Computation of Freight Rates

A) General Cargo Rates:

• Tariff given for the General Commodity shipments that do not come under specific commodity or commodity classification rates. 

Basically these are rates for general cargo.

B) Normal cargo rates: 

• These are published rates that apply to any consignment weighing 45kg and below, however there are variations. 
• In some countries the normal cargo rate can start from 100 kilograms. The NCR is calculated by multiplying the chargeable weight by the published rate per kilogram.

1. Normal cargo rates

• • This is further divided based on the transit period of Normal, Express and Time Definite.

• Normal: Under this Rate class, the airline can take transit time beyond 5 days.

• Express: Goods transported to destination within 48 hours under Express Mode and a higher price is charged than Normal rate. 

• Time Definite: The Delivery of goods will be within a certain time frame. Tariff will be higher than Express rate.

• • Express and Time Definite goods are accepted only on the On-line destinations where an airline use own aircraft.

2. Quantity Rates: 

• These are published rates that apply to consignments weighing more than accepted general cargo say 45 Kgs or 100 Kgs 
• This rate is further reduced at higher weight break for example 300 Kgs and 500Kgs that is the heavier the shipment the lower the chargeable rate per Kilogram. 

C) Specific/ Special Commodity Rate

• Airline offers special rates for specific commodities which are lower than general cargo rates. 
• These rates apply to certain goods with specific descriptions and are published from particular point of origin to a particular destination. 

D) Commodity Classification rates

• These are a percentage increase (surcharge) or percentage reduction (Rebate) on general cargo rates applicable to a few commodities within or between IATA designated areas. 
• Such commodities include, live animals, Valuable cargo like gold, legal bank notes, baggage shipped as freight, Human remains etc.

E) Unit Load Device (ULD) Rate 

• • ULDs are used for the storage of cargo on the aircraft and are divided into two types; Pallets and Containers.

• Cargo on the Pallets are secured to its rim by a net and made according to the loadability into the allotted aircraft type. 

• Various types of Containers are providing by the Airline based on the aircraft used to serve a location. 
• Cargo is secured either by the container doors closed or a door net being secured to the rims of the container walls and floor.
• The rates are charged as per ULD Maximum Weight e.g. LD3: Chargeable Weight 700 Kgs