Airline Terminal Fees: A Comprehensive Guide

If you’re an exporter fulfilling customer needs across nations, air shipping might be one of the most suited international shipping options for you. However, you may be unaware of certain aspects like airline terminal fees. It’s important to understand these intricate details to better manage your air cargo shipping. 

Airline terminal fees are the charges you pay for the processing and handling of air cargo, which covers services like labour, lifting equipment, storage, and container use. These fees apply to departure and destination airports.

Types of Airline Terminal Fees

There are two main types of airline terminal fees: Origin Airline Terminal Fee and Destination Airline Terminal Fee.

Origin Airline Terminal Fee

The origin airline terminal fee is charged at the departure airport for your air cargo. It involves several critical steps in the cargo handling process. These include weighing the cargo to ensure it complies with weight restrictions and balance requirements, inspecting the goods to verify their condition and compliance with regulatory and safety standards, and the labour-intensive task of loading the cargo onto the aircraft with precision and care to avoid damage.

Moreover, this fee includes the preparation and provision of all necessary shipping documents, like the air waybills and export declarations.

Destination Airline Terminal Fee

On the other hand, the destination airline terminal fee is applicable at the arrival airport and covers the process of unloading the cargo from the aircraft and transferring it to storage areas. This fee also includes inspecting the cargo upon arrival to ensure it’s undamaged or in perfect condition and meets all import regulations. 

It provides for the temporary warehousing of goods until the consignee picks them up or they’re further transported to their destination. The fee also covers the charge for handling necessary paperwork to clear customs for smooth and fast delivery of goods.

Factors Affecting Airline Terminal Fees

Airlines take many cost components into account when deciding on final fees for the service. This list includes fuel costs, maintenance and overhead costs, labour expenses, aircraft leasing, and depreciation. Considering these charges is important for airlines to set fair pricing to cover their operational expenditure and maintain profit margins. 

Here are some of the key components that add up to make airline terminal fees:

• Labour Expenses

There are many tasks like weighing, inspecting, and loading items onto the aircraft which require manpower. Airlines include these charges in their fees to cover the cost of workers or labour who skillfully handle, and process the cargo and take care of the documentation. 

• Lifting Equipment

Your cargo moves in specialised lifting equipment, like forklifts and cranes, if it’s a heavy or bulky shipment. It requires money to execute this operation and maintain the special lifting equipment to carry cargo. Hence, there’s a charge for the same included in your airline terminal fees. 

• Container Fees

The shipping personnel may need airline containers to transport your cargo. The airlines mostly use these containers to protect your products from any potential damage on the way. In such cases, there’s an additional fee for the same. 

• Storage Charges

The airlines need to store your products before loading them onto the aircraft and after they land at their destination. They also maintain a secure and climate-controlled environment for fragile or sensitive goods. So, they charge you warehousing fees under the airline terminal fees to stock up your goods and keep them safe. 

• Necessary Documentation

It takes a lot of paperwork to get your air freight through, including air waybills and customs paperwork, for compliance with international shipping regulations. Airlines also charge a sum, in the total airline terminal fees, for processing these necessary shipping documents.

Since you now understand the components that influence your airline terminal fees, it’s a good idea to get a grip on how it’s calculated.

How Airline Terminal Fees are Calculated

The construct of the airline terminal fee structure is complicated and airlines calculate it keeping several aspects in mind, like: 

• Cargo Weight or Volume

The weight or volume of your shipment is an essential factor for airlines when they’re calculating the airline terminal fees. Airlines or airports may have premeditated rates per cubic metres (m³) or kilogram (kg) to set the charges for your cargo. So, a heavier shipment will naturally cost more and vice versa. 

• Value of Items

In many scenarios, the value of your goods being transported determines the total airline terminal fee you’ll pay. This approach is a staple for high-value items, where the percentage of the declared value of goods makes the airline terminal fee. It ensures that the charges collected are proportionate to the potential liability and the level of service needed to handle your valuable cargo.

High-value items require additional security measures, specialised handling, and sometimes expedited processing for their safety and timely delivery. These requirements spike up the operational costs for the airlines. For example, valuable electronics, luxury goods, and precious metals often entail higher terminal fees than standard cargo.

• Charge Per Cargo Unit

The airline may have a fixed charge per unit of cargo, which then becomes the base for calculating the airline terminal fee. There are different ways in which airlines charge this per unit fee.

• Per Piece: Many airlines and airports charge a fixed fee for individual items or packages. They commonly use this method for smaller, more manageable shipments where each item is counted and billed separately.
• Per Container: You may have to pay a fixed fee per container for larger shipments, especially for the ones consolidated into containers. This approach helps airlines or airports handle bulk cargo efficiently, streamline the fee calculation process, and have consistency in charges for containerised goods.
• Per Pallet: Palletised shipments, where airlines stack up goods and secure them on pallets, may incur a fixed fee per pallet. It’s a win-win for both the airline and the shipper since it simplifies handling and helps move and store cargo easily.

Additional Services

Airports or airlines may give you some specific or value-added services, if needed, like specialised handling, perishable or fragile goods storage, or managing hazardous materials. These services incur extra charges and add up to your final airline terminal fee. 

Understanding the Impact of Airline Terminal Fees

Airline terminal fees have a dramatic influence on the overall cost structure of carrying air freight. Airlines or airports pass on all the charges for using their terminals and facilities to shippers through this payment. Many factors, like the airport’s location, infrastructure, and amenities they offer can affect what you pay for the air shipping services. 

High terminal fees can increase your shipping cost, making it less affordable and affecting your paying capacity. Although it’s a necessary step to levy this charge to efficiently handle cargo during, before, and after the transit, it adds up to the total air freight shipping cost. However, you can manage these expenses and potentially reduce airline terminal fees by negotiating with airlines for discounts or better terms, especially for regular or bulk shipments. Another good approach is consolidating smaller shipments into larger ones to lower the frequency of fees. 

Moreover, with proper planning and scheduling you can minimise warehousing fees by reducing the time cargo stays in storage. Plus, if you choose efficient routes with fewer stopovers and direct flights, it can reduce handling fees at intermediate airports for you.

Conclusion

Airline terminal fees are an integral part of your air freight shipping costs, which come with the essential services required to effectively manage and process your cargo throughout the shipping voyage. 
When you have a deep understanding of these charges and how they impact the overall shipping rates, it gives you the time and important insights to prepare for that air cargo shipping budget accordingly. When you ship your goods with an efficient logistics service provider like CargoX, you don’t have to worry about managing all the shipping-related charges. They will negotiate various fees like customs clearance costs and airline terminal charges to effectively optimise your logistics operations and cut down your expenses.