Air Freight vs Ocean Freight: How to Choose The Right Shipping Method for Your Business

Choosing between air freight and oean freight is often reduced down to the question of speed versus cost. While this is an important consideration, for many businesses, the decision is more nuanced than that. 

When deciding on the best shipping method to use, businesses also need to weigh up their budget, the urgency of the shipment, and whether splitting shipments across different modes of transport would be more beneficial than committing to only one. 

In this blog, we take a look at the practical differences between air freight and ocean freight, what causes the difference in costs, and how to decide on the right approach for you. 

Defining Air Freight and Ocean Freight

Air freight and ocean freight both fall under the broader umbrella of freight forwarding, which is where a third-party freight forwarder manages the booking, documentation, customs clearance, and final delivery on your behalf. 

They do, however, differ in terms of transportation method. We define each below. 

What is Air Freight?

Air freight is the transport of goods by aircraft, using dedicated cargo planes or the cargo holds of passenger aircraft. It’s the fastest way to move goods internationally and is typically used for shipments where time, security, or product condition matter more than cost per kilogram. 

What is Ocean Freight?

Ocean freight, also referred to as ocean freight, moves shipments on board cargo ships. Cargo ships are able to carry a far greater volume than aircraft and remain a popular choice for shipping non-urgent goods in bulk. Ocean freight is a good option where cost efficiency matters more than speed. 

What are the Key Differences Between Air Freight and Ocean Freight?

Air freight and ocean freight differ in five main factors: speed, cost, reliability, capacity, and environmental impact. 

Speed

Generally, air freight is a much faster method than ocean freight, often transporting goods in a number of days, rather than weeks. Expedited air freight services, such as next-flight-out, are also available for time where next-day delivery isn’t fast enough.

Cost 

Sea freight is typically the cheaper option per kilogram, often by a substantial margin. However, the cost of sea freight is largely dependent on the specifics of the shipment, and it also doesn’t take into account extra charges for things like inventory holding and warehousing. 

Reliability and Predictability 

Air freight schedules are more consistent than sea freight schedules and are less exposed to disruption. Sea freight is generally dependable, particularly if it is following a well-established shipping route, but carries a higher risk of weather delays, port congestion, and delays following a vessel missing its slot. 

Capacity and Shipment Size 

Air freight works well for smaller shipments that don’t fill a whole container. Sea freight, however, is built for larger volumes. Full container load (FCL) and less-than-container load (LCL) shipments both scale efficiently as shipment size grows, in a way that cannot be matched by air freight. 

Environmental Impact

Ocean freight has a considerably smaller carbon footprint per tonne of cargo moved than air freight. This is largely because ships carry far greater volumes per journey and burn much less fuel as a result. For businesses with sustainability commitments, this is a genuine consideration that should be made when choosing between the two options.

Is Ocean Freight Cheaper Than Air Freight?

In most cases, ocean freight is the cheaper option of the two. Ocean freight tends to have lower costs per kilogram than air freight, and the cost gap between the two widens as shipment weight increases. However,  ocean freight and air freight shipments are costed differently, which means in some circumstances, air freight might be the most cost-efficient option. 

Air freight is charged based on the shipment’s actual weight or volumetric weight, depending on which is highest. This means a large but lightweight shipment might end up priced as if it were much heavier than it actually is. Sea freight is charged using a flat rate for FCL shipments, and volumetric weight for LCL shipments.

For smaller shipments, the cost gap between the two modes therefore narrows. This, on top of extra minimum charges, handling fees, and holding costs associated with sea freight shipping, means in some cases, air freight becomes the more practical, cost-effective shipping option. 

Why Choosing the Right Shipping Method Matters

Focusing purely on the freight invoices overlooks a large part of the real costs of making the wrong shipping decision. For example, slower transit times can create commercial risks, such as:

• Capital being tied up in transit: Stock that is still in transit is not available to be sold.

• Risks of stockouts: Longer lead times for restocking items can run the risk of running out of stock before the next shipment arrives. 

This means that the total cost, not the freight weight alone, should drive your decision. You should be weighing up freight rates alongside inventory holding costs and the commercial risk of delays for each shipment you need to move. 

What Types of Shipments Suit Air Freight and Ocean Freight?

Certain shipment types consistently lean towards one method or the other because of what kinds of goods are being shipped, not just how fast it needs to arrive. 

Goods and Industries That Tend to Favour Air Freight 

• Pharmaceuticals and medical shipments: Temperature control and speed matter more than cost when products have a short window before they degrade, making air freight a common choice in the medical and healthcare industry.

• High-value electronics and components: Technology evolves quickly and, as a result, loses value quickly. Avoiding shipping delays therefore outweighs the higher freight costs.  

