The more people needed to facilitate proper handling and documentation of your merchandise, the higher the additional charges you have to pay. If your, Air Freight, cargo is too delicate and costly, sending someone to oversee the shipment can help to prevent damage and unwanted delays. Both of them can translate to costs if things go wrong. Preventing them from happening should be a part of your strategic plan.

4. Speed Most freight forwarding companies highlight speed as their selling edge. It is true in many ways because time can spell the difference between profit and cost. But you must take into consideration the company’s efficiency and quality of service. Speed is useless if the goods you deliver or receive are not properly taken cared of or are delivered to the wrong recipients.

5. Competition This is the opposite of demand. This usually happens during off-seasons, when there’s an oversupply of courier service companies in a specific area or locality. This can work to the advantage of the customers because many couriers are willing to lower their, Air Freight, prices to get sales. Partnering with a reliable cargo courier may be a good move for your business. You need to make it a part of your plan.

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