Every business that needs to manage international supply chain faces the dilemma of choosing between sea freight service and air freight service for the transportation of their goods. Both of the options come with many benefits and companies may look at several factors such as product type, transit time, cargo volume, etc. before choosing between one of them. They must strike a balance between economy and efficiency in order to make a decision as air freight services are generally expensive compared to sea freight services. Moreover, sea freight services have four key advantages over the air freight services, which makes it more appealing to many businesses, especially large multinational companies. What are they?
Let’s find out!
In the competitive business environment, most companies are looking for ways to reduce their costs. Freight costs are one of the most significant expenses for a company and reducing them can improve their business. Cutting down the costs allow them to sell their products at a much lower rate, which may lead to higher revenue and improved profitability.
Sea freight services are generally cheaper than air freight services as it allows the companies to ship their goods in large quantities. Moreover, they also tend to have lower land costs, which makes it a highly economical solution. Therefore, if you do not have an urgent shipment, sea freight service will be more financially viable compared to air freight services.
The space available for your cargo can be a huge concern for logistical purposes, especially if your goods are big in size or dimensions. Air freight services have a strict policy about weight, measurements, and dimensions of the good and may impose restrictions on certain items.
Sea freight services, on the other hand, provide greater flexibility about the weight, size, dimensions, and space as the vessels can accommodate nearly any type of goods irrespective of their weight or dimensions.
Consumers are getting more informed and aware about the environmental issues and expecting the companies to use eco-friendly practices in their operations and entire supply chain process. Logistics makes a significant part of the operations of any company; therefore, it is vital that companies pay attention to their carbon footprint caused by transportation. Choosing sea freight service over an air freight service will result in the lesser amount of greenhouse gas due to its additional space capacity. This will attract the consumers who place their loyalty with companies with environmental-friendly practices.
There are heavy paperwork and documentation involved in international transportation, which makes it challenging for many companies to keep track of proper documents on time. Shipping the goods by using sea freight services will allow your documentation team to deal with the complex documents involved with the transportation of your cargo to ensure that the shipment goes hassle-free.
The final words
Apart from these points, there are many factors that must be considered by the business when choosing between sea freight services and airfreight services. Air freight services may be used for low volume cargo and fast-track shipment. However, if cost, cargo volume, documentation, and environmental impact are the prioritized factors, then you sea freight services is a logical course of action.