Strategic Framework for Maximizing Air Freight Efficiency and Minimizing Costs
Small and medium Vietnamese exporters face a frustrating reality: air freight rates quoted by airlines
Air cargo consolidation levels this playing field. By combining your shipments with others’ through
This guide explains how air cargo consolidation works, quantifies savings opportunities, shows you how
Airlines price air freight based on volume—the more you ship, the better your rate. This creates a The consolidation advantage: Freight forwarders aggregate cargo from dozens of Example rates for Ho Chi Minh City to Los Beyond rate savings: Consolidation forwarders handle documentation, customs
1. Multiple exporters book with forwarder: You and other exporters book shipments with
2. Cargo collection: The forwarder collects your cargo at their consolidation warehouse
3. Documentation and sorting: The forwarder issues you a House Air Waybill (HAWB)—your
4. Physical consolidation: Multiple shipments are loaded onto pallets or into
5. Master booking with airline: The forwarder books space with the airline as one large
6. Air transport: The consolidated shipment flies to the destination airport. Your
7. Deconsolidation at destination: At the destination airport, the forwarder (or their
Your House Air Waybill (HAWB): This is your shipping document. It shows you as shipper,
Master Air Waybill (MAWB): The forwarder’s document with the airline covering the
What this means for you: You’re not directly booking with airlines—you’re booking with
Large freight forwarders ship thousands of tons monthly on each major route. This volume qualifies them
Airlines impose minimum charges—often $150-300 per shipment regardless of weight. A 20kg shipment at Example impact:
Air freight involves fixed costs per shipment: documentation preparation, customs filing, terminal
Forwarders route via the most efficient hubs based on their airline relationships. They might route Ho
Understand consolidation schedules: Most forwarders consolidate on regular
Batch smaller orders: Instead of shipping each customer order individually as it’s
Trade-off consideration: Batching adds 1-2 days to the Monday order’s lead time. For
Air freight rates tier by weight brackets: +45kg, +100kg, +300kg, +500kg, +1000kg. Each bracket offers Example calculation:
Airlines charge on whichever is greater: actual weight or volumetric weight. Volumetric weight = (Length Minimize packaging size:
Volume commitment for better rates: If you can commit to consistent monthly volume
Consolidate routes with one forwarder: Rather than using different forwarders for
Pay promptly and professionally: Forwarders value customers who pay invoices on time, 1. Rate competitiveness and transparency: 2. Route coverage and consolidation frequency: 3. Service quality and reliability: 4. Destination network strength: 5. Technology and visibility: 6. Financial stability and credentials:
Vietnam-based forwarders: Strong Vietnam origin operations, understand Vietnamese
International forwarders: Global networks, strong destination capabilities, advanced
Best option often: Vietnamese forwarder with strong international partnerships,
Always check references before committing significant volume to a forwarder. Ask for 2-3 current
Consolidation typically adds 1-2 days compared to direct airline booking: consolidation wait time (if When this matters: For ultra-urgent shipments where every day counts, direct airline or When it doesn’t matter: For most commercial shipments, 1-2 days additional transit is
Consolidation involves more handling: initial receipt at origin CFS, consolidation onto pallets/ULDs, Mitigation strategies:
With consolidation, you depend on the forwarder’s performance and financial stability. If a forwarder Risk management:
When comparing consolidation vs. direct airline vs. other modes, calculate total landed cost including
If you ship to multiple nearby destinations (e.g., multiple European cities or US cities), consider hub When beneficial: Shipping small quantities to 3-5 nearby destinations. Consolidating to
E-commerce generates many small packages ideal for consolidation. Specialized e-commerce forwarders Benefit: You ship in bulk to forwarder, they handle last-mile complexity. Dramatically
The same consolidation principles apply to imports. If you import from multiple overseas suppliers, Cost savings: Similar 30-50% savings vs. each supplier shipping individually. Also
Air cargo consolidation transforms air freight economics for small and medium Vietnamese exporters. By
Success with consolidation requires selecting quality forwarders, optimizing shipment timing and
At Everbest Logistics, we operate regular air freight consolidations from Vietnam’s major airports to
often price them out of fast shipping. A 100kg shipment might cost $6-8 per kilogram when booking
directly with airlines—economically unviable for many products. Yet larger competitors shipping 1,000+
kg per month access rates of $3-4 per kilogram, giving them decisive cost advantages.
freight forwarders, you access the same volume discounts large shippers enjoy—typically reducing costs
by 30-60% compared to direct airline booking. A 100kg shipment that would cost $600-800 direct might
cost $350-450 consolidated. For exporters shipping 500-2,000kg monthly, consolidation savings of
$3,000-10,000 per month are common, directly improving margins and competitiveness.
to select quality freight forwarders, and provides strategies to maximize consolidation benefits while
managing the trade-offs.
