January 9, 2023
Freight & Logistics -
Sea Freight Vs Air Freight: Which Is The Best For Your Business? | OneLink Holdings
The value of logistics outsourcing is becoming more and more apparent as companies are looking to outsource their supply chain management and focus on other aspects of their business. One of the important processes involved in supply chain management is dealing with freight. Making the decision between sea and air freight can be both daunting and confusing. This article breaks down the pros and cons of each to help you make the best choice for your business.
Shipping your products by sea or air sounds like a complicated decision, but it really isn’t. This guide will explain the benefits of using each method and help you decide which one is best for your business.
Air freight involves the shipment of goods via an air service (Cargo planes) and can be suitable for all business types and sizes. Sea freight follows the same principle, but cargo ships are used to transport sea freight.
Air cargo can be packed using a unit load device, as a palletised shipment or as loose cargo. Whatever method you choose, it’s important to keep in mind the restrictions with the height, length and width of the cargo.
When using sea freight, the common container sizes are 20ft and 40ft. The 20ft containers can hold 17,000kgs per container, while 40ft can hold 21,000kgs per container. Containers are usually available as dry general purpose or as refrigerated containers. It’s important to consider whether you can fill a Full container load (FCL) or whether you will need to go with a Less than Container Load (LCL). A LCL means your goods will share a container with another company’s goods until the ship reaches its destination. Most common cargo ships can carry about 18,000 containers, making it a very cost-effective way to transport high quantities of goods, long distances.
When deciding whether to go with air or sea freight, it is important to consider all factors such as cost, time, capacity, security, environmentally friendly and reliability and flexibility before deciding. Other factors such as warehousing capabilities and whether you are shipping dangerous goods need to be factored into the decision as well. We will now look at each option, with both advantages and disadvantages of using sea or air freight.
Cost
When deciding what shipping method to use, one of the most common determining factors for businesses is the cost. As you would expect, air freight is the costliest option as it is a faster courier service. Sea shipment is recommended for items of low value, whereas items of high value are better off via air freight. Air freight can be up to 5 times more expensive than sea freight. For example, an air shipment might cost $2000, compared to $800 for a sea shipment however, your goods will arrive more quickly than via sea. As a rule, air freight should be used when it costs less than 15-20% of the value of goods.
It is important to remember when the shipment size begins to decrease, so does the margin between air and sea freight prices. So, while we recommend sea freight as the cheaper way to ship items, you may be better off going with air freight if your goods are of a smaller size.
Time
Time is another important consideration when deciding whether to send your goods via air or sea freight. Air freight is the best option for goods needing to travel long distances in short periods, with goods reaching their destinations within a few days. Sea freight can often take a lot longer, between 14-21 days to arrive, meaning if you needed a shipment urgently, air freight would be the way to go. It is also possible for sea shipments to be held up due to bad weather and port disruptions.
Capacity
In terms of load capacity and weight restrictions, sea freight is the best way to go when shipping heavy and bulky items. By nature, sea containers can hold more weight than aircraft, meaning if you’re wanting to send large, heavy amounts of goods, sea freight is the way to go.
Security
Air freight offers a much more secure form of transport, as it requires less handling of goods during transit. There is also less risk of damage to goods as travelling by air is considered not as rough as via the sea.
Flexibility and Reliability
Air freight offers greater flexibility, as the world has a greater number of airports compared to ports. This means sending via air freight offers more options and locations for shipments to be delivered too.
When wanting reliability, air freight is also the best option. You can follow the shipment via tracking services that enable you to see the route and time expected until your goods land. They are also less prone to delays than sea freight, but they can still experience weather delays and cancellations.
Due to the reliability that air freight offers, perishable items are best sent this way to ensure quick arrival with as little opportunity for delay as possible.
Sea freight can be prone to bad weather, port congestion and labour issues and incorrect paperwork. Equipment at shipping ports can also breakdown easily, leaving containers unmoveable for a length of time.
Environmentally Friendly
Sea freight is more environmentally friendly than air freight with cargo ships emitting only 10-40grams of CO2 per kilometre compared to 500g of CO2 per metric ton of freight per kilometre for air freight.
Warehouse Storage
Businesses should also consider the dependence on warehousing in relation to storing shipments. When receiving fast shipments, via air freight, less dependence on warehousing for storage is needed. Inventory control becomes easier, as air cargo can fly and arrive quickly as needed.
Restricted Cargo
The International Air Transport Association (IATA) has dangerous goods regulations that specify what items are classified as restricted items, and therefore cannot be transported via air. These include:
- Flammable Items
- Toxic or corrosive items (e.g. Batteries)
- Oxidizers and biochemical products (e.g. Chemical medicines)
- Gases (e.g. Lamp bulbs)
- Explosives (e.g. Fireworks)
- Any powders, liquids or pastes that display a danger sign on their packaging
- Magnetic substances
So,
If you’re looking to save time? Go Air Freight
If you’re looking to save money? Go Sea Freight
If you’re looking for the most environmentally friendly way? Go Sea Freight
If you’re looking to avoid product damage? Go Air Freight – less movement
If you have a shipment deadline? Go Air Freight
If you’re sending large, bulky items? Go Sea Freight
If you’re sending perishable items? Go Air Freight
When making the decision between air freight and sea freight, it is important to consider all the factors involved. Air freight may be more expensive, but it is often faster and more reliable. Sea freight is cheaper, but slower and less reliable. Warehousing capabilities are an important factor to consider when deciding whether to use air or sea freight. If you do not have adequate warehousing space, then air freight may be your only option. Another factor to consider is whether you are shipping dangerous goods. Some items cannot be shipped by air due to safety regulations. When making your decision, consider all the factors involved and make the best decision for your business.
Written By
OneLink Holdings team
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