Procurement Glossary
Air freight cost components: Cost structure and optimization in air freight transport
November 19, 2025
Air freight cost components include all individual costs incurred when transporting goods by air freight. These cost components are of crucial importance for buyers, as they have a significant influence on the overall logistics costs and enable precise calculation. Find out below which components make up the air freight costs, how these can be optimized and which current developments need to be taken into account.
Key Facts
- Air freight costs consist of basic freight, fuel surcharge, security fees and handling costs
- Fuel surcharge (FSC) often accounts for 30-50% of total costs and fluctuates with the oil price
- Volumetric weight (1 m³ = 167 kg) often determines the cost calculation for light goods
- Additional services such as express service or hazardous goods handling increase costs considerably
- Transparent cost breakdown enables targeted negotiations with carriers
Contents
Definition: Air freight cost components
Air freight cost components refer to the various cost elements that are incurred during air freight transportation and together form the total freight price.
Basic cost components
The main components include the basic freight based on weight or volume, the fuel surcharge as a variable fuel surcharge and security fees for screening procedures. There are also terminal handling charges for loading and unloading at the airport.
- Base load (weight/volume rate)
- Fuel Surcharge (FSC)
- Security Surcharge
- Terminal Handling Charge (THC)
Air freight vs. sea freight cost structure
In contrast to sea freight costs, air freight costs are less influenced by port charges and more by fuel prices and security requirements. The cost structure is more transparent, but more volatile.
Importance in Procurement
For buyers, detailed knowledge of the cost components enables precise budget planning and targeted negotiation strategies. An understanding of pricing is essential for well-founded make-or-buy decisions, especially for time-critical procurements.
Methods and procedures
Systematic approaches to the analysis and optimization of airfreight cost components support buyers in achieving cost transparency and reduction.
Cost analysis and benchmarking
A detailed breakdown of all cost components forms the basis for effective negotiations. Basic freight, variable surcharges and additional services are considered separately and compared with market prices.
- Component-by-component cost breakdown
- Market price comparison by route
- Analyzing historical price trends
Supplier negotiation and contract design
Structured negotiations focus on individual cost components and their calculation bases. CIP conditions can create cost transparency, while framework agreements offer planning security.
Optimization strategies
Consolidation of shipments, optimal packaging to reduce weight and volume and the use of milk run concepts can significantly reduce the costs per unit. The choice of alternative airports can also bring cost benefits.
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Key figures for controlling air freight cost components
Meaningful key figures enable the systematic monitoring and optimization of air freight cost components.
Cost structure KPIs
The share of individual cost components in the total freight costs shows optimization potential. The fuel surcharge share and the development of basic freight costs per kilogram are particularly important control variables.
- Fuel surcharge share (%)
- Basic freight costs per kg/m³
- Additional service cost ratio
Efficiency and quality indicators
The freight costs per shipped unit and the cost transparency rate measure the efficiency of procurement. In addition, the carrier performance shows the reliability of the cost forecasts.
Market and benchmarking metrics
Regular market price comparisons and the deviation from benchmark prices identify negotiation potential. The price development of individual routes and cost components enables well-founded budget planning and strategic decisions.
Risks, dependencies and countermeasures
The complex structure of air freight costs harbours various risks that can be minimized by taking appropriate measures.
Price volatility and fuel surcharge risks
Fluctuating fuel prices lead to unpredictable cost increases, as the fuel surcharge often accounts for 30-50% of total costs. Long-term contracts with price caps or fuel hedging strategies can cushion this volatility.
- Fuel hedging agreements
- Price corridors in contracts
- Alternative transport modes as a backup
Capacity bottlenecks and peak season surcharges
Seasonal peaks in demand and limited freight capacities lead to considerable price mark-ups. Early capacity reservation and a diversified supplier base reduce these dependencies.
Regulatory changes
New safety regulations, customs regulations or environmental requirements can cause additional cost components. Regular compliance checks and close cooperation with customs agents minimize surprises and penalties.
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Practical example
An automotive supplier analyzes its air freight costs for spare parts from Asia to Germany. The monthly costs of 50,000 euros are made up of 35% basic freight, 40% fuel surcharge, 15% handling fees and 10% security surcharges. By negotiating a fixed fuel surcharge corridor and consolidating smaller shipments, the company reduces costs by 12%.
- Detailed cost analysis by component
- Negotiation of price corridors for volatile components
- Consignment consolidation for cost optimization
Trends & developments around air freight cost components
The air freight industry is subject to dynamic changes that have a direct impact on the cost structure and transparency.
Digitalization and AI-based pricing
Artificial intelligence is revolutionizing air freight pricing with dynamic algorithms that take demand, capacity and external factors into account in real time. This leads to more volatile but more market-driven prices.
- Real-time pricing through AI algorithms
- Predictive analytics for cost forecasts
- Automated price comparisons
Sustainability and CO2 surcharges
Environmental regulations are leading to new cost components such as CO2 compensation fees and Sustainable Aviation Fuel (SAF) surcharges. These green surcharges are increasingly being standardized and reported transparently.
Blockchain and smart contracts
Blockchain technology enables more transparent cost accounting and automated contract processing. Smart contracts can automatically adjust cost components and carry out settlements in real time, which increases transparency and reduces disputes.
Conclusion
Air freight cost components require a detailed analysis and strategic approach in Procurement. Transparency regarding individual cost components enables targeted negotiations and optimization measures. In view of increasing digitalization and new sustainability requirements, buyers must continuously adapt their cost management. A proactive approach to price volatility and regulatory changes ensures competitive procurement costs in the long term.
FAQ
What are the most important air freight cost components?
The main components include basic freight (based on weight/volume), fuel surcharge, security surcharge, terminal handling charge and any additional services such as express service or dangerous goods handling.
How is the chargeable weight calculated for air freight?
The billable weight is the higher of the actual weight and the volumetric weight. The volumetric weight is calculated using the formula Length × Width × Height (cm) ÷ 6,000 or, using the standard formula, 1 m³ = 167 kg.
Why does the fuel surcharge fluctuate so much?
The fuel surcharge is based on current kerosene prices and is usually adjusted on a weekly or monthly basis. As fuel accounts for 20-30% of airlines' operating costs, price fluctuations are passed on directly to customers in order to ensure planning security for the airlines.
What optimization approaches are there for air freight costs?
Effective strategies include shipment consolidation, optimized packaging to reduce weight/volume, negotiation of framework agreements with fixed price corridors, alternative routing options and the use of freight exchanges for spot rates on flexible shipments.
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