- The difference between the main air freight charge (AF) and variable surcharges such as FSC and SSC.
- The specific fees that apply when shipping dangerous goods (DG) by air.
- The IATA formula for calculating Chargeable Weight.
- How to read and check an all-in Air Freight quotation to avoid unexpected costs.
Basic Structure of an International Air Freight Quotation
In international air transport, what a business pays is not simply the cost of moving cargo from one airport to another. A complete Air Freight quotation is usually made up of several components: the base freight charge, airline surcharges and local service fees (Local Charges). Understanding these components helps shippers plan their finances and compare forwarders.
1. Main Freight Charge (Air Freight - AF)
This is the basic cost of carrying cargo by aircraft. It is usually calculated as a rate per kilogram (kg). The most important point for shippers to note, however, is the Chargeable Weight.
Under the rules of the International Air Transport Association (IATA), the chargeable weight is the greater of:
- Gross Weight: The actual weight of the shipment, including packaging and pallets.
- Volume Weight: Calculated with the formula (Length x Width x Height) / 6000 (dimensions in cm).
Example: A shipment weighs 100 kg but is bulky; after conversion its volume weight is 150 kg, so the airline applies the rate to 150 kg.
2. Fuel Surcharge (FSC)
Jet fuel prices fluctuate with the world market. To protect themselves against these changes, airlines apply a fuel surcharge. FSC is usually charged per kg of cargo (based on Chargeable Weight). The rate may change monthly or even weekly, depending on the airline's notice.
3. Security Surcharge (SSC)
This covers the security screening of cargo at the airport, including X-ray inspection and other procedures to ensure flight safety. Like FSC, SSC is charged per kg of chargeable weight.
Specific Fees for Dangerous Goods (DG Fees)
With its deep specialisation in dangerous goods, VPL sees that many businesses are puzzled by unfamiliar fees on DG quotations. Because dangerous goods require strict control procedures, the following additional fees apply:
- DG Handling Fee: The fee for handling dangerous goods at the warehouse (terminal). Warehouse staff must carefully check the packing, labels and the chemical safety data sheet (MSDS).
- Dangerous Goods Fee (per AWB): The fee for declaring dangerous goods on the air waybill, usually charged per shipment (per air waybill - AWB).
- DG screening fee: Some airports or terminals apply a separate screening fee for dangerous goods, higher than for general cargo because of special technical requirements.
At VPL, we always explain these fees to customers in detail at the quotation stage to keep pricing transparent and avoid unexpected costs arising only after the cargo reaches the airport.
Common Local Charges
Besides the air freight charge and airline surcharges, shippers will encounter service fees at the origin or destination:
| Fee name | Abbreviation | Description |
|---|---|---|
| Airway Bill Fee | AWB Fee | Fee for issuing the air waybill. |
| Terminal Handling Charge | THC | Fee for handling cargo at the airport terminal. |
| Screening Fee | X-ray Fee | Fee for security screening of cargo. |
| Automated Manifest System | AMS / ENS | Customs data transmission fee (applies to certain markets such as the US and EU). |
| Delivery Order Fee | D/O Fee | Delivery order fee (applies at the destination). |
How to Read and Check an Air Freight Quotation
When you receive a quotation from a logistics provider such as VPL, check it in the following steps:
- Check the rate: Does the rate already include FSC and SSC (commonly called an all-in rate)? If not, add the three items together to get the real price per kg.
- Confirm the total chargeable weight: Make sure the forwarder has calculated the volume weight correctly from the package dimensions you provided.
- Flat fees: Fees such as AWB, documentation and data transmission are usually fixed per shipment and do not depend on weight.
- Validity: Air freight rates change very quickly, so check the date until which the quotation is valid.
Note: For dangerous goods, a quotation is accurate only once the forwarder has reviewed the MSDS of the product. Do not rush to trust a very cheap quotation if the provider has not understood the chemical properties of your cargo.
Why Choose Air Freight Services at VPL?
Air transport demands absolute precision in timing and safety. With a focus on difficult and dangerous goods, VPL does not simply quote a rate but also advises on the overall solution:
- Advice on cargo classification and packing that meets IATA DGR standards, to avoid refusal at the airport.
- Support in checking the MSDS and preparing the Shipper's Declaration for Dangerous Goods.
- Coordination with agents at the destination to handle Local Charges at both origin and destination.
- Transparency on all fees, helping businesses control their product costs.
If your business has difficulty understanding quotation terms or needs an optimal air transport option for specialised shipments, contact the VPL team of experts for dedicated support.
This article is for general information and was compiled by VPL from public sources at the time of publication. Regulations may change – please contact VPL for advice on your specific shipment.