Is freight cheaper than air freight?

1, The freight cost is relatively low
Significant scale effect
Freight, especially sea freight, can fully utilize economies of scale to reduce costs due to its large transportation volume and high vessel carrying capacity. A large cargo ship can load thousands of goods, greatly reducing the transportation cost allocated to each unit of cargo. In contrast, although air transportation is fast, it is limited by the aircraft's load capacity, resulting in limited single transport volume and difficulty in achieving significant economies of scale, leading to higher unit costs.
Differences in Infrastructure Costs
The infrastructure construction cost of shipping methods such as sea and land transportation is relatively low. Taking maritime transportation as an example, although port facilities require huge investment, once built, their maintenance costs are relatively low and they can provide long-term services for a large number of ships. Air transportation requires the construction of expensive infrastructure such as airports, runways, and aprons, and with the growth of air transportation volume, it also needs to be continuously expanded and upgraded. These high infrastructure construction costs will ultimately be reflected in air freight prices.
Fuel and energy consumption
In terms of fuel consumption and energy consumption, freight transportation also shows significant cost advantages. Although ships are large in size, their fuel consumption is relatively low due to the relatively low resistance they face when sailing on water and their slow sailing speed. However, airplanes require a large amount of fuel to maintain high-speed flight, which puts air transportation at a disadvantage in terms of energy consumption and cost.
2, Analysis of influencing factors
Type of goods and transportation distance
The type of goods and transportation distance are important factors affecting the choice of transportation mode. For bulk, bulk, heavy, and time less demanding goods such as coal, ore, grain, etc., freight transportation is usually a more economical choice. These goods can be transported by sea or land, which can fully utilize economies of scale to reduce costs. For goods with high time sensitivity, small size, and high value (such as electronic products, precision instruments, etc.), air freight may be more preferred as it can quickly deliver to the destination despite higher costs.
Market competition and supply-demand relationship
Market competition and supply-demand relationships can also affect the cost of freight and air transportation. In the freight market, due to the large number of participants and fierce competition, transportation prices are often influenced by market supply and demand. When transportation demand exceeds supply, transportation prices may rise; On the contrary, it may decrease. The air freight market, on the other hand, is relatively concentrated, with a few large airlines dominating, which to some extent affects air freight prices due to monopolistic power.
Policies and regulations
Policies and regulations are also important factors affecting the cost of freight and air transportation. The policy support and regulatory efforts for the logistics and transportation industry vary among different countries and regions, which may lead to differences in transportation costs. In addition, the introduction of environmental policies, carbon emission taxes, and other regulations may also have an impact on the costs of freight and air transportation.