Air freight rates and pricing explained with cargo aircraft at golden hour

How Air Freight Rates Work and Why the Quoted Price Is Never the Final Price

Air freight rates are quoted as a price per kilogram, applied to the chargeable weight of a shipment rather than to what it weighs on a scale. That headline rate covers the carriage itself. It does not cover fuel, security, terminal handling, collection or delivery, and those additions routinely make up a substantial share of the final invoice.

Rates move constantly. They shift with fuel prices, with capacity on a given lane, with season, and with whatever is disrupting the market that month. Any published figure is a snapshot of a particular route at a particular time, measured in a particular way.

This page covers how the price is built, what moves it, and where to find a rate that is current rather than one that was true several years ago.

How Are Air Freight Rates Calculated?

Air freight rates are calculated by multiplying a rate per kilogram by the shipment’s chargeable weight, then adding surcharges and the charges that apply at origin and destination.

The calculation runs in four steps.

  1. Establish the chargeable weight, which is the higher of the actual gross weight and the volumetric weight
  2. Apply the applicable rate per kilogram for that lane, cargo type and weight band
  3. Add carrier surcharges, principally fuel and security
  4. Add origin and destination charges, including handling, terminal fees, collection and delivery

Volumetric weight is calculated by multiplying length, width and height in centimetres and dividing by 6000, which is the IATA standard divisor. Cargo built onto a ULD is measured as presented, including the pallet base and any overhang. A shipment lighter than roughly 167 kilograms per cubic metre is charged on its volume rather than its weight. The full method, with worked examples, is set out in the guide to chargeable weight in air freight.

Why Does the Rate Drop as the Shipment Gets Heavier?

Air freight rates fall as shipment weight rises, because carriers price in weight bands and the rate per kilogram steps down as a consignment crosses each threshold.

Bands are expressed as minimums, for example a rate for shipments above 45 kg, above 100 kg, above 300 kg and above 1,000 kg. Each band carries a lower rate per kilogram than the one below it.

This produces an effect worth knowing about. A consignment sitting just below a band threshold can cost more in total than the same consignment declared at the threshold weight, because the lower rate applied to the higher weight produces a smaller figure. Forwarders check this routinely, and it is a fair question to ask on any quote near a break point.

Very small shipments are charged at a minimum rather than by weight at all, since the administrative cost of moving a 2 kg consignment is much the same as moving a 20 kg one.

What Charges Appear on an Air Freight Quote?

Air freight rate quote with surcharges on a clipboard

An air freight quote is built from the freight charge plus surcharges plus local charges at both ends, and the freight charge alone is often well under half the total.

The table below sets out what appears on a typical international quote and what each element covers.

ChargeWhat it coversWho applies it
Freight chargeCarriage from airport to airport, rate per kg times chargeable weightAirline
Fuel surchargeJet fuel cost, adjusted periodically as fuel prices moveAirline
Security surchargeMandatory screening and security processesAirline
Terminal handling, originAcceptance, screening, storage and build up at the departure terminalHandler
Terminal handling, destinationBreakdown, storage and release at the arrival terminalHandler
Documentation feeAir waybill issue and processingForwarder or airline
Collection and deliveryRoad transport to and from the airportsForwarder
Customs clearanceEntry filing at destination, and export clearance where requiredBroker or forwarder
Special handlingDangerous goods, temperature control, live animals, oversized cargoAirline and handler

Fuel and security surcharges deserve particular attention when comparing quotes, because a low headline rate with high surcharges can total more than a higher rate with lower ones. Ask for the all-in figure rather than the rate per kilogram.

What Is the Difference Between Spot and Contract Rates?

A spot rate is priced for an individual shipment at current market conditions. A contract rate is agreed in advance for an agreed volume over a defined period, and holds regardless of short-term market movement.

Each suits a different position.

  • Spot rates suit irregular shippers and unpredictable volumes, and they fall faster than contract rates when the market softens
  • Contract rates suit regular volume on known lanes, and they protect against spikes, though they cost more than spot when the market is quiet

Most large shippers run a mix, placing a committed base volume on contract and sending the overflow at spot. A freight forwarder handling regular volume will usually hold contract rates with several carriers and quote from whichever is sharpest on the day. The balance between the two shifts with how volatile the market is, and shippers move towards contract cover when disruption looks likely.

Where Can You Find Current Air Freight Rates?

Current air freight rates come from published market indices, each produced by a separate organisation using a separate methodology, and each measuring a different slice of the market.

The table below sets out the main indices, what each measures and how often it publishes.