• Perishable goods: Perishable goods like food and beverages have a short shelf life, meaning they need a reliable, fast method of transportation to ensure they arrive at their destination in sellable condition.

• Fashion and ecommerce: Demand cycles move fast in the fashion and ecommerce industry, and missing a trend window can be more costly than investing in higher air freight premiums. 

• Urgent spare parts and replacement components: Broken machinery causing unexpected periods of downtime can cost businesses more in terms of productivity and output than air freight would to ensure replacement parts are delivered in a timely manner. 

• Tradeshow and event shipments: The tradeshow and events industry relies on fixed deadlines and needs the speed and reliability offered by air freight. 

Goods and Industries That Tend to Favour Ocean Freight

• Furniture and bulky goods: Ocean freight’s per-container pricing makes it the most cost-effective option for goods with low value relative to their size. 

• Raw materials and industrial inputs: Ocean freight offers a lower cost-per-tonne, which suits raw materials and industrial inputs well since they’re typically ordered on long lead times, rather than at short notice. 

• Heavy machinery and equipment: The size and weight of heavy machinery make sea freight the most cost-effective option at scale. 

• Non-urgent retail stock replenishments: Lead times can be planned around a known reorder cycle, so the extra transit time doesn’t create risk. 

Questions to Ask When Choosing Between Air Freight and Ocean Freight

How urgent is the shipment?

If you have a firm delivery deadline or a live stockout risk, air freight will likely be the best decision for you, even at a higher cost. 

How large and heavy is the shipment?

For small and light shipments, air freight might be the favourable option based on cost and speed. Larger, heavier shipments are often better suited to sea freight due to lower costs at scale. 

How valuable or sensitive are the goods being shipped?

High-value, fragile, or perishable goods will likely carry more risk if delayed, which can justify the higher cost for air freight shipping. 

What is your actual cost tolerance or budget?

Consider the total cost of shipping goods under each transportation method, including freight rates, inventory holding costs, and the cost of potential stockouts or delays. 

How much disruption risk can you tolerate?

Where a delay might have a considerable impact on your business’ operations or customers, the greater schedule reliability that air freight offers might be worth the extra cost.

Could the shipment be split?

Not every order needs to travel the same way. Fast-moving or high-priority stock-keeping units can move by air freight, while the rest moves by sea. 

Why a Blended Approach is a Viable Shipping Strategy

The choice between air freight and ocean freight should not be treated as a decision made once and applied to everything that the business ships. Instead, it should be seen as a decision continually being made for each shipment going out, to ensure operational needs are being met while remaining as cost-effective as possible. 

Oftentimes, splitting shipments across the different methods can be the most efficient approach. Fast-moving stock items can be shipped by air freight, while slower-moving inventory can be shipped by sea. This allows businesses to capitalise on the responsiveness of air freight where it matters most, and the lower cost of ocean freight when speed isn’t a priority. 

Seasonality can also cause businesses to switch between shipping methods, using air freight to cover seasonal demand spikes or supply chain disruptions while standard ocean freight shipments continue on schedule. 

SEKO Logistics: Your Trusted Freight Forwarding Partner

At SEKO, we can help you optimise your freight forwarding processes by advising on and managing a blended shipping strategy across air, ocean, and ground freight, making sure you are operating as efficiently as possible. 

Whether your business needs the speed of air freight, the scale of ocean freight, or a combination of the two, our team of logistics experts can build a solution tailored to the needs of your business. 

We can co-ordinate everything for you across each mode of transport, and also offer specialty, white-glove solutions for higher-value, sensitive shipments. And, with our MySEKO platform, you will be able to access real-time visibility of your shipments from origin to destination.

For more information about how we can help you optimise your supply chain operations, get in touch today. 

FAQs

Is air freight or ocean freight more sustainable?

Ocean freight is a more sustainable, environmentally friendly shipping option as it has a significantly smaller carbon footprint per tonne of cargo than air freight. This is because cargo ships carry much larger volumes per journey, which spreads emissions across more cargo than a single flight can carry. 

How long does air freight take compared to ocean freight?

Air freight typically takes between 1 and 7 days, depending on the route and any customs processes at either end. Ocean freight typically takes between 20 and 45 days, depending on the origin, destination, and number of transshipments involved.  

Can I use both air freight and ocean freight for my shipments?

Yes. Many businesses split shipments by product type, using air freight for fast-moving or high-value stock and ocean freight for bulk or non-urgent inventory. They may also switch modes seasonally to manage demand spikes and supply chain disruption. 

Is air freight worth it for smaller shipments?

Yes, air freight can be worth it for smaller shipments as the cost gap between air freight and ocean freight narrows. Once minimum charges and handling fees are factored in for ocean freight, air freight can often be a more practical and cost-effective option than it first appears.