29 June 2018

Ocean Freight Vs Air Freight

Ocean Freight Vs Air Freight
The shipping industry is largely dedicated to the cause of transferring goods from one location to another. The ocean freight involves the logistics of importing/exporting the shipment via shipping vessels. However, many companies prefer opting for the air freight that is supposedly more economical when the shipping cost is less than 15-20% of the price of the particular cargo. Again, the ocean freight has a better carbon footprint. Both the freight types have their pros and cons, so let us delve deep into them and figure out what’s best for whom. Speed It is a universally known fact that aircraft travel much faster than ships. If vessels can deliver cargo in two months, the aeroplanes can deliver the same in just two days. That’s a big difference! Suppose you’re dealing with cargo that needs to be delivered urgently (household items, maybe), you would not want any unnecessary delays. But, things are changing in this modern age. Nowadays, advancements in the field of technology ensure that ships are travelling much faster than before. In fact, some ocean freight services promise to deliver their shipment in around 8 days, which is indeed a great achievement! Dependability This is an important factor. You would not want your goods to get lost or undergo any sort of damage. There is a lot of research to be done regarding the reliability factor when it comes to the type of business, people, products, service providers etc. that concerns the cargo. In this case, clients tend to choose air freight over ocean freight because aeroplanes hardly cause any delays. Also, air freight is hardly affected by sudden changes in schedule unlike in ocean freight. If one particular flight is held up due to unforeseen circumstances, the customer can immediately avail other daily return flights that are impossible in case of international shipping. The shipment has a longer turnaround that can take several days or even, weeks. Hence, ocean liners do not have a good reputation in case of being a completely reliable means of goods transport. Cost Every business owner or entrepreneur worries about the cost of transferring goods and they constantly look for cheaper options. But, that is not a reason to compromise on the dependability of the transportation. Incidentally, ocean freight is considered to be far more economical than the air freight, which might have some exceptions. A customer always formulates a transport budget that is lower than his overall income. He calculates both the unit and the aggregate costs and then decides. The shipping lines charge the customer according to the rate of the container, whereas the airlines charge according to a weighted formula. Sometimes, the destination also matters a lot. While using ocean freight, the ocean liners maybe subjected to warehousing fees at the seaports that are pretty expensive. If you focus on the terminal charges, the ocean port terminals may charge a destination handling fee, pier pass, documentation fee, clean truck fee, chassis split and rental, IT, security port charge, etc. The airline charges are much simpler, they just charge a destination handling fee that usually varies from $35-$100. Generally, the ocean liners consider the bulkiness of the cargo. This means that the customer should opt for the ocean freight if there is a huge load of shipment If you’re dealing with a small amount of cargo, the air freight is your best choice. It might turn out to be even cheaper than you expect. Environmental Concerns Just like every other trade, the shipping industry is also trying its best to reduce the negative impact on the environment. There is a well-known principle called the “polluter pays”, which refers to the immoral business harming the environment and ultimately, being accountable for their ill actions. The shipping lines are extremely responsible and try their best to reduce the pollution levels. Given the colossal amount of cargo carried by the vessels, the emission of Co2 is quite less. On the other hand, the air freight is yet to succeed in accordance with the social awareness. So far, the ocean freight has been deemed capable of protecting the environment. However, the environmentalists have condemned the oil spill incidents that have wreaked havoc on the marine ecosystem. Security Finally, there is the security or safety issue. After analyzing the past records, it is advisable to opt for air freight when you are attempting to move commodities of high value, or items that are related to high theft. In many situations, the freight forwarder can allow their staff member to accompany and oversee the cargo to get it delivered at the destination. This is convenient during air freight, no doubts whatsoever. However, with Shipping Liners now looking at making Ocean Freight environment-friendly and cost effective, we can see this outlook change over time.

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