Air Freight Questions

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AirFreight Questions

AirFreight Questions

Question1

  1. Total Actual weight of the consolidation

Actualweight = shipment 1 + shipment 2

=325 + 500 = 825 Kgs

  1. Total volume weight of the consolidation

Shipment1= 46cm x 46cm x 46cm x 14 =1,362,704 cm3

Convertingthe cm3to kg i.e. 1kg = 6000cm3

AirVolume Weight in cubic centimeters = 1,362,704 cm3÷6,000

AirVolume Weight in Kgs = 1,362,704 cm3÷6,000

= 227.11733 = 227.12 Kg

Shipment2= 36in x 18in x16in x 20 = 207,360 in3

Convertingin3to kg i.e. 1kg = 366in3

AirVolume Weight in Kgs = 207,360 in3 ÷366

=566.55738 = 566.56 kg

TotalAir weight = Shipment 1 + shipment 2

=227.12 + 566.56

=793.68 kg

Therefore,since the volume weight of the shipment is heavier than the actualweight we will use the volume weight and vice versa.

  1. Charges for each customer

Shipment1 total air weight to use = 325kgs

Cost= weight x unit cost

=325 x $2.75

=$893.75

Shipment2 totalair weight to use = 566.56kg

Cost= weight x unit cost

=566.56 x $2.64

=$1,495.72

  1. Payment to the air carrier

Shipment1 total air weight to use = 325kgs

Cost= weight x unit cost

=325 x $2.24

=$728

Shipment2 totalair weight to use = 566.56kg

Cost= weight x unit cost

=566.56 x $1.90

=$1,076.46

  1. Profit on the shipment

Shipment1Profit = $893.75- $728 = 165.75

Shipment2:Profit = $1,495.72 – 1,076.46 = 419.26

TotalProfit on shipment = $165.75 + $419.26

=$585.01