April 11, 2024
Air Freight
Sea Freight
Knowing the right mode of transport for your business needs is crucial to optimise supply chains and keep things moving. Air freight and ocean freight offer distinct advantages, and understanding these is crucial to help decide the best solution for you.
This comprehensive guide will help you navigate through the differences between air and sea shipping, allowing you to make the best decision for your business.
What is Air Freight?
Air freight, also known as air cargo or air shipping, involves the transportation of goods by air carriers. This way of shipping is known for its speed and efficiency, making it a preferred choice for time-sensitive and high-value shipments, delivered on both commercial and chartered flights.
Pros of Shipping by Air Freight:
- Speed: Air shipping is one of the fastest modes of transportation, offering a great solution for those requiring a quick delivery of goods.
- Reliability: Airlines operate on strict schedules, minimising delays and providing a reliable delivery timeline.
- Reduced packaging requirements: Air freight often requires less robust packaging compared to sea freight, leading to potential cost savings.
Cons of Shipping by Air Freight:
- Cost: Likely the biggest drawback of air shipping is the cost. The cost of air freight is generally higher than sea freight, and most other forms of shipping, making it less economical for large or bulk shipments and often leading to high air freight bills.
- Limited capacity: Airplanes have limited cargo space, restricting the volume and size of goods that can be transported.
What is Sea Freight:
Sea freight, also known as ocean freight, is the transportation of goods by cargo ships. It is the most common method for transporting large quantities of goods internationally.
Pros of Shipping by Sea Freight:
- Cost-effective: Sea freight is generally more cost-effective for large or heavy shipments, making it the preferred choice for bulk cargo shipments.
- Environmental impact: Cargo ships, on average, emit fewer greenhouse gases per ton-mile compared to airplanes, making sea freight a more environmentally friendly option.
Cons of Shipping by Sea Freight:
- Slow transit time: Sea shipping takes longer than air shipping, which might not be suitable for time-sensitive shipments.
Potential for delays: Adverse weather conditions, port congestion, and other factors can lead to delays in sea freight. - Cost of Air Freight vs. Sea Freight:
According to recent reports from the International Air Transport Association (IATA), the average cost of air freight has experienced an increase of approximately 16% in the past year. This surge is attributed to factors such as rising fuel costs, increased demand for air cargo services, and the ongoing challenges posed by the global supply chain disruptions.
In contrast, data from the World Shipping Council reveals a more moderate increase in sea freight rates, averaging around 10% during the same period. This increase is influenced by factors like container shortages, port congestion, and the complexities introduced by the COVID-19 pandemic.
It’s clear that the cost differential between air freight and sea freight has widened in favour of sea shipping. However, it’s essential to consider other aspects of cost beyond the direct transportation expenses.
While air freight may have a higher price tag, its rapid transit times can lead to reduced inventory holding costs and quicker market responsiveness. Sea freight, though cost-effective for bulk shipments, may incur additional expenses related to longer lead times, warehousing, and potentially higher inventory carrying costs.
Shipping Restrictions for Air Freight and Sea Freight
Air freight comes with certain restrictions, primarily related to the nature of the cargo. Hazardous materials, oversized items, and certain perishable goods may be subject to strict regulations.
Sea freight is versatile but has limitations on hazardous materials and certain perishables. Additionally, some ports may have restrictions on specific goods.
You can find out more about transporting dangerous goods by air, ship and land in our blog.
Air Shipping Transit Time
Air shipping stands out for its speed. On average, air freight can transport goods internationally in a matter of days. This rapid transit time is a critical advantage for businesses dealing with time-sensitive shipments or perishable goods, allowing businesses to meet tight deadlines and respond promptly to market demands.
The efficiency of air shipping is further underscored by the streamlined customs procedures at airports. Airports generally have dedicated customs facilities and expedited clearance processes, contributing to the overall speed of air freight.
Sea Shipping Transit Time
In contrast, sea shipping is characterised by longer transit times due to the nature of maritime transportation. While sea freight is an excellent choice for cost-effective transport of large or bulk shipments, it’s likely unsuitable for time-sensitive deliveries.
The average transit time for sea freight varies widely based on the distance and the specific routes taken. Generally, sea shipping can take anywhere from several days to several weeks, depending on the route.
When deciding between air shipping and sea shipping, businesses need to weigh the urgency of their shipments against the cost implications. If time is of the essence, especially for high-value or perishable goods, air shipping provides a swift and reliable solution. However, if cost-effectiveness and the flexibility to accommodate longer lead times are paramount, sea shipping becomes the preferred choice.
It’s essential for businesses to align their choice of shipping mode with their overall supply chain strategy and customer expectations. Some companies may adopt a multimodal approach, using both air and sea shipping based on the specific needs of their shipments.
Factors influencing sea shipping transit times include the distance between ports, the chosen shipping route, potential port congestion, and the time spent in customs clearance at both the origin and destination ports.
If you need assistance in optimising your transit times and choosing the right shipping mode for your business, our team is here to help. Contact us for personalised guidance and efficient solutions tailored to your specific logistics requirements, and for all of the latest AGI news, don’t forget to follow us on LinkedIn and Facebook!