FLY777UAL
Topic Author
Posts: 4830
Joined: Tue May 18, 1999 3:49 am

Cargo Profit...how To Figure...

Tue Jan 01, 2002 2:24 pm

How does one figure the profits from cargo carried in the hold on commercial flights?

What are the standard costs/figures that are needed (looking for general, standard cost per pound, etc.).

More specifically, based on a 767-200 carrying 140 passengers, with all of their checked baggage (typical limit of 2 checked pieces not exceeding 62 linear inches nor 70lbs. each piece), how many pounds of air freight would the aircraft be able to carry, and how much money would be made off of air freight (based once again, on a standard rate)?

Would the revenue of the cargo carried be able to cover (or signifigantly off-set) the total operating costs for the round trip?

Any other information, websites, etc. would be greatly appreciated!

Thanks in advance,

F L Y 7 7 7 U A L
 
FLY777UAL
Topic Author
Posts: 4830
Joined: Tue May 18, 1999 3:49 am

RE: Cargo Profit...how To Figure...

Tue Jan 01, 2002 3:16 pm

Okay, so this is how I'm [roughly] figuring:

-24 LD-2 positions on 767-200, each holding approx. 120 cu ft. of cargo and 2,475 lbs. net weight/container (equal to 20 lbs. per cubic foot).

To get to how much passenger cargo you will have, consider the following: If each passenger (based on 140 passengers) checks two bags at 15"x20"x30" (not exceeding 65 linear inches or 70 lbs.), they will take up 1,459 cubic feet of cargo space, equivilant to 13 LD-2 containers.

To get to how much air freight volume/weight you have (after passenger cargo), consider the following: Volume limit, including bulk cargo is 3,070 cubic feet. If you subtract the 430 cubic feet from the bulk cargo, this gives you the total number of containerized cubic feet left, at 2,640 cu. ft. Subtract what the passengers take up (1,459 cu. ft), and you're left with 1,181 cubic feet of which you can use for containerised air freight (equivalent to 10 LD-2 containers). Add in the additional 430 cubic feet for bulk cargo, and total allowable air freight is 1,611 cu. ft..

So, based upon this information, this is how I am going about getting my figures for revenue calculation:
If each cubic foot is the equivalent to 20 lbs (20lbs/cu. ft), and I have 1,611 cubic feet left onboard, this gives me 32,220 lbs. of possible air freight with which to work. If you extrapolate a given cost, say, $4/lb (reasonable international rate), then the revenue on that air freight for one crossing would be $128,880.

Does anyone see any flaws with this? Am I going about my calculations correctly? Please help!  Smile

Thanks again,

F L Y 7 7 7 U A L

 
lutfi
Posts: 689
Joined: Wed Sep 27, 2000 6:33 pm

RE: Cargo Profit...how To Figure...

Tue Jan 01, 2002 4:42 pm

Packing density for cargo is 9-12 lbs/ cubic foot. Air cargo is usually fragile - lots of foam packing!

Transpacific cargo rates today are about 2.50 USD a kilo Asia- USA, and under 2 USD kilo USA-Asia

Transatlantic, figure lower, probably 1.50 USD a kilo
 
Billy
Posts: 890
Joined: Sun Jul 23, 2000 11:18 pm

RE: Cargo Profit...how To Figure...

Tue Jan 01, 2002 6:54 pm

Air freight rates are directional. Rates from Europe to the US are pretty low - less than $1/kilo. Lift on a 762 for freight is about (on average) 3 tonnes (we use tonnes here). Lift on a 763 can be as high as 15 tonnes for transatlantic sectors (on average). You can get higher but penalties start kicking in. Remember that it is hard to get similar revenues and volumes in two directions
 
FLY777UAL
Topic Author
Posts: 4830
Joined: Tue May 18, 1999 3:49 am

RE: Cargo Profit...how To Figure...

Wed Jan 02, 2002 6:07 am

Helps out a ton! Thanks so much, guys!

F L Y 7 7 7 U A L
 
Billy
Posts: 890
Joined: Sun Jul 23, 2000 11:18 pm

RE: Cargo Profit...how To Figure...

Wed Jan 02, 2002 7:27 am

UAL,

Get in touch directly if you want specific rates and cargo lift capacities.

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