People don’t like to pay more money unless they have to. Even though air freight has a reputation for being an expensive service. Still doing your steps the right way, will help in having a more accurate estimate (fewer surprises) and maybe even reduce the cost of your air freight invoice. The best way to start is to understand the air freight quotation and what is the breakdown of any air cargo quotation.

The cost of your air freight shipment is estimated based on a quotation given by your freight forwarder. Depending on the terms of shipping, the scope of work is determined, and therefore the quotation is updated. The normal air freight price quote can be quite complicated and tricky. It is important to pay attention to the terms and conditions, especially to the exclusions. Since this service is relatively fast with short transit time. Coordination should be fast as well and the smallest mistake can be costly.

For example, handing over the shipment to the airline carrier on time is saving you money. Being a few hours late can cost storage charges at the airport and these can be quite expensive. Usually, storage is excluded from a standard air freight quotation.

The standard air freight quotation depends on the scope of work which is explained in the incoterm of the shipment (International Commercial Term). With the largest standard scope of work, the major parts of the air freight cost are :

Pick up charges:
This cost covers the collection of the cargo from the shipper’s facility (or their 3PL service provider) to the freight forwarder warehouse or airport of origin for export customs clearance processing

Export Custom Clearance :
Completing the export customs clearance process is a confirmation from the government in the origin country that this cargo is allowed to depart to a different destination outside the country borders. The process may be very simple or it can be more complicated with special approvals and documentation.

Airfreight charges:
This is the basic freight charge of the cargo. It covers the transportation cost from the origin airport to the destination airport. Fluctuation in this price is not as much as in other industries (like the basic ocean freight) and it is calculated on a per kilogram (or per pound) basis.

Fuel Surcharge:
With the changes in oil prices, this surcharge was added to support the spikes and drops of fuel prices for airlines. It is normal to find the FSC equal to or more than the air freight fee. It is calculated based on a per kilogram (or per pound) basis.

Security Surcharge :
The security surcharge is a top-up of the cost to cover the security measures applied in different airports around the world. It is low compared to the Fuel Surcharge (FSC) and less fluctuating. It is calculated on a per kilogram (or per pound) basis

Airway Bill Fees :
The Airway Bill is a contract of transportation between 2 or 3 parties. The AWB fees are to cover some admin fees for this contract to be valid. It is usually a fixed number per shipment and doesn’t change a lot.

Screening Charges :
As a security measure items are going through x-ray scanners to check for any possible threats. This process is even more strict when the shipment is going on a passenger aircraft. If the dimensions of the item don’t allow it to go through normal screening machines, it goes through special ones. The Screening charges are implemented to cover this part of the process and are calculated based on a per kilogram (or per pound) basis.

Airport Transfer :
This is for the transportation of the cargo from one terminal to another in the same airport to be loaded on board of the aircraft. It is calculated based on a per kilogram (or per pound) basis.

Import Customs Clearance :
This is the documentation process at the destination country. It is simply to declare that the cargo is allowed to enter the destination country after covering the custom duties and taxes and after presenting all the required documents to describe the items to the authorities.

Door Delivery :
After the cargo is being cleared from customs at the destination country, it is loaded on board of a vehicle and transported to the facility of the consignee (or their service provider).