Important: Consolidation rates, transit times, service quality, and forwarder
reliability vary significantly by route, forwarder, season, and market conditions. Consolidation
introduces additional handling points and may add 1-2 days compared to direct flights. Freight forwarder
financial stability, insurance coverage, and liability limitations affect your risk exposure. This guide
provides general consolidation concepts and strategies but cannot replace professional freight
forwarding consultation for your specific products, routes, volumes, and service requirements. Always
verify current rates, transit times, and terms with multiple forwarders before committing to
consolidation services. Last updated: November 2025
Why Consolidation Is Critical for SME Exporters
structural disadvantage for small exporters. Airlines charge minimum fees ($150-300 per shipment
regardless of weight), apply high per-kilogram rates to small shipments, and reserve their best rates
for customers shipping 1,000+ kg weekly.
exporters, creating shipment volumes that qualify for airlines’ best rates. They pass these savings to
individual shippers (while retaining a margin). You get volume rates without shipping volume yourself.
Shipment Weight
Direct Airline Rate
Consolidation Rate
Savings
50kg
$350 ($7.00/kg effective)
$210 ($4.20/kg)
$140 (40%)
150kg
$780 ($5.20/kg)
$540 ($3.60/kg)
$240 (31%)
300kg
$1,350 ($4.50/kg)
$990 ($3.30/kg)
$360 (27%)
Angeles route. Actual rates vary by route, season, and forwarder. Consolidation rates typically
30-50% lower than direct airline for shipments under 500kg.
coordination, tracking, and destination delivery—services you’d otherwise arrange separately. This
bundled service often costs less than piecing together separate providers while simplifying your
operations.How Air Cargo Consolidation Works
The Consolidation Process Step-by-Step
the same freight forwarder for similar destinations and timeframes.
(called a Container Freight Station or CFS), typically located near the airport. You deliver cargo there
or arrange pickup.
shipment document. They sort and organize multiple shipments going to the same destination or nearby
destinations.
containers (Unit Load Devices – ULDs for air cargo). Everything going on one flight is consolidated
together.
shipment under a Master Air Waybill (MAWB). The airline sees this as a single shipment from the
forwarder, not individual exporters.
cargo travels alongside others’ cargo, all under the forwarder’s master booking.
destination agent) separates individual shipments, customs clears each one, and arranges delivery to
final consignees.
Documentation: House vs. Master Air Waybills
your customer as consignee, your cargo details, and the forwarder as carrier. You use this for customs
clearance and delivery. The HAWB number is your tracking reference.
entire consolidated shipment. The airline issues this to the forwarder. Multiple HAWBs are “under” one
MAWB. You typically don’t see the MAWB—it’s between the forwarder and airline.
the forwarder who handles airline relationships. This simplifies your operations but means you depend on
the forwarder’s performance and reliability.
Understanding Where Savings Come From
Volume Discount Pass-Through
for substantial airline discounts—typically 20-40% below published airline rates. Forwarders pass much
of this discount to you (while keeping a margin for their services). You effectively “rent” their volume
purchasing power.
Elimination of Minimum Charges
$5/kg should cost $100, but you pay the $250 minimum ($12.50/kg effective rate). With consolidation, the
forwarder absorbs minimums across the entire consolidated shipment. You pay closer to the actual
per-kilogram rate.
Shared Fixed Costs
handling, and airline processing fees. When booked direct, you bear all these costs. In consolidation,
these costs are shared across dozens of shipments, dramatically reducing per-shipment cost.
Optimized Routing
Chi Minh City → Dubai → London if they have excellent rates via Dubai, while direct HCMC → London might
be more expensive. This flexibility to optimize routing reduces costs while maintaining competitive
transit times.
Strategies to Maximize Consolidation Savings
Timing and Batching Optimization
schedules—twice weekly, three times weekly, or daily to major destinations. Know these schedules and
plan shipments accordingly.
ready, batch orders over 2-3 days for one consolidated shipment. Example: You receive orders on Monday
(50kg), Tuesday (40kg), and Wednesday (60kg). Rather than three small shipments, batch into one 150kg
shipment Wednesday. You save on per-shipment costs and may reach a better weight bracket.
most products, this is acceptable for 25-35% cost savings. For ultra-time-sensitive shipments, evaluate
case-by-case.
Weight Break Awareness
progressively lower per-kilogram rates. If your shipment is near a weight break, consider whether you
can combine shipments or add products to reach the next bracket.
