Freight shipping makes global commerce possible. Take away the trains and trucks and cargo ships and our modern economy would simply stop. Freight is how goods move from factories to customers, bridging continents and oceans.
But not all shipping methods are created equal. For many businesses, the choice comes down to sea or air.
Sea shipping is the backbone of global trade, moving enormous quantities of goods at low costs. Air shipping, on the other hand, offers speed but comes with a much higher price tag. Understanding why sea shipping is cheaper than air shipping can save businesses thousands, if not more.
It’s not just about size, though size matters. Ships can carry far more cargo than planes, but the real savings come from efficiency, infrastructure, and fuel costs. All these factors work together to keep sea shipping affordable, even though it takes longer.
The question then becomes: when does air shipping make sense? And how do businesses balance cost and speed in their supply chains?
These are the trade-offs that smart companies navigate every day. Here’s what you need to know.
Sea shipping is cheaper than air shipping
For the vast majority of freight shipments, sea shipping is cheaper than air shipping. And it’s not close at all.
We like to use Freightos to compare freight shipping rates, since their software provides instant quotes. To illustrate the price gap between sea shipping and air shipping, we’ve run a few quotes for this article.
If you were to ship 5 pallets (48” x 40” x 60”), each weighing 1,000 pounds from a factory in Shanghai to our warehouse in Lakewood, New Jersey, you would have a lot of shipping options.
Among them, the lowest priced carrier on their portal would charge $3,011 to do that. It would ship by sea and the process would take 4-5 weeks, port-to-port. Freightos estimates the actual delivery time would take between 40-48 days, which is about 6-7 weeks.
On the flip side, the cheapest available air shipping could be done in 8-9 days port-to-port, 13-16 days, at a price of $14,110. That’s about 32 days or 4.5 weeks faster, but at almost five times the cost!
Not pictured, the fastest quote we saw would take only 1-3 days to ship total, but at a cost of $28,830. That’s about 7 weeks faster, but at about 10 times the price.
If you try different shipment sizes, you will see very similar results across the board. Air shipping is consistently much faster, but far more expensive. So it’s worth exploring why that is the case, and why you might choose air over sea or vice versa.
Why is sea shipping cheaper than