Transportation Operations LINCS Practice Exam

Which pricing method is most often used for air freight?

1. Dimensional factor pricing

2. Flat rate pricing

3. Zone pricing

4. Consolidation pricing

The correct answer is: Dimensional factor pricing

Dimensional factor pricing is commonly used in the air freight industry because it takes into account both the weight and the volume of the cargo. This pricing method ensures that customers pay for the space their freight occupies in the aircraft, as well as the weight, which can significantly impact shipping costs. In air freight, where space is limited and air cargo rates can be high, determining the dimensional weight helps in providing a fair and accurate rate. The formula typically involves calculating the dimensional weight by multiplying the dimensions of the cargo and then comparing it to the actual weight to charge based on the higher of the two. Understanding dimensional factor pricing is essential for shippers and logistics professionals, as it encourages efficient packing and optimal use of space, which are critical in maintaining cost-effectiveness in air transport. This method also aligns with the nature of air freight, where both weight and space utilization are crucial for operational efficiency. Other pricing methods, while useful in different contexts, do not specifically address the unique considerations of air freight as effectively as dimensional factor pricing does.