Air Freight vs. Sea Freight: Which is Right for Your Cargo?
The difference between air and sea freight may seem obvious, but for importers and exporters, there is more than meets the eye. Our ocean and air shipping guide will help you understand the pros and cons of each and guide you in the direction that is best for your next shipment.
Advantages and disadvantages of sea freight
Shipping is all about economies of scale. Higher capacity, lower cost per kilo. However, what you gain in cost-effectiveness slows you down.
cost and speed
In terms of shipping cost calculations, the calculation of shipping costs depends on whether you are shipping by LCL (LCL) or FCL (FCL).
LCL shipments are usually charged by dimensional weight unless the actual weight is heavier. As mentioned above, if your order is larger than 2 cubic meters, sea freight will save you money than air freight.
FCL shipping involves renting the entire container and tends to be a flat fee regardless of how much space the container takes up. Beyond a certain weight and size, it’s no longer worth paying for large LCL shipments, and FCL can save you even more per unit shipping cost. Shipping rates tend to change, and if you work with a shipping partner, they will let you know if your shipment can be cost-optimized via LCL or FCL.
As for speed, compared to air freight, sailing from one country to another takes days, not including pickup, last-mile delivery and customs clearance.
LCL shipments need to share a container with other shipments, and the time required to consolidate these shipments should also be considered. FCL shipments do not require consolidation and may therefore be slightly faster than LCL shipments.
Advantages and disadvantages of air freight
Air shipping is fast, but can be more difficult to use for items that are easy to ship and have higher shipping costs than ocean shipping.
cost and speed
The first reason to use air freight is its speed, especially for transoceanic shipments within Southeast Asia. Based on information about the distances between South East Asia (SEA) countries not being too far apart, the actual flight between most Southeast Asian countries takes a maximum of a day or so. However, this does not take into account other parts of the journey, such as vans or trucks used for pickup and last mile or customs clearance.
But for all these speeds, you need to be prepared to pay higher rates relative to ocean freight. Air freight is usually calculated using the higher of actual weight or dimensional weight. Dimensional weight refers to the space occupied by the cargo, also known as dimensional weight. If you ship with Janio, use the following calculation to find the billable weight:
Length (cm) x Height (cm) x Width (cm)/ 5000 = Volumetric Weight (kgs) rounded to the nearest 0.5kg
If your order is larger than 2 cubic meters, sea freight can save you money. However, for items that are not that large (such as small cartons that take up 0.5 to 0.9 cubic meters), you won’t gain economies of scale because you’ll end up paying for unused space. This is where air freight is more economical than ocean freight.
For larger shipments that can withstand longer lead times, ocean shipping would be a better option. Air freight is best for small shipments that need to get there quickly and have a high enough value to cover the cost of shipping.
Air and sea cost comparison
air transport
Air freight is preferred when the shipping cost is less than 15-20% of the value of the goods. For light shipments, use this billable weight calculator to calculate whether your shipment is billed by actual or dimensional weight.
Air freight is faster, safer, and more reliable than ocean freight, but it’s also more expensive—$195 ocean freight can cost $1,000 air freight. Learn more about air freight pricing here.
Airlines also have stricter regulations on transporting hazardous materials. See below and discuss with your freight forwarder.
sea freight
Ocean freight offers more capacity and value – one container can hold 10,000 beer bottles!
Ocean freight is generally much slower than air freight, and customs issues and port delays can cause additional delays. Express LCL is increasingly present on more routes and with more freight forwarders, often with guaranteed delivery dates and faster than regular ocean freight.
The carbon footprint of ocean freight is much better than air freight.
Should you use air or sea freight?
Often, the number one reason for choosing an air freight service is the speed of delivery. Transporting your cargo by air can shorten the timetable compared to sea freight services. This is especially useful when shipping items with a short shelf life. However, the price of faster service is often higher shipping costs. It’s up to you to decide what makes sense for your shipping strategy.
So, which should you choose? Assess when your shipments need to reach their destination, what your budget is, and how each mode will affect your business’s highest demands.
If your shipment has a tough, fast approaching arrival deadline and your budget allows, please ship by air. If you have more arrival date flexibility or want to save money, ship by sea.
final thoughts
If you’re having trouble making the best shipping decision, trust a third-party logistics provider (3PL) like CH Robinson to help. Choose a 3PL with scale to combine your air and ocean freight with others for cost-effectiveness. The best global suppliers bring their experience working with the world’s largest and most established shippers and apply it to your success. |