How to Calculate the Cost of Air Freight Services from China

Do you import products from China for your business?

When it comes to transporting import-export goods over long distances, the method of transport must meet the needs of the consignee in terms of time, price and specificity of the goods.

For long distances it is preferable to transport by sea, air or train. In this article we will look in particular at Air Freight Services from China.

Air transport from China is in many cases the most convenient solution for importing goods with reduced volumes and densities, such as electronics products, wristwatches and jewelry items. Let’s see how to calculate shipping rates and what factors to consider.

Why choose Air Freight Services from China?

Air transport is the most popular and appreciated shipping method by both wholesale companies and small and medium-sized enterprises when it comes to import-export.

In the case of imports from China, the air mode, in addition to being a simple, fast and safe solution, is also cheap from the economic point of view with respect to maritime routes. The advantages obtained by opting for air transport from China are:

a remarkable logistical simplicity. In fact, the submission procedure is extremely accessible because it is simple. Just provide your Chinese supplier with the address for the delivery of the goods;
Shipment Tracking Not always, but for some types of shipment you can have the tracking code to know where the goods are located. It is a service that nowadays all the most important shipping companies make available to customers;

Air freight Services from China

the speed of transport. In fact, the goods arrive at their destination and are delivered to the customer within 7-10 working days from the time of the order.

The duration of the transfer varies depending on the speed and frequency of the connections between the two reference regions. In addition, the ease with which it is possible to reach the place of delivery must be considered.

Therefore, air freight transport services from China is the fastest mode because opting for maritime routes leads to considerably longer times. It usually takes at least 40 days before the ship enters the port of destination, and it should be borne in mind that it takes another 3-5 days for the logistical unloading procedures and for delivery to the address indicated by the customer. Precisely for this reason, the choice of air transport allows European and American companies to place on the market products purchased in China about a month in advance of what happens with other shipping methods.

When is the price convenient?

The price of air transport services from China are convenient when the shipment concerns goods of value or of small volume and weight.

In fact, it was found that air shipments only account for 5% of the volume of goods imported from China, but this percentage rises to 30% when considering the actual value of the products.

We must bear in mind that air transport is often more expensive than maritime transport when it comes to furniture, furnishings and fabrics. In most cases it is not advisable to opt for air transport from China when dealing with bulky and heavy goods because the calculation of costs varies according to the characteristics of the cargo.

In fact, for maritime shipments, tariffs are simply linked to the weight of the products. On the other hand, when dealing with aerial mode, reference can be made to the volume or weight of the goods.

This factor varies depending on the type of items. Therefore, it is good to check with the shipping company in order to assess which is the most suitable means of transport in the individual case.

How to calculate the price of Air FreightTransport Services from China?

Fares for air transport from China can be calculated in two different ways depending on the type of products. In fact, reference can be made to the so-called volumetric or dimensional weight or to the simple weight expressed in kilograms.

The first method applies when goods with a limited density but a large volume, for example teddy bears, have to be shipped. In the case of very dense products, tariffs are calculated on the basis of weight.

The decision to diversify the way prices are calculated according to the characteristics of the product is a very convenient choice for the airlines that provide this service.

In fact, for these operators it is economically disadvantageous to make the customer pay according to the weight for the shipments of poorly dense goods compared to the volume occupied and vice versa. Referring to a practical case, the expenses will be calculated based on:

the weight for importing high-density goods. First of all, reference is made to the dimensions of the load expressed in cubic meters, then the volumetric weight is calculated by multiplying the volume of the goods by the relative volumetric factor. If the weight of the load exceeds the volumetric weight, a weight-based tariff is applied, which generally amounts to 4.6 euros per kilo. As a result, shipping costs are equal to the weight of the cargo multiplied by the fare. For example, if the weight is 171 kilos, the transport costs are 786.6 euros;
the size of the volumetric weight for importing goods of limited density. Again, the dimensions of the load are calculated in cubic meters and the volume is multiplied by the applied volumetric factor. In the event that the volumetric weight is greater than that of the load, the customer will have to pay based on the first value. Consequently, the volumetric weight should be multiplied by the tariff applied to the weight.

What to keep in mind

However, it should be borne in mind that the value of the volumetric factor varies depending on which transport company is chosen and the density of the goods. In fact, three different volumetric factors are generally adopted:

143 Kg/m3 for goods with a density of less than 0.007 m3/Kg;
167 Kg/m3 for goods with a density of less than 0.006 m3/Kg;
200 Kg/m3 for products with a density not exceeding 0.005 m3/Kg.

As a result, Air Freight transport services from China are economically advantageous when you want to import high-density, low-volume, or high-value products. Consequently, the goods indicated for air freight are electronics, plastic products, wristwatches, and jewelry. In addition, this method is even indicated for the shipment of samples.

Secondly, air transport should be adopted if the load does not exceed a certain weight. It is generally advisable to opt for this solution when the goods weigh less than 50 kilos and have a volume that does not exceed 2 cubic meters. In addition, the timing of dispatch must be taken into account. If goods are needed within a few working days, it is more convenient to spend more on air transport in order to have the required products available in a short time.

The Air Shipment Process

The process of air shipment from China involves first of all the transport of the goods to the Chinese airport of reference.

The importer must take care of the journey from the factory or from the warehouse (the so-called production line) to the departure aerial port of call if an Incoterm EXW has been chosen for the organisation of the flight. Consequently, it is the importing company itself that has to contact the road or rail transport company.

However, customs export formalities are carried out by the same air carrier, but sometimes the importer may be required to present a copy of the commercial invoice to the customs office. It is a document that is used as proof of the value of the goods. At this point the products are stowed on the plane and sent to the destination airport; here they are unloaded and transferred to customs in order to be accepted.

In addition, the airport charges, any customs duties and VAT must be paid by the importing company. It should be borne in mind that the invoice including these last two items of expenditure must be paid before you can collect the imported goods at the destination airport and transport the products to your company’s warehouse. These procedures should not be performed in case you have decided to refer to an Incoterm DAT or DAP. In this case, the invoice to be paid to the transport company also includes airport expenses.

Why insure the goods to be shipped?

It is advisable to insure the goods that must be shipped in order to have greater security on the success of the operation.

In general, these costs amount to a maximum of 1-2% of the value of the goods. In most cases we turn to the company PingAn because the insurance costs amount to 0.02% to be calculated on 110% of the value of the franc on board.

This is a very important measure because many suppliers use cheap packaging and very often the companies that buy the goods do not require, when placing the order, compliance with specific requirements on quality standards.

In the event that you do not have insurance and the goods are damaged during transport, you are not entitled to any refund. In general, the forwarding of compensation claims is quite simple and very often to obtain compensation from the insurance company in question, it is sufficient to submit a protocol certifying the value and quantity of the damaged goods and the photos certifying the damage.

Another aspect to bear in mind is the fact that there are certain restrictions that must be known and respected when carrying goods by air from China. The IATA (International Air Transport Association) places certain limitations on the lithium batteries found in electronic products and power banks.

Accordingly, items must be labelled and packaged in accordance with IATA regulations.

For this reason, in the event that you make an import shipment involving this type of item, it is good to refer to a transport agency that has some experience in this area.