Is air freight or sea freight cheaper?

1, Price composition of air and sea freight
Composition of Air Freight Prices
The air freight price mainly consists of basic freight, fuel surcharge, safety surcharge, customs clearance fee, ground handling fee, etc. The basic freight is usually calculated based on the weight or volume of the goods, and there is often a concept of weight class or volumetric weight. The fuel surcharge and safety surcharge are adjusted according to market conditions and airline policies. The customs clearance fee and ground handling fee are additional fees incurred based on the import and export procedures of the goods and airport operation requirements.
Composition of shipping prices
Shipping prices are relatively complex, including transportation costs, port fees, agency fees, tariffs, and taxes. The transportation cost mainly includes the fuel cost, maintenance cost, insurance cost, etc. of the ship, which are the main components of the shipping cost. Port charges include loading and unloading fees, storage fees, port fees, etc., which are incurred when goods enter and exit the port. Agency fees include freight forwarding commissions, customs clearance fees, etc., which are service fees paid to freight forwarders and customs brokers. Tariffs and taxes may be imposed on the goods according to the policies and regulations of the destination country.
2, Comparison of prices between air and sea freight
Overall price level
From the overall price level, shipping by sea is usually much cheaper than air freight. The transportation cost of shipping is relatively low and it can carry a large amount of goods, which gives shipping a significant price advantage. In contrast, although air freight is fast, its cost is high, especially for heavy or bulky goods, air freight costs may sharply increase.
Price volatility
Air freight prices are influenced by various factors such as market supply and demand, fuel price fluctuations, and airline policies, resulting in significant price fluctuations. The shipping price is relatively stable, although it is also affected by market supply and demand and fuel prices, the fluctuation amplitude is relatively small.
The trade-off between price and transportation time
Although air freight is expensive, it has a short transportation time and can quickly deliver goods to their destination. This has an irreplaceable advantage for enterprises in urgent need of goods. Although shipping is cheap, it takes a long time to transport and may not meet the urgent time needs of enterprises. Therefore, when choosing a transportation method, companies need to weigh the relationship between price and transportation time.
3, Selection strategy for air and sea freight
Select based on the nature of the goods
For perishable, vulnerable, or urgently needed goods, air freight is a better choice. Although the price is high, it can ensure the safe delivery of goods in a short period of time. For goods that are heavy, bulky, or not urgently needed, shipping by sea is more economical and practical.
Consider the transportation cost budget
When choosing a transportation method, enterprises need to fully consider their own transportation cost budget. If the budget is limited, shipping is a more suitable option. If the budget is sufficient and there are strict requirements for transportation time, air freight can be chosen.
Assess transportation risks
In addition to price factors, companies also need to assess the risks during transportation. Although air freight is fast, there are risks such as loss and damage. Although shipping takes a long time, it is relatively stable and carries less risk. Therefore, when choosing a transportation method, enterprises need to consider transportation risks comprehensively.
Combining market demand and competitive situation
Enterprises also need to choose transportation methods based on market demand and competitive trends. If there is an urgent demand for goods in the market and competitors can provide fast logistics services, companies need to choose air freight to seize the market opportunity. If the market demand is relatively stable and competitors have little difference in logistics services, then shipping can be chosen to reduce costs.
Consider environmental protection and sustainability
With the increasing global attention to environmental protection and sustainability, companies also need to consider this factor when choosing transportation methods. Although shipping takes a long time, its carbon emissions are relatively low and its impact on the environment is minimal. Although air transportation is fast, it has high carbon emissions and puts great pressure on the environment. Therefore, from the perspective of environmental protection and sustainability, shipping is a more suitable choice.