Packaging Optimization to Reduce Volumetric Weight
× Width × Height in cm) ÷ 6000. Bulky, lightweight packages can be charged on volumetric weight much
higher than actual weight.
Volumetric weight example:
50kg cargo in 80×60×50cm box = volumetric 40kg → charged on 50kg actual ✓
Same 50kg in 100×80×70cm box = volumetric 93kg → charged on 93kg ✗
Difference: 43kg × $3.60/kg = $155 extra cost just from poor packaging
Build Strategic Forwarder Relationships
(e.g., 500kg-1,000kg monthly), negotiate contracted rates with forwarders. They’ll offer better rates in
exchange for volume predictability.
different destinations, consolidate your business with 1-2 preferred forwarders. Your total volume
across all routes increases your leverage for rate negotiations.
provide accurate documentation, and communicate clearly. Good customers get priority service and
occasional rate considerations.
Selecting the Right Freight Forwarder
Critical Selection Criteria
clearance)
fees)
Vietnam-Based vs. International Forwarders
export procedures, local language support, competitive origin charges. May have weaker destination
networks or less global scale.
technology systems, large airline contracts. May be more expensive, less Vietnam-specific focus.
combining local expertise with global network reach. Or use international forwarder with established
Vietnam operations.
References and Due Diligence
customer references in your industry shipping similar products to similar destinations. Contact them and
ask about rate competitiveness, service quality, problem resolution, and whether they’d recommend the
forwarder.
Best practice: Start with trial shipments on less critical routes or non-urgent orders.
Test forwarder performance on 3-5 shipments before committing to contracts or shifting major volume.
Monitor transit times, damage rates, documentation accuracy, and customer service quality during trial
period.
Managing Consolidation Trade-Offs
Transit Time Considerations
you miss a consolidation cut-off, you wait for the next one), and deconsolidation time at destination
(separating shipments, processing through destination warehouse).
air express (DHL, FedEx) may be worth the premium despite higher cost.
acceptable for 30-50% cost savings. Total door-to-door time is still typically 5-8 days for major
routes—fast enough for most businesses.Additional Handling Points
deconsolidation at destination CFS, and delivery from CFS. More handling means slightly higher risk of
damage compared to direct airline handling.
Forwarder Dependency
fails financially, your cargo could be stuck. If they provide poor service, your reputation with
customers suffers.
Calculating Total Landed Cost
All-In Cost Components
all components:
Cost Component
Typical Range
Notes
Origin charges
$25-60 per shipment
Pickup, warehouse handling, documentation
Air freight
$3-7/kg depending on route, volume
Main cost component, varies significantly
Fuel surcharge
10-25% of air freight
Fluctuates with fuel prices
Security fees
$10-30 per shipment
Airport security screening
Destination charges
$60-150 per shipment
Deconsolidation, customs clearance, delivery
Insurance
0.3-0.5% of cargo value
All-risk cargo insurance
Duties/taxes (if DDP)
Varies by product and country
Only if you’re paying (DDP terms)
Watch for hidden charges: Some forwarders quote attractive air freight rates but add
high origin/destination charges. Always request all-in quotes and compare total cost, not just the
per-kilogram air freight rate.
Advanced Consolidation Strategies
Multi-Destination Hub Consolidation
consolidation: consolidate from Vietnam to a major hub (Hong Kong, Dubai, or destination region hub),
then distribute from hub to final destinations.
one hub and distributing from there often costs less than separate direct shipments to each destination.
E-Commerce Consolidation
offer end-to-end services: collect from your warehouse, consolidate, air freight to overseas hub, and
distribute to individual consumers.
reduces per-package shipping cost compared to individual international shipments.Reverse Consolidation for Imports
consolidate their shipments through a forwarder. The forwarder collects from multiple suppliers,
consolidates, ships to Vietnam, and delivers to you.
simplifies your receiving operations (one consolidated shipment vs. many small ones).Unlock Air Freight Cost Savings Through Consolidation
accessing volume rates through freight forwarders, you can reduce air freight costs by 30-60% compared
to direct airline booking—making air freight viable for more products and markets. For exporters
shipping 500-2,000kg monthly, consolidation savings of $3,000-10,000 per month directly improve
profitability and competitive positioning.
packaging, understanding total landed costs, and managing the trade-offs between cost savings and
transit time. Start with trial shipments, monitor performance closely, and build strategic relationships
with 2-3 quality forwarders who serve your key routes.
global destinations. Our volume with airlines and destination networks enable competitive rates, and our
consolidation experience ensures smooth handling and reliable transit times. We can help you evaluate
whether consolidation fits your shipping patterns and develop optimized consolidation strategies.