Cost Efficiency of Air Freight vs. Sea Freight for Smaller Cargo

In the world of logistics and supply chain management, choosing the right mode of transportation for your cargo can significantly impact your bottom line. While sea freight is often the preferred choice for larger shipments, when it comes to smaller cargo shipments, air freight emerges as a surprisingly cost-effective option.

Why Air Freight is Cheaper for Small Cargo Shipments:

Smaller shipments are more cost-efficient to transport by air due to fixed surcharges associated with ocean freight. Many surcharges apply regardless of weight.

Air freight involves fewer touch points compared to sea freight. This minimizes the risk of damage or loss. This streamlined process can result in lower insurance costs, reducing the overall expenses associated with transporting small cargo shipments.

When considering air versus ocean, the comparison most often involves "less than Container Load" or LCL. When there is enough volume for a full container, ocean will always be the lowest cost option.

Read more about ocean freight to and from Canada

When shipping LCL to Canada, the charges typically include:

• Freight Costs: LCL shipments are charge most often on the volume .
• Consolidation Fee: LCL shipments involve consolidating smaller cargo from multiple shippers into one container.
• Origin Handling Charges: These charges cover the costs associated with receiving, inspecting, and loading the cargo at the origin port.
• De-Consolidation Fee: LCL shipments involve costs associated with unloading and separating individual shipments.
• Destination Handling Charges: Upon arrival in Canada, the destination handling charges include the unloading and handling of the cargo at the port of entry.
• Customs Clearance Fees: Import duties, taxes, and customs clearance charges are applicable regardless of shipping method. However, goods that ship via air courier usually include entry preparation.
• Delivery and Drayage: After the cargo is unloaded at the destination port, additional charges for local delivery (drayage) from the port to the final destination in Canada will apply. Delivery via air courier is most often included in the transport cost.

Both LCL and Full Container Load (FCL) involve similar cost components. However full containers do not incur a consolidation and de-consolidation charge. In addition, the fixed fees averaged against are higher volume result in the lowest over all cost.