Air Freight or Sea Freight – Which is best for my business?

Air Freight or Sea Freight – Which is best for my business?

Deciding on the best mode of transport for your import / export goods can often be a tricky, compromised decision. When it comes to air freight and sea freight, cost, speed and reliability all need to be considered in order to maximise profitability for your business.

We’ll take you through just some of the pros and cons of sea freight and air freight for you to decide which is best suited to your business.


 

Air Freight CostsCost

Sea freight is usually charged per container (20ft or 40ft) whereas air freight charges are calculated on ‘chargeable’ weight basis. Due to the limited space on the aircraft, the size of the goods have to be taken into consideration as well as cargo weight.

Generally to transport heavier, bulkier goods air freight is more expensive than sea freight. Over the past few years’ sea freight rates have dropped to record lows, widening the cost gap even further between the two modes of transport. But with smaller goods the price difference narrows and air freight becomes more attractive.

SpeedSpeed

In fast paced commodity markets the speed of transport can be crucial to success. With time sensitive inter-continental consignments, air freight is often the fastest and most direct mode of transport. When importing products from China air freight can take less than 3 days to arrive in the UK but for a containership to transport the same cargo it can be up to 35 days depending on the specific routings.

Although the technological developments seen in shipping continues to improve transit times, the speed of air transport will always make this option more desirable for businesses with short delivery deadlines in fast moving consumer markets.

 

ReliabilityReliability

Often the reliability of transport can outweigh other factors such as cost and speed. When operations are reliant on the delivery of goods it becomes paramount that goods arrive on time and in good condition.

Air Freight is considered a less intrusive mode of transport with lower risk of damaging cargo when compared to sea freight transportation. Planes notoriously adhere to their schedules. Every minute spent on the tarmac, outside of scheduled take-off and landing, can accumulate an inordinate amount of extra costs. And with many airlines making 3-4 calls a day on certain routings if your cargo misses one flight chances are it can take the next just a few hours later. Shipping lines however suffer no extra cost penalties for late callings and so it is common for them to be way off planned schedules with 1-2 days delay.

Transparency

The transparency with air freight is one of the main reasons why many companies prefer this mode of transport. Airlines and forwarding companies offer complete track and trace facilities that monitors the cargo from departure to arrival, whereas tracking containers specific location on the ocean is almost impossible until the vessel nears port. There are vessel tracking websites and devices that can track the vessel carrying your container, but you will need to obtain this information from your carrier directly.

What does it come down to?

One of the main considerations for any logistics manager is ultimately the bottom line and the difference in price between sea freight and air freight transport could be the determining factor in selecting the best shipping method for your business. It could be the difference between healthy profit margins and breaking even. As a global freight forwarder Tuscor Lloyds have worked with a multitude companies to improve their supply chain costs using the most efficient modes of transport.

If you need more information on air freight or sea freight services please contact our team:

Tel: +44 (0) 161 868 6000 Email: air@tuscorlloyds.com or visit our air freight and sea freight pages for more information.

You might also be interested in…

The Port of Dampier [INFOGRAPHIC]

As our projects team have been working on multiple Breakbulk shipments to the Port of Dampier we thought we’d take a look at some of the historical background and port capabilities for Australia’s largest bulk export port.

HMM to join the 2M Alliance?

Another day another potential Alliance reshuffle for the shipping world. After looking at what was described as the new Mega Alliance between giants Cosco and CMA CGM, the past few weeks has seen rumours surface of a new member in the 2M Alliance. The industry has...

Panama Canal Expansion

Sunday 26th June 2016 saw thousands of people line the new Cocoli locks welcoming the first vessel to pass through the newly expanded Panama Canal. The massive construction project has been notoriously delayed with the total renovations taking nine years and costing...

Tuscor Lloyds at Breakbulk Europe 2016

Tuscor Lloyds at Breakbulk Europe 2016

Many of our customers will know that we love using creativity to solve project cargo problems and so this year’s Breakbulk Europe 2016 exhibition is a chance for Tuscor Lloyds to showcase our creative nature.

