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Factors Affecting Carrying Fees on AirJIT

Key elements that influence the carrying fees for parcels on AirJIT

Distance and Weight​

Distance​

  • The distance between the origin and destination significantly impacts the carrying fees. Longer distances result in higher fees to compensate for the increased travel time and effort.
  • Example: Carrying a parcel from JFK (New York) to SNG (Singapore) will incur a higher fee than carrying a parcel from JFK (New York) to LHR (London).

Weight​

  • Heavier parcels require more effort and take up more luggage space, leading to higher carrying fees.
  • Example: A parcel weighing 20 kg will have a higher carrying fee than a parcel weighing 5 kg due to the increased burden on the traveler.

Quantity Discounts​

  • While heavier parcels incur higher fees overall, the cost per unit of weight decreases for larger shipments.
  • This quantity discount incentivizes travelers to carry heavier parcels by offering better rates per kilogram.
  • Example: Carrying a 20 kg parcel might cost $100 ($5 per kg), whereas carrying a 10 kg parcel might cost $60 ($6 per kg). Although the total fee is higher for the heavier parcel, the cost per kilogram is lower.

Route and Stops Complexity​

Route Complexity​

  • More complex routes that involve multiple connections or layovers increase the carrying fees due to the additional logistics and time required.
  • Flying over long distances, especially over oceans, will also have higher fees due to increased fuel and logistical costs.
  • Example: A route from JFK (New York) to SNG (Singapore) with multiple stops and long over-ocean segments will have higher fees than a direct flight from JFK to SNG.

Number of Stops​

  • Each additional stop adds to the complexity and cost of the journey, resulting in higher carrying fees.
  • Example: A trip from JFK (New York) to DXB (Dubai) with three stops will incur higher fees than a direct trip from JFK to DXB.

Airport and Customs Complexity​

Airport Complexity​

  • Airports with higher security and regulatory requirements may increase the carrying fees due to the additional time and effort required for compliance.
  • Example: Airports like LHR (London) with stringent security measures or high traffic volumes may have higher fees.

Customs and Regulatory Complexity​

  • Parcels that require additional customs handling or regulatory compliance increase the carrying fees.
  • Example: Items that need special customs clearance at DXB (Dubai) or SNG (Singapore) will result in higher fees.

Supply and Demand Factors​

Dynamic Pricing​

  • Carrying fees are dynamically adjusted based on supply and demand on particular routes.
  • High parcel demand or low travel supply periods may result in increased fees to incentivize more travelers to carry parcels.
  • Example: During off travel seasons or on less popular routes, carrying fees may be higher.

Supply and Demand Balance​

  • Conversely, carrying fees may decrease during periods of low parcel demand or high supply of travel to attract shippers to ship their parcels.
  • Example: During peak seasons or on popular routes, carrying fees may be lower.