IndexProduced byWhat it measuresFrequency
Baltic Air Freight IndexTAC Index, with the Baltic ExchangeActual transaction rates from forwarders, including spot, contract and block space agreements, with sub-indices by origin regionWeekly
Freightos Air IndexFreightosGlobal and lane-level air rates drawn from its own booking platform dataWeekly
Drewry Airfreight Price IndexDrewryAll-in buy rates paid by forwarders to airlines on 44 major East-West routes, airport to airport, for cargo above 1,000 kgMonthly
WorldACDWorldACD Market DataTransaction data covering more than 100,000 city pairs, reporting rates, volumes and load factorsWeekly
XenetaXenetaContracted and spot rates contributed by shippers and forwarders, at airport pair levelContinuous

Most publish headline figures and commentary without charge, with lane-level detail behind subscription. Trade press coverage of the weekly index movements is free to read and is usually enough to understand which direction a lane is moving.

Why Do Two Indices Give Different Numbers for the Same Month?

Indices differ because they measure different things, so two accurate indices can report substantially different figures for the same period without either being wrong.

Take June 2026. Drewry’s Airfreight Price Index read $4.27 per kilogram, a rise of 6 percent on May. Over broadly the same period the Freightos Air Index showed global rates of around $2.82 per kilogram.

The gap is methodology rather than error. Drewry measures all-in buy rates on 44 major East-West routes for consignments above 1,000 kilograms, which skews towards the heavy, long-haul lanes where rates sit higher. The Freightos figure covers a broader global picture including lighter and shorter traffic.

The practical consequence is that an index number means nothing without its methodology attached. Before using a published figure as a benchmark, check what it measures, which routes it covers, what weight break it uses, and whether it reports buy rates or sell rates.

What Makes Air Freight Rates Rise and Fall?

Air freight rates respond to the balance between available capacity and demand on a specific lane, and to jet fuel costs.

The main drivers are:

  • Jet fuel prices, which feed directly into the fuel surcharge
  • Belly capacity, since a large share of air cargo travels in the holds of passenger aircraft, and capacity follows passenger schedules
  • Freighter capacity, which is slower to adjust and depends on fleet availability
  • Seasonal demand, with peaks before major retail seasons and troughs around holiday periods in manufacturing regions
  • Lane-specific disruption, including airspace closures, conflict, airport constraints and weather
  • Modal shift, when ocean freight delays push cargo onto aircraft and demand rises sharply, which is covered in air freight versus sea freight

Rates are directional, which surprises people. A lane can be expensive eastbound and cheap westbound at the same time, because the cargo flows are unbalanced and the aircraft has to return regardless.

Why Is a Quoted Rate Often Not What You Pay?

The final invoice differs from the quote when the shipment’s measured weight, dimensions or handling requirements differ from what was declared at booking.

The usual causes are:

  • Chargeable weight measured at acceptance exceeding the figure given at quotation
  • A surcharge changing between quotation and departure, which fuel surcharges do regularly
  • Special handling identified at acceptance that was not declared at booking, for example temperature controlled or pharmaceutical cargo
  • Storage charges where cargo waits beyond the free period
  • Customs or regulatory charges at destination that sit outside the forwarder’s original quote

Measuring and weighing accurately before requesting a quote removes most of this. The rest is handled by asking what is excluded rather than what is included, which is a shorter and more revealing list.

Questions About Air Freight Rates

How much is air freight per kilogram?

Air freight is priced per kilogram of chargeable weight, and the figure varies by lane, weight band, cargo type and market conditions at the time of booking. Published indices give a market reference point, but a rate for a specific shipment comes from a quotation rather than from an index.

How do I calculate my air freight rate?

Work out the chargeable weight by taking the higher of the actual weight and the volumetric weight, multiply that by the rate per kilogram for the lane and weight band, then add fuel and security surcharges and the handling, collection, delivery and customs charges at both ends.

How much is air freight per pound?

Air freight is quoted per kilogram rather than per pound in international markets, although some domestic services in the United States price per pound. One kilogram is 2.2046 pounds, so a rate per pound is roughly the per kilogram rate divided by 2.2.

What are the current air freight rates?

Current market rates are published weekly by the Baltic Air Freight Index, the Freightos Air Index and WorldACD, and monthly by Drewry. Each measures a different part of the market, so check the methodology before comparing figures or using one as a benchmark.

Why is my air freight quote higher than the published rate?

Published indices usually report the freight charge alone, often as a buy rate paid by forwarders to airlines. A quotation to a shipper includes surcharges, handling at both ends, collection, delivery and the forwarder’s own charges, which is why the total sits above the index figure.

Do air freight rates get cheaper for heavier shipments?

Yes. Carriers price in weight bands, and the rate per kilogram falls as a shipment crosses each threshold. A consignment just below a break point can cost more in total than the same consignment at the threshold weight, so it is worth checking both.

What is the difference between a spot rate and a contract rate?

A spot rate is priced for one shipment at current market conditions. A contract rate is agreed in advance for an agreed volume over a defined period and holds through short-term market movement, costing more than spot in a quiet market and less in a disrupted one.

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