Cargo values!

pete999 · Post by **pete999** » Mon Jan 08, 2007 10:52 pm

Hi all

At Euro Link we have found a strange value for cargo!

The shorter the journey the more the client charges for the cargo

I.e EGNM-EDIW was $1.06 200nm

and KJFK-EGCC was $0.05 2500nm

For some reason these should be the other way around as you are flying many more miles then the first one.

We think that the further the cargo goes the more it should cost the customer i.e

UPS charge £170 to delivery a parcel from London to Leeds. The weight was 70kg!

Post by **joefremont** » Mon Jan 08, 2007 11:59 pm

Those rates are per 100nm, plus the KJFK-EGCC flight was probably using a larger aircraft. The more cargo you carry and the farther you carry it the less you get per kg and per mile, but you will make more over all than shorter flights with smaller AC. The exact formula is one of Konnys secrets.

pete999 · Post by **pete999** » Tue Jan 09, 2007 5:06 pm

Well that dont make sense at all the further you carry it the MORE it should cost

so you telling me two flights from EGLL

1 EGLL EGKK

2. EGLL VHHH (hong kong)

So the hong kong should be more shouldnt it!

CAPFlyer · Post by **CAPFlyer** » Tue Jan 09, 2007 6:17 pm

Cargo prices are very inconsistent, even in the real world. What is being simulated here is the price that the airlines get for freight. They make more on the non-trunk routes than they do on the mainline (trunk) routes. Your long route (EGLL - VHHH) is a trunk route and thus gets less per kilogram but becuase of the distance gets more because of the greater volume carried on the aircraft flying that route. The shorter route pays more per kilogram because that flight is usually carried out by vehicle so you'll be charged more to fly the cargo that short of a route, but the airline won't make as much overall because the airplane flying that route can't carry as much cargo even with the higher pay for it.

Post by **joefremont** » Tue Jan 09, 2007 6:36 pm

Ok, some examples:

A DC3 flight from EGLL to EGCC carried 1333kg for 2110v$ the rate is 1.20v$/kg/100nm.
A VC15 flight from EGLL to EGCC carried 7650kg for 6585v$ the rate is 0.66v$/kg/100nm.
A B744 flight from EGCC to EGLL carried 24931kg for 10209v$ the rate is 0.31v$/kg/100nm.

The rate per kg is lower but the total v$ is higher, and:

A B744 flight from EGLL to VHHH carried 24931kg for 59487v$ the rate is 0.05v$/kg/100nm.

Again the rate is lower but the total v$ is higher.

I am not very happy that the cargo rate is so unpredictable and there is no way to tell what your cargo income will be before the flight, but I don't think its an unfair result. I would like to see some system where the cargo rate is linked to the ticket price but I think more research on how cargo rates are calculated in the real world would be needed.

Redhmt · Post by **Redhmt** » Tue Jan 09, 2007 8:33 pm

Could'nt we just set our own price as we can with pax?

Phil

pete999 · Post by **pete999** » Tue Jan 09, 2007 9:01 pm

Yea I think this would work.

And its easy to do!

CAPFlyer · Post by **CAPFlyer** » Tue Jan 09, 2007 9:06 pm

Problem is, the airlines aren't usually the ones who set the price. They have contracts with different shippers who set the price and the airline gets whatever is specified by the contract for that route. So the airline has little control over how much they make unless they're flying their own cargo (again something not the standard).

fourstar_vac · Post by **fourstar_vac** » Sat Feb 17, 2007 10:26 pm

CAPFlyer wrote:Problem is, the airlines aren't usually the ones who set the price. They have contracts with different shippers who set the price and the airline gets whatever is specified by the contract for that route. So the airline has little control over how much they make unless they're flying their own cargo (again something not the standard).

But I think we must be able to determine the cargo price. This brings us additional abilities (this can be the exact solution of one of my problems - see my "empty flight" topic -.

Post by **Quantum** » Sun Feb 18, 2007 12:15 pm

Hi,

In the real world bulk carrying is cheaper than small loads. The big Boeings and Airbus aircraft are bulk carriers so you would expect the rate per kg to be lower. A formula has been set by Konny that takes into consideration the capacity of the aircraft and the distance it is carried. The larger the capacity of the aircraft, the price per kg reduces. Also, the shorter the distance the higher the revenue per kg. Overall, things seem to balance reasonably well. The mystery is that we don't know what the revenues will be until after the flight. I believe Konny is going to try and get the cargo revenues onto the briefing document so that we can work out the revenues for any flight beforehand.

And PLEASE, all remember that any passengers carried on any flights will reduce the available cargo capacity on that aircraft by 25kgs per passenger to allow for their baggage.

Rgds

John