Cost comparison: sea freight vs air freight, which one is better for your budget?

The cost of air freight varies significantly, and the choice depends on the characteristics of the cargo, time sensitivity and budget. The following are the key comparison dimensions and decision-making framework:

I. Direct cost comparison

Dimensions Ocean freight Air freight unit price Very low (about $0.5-$5/kg) Very high (about $4-$15/kg) Fuel surcharge Small fluctuation (10%-20% of cost) Large fluctuation (25%-40% of cost) Tariff basis Charged by volume or weight tons Charged by actual weight or volume weight

Typical scenario:
A batch of 500kg of clothing from Shanghai to Los Angeles:

Total cost of ocean freight is about $300-$800 (20-30 days)

Total cost of air freight is about $2,500-$7,500 (3-5 days)

II. Hidden cost considerations

Time cost

The transportation time saved by air freight can reduce:

• Inventory holding costs (warehousing + capital occupation)
• Out-of-stock losses (especially for seasonal products)

Case: Electronic products are fast-paced, and delayed delivery may result in a 10%-20% market price loss

Influence of cargo characteristics

Sea transport is more suitable for:

• Oversized items (such as machinery and equipment)
• Low-value, long-lasting goods (such as furniture)

Air transport is better for:

• High-value perishables (such as medicines and fresh food)

Emergency replenishment (such as e-commerce promotion out of stock)

Supply chain flexibility

Air transport has a stronger ability to respond to emergencies (such as port congestion), but it needs to pay a 3-5 times premium.

III. Market dynamics in 2023

Sea transport: The Red Sea crisis caused the freight rates on the Asia-Europe route to rise by 200%, but the routes to the Americas remained stable.

Air transport: Air cargo capacity has recovered to 105% of the pre-epidemic level, and the prices of some routes have fallen by 15% year-on-year.

IV. Practical suggestions

Mixed strategy: Split the same batch of goods for transportation (80% sea transport + 20% air transport for emergency).

Contract negotiation:

Sea freight: strive for FAK (Freight All Kinds) rates

Air freight: take advantage of IATA seasonal discounts

Technical tools: use Flexport and other platforms to compare prices in real time. Sea freight + rail combined transport on some routes can save 20% of time and increase costs by only 10%.

Final choice: If the holding cost per kilogram of goods delayed for 30 days is less than $2, sea freight is preferred; otherwise, air freight is considered. For most manufacturing parts (inventory costs are about 1.5%/month), sea freight is usually better; while the fashion industry (end-of-season depreciation risk 3-5%/week) prefers air freight.