There’s no doubt that our world is getting “smaller,” – globalisation has increased the trade and transportation of goods across the globe, connecting companies with a wider range of consumers than ever before.

There are two cost-effective ways to ship goods:

1. Air freight: transporting goods via air carrier routes.
2. Ocean freight: transporting goods via sea trade routes.

While we all know that like most things, both options have their own distinct set of pros and cons, there are several factors to consider when deciding between ocean freight and air freight. We’ve answered some frequently asked questions below.

1. What is the difference in cost of ocean or air freight?

It may seem that ocean freight is always cheaper than air freight, but this isn’t always the case.

Generally, the sheer volume of cargo a ship can carry compared to an aircraft, means that the freight cost by ocean shipping is much cheaper than air, especially when it comes to large, heavy shipments. However, as the size of the shipment decreases, the difference between air freight and ocean freight cost also decreases.

How you may ask? Well, it all makes sense once you understand how each is billed. Airfreight is billed through a term known as chargeable weight – chargeable weight is calculated as a combination of shipment size and weight. In ocean freight, weight is not normally taken into consideration when determining cost – instead, the cost is determined by a flat rate per standard shipping container, and if you have a less than container load (LCL), you will be billed per cubic meter.

The cost of transportation is only the tip of the iceberg – you will also need to calculate inventory costs, and the warehousing fees associated with ocean shipping tend to be more expensive than the warehousing fees at airports.

2. How much time does it take to ship with ocean or air freight?

No surprises here: air freight is undeniably faster than ocean freight. Ocean shipments can take from days to weeks to arrive, whereas air freight usually reaches its destination in only a day or two.

In an age where faster shipping times have come to be expected, you may think that air freight is the best option. However, strategically planning a shipping strategy could yield financial benefits in the long run, as well as offering a transportation solution that is more sustainable.

However, one cannot negate to consider the opportunity cost associated with shipping via ocean freight. The longer goods stay in transit, the longer a company carries the cost of those goods on their books, and the more the goods depreciate in value. The depreciation may be minimal, but compared to the active rate at which air freight allows a company to earn a return and reinvest it, the time goods spend on the open water could significantly impact the bottom line.

3. Is ocean or air freight more sustainable for the environment?

Your choice of transportation is an opportunity to demonstrate your company’s commitment to building a more sustainable future, and this has the power to improve brand image and competitive advantage, while at the same time reducing costs.

There’s no way around it – the carbon footprint of air freight is exponentially bigger than that of ocean shipping.

Larger organisations tend to pick ocean freight over airfreight because ocean cargo produces minimal contamination and therefore has a much smaller carbon footprint than that of planes. Additionally, emanation is around only 15 grams per kilometer sailed by ship, whereas the equivalent load on a modern airplane will radiate around 500 grams of carbon dioxide for each kilometer it flies.

4. Is it safer to ship by ocean or air?

Faster deliveries reduce the chances of the mishandling of products – making air freight the overall safer option. Airfreight companies also keep a tight security check on cargo, and all cargo is subject to security screening. Whether ocean freight or air freight is the better option will depend on the risk profile of the product in question – temperature-sensitive products are best sent via air freight, whereas more stable products can be sent via ocean freight. Some products leave you with little choice, as shown by lithium-ion batteries which are not legal to load onto air freight cargo planes.

Conclusion

Both modes of transportation have their own pros and cons, and ultimately the choice will depend on the customer’s particular needs and desires. It has been demonstrated that ocean freight is more affordable than air freight (to a point), however, air freight is faster and more secure than ocean freight. But if it’s sustainability you’re after, ocean freight wins hands-down.