Air Freight vs Sea Freight: Which is Best for Your Cargo?

Air Freight vs Sea Freight: Which is Best for Your Cargo?

What is more important to your supply chain? Is it freight rates or transit time? Will sustainability and green development be key metrics for your business? How much have you done in supply chain planning? We believe that answering these critical questions can help you decide whether to ship by ocean or air.

Regardless of the business, data information is definitely an important part of the equation. Choosing a transportation method for your business can be a complex decision, but it is also an important step in building a successful supply chain. The more information you have, the more likely it is that your goods will arrive on time and at the best possible price. But what are the practical factors to consider when it comes to making a decision? STU Supply Chain tells you some tips.

Table of Content:

Why Choose Sea Freight Shipping?

When is Air Freight the Right Choice?

Air Freight vs Sea Freight: Cost

Air Freight vs Ocean Freight: Transit Time 

Ocean Freight vs Air Freight: Type of Goods

Sea Freight vs Air Freight: Which Service to Choose

Shipping Tips for Air Freight and Ocean Freight

Why Choose Sea Freight Shipping?

Sea freight is a more common choice among shippers. In fact, air freight accounts for less than one percent of the weight of goods in international trade, but is worth more than a third by value of the goods. The reasons for this are as follows. 

Cost: While many factors can affect the total cost of shipping, sea freight generally has lower pricing. Shipping carriers calculate freight rates by volume of cargo or by container size (commonly 20 or 40 footers) than airlines who charge freight rates based on billed weight, which is affected by volumetric weight and gross weight. 

In general, sea freight is best suited for.

Large shipments or shipments with irregular package shapes: these shipments are difficult to load and unload in the aircraft

Heavy cargo: the weight will seriously affect the billed weight

Products that are not subject to a time limit or are not prone to wear and tear 

If the cargo is relatively light and small, the price difference between ocean and air freight can be closed a bit.

Environmental damage: Environmental protection is rapidly becoming a global concern and companies must begin to understand and reduce their carbon footprint.

According to the International Transport Forum, trade transport accounts for about 7 percent of global emissions. Under the "polluter pays" principle of U.S. environmental law, polluters are responsible for and pay compensation for damage caused to the environment. 

"The future of low-emissions freight lies in doubly optimized policies, fuel efficiency and innovations in systems, space and data. By 2050, technology will likely contribute to a 70% reduction in CO2 emissions. The rest will be solved with other different solutions, and this is where the most potential lies. " - International Transport Forum Secretary, General Jose Viegas.

Not only is shipping cheaper, but the environmental costs are also relatively low. According to calculations by the Massachusetts Institute of Technology, long-haul air freight produces 47 times the greenhouse gas emissions per ton-mile of sea freight. Replacing a percentage of air freight with sea freight would be a simple way to reduce carbon emissions and a critical step for businesses interested in sustainability.

When is Air Freight the Right Choice?

Speed: Air freight is certainly faster than sea freight. With sea freight, it can take up to a month for the cargo to reach the destination port and another three days to complete the unloading at the port. Depending on the transport distance, air freight generally takes only 36 hours to transport from origin to destination. The following situations would be reasons for using air freight services.

High value goods such as electronics and luxury goods: the more money a company spends on the production of the item, the faster the item will need to be brought to market to cover the cost of production

Niche or specialty products: Consumers often want to be able to purchase custom or specialty products in a short period of time

E-commerce and "fast fashion" items: Many retailers have a business model that allows them to manufacture to sell as fast as possible

Fresh, perishable goods: flowers or other perishable products must be shipped as quickly as possible 

Ease and reliability: Shorter transit times mean less worry. Typically, delays can occur by sea for days, weeks or even months, and by air for much faster. If you have a shipment by air that is delayed due to weather or other factors, you will usually be supported by an alternative route or flight within 24 hours. Once the shipment is loaded on the plane, the arrival time at the destination airport is relatively easy to manage, which makes it easier for you to coordinate the delivery of the last leg. 

In addition, most countries have simplified customs procedures and other paperwork requirements for airfreight. To better optimize the speed of airfreight, the process of pricing, booking and collecting documentation has become more straightforward and easier.

Next, we will compare the advantages of each of these two transportation methods for you to make a choice according to your needs.

Air Freight vs Sea Freight: Cost

For most businesses around the world, transportation costs are paramount. It is well known that ocean freight offers more capacity while being less costly of the two options. And air freight is faster and safer. But air freight is very expensive. For example, a package that costs $200 by sea can cost as much as $1,000 by air. That's why most professionals recommend using air freight when the cost is less than 15-20% of the value of the shipment.

That said, with ocean freight, when the package is small and less than a full container load, the cost is measured in cubic meters. In many cases, this is actually much more costly than air freight for the same package. This is why it is important to do thorough calculations and cost comparisons before choosing a shipping method.

Air Freight vs Ocean Freight: Transit Time 

While cost is the primary requirement, time is equally important. When it comes to time sensitivity, shipping by sea really isn't the best idea. Along with a long journey time, it's important to consider port hold-ups, customs and not forgetting weather conditions. Although there are new express shipping options, they still don't match the speed of air freight.

Air freight also promises predictability in a way that ocean freight does not. Departures and arrivals are predetermined, as are customs and border crossings. In this case, unpredictable delays are also significantly less important. Therefore, when it comes to speed, airfreight may be the better choice.

Ocean Freight vs Air Freight: Type of Goods

One of the key advantages of shipping by sea is that it can deliver the bulkiest of packages, hassle-free! Size and weight are areas where air freight can be limited. Air freight also comes with a long list of prohibitions and materials that are considered dangerous. For example, air freight restricts all items containing gases (such as light bulbs), all flammable items (including perfumes), all toxic and corrosive items (such as batteries), magnetic items (such as speakers), any items that pose a risk to public health, such as untanned leather, chemicals used for medicinal purposes, any packaging with a "Danger" symbol, etc. packaging, etc. This limits the use of air freight for several types of operations and makes ocean freight a more versatile option. 

Sea Freight vs Air Freight: Which Service to Choose

For goods with high requirements of timeliness, high value and light weight, air freight is the most suitable solution, such as electronic products, clothes, pants, shoes and hats, bags and leather goods, etc. (from 1kg by air).

In the case of high volume, low timeliness and low value, sea freight is a more cost-effective option, such as: heavy cargo, large cargo, machinery and equipment, air freight contraband, etc. (from 10kg by sea).

Shipping Tips for Air Freight and Ocean Freight

There are many factors that have pushed up air freight prices and created capacity constraints in 2022. Don't let the same issues affect your supply chain this year: when considering air and ocean freight slots, it is recommended to choose a reliable freight forwarder, especially one with strong carrier support. These forwarders usually have access to fixed slots on major trade routes from airlines and shipping lines.

We have entered the age of data. You should choose a freight forwarder that can support you with data, so you can communicate with them online anytime, anywhere, to solve all your problems. This will help you reduce costs, make smarter decisions, and get ahead of the curve in long-term supply chain planning. 

There are a myriad of factors that must be considered to determine the most appropriate mode of transportation for your shipments, and regardless of the size of your business, the key to a successful logistics solution is having a freight forwarder with a customer-focused mindset and a data-driven approach.

STU Supply Chain specializes in shipping from China to USA /  Canada / Mexico / Europe or worldwide.  We have the best alliances with many shipping carriers and airlines, we get lower contract rates than the market standard. This allows us to offer the most affordable freight forwarding service by sea or air freight, to be delivered safely and on time.

For STU Supply Chain: https://stusupplychain.com/air-freight-vs-sea-freight.html