CargoWise ERP Glossary - Key Terms & FAQs

Our CargoWise ERP Glossary Terms provide clear, concise definitions of key terms used in CargoWise, helping users navigate the system with confidence. Along with these definitions, we've included in-depth FAQs to clarify complex concepts, ensuring you get the most out of your CargoWise solutions.

Load Factor in Air Freight

Last updated: July 23, 2025
Logistics CargoWise
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The load factor in air freight is a crucial ratio that indicates how effectively available cargo space on an airplane is used. It is determined by dividing the volume or weight of cargo carried by the airplane by the overall cargo capacity. A higher load factor shows that a greater percentage of available space is being utilized, which increases overall operational efficiency. This statistic is especially essential for air cargo carriers because it has a direct impact on profitability and cost efficiency.

CargoWise integrates the load factor into its cargo management tools, allowing logistics organizations to track and optimize cargo space consumption. Businesses can increase their profitability by assessing the load factor and identifying underused capacity. This data-driven strategy enables air freight operators to make better decisions about pricing, scheduling, and capacity management. Optimizing load factors keeps air freight operations competitive while decreasing waste and transportation costs.

Frequently Asked Questions

Why is the load factor so crucial in air freight?

The load factor reveals how efficiently cargo space is used. A higher load factor ensures better use of available space, resulting in more cost-effective operations and larger profits for air freight carriers.

How is the load factor calculated?

The load factor is computed by dividing the actual weight or volume of cargo by the entire airplane's capacity. The outcome is usually represented as a percentage.

Can CargoWise help you optimize load factors?

Yes, CargoWise delivers data and analytics to assist air freight firms in monitoring and optimizing load factors, ensuring that cargo capacity is utilized efficiently and operational costs are reduced.

What effect does a low load factor have on airline freight?

A low load factor indicates unused cargo space, resulting in greater transportation costs per unit of goods. Inefficiency can impair profitability and competitiveness in the air freight sector.

What impact do load variables have on air freight pricing?

A high load factor may enable air freight companies to offer competitive pricing due to improved capacity utilization. In contrast, low load factors may result in a higher price to cover operational costs, affecting client demand.