International Air Freight: How Much Does It Cost? How It Works?

Reliable import and export processes require regular monitoring of cargo transit costs, regardless of the means used. Thus, one of the variables that must be monitored by these professionals is international air freight .

With the continuous growth of air cargo demand in Brazil, especially in months of promotion, it is important to be aware of the costs involved in transporting to/from each country.

It is clear that the crisis resulting from the COVID-19 pandemic had an impact on the volume traded, but it is necessary to be prepared in case there is a reversal in this index. Furthermore, with Siscomex Single Portal , the entire process tends to become more agile and cheaper.

In this article, we will explain in depth the status of air transport in Brazil, differences between air and sea modes and the costs of the main countries.

You will see in this article:

• Panorama of air transport in Brazil
• Air transport vs. maritime
• What is the cost of air freight?
• Air Freight Values: United States to Brazil:
• How does air freight work?
• How to quote air freight?
• How does air freight without taxation work?
• How to calculate air freight?

Panorama of air transport in Brazil

The air transport sector – both for cargo and for people – was one of the most affected in the market. The transit of goods and available fleets has been reduced due to security standards to control the proliferation of the coronavirus (Sars-CoV-2).

However, in September 2021 the International Air Transport Association (IATA) revealed that global market levels were not only returning, but staying above the pre-crisis period (9.4%). It is true that capacity has remained limited, but a glimpse of recovery has already been gained.

Another important point of the processes involving the air modal is the New Import Process. By simplifying the flow, payment of taxes and approval of cargoes between consenting agencies, there are many advances with the Siscomex Single Portal.

The next challenges for the sector will be to balance the demand for cargo with the available fleet. After all, making new air vehicles is not cheap.

Another detail to keep an eye on are non-tangible variables, such as election years and market behavior. All of this can have an effect on freight costs and, although it may be possible to build scenarios, it is necessary to prepare for quick strategic decision-making.

Air transport vs. maritime

Air transport is not the only one that exists. In addition to it, there is the maritime modal which, as the name suggests, deals with cargo transported by water vehicles.

And the differences are not just in the means of transport, there are many differences that should influence the decision of importers and exporters!

Air Transport

• More versatile
• More accurate delivery times
• Faster shipping
• Less risk of theft and damage
• Lower costs for storage, packaging and insurance

Maritime transport

• Allows the transport of larger quantities of cargo
• You can transport any type of merchandise
• Lower cost with freight

What is the cost of air freight?

Objectively, the cost of air freight will depend on several variables depending on the airlines. IATA stipulates tariffs that act as a limit on what can be purchased (we’ll explain this further later in the article).

Details like fuel, routes, traffic and extra costs enter the calculation. Also, freight can be influenced by the weight of the cargo.

In the end, the base freight rate will be defined by the highest profit amount provided to the carrier. In other words, it is not the importer, the company or IATA that decide.

Thus, there is no fixed amount for air freight, but it is possible to obtain an average. Below, you can check a table with the average freight values ​​of imported goods from the United States from October 2020 to September 2021.

Air Freight Values: United States to Brazil:

Month   Shipping average

September/2021               $4,304.05

August/2021       $4,042.99

July/2021             $3,808.83

June/2021           $3,377.26

May/2021           $3,322.48

April/2021           $3,148.74

march/2021        $2,848.50

February/2021   $3,009.40

January/2021     $3,293.64

December/2020                $2,889.89

November/2020               $3,156.61

October/2020    $2,613.67

September/2020               $2,534.17

August/2020       $2,375.98

July/2020             $2,297.29

June/2020           $2,328.77

May/2020           $3,067.10

How does air freight work?

Air freight quotes are made with the transport companies. In this case, it is important to keep in contact with good service providers, as the cost can always vary according to the cargo transported.

For example, in the case of an importer, he will contact the company to transport the cargo. The airline will pass on the freight cost subject to the most appropriate rate.

But remember, before deciding on any modal or carrier, weigh other important details, such as:

• Deadlines with your customers;
• Distances of the routes of the offered line;
• Flexibility;
• Cargo security.

How to quote air freight?

As explained above, air freight quotes are based on certain tariffs pre-established by IATA. Are they:

Minimum fare: amount charged if the freight calculated by the other tables does not reach the minimum freight established by the airline;

General Tariff: being the most common, it is divided into five weight ranges: 45kg, 100kg, 300kg, 500kg and over 500kg – with some companies working with higher ranges;

Tariff for specific commodity (specific commodity rates ) : each company has its own table, which refers to the shipment of continuous and already agreed products between the parties;

Classified rate (class rates ) : often applied to sensitive loads, it is a percentage increase which may range from 10% to 200% of the minimum rate;

ULD (Unit Load Device) tariff: this tariff is applied to loads in which loading and unloading will be carried out by the sender and receiver.

How does air freight without taxation work?

There is a shipping mode that offers specific differences. According to Decree-Law 1804/80 , orders with declared value less than US$100.00 are exempt from import tax.

However, it should not be neglected, some products with more than US$50.00

How to calculate air freight?

Air freight can be calculated based on the volume of cargo, which in principle should not be greater than 6,000 m³ (commonly converted to 1 kg in IATA ratios). For those that occupy more than this volume on the plane, the calculation will be made based on the weight.

Obtaining the amount to be paid must be done with the company in order to know their tariff tables .