Traditionally there have been two modes of shipment that are effective and sustainable if we talk about international trade. These modes are air freight and ocean freight. Both modes are popular however they have their share of pro and cons. It all depends on what your requirements are. As a trusted logistics consultant in India, an agency should have in-depth knowledge about the shipment modes, their functioning, and proper strategies to implement to get maximum benefits in the import-export business.
However, the current scenario of an international shipment is going through a phase of transition. It has been severely affected by the onslaught of Covid-19 restrictions. Logistics companies have revised all the previous norms and that has created a severe gap between the demand and supply. This has also affected the price table of shipping your goods from one country to another. Let us first delve into the challenges that air freight and ocean freight are facing these days and then examine which mode is the better option in today’s scenario.
Challenges faced by air freight.
Without a doubt, air shipping is an effective mode of freight forwarding. But Covid-19 restrictions have taken a toll on this mode of shipment. The new sets of restrictions along with the resurgent economy post-pandemic have raised the demand to the peak. As the result, freight capacity has been affected and there has been severe congestion in the ports, especially during the peak festive periods. The price of logistics by air has also peaked at an unprecedented height. Even at the start of 2023, the congestion and price are more than normal.
Challenges faced by ocean freight.
Ocean shipment also has to fight its own battle due to Covid-19 restrictions plus compensate for the demand that the air freight has not been able to meet. Today ocean shipment is suffering from container shortages leading to a long delay in product delivery across borders. In the month of September 2022, India was facing down by 22.4% container shortage which continued till the end of the year 2022. The shortage of containers has drastically increased the prices of ocean freight. Many businesses are today even ready to pay for the premium rates to sustain the flow of their goods in the international market. Additionally, due to the shortage and limited capacity, the ships are losing track of the schedule. There have been reports of loss of parcels, damage to shipments, and wrong deliveries.
Now let us examine both modes by their effectiveness:
Safety of shipment.
Ocean shipment is more susceptible to damage due to unforeseen weather conditions and the shock it may receive due to long waves mid-sea. However, today companies dealing in ocean shipments follow various safe packaging processes to secure parcels against weather conditions and wet environments.
Air shipment, however, is a more stable and safer mode to transport your goods to other countries. Air freight is also mostly on time except in some cases of harsh weather conditions. This means your shipment is also delivered on time by air.
Price of shipment.
Shipment by air is cheaper than the ocean freight. The price of shipping by air is about 15-20% less than ocean transportation. However, most logistics consulting services in India will recommend lighter shipment by air as it is more affordable than seaway mode. But if you have heavy shipments and large volumes, you should always opt for ocean freight services as they provide higher parcel capacity anytime.
Speed of shipment.
Depending on the situation, the speed of shipment varies between ocean and air freight. While it is always recommended by any experienced logistics consultant in India, that prepare and ship products early on to avoid delays, deciding on the mode is a real challenge. The products which are perishable with a shorter shelf life like drugs, etc. need to be shipped faster. In that case, air freight is more advisable for global traders.
Sustainability of shipment.
Ocean freight scores much higher than air freight in terms of sustainability. Air freight generates more carbon footprint, therefore it is not preferred if you are going after sustainability. Ocean freight’s low carbon emissions make it more preferred mode of shipment nowadays.
Conclusion
Air freight due to its stability, lower shipment costs, and speed of delivery is a better option for transporting your products from one country to another. However, if you have bulky cargo with extra volume, you should definitely opt for sea freight.