Understanding Interstate Air Freight Costs and Chargeable Weight
For Australian businesses, decoding how airlines and freight forwarders price cargo is essential to managing logistics budgets effectively.
Why Air Freight Pricing Matters
Unlike road or rail, where freight is typically billed by distance and tonnage, interstate air freight pricing involves a complex interplay of weight, volume, speed, and handling requirements. Understanding these factors—particularly the role of chargeable weight—helps businesses avoid costly surprises and make informed transport decisions.
What is Chargeable Weight?
Chargeable weight is the basis on which airlines and freight forwarders determine costs. It is calculated by comparing the shipment’s actual weight with its volumetric weight (sometimes called dimensional weight), and charging whichever is greater. This ensures that both heavy and bulky items pay a fair share of cargo space.
How Volumetric Weight is Calculated
In Australia, the most common volumetric formula used by carriers and logistics providers follows the IATA standard:
Volumetric Weight (kg) = Length (cm) × Width (cm) × Height (cm) ÷ 6000
For example, a package measuring 100 × 80 × 60 cm with an actual weight of 40 kg would have a volumetric weight of 80 kg. In this case, the airline would bill based on 80 kg, not 40 kg.
Key Factors Influencing Air Freight Costs
- Distance and route: Popular corridors such as Sydney–Melbourne are generally cheaper per kilo than long-haul routes like Sydney–Perth.
- Service speed: Same-day and overnight express attract premium charges compared to deferred services.
- Cargo type: Dangerous goods, live animals, or temperature-sensitive freight often require special handling fees.
- Fuel and surcharges: Fluctuations in aviation fuel costs, airport handling fees, and security levies directly affect pricing.
- Volume commitments: Businesses with high shipping volumes may negotiate contracted rates with freight forwarders.
How Businesses Can Manage Costs
Companies can optimise freight spend by consolidating shipments, ensuring efficient packaging to reduce volumetric weight, and comparing rates across carriers. Leveraging freight forwarders with established airline partnerships can also unlock more competitive pricing, particularly on high-volume domestic routes.
Conclusion: Pricing Transparency is Key
Air freight costs are driven by both physical weight and spatial economics. Understanding how chargeable weight works allows Australian businesses to plan smarter, negotiate better rates, and reduce logistics overheads. For a wider look at interstate freight strategies, explore our complete guide to interstate air freight in Australia.