What is Breakbulk Europe?

Breakbulk Europe is the largest Breakbulk exhibition & educational forum in Europe, supporting conventional Breakbulk and project cargo specialists.Tuscor Lloyds Breakbulk Europe 2016

The trade show offers the chance to meet like-minded professionals and build strong relationships within the Breakbulk cargo industry.

What can you expect from Tuscor Lloyds?

Last year Tuscor Lloyds hosted an afternoon tea party event that was a great success for the team. Treating our European friends to a lovely slice of cake and English tea. Take a look at just some of the images from our stand here.

We have a hard-won reputation for integrity and excellence within the projects and Breakbulk industry. Our team provides services for moving cargoes of all descriptions in some of the world’s most inaccessible destinations project task tracking software.

With a global network of over 200 partners and agents, we offer to our customers a large choice of transportation options at extremely competitive rates. Our ability to move a wide variety of cargo from container loads to complex multimodal projects makes Tuscor Lloyds the right partner to piece together any shipment.

So as we use creativity to solve problems we want visitors to our stand to unleash their creative side and colour their journey with Tuscor Lloyds. With some fantastic give-aways and a few surprises in store, be sure to stop by our stand in Hall 4!

Tuscor Lloyds Stand 403H4

North Pole 16:  The Race against Time

North Pole 16:  The Race against Time

On 13th April 2016 the North Pole 16 Race Against Time Expedition was under way. Mark Wood, Paul Vicary and Mark Langridge began their journey to reach the Geographical North Pole in 12 – 15 days unsupported and without resupply.

The team flew out to the Russian Ice station Barneo approximately 30 Nautical miles from the Geographic North Pole and from there were transported by helicopter to the Arctic ice.

Why are we supporting the Race against Time?

The Tuscor Lloyds team met Mark Wood after attending a networking evening in Manchester. Mark was invited as a guest speaker to discuss his world of exploration. The team listened to his tales spanning over 28 major expeditions, including voyages to the North and South Poles, which have cemented his unique job description as a ‘Polar Explorer.’

Immediately our team resonated with his mentality. Having worked in some of the most inaccessible and remote places in the world, we could relate to the hostile and difficult conditions faced in polar exploration.

Having learned of Marks latest journey in the North Pole it was clear that Tuscor Lloyds were set on supporting him in some way.

North Pole 16 Map

Climate Change in the Arctic Sea

The main aim of the expedition is to document the state of the Arctic ice and the immediate impact of climate change.

The North Pole 16 team have already commented on the difficult terrain and treacherous conditions, navigating around ice bricks the size of cars, with Mark Langridge commenting he’s “never seen such ice rubble in his life.” Despite the relentless challenges the team are managing to cover around 8 nautical miles of sea ice a day.

Tuscor Lloyds have previously reported on the shipping industries stance on emissions and the future of ‘Green Shipping’. We understand that shipping is a massive contributor to global CO2 emissions and in the past it has been difficult for regulatory bodies to offer any restrictions on capping emissions.

This week however, the IMO announced a new four year global project to tackle the industries emissions.

“This four-year project will enable developing countries, especially Least Developed Countries and Small Island Developing States, in the target regions to effectively implement energy-efficiency measures through technical assistance and capacity building.”

We hope that the expedition can offer first hand evidence of the impact of climate change on the Arctic region. Not only to help pressure on regulatory bodies to take action but also to ensure the next wave of Explorers daring enough to take on the struggle have somewhere to explore.

Port of Grangemouth Strike

Port of Grangemouth Strike

It has been confirmed that a strike by workers at the Port of Grangemouth will go ahead from midnight tonight 14th March 2016.

The dispute over new rotas impacting night shifts and compulsory weekend work has resulted in a two week walk out, with all but 2 of the 75 Port operatives voting for action.

aerial-port-of-grangemouth

Aerial View of the Port of Grangemouth via forthports.co.uk

A spokeswoman for Forth Ports insists the changes are in line with customer needs, as vessels will continue to call at the port seven days a week.

