Air Freight or Sea Freight? How Should You Choose?
Businesses dealing with international shipments often face a dilemma when choosing between Sea Cargo and Air Cargo. Though both serve the same purpose, they are distinct from each other. The choice between them is highly conditional, with significant differences in cost and time. It’s an endless debate about which one is better. Each comes with its own advantages and disadvantages, forcing companies to use a mix of both, respecting delivery dates and budgets. To help with the decision-making process of air freight vs. sea freight, consider the following factors:
- Shipment Volume: Air freight is generally suitable for smaller volume shipments. Sea freight can be more economical for transporting large volume and heavy loads.
- Delivery Time: Air freight provides a faster delivery time, while sea freight takes longer. For urgent shipments, air freight is preferred; for shipments without time pressure, sea freight can be more economical.
- Cost: In general, sea freight is a more economical option compared to air freight. However, factors like transit time and distance to the destination can influence the cost.
- Reliability: While air freight is faster, it can sometimes be delayed due to weather conditions and other operational factors. Sea freight is a more reliable option but is more prone to delay.
- Protection and Safety: Air freight can better protect shipments and provides tighter security. In sea freight, with more space available, large and delicate loads can be better protected.
In conclusion, it’s vital for businesses to make the best decision, taking into account both dates and budgets, using both air and sea freight. These factors should be considered in the decision-making process, analyzing which type of cargo is most suitable for a particular shipment.
Cost
For most businesses globally, cost is paramount in shipments. It’s a well-known fact that sea transport offers more capacity and is cheaper. Air transport is faster and more reliable but comes at a high price. For example, a package that costs $200 by sea can go up to $1000 by air. Therefore, most professionals recommend choosing air transport when the value of the goods is less than 15-20% of the cost. However, for sea transport, if it’s a small package that doesn’t complete a container load, the cost is calculated by cubic meter. In many cases, this can actually be more expensive than air freight. Therefore, it’s essential to perform a detailed calculation and cost comparison before choosing the type of shipment.
Time
While expenses are a critical factor, time sensitivity is equally important. When time sensitivity is in question, sea transport is not the best idea. Besides the long travel time, port delays, customs, and weather conditions should also be considered. Even with new fast sea transport options, they still haven’t surpassed the speed of air transport. Air transport also promises predictability, something sea transport fails to do. Departures and arrivals are more precisely defined, as are customs and transfers. Unexpected delays are much less significant in this case. Therefore, when it comes to speed, air transport might be a better option.
Cargo Type
One of the significant advantages of sea transport is that it can easily transport even the bulkiest packages! Size and weight can be limiting for air transport. Air transport also comes with a long list that includes many prohibited and hazardous materials. For example, air transport restricts any object containing gas (e.g., light bulbs), flammable substances (including perfume), toxic and corrosive substances, magnetic objects (like speakers), and any item that poses a risk to public health (untanned hides, chemicals used for medical purposes, any package with a hazard sign, etc.). This limits the use of air transport in many business categories, making sea transport a more versatile option.
Security
Setting aside time and cost, it’s crucial for companies that their shipments arrive safely; otherwise, it can be an unnecessary logistic burden. The human factor is crucial in this domain. Both air and sea freight involve transporting products and moving them during transit by human hands. Both can be prone to damage. While airport authorities typically set strict transportation rules, sea freight containers must also be securely packaged. It’s essential not to admit materials that might cause an accident. Transport companies must package loads very well to avoid damage due to unforeseen circumstances.
Accessibility
As an accessibility criterion, goods access is an essential factor when choosing a mode of transport, and in every way, air freight is more advantageous for this. Firstly, considering the number of airports worldwide, the world is better connected by air than by sea. Secondly, air cargo procedures are well-defined, and due to the low unit volumes, the active waiting time is shorter. On the other hand, fewer ports result in heavy traffic at each port, leading to extended waiting times. This can lead to additional costs like compensation and delay fees due to heavy port traffic. Sometimes this can exceed a company’s budget. However, from a business perspective, sea transport also provides easy access to markets. Only, as mentioned above, the time factor varies between the two modes of transport.