Choosing a transport mode isn't just about delivery dates; it impacts cash flow cycle, inventory holding costs, and product margins.
Cost Dynamics
Air freight is typically priced by chargeable weight (the higher of actual weight or volumetric weight). Ocean freight is primarily priced by volume (CBM or per container).
Rule of thumb: If the shipment value is high and density is low (e.g., smartphones, fashion), air freight makes sense. If value is low and volume is high (e.g., furniture, machinery), ocean is mandatory.
Transit Times
- Air Freight: 3-10 days door-to-door.
- Ocean Freight (LCL): 30-50 days.
- Ocean Freight (FCL): 20-40 days.
Environmental Impact
Air freight emits approximately 50x more CO2 per ton-kilometer than ocean freight. As ESG reporting mandates tighten globally, mode selection has compliance implications.