Grangemouth is responsible for the majority of Scotland’s imports and exports, handling over 150,000 containers a year. Given these statistics the strike could affect around 5770 containers over the two week period.

The Daily Record reported that hauliers have openly expressed their concern,

“People maybe don’t realise how much comes through Grangemouth – but it is a massive part of the Scottish economy. We’re talking whisky, oil products, foodstuff – it all comes in through Grangemouth.

If it closes then you could be looking at all of Scotland’s imports and exports having to come in and go out from other ports – maybe even as far away as Hull.”

If you need more information on alternative routings and transportation options then please contact our team today. Email shipping@tuscorlloyds.com or call us on +44 (0) 161 868 6000.

 

View more Industry News & Insights here.

One to watch: Kamarajar Port at Ennore

One to watch: Kamarajar Port at Ennore

The Kamarajar Port at Ennore is located on the Eastern coast of India in the state of Tamil Nadu, around 30km north of Chennai. Investments of up to 1.2 Billion dollars are planned to double handling capacity over the next 3 years.

The projects range from the development of a 1.4 million teu container terminal to an 18 metre draught facilitating Capesize vessels. The investments at Kamarajar hope to challenge neighbouring ports located on the eastern coast such as Chennai and Krishnapatnam.

Sea-Ports-of-India-Map

In 2015 the Kamarajar port handled 30.25 million tonnes of cargo, an increase of 10.66% compared with the previous year. The main cargo is coal, with thermal coal accounting for around 80% of the total tonnage.

Kamarajar is one of 12 government owned in India and unlike its counterparts, it is run as a company, rather than a trust, which means the port sets its own rates and can always maintain an element of freedom.

This has resulted in the port attracting the growing domestic auto industry in India which now represents the 5th largest auto industry in the world. With neighbouring Chennai home to major car manufacturers like BMW, Ford and Hyundai, Kamarajar intends to become a new hub for automotive exports.

If you need more information on shipping services to India then contact our team today +44 (0) 161 868 6000 / shipping@tuscorlloyds.com. Or alternatively take a look at some of our latest news & information on the maritime sector in India.

CMA CGM & Cosco: The New Mega Alliance

CMA CGM & Cosco: The New Mega Alliance

Reports of a new mega alliance have emerged this week between CMA CGM & Cosco, as well as the inclusion of Evergreen and OOCL.

The carriers are set on creating a new East –West partnership to challenge the current dominance held by the 2M Alliance between Maersk and MSC. French consultancy firm Alphaliner released news that a “new mega alliance appears to be in the making.”

Although no formal announcements have been made by the lines CMA CGM Vice Chairman Rodolphe Saade has confirmed talks are taking place between the company and the new China Shipping Group.

Problems with existing alliances?

The four carriers making up the proposed CCEO (CMA CGM, Cosco, Evergreen and OOCL) are clearly concerned with their existing alliances with more vulnerable counterparts struggling from financial difficulties.

A-New-Master-of-the-Ocean

CMA CGM have already vocalised their plans to remove APL from the G6 alliance after completing the acquisition of the Singapore based carrier this year.

Similarly Cosco’s merger with China Shipping Container Lines (CSCL) is set to complete at the end of this month. The merger creates the world’s largest shipping company by ship value.

As the two Chinese lines are currently involved in separate alliances (Ocean Three and CKYKHE) it seems only right that the new look carrier is looking to amalgamate operations under one streamlined mega alliance to compete with the 2M dominance.

Sources: Alphaliner, Loadstar

¿Quieres descubrir másnoticias geniales?

¿Quieres descubrir másnoticias geniales?

Entonces, ¿por qué no unirse a nuestra lista de correo para recibir las últimas noticias y actualizaciones del equipo de Tuscor Lloyds?

Te has subscrito con éxito