Air Freight Rates: How They Work and What Drives Them

Air freight rates are the per-kilogram prices airlines and forwarders charge to move cargo by aircraft, expressed in USD per kilogram of chargeable weight. The chargeable weight is the higher of actual weight or volumetric weight, and the final invoice adds fuel surcharges, security surcharges, handling, customs and last-mile delivery on top of the base rate. Spot rates change weekly. Contract rates lock pricing for a quarter or longer through a Block Space Agreement.

What Air Freight Rates Actually Cover

A published air freight rate is the base linehaul charge per kilogram between two airports. The IATA TACT (The Air Cargo Tariff) governs the official published tariffs that carriers and agents reference. Most shipments do not pay TACT face value. Forwarders negotiate net rates with carriers under Block Space Agreements (BSA) and resell capacity to shippers as spot or contract pricing.

The total air freight invoice is built from several components:

• Base rate per kilogram of chargeable weight
• Fuel Surcharge (FSC), indexed to the Platts Jet Fuel price
• Security Surcharge (SSC), a fixed per-kg charge for screening
• Origin handling, terminal fees and airline documentation
• Customs clearance at destination
• Last-mile delivery from airport to consignee door

For full background on each line item, see the air freight charges breakdown.

How Chargeable Weight Is Calculated

Air cargo is priced on chargeable weight, defined as the maximum of actual weight and volumetric weight. The standard volumetric formula is length x width x height in centimeters divided by 6000, which yields a kilogram equivalent. A pallet of 120 x 100 x 150 cm weighing 200 kg has a volumetric weight of 300 kg, so the carrier bills 300 kg. Dense freight pays on actual weight. Light, bulky freight pays on volume.

This is why pallet dimensions, ULD build and shrink-wrap height matter for the final cost. A pallet that exceeds the height limit of an LD3 or LD7 unit load device gets reweighed at the higher volumetric figure.

Current Air Freight Rate Ranges by Lane

The following ranges reflect spot market prices in 2025 for general cargo, expressed in USD per chargeable kilogram. Off-peak figures sit at the low end. Peak season and disruption events push to the upper bound.

• Asia to North America: $4.00 to $6.00 average, $3.50 to $8.00 during China-US peak
• Europe to North America: $3.00 to $5.50
• Intra-Asia: $2.00 to $4.00
• Latin America to United States: $2.50 to $5.00

Two indices track these spot levels publicly. The TAC Index (Baltic Air Freight Index) reports weekly spot rates by major lane and is the reference benchmark used by airlines, forwarders and analysts. The Freightos Air Index (FAX) publishes a real-time spot rate from a marketplace dataset. Both indices are quoted in USD per kilogram.

For a comparison with ocean alternatives on the same trade lane, see China to US transit times.

What Drives Air Freight Rates Up and Down

Air cargo capacity is split between belly capacity in passenger aircraft and dedicated freighter capacity. Roughly half of global air cargo moves in the belly of widebody passenger flights. When passenger flying drops, belly capacity disappears and rates spike. The COVID-19 disruption of 2020 to 2021 grounded passenger fleets and pushed rates to five times normal on Asia to North America. The reverse also holds: when airlines restore passenger schedules, belly supply returns and rates compress.

The main drivers of weekly rate movement are:

• Belly versus freighter balance. Passenger flight cancellations remove belly capacity. Freighter additions and reactivations add capacity.
• Jet fuel price. The Fuel Surcharge tracks the Platts Jet Fuel index. A jet fuel rally adds dollars per kg to every airway bill.
• Peak season demand. August through October is the structural peak, driven by e-commerce inventory builds and Christmas retail.
• Holiday surges. Black Friday and Cyber Monday create a Q4 spike out of Asia. Chinese New Year shutdown causes a pre-holiday rush followed by a multi-week capacity gap. The Lunar peak after CNY pulls deferred volume forward.
• Modal shift events. The Red Sea diversions of 2024 pushed urgent ocean cargo to air, lifting rates on Asia-Europe and Asia-North America.
• Geopolitical routing. Russian airspace closure forced longer flight paths between Asia and Europe, raising fuel burn and unit cost.
• Aircraft retirement and reactivation cycles. 747-400F and MD-11F retirements removed widebody freighter capacity. New 777F and 777-8F deliveries add it back.
• Special cargo premiums. Pharma cold chain shipments on CEIV Pharma certified routes pay a premium for active temperature control and validated handling.

Spot Rates vs Contract Rates

Air freight pricing has two layers. Forwarders sign Block Space Agreements with airlines, committing to weekly tonnage on specific lanes in exchange for guaranteed allocation and lower per-kg rates. The forwarder then resells that capacity to shippers, either as a contract rate (fixed for 30, 60 or 90 days) or as an ad-hoc spot rate quoted at booking time.

Spot rates respond to weekly capacity. Contract rates smooth out volatility but include a risk premium. In a soft market, spot beats contract. In a peak or disruption, contract holders keep moving while spot shippers face rolled bookings.

Major Air Cargo Carriers

Global air cargo tonnage is concentrated among integrators and combination carriers. The top operators by annual freight tonne kilometers include FedEx Express, UPS Airlines, Qatar Airways Cargo, Cathay Pacific Cargo, Emirates SkyCargo, Lufthansa Cargo, Korean Air Cargo, Cargolux, Singapore Airlines Cargo, China Airlines Cargo, Atlas Air, ANA Cargo and Polar Air Cargo. Integrators (FedEx, UPS, DHL) operate door-to-door networks. Combination carriers (Lufthansa, Cathay, Emirates) move cargo in passenger belly plus dedicated freighter fleets. Pure cargo carriers (Cargolux, Atlas, Polar) operate freighters only.

When Rates Rise and When They Fall

Rates rise during pre-CNY rush in January, the August to October peak, Q4 e-commerce surges, fuel price rallies, passenger capacity cuts and modal shift events. Rates fall in February after CNY when factories are closed, in mid-Q2 after peak inventory has shipped and during fuel price slides. The structural floor on a major lane is roughly the marginal cost of operating a freighter. Below that level, carriers ground aircraft and capacity exits.

Air vs Ocean Container as Backup

For shippers comparing modes, the question is rarely air or ocean exclusively. It is which fraction of the shipment justifies the air premium. The article on whether you can air freight a container covers when full container equivalents move by air and what the chargeable weight math looks like at that scale.

Frequently Asked Questions

What is the average air freight rate per kg in 2025? General cargo on Asia to North America averages $4 to $6 per chargeable kilogram. Europe to North America runs $3 to $5.50. Intra-Asia is $2 to $4.

How is volumetric weight calculated? Length x width x height in centimeters divided by 6000 equals volumetric kg. The carrier bills the higher of volumetric and actual weight.

What is the TAC Index? The TAC Index, also called the Baltic Air Freight Index, publishes weekly spot rates by major trade lane in USD per kg. It is the standard benchmark for air cargo pricing.

Why do air freight rates spike during Chinese New Year? Factories rush production before the shutdown, demanding capacity. After the holiday, a Lunar peak follows as deferred orders ship. Together they create a 4-6 week rate spike.

What is the difference between FSC and SSC? FSC is the Fuel Surcharge, indexed to jet fuel prices. SSC is the Security Surcharge, a fixed per-kg charge covering cargo screening required by aviation security regulators.

For a live quote on any lane, see air freight services or visit ExFreight.