What Is Air Freight Palletization Fee?

“Today I ran into a pretty typical situation. After getting my air freight export quote, a client immediately said: ‘Why are you two cents more per kilo than the other guy?’

I told him straight up: ‘Those two cents are the palletization fee for heavy cargo. Go ask the other guys if that’s included in their price.’

When the client asked, the competitor said palletization fees are ‘charged as incurred’… Isn’t that basically a hidden fee trap? When we quote, we believe in full transparency — so everyone can calculate their costs properly and avoid disputes later.”

So today, let’s talk about what this ‘palletization fee’ in air freight actually is.

Simply put, it’s when your cargo is too heavy, too large, or irregularly shaped. For flight safety, ground handling staff need to place wooden boards or timber underneath your cargo for reinforcement. The labor and material cost is the ‘palletization fee.’

So what kind of cargo is most likely to trigger this fee? There are three main categories:

First, extremely heavy cargo. For example, single pieces of iron exceeding 150 kg — without palletization, neither the ULD (Unit Load Device) nor the cargo compartment floor can handle the weight.

Second, irregularly shaped items that are hard to secure. For example, machinery with uneven bottoms or wheels — you can’t tie it down properly without raising it on pallets.

Third, oversized cargo. When length or width exceeds limits, it blocks the locking slots on the pallet that are used for securing, so the cargo must be raised before it can be properly secured.

How is this palletization fee calculated? There are two main methods:

Either simply by the number of pallets used — ranging from tens to a couple hundred per pallet.

Or based on your cargo’s chargeable weight — adding a few cents to a few dollars per kilogram.

So how can you save on or reduce this cost? Here are three tips:

1. Get the packaging right from the start. Use standard, sturdy wooden or plastic pallets directly. In many cases, this meets airline requirements and saves them the hassle and cost of a second operation.

2. Split large shipments sensibly. If conditions permit, you can break one oversized piece into several compliant smaller pieces. Of course, you need to calculate the repackaging costs and any additional fees — don’t end up losing more than you save.

3. The most important tip: communicate in advance! Before shipping, provide your freight forwarder with the exact dimensions, weight, and shape of your cargo. Ask clearly: ‘For this flight, will palletization be needed? How is it charged?’ Be informed and keep your costs under control.

In summary, the palletization fee is a reasonable and necessary additional handling charge in international air freight. It’s there for flight safety and to protect your cargo. After all, if inadequate securing causes damage to a ULD or the cargo compartment, the resulting claims would far exceed the few hundred in palletization fees.

I’m Lao Tao in international logistics. Got any other industry knowledge you’d like to learn about? Let me know in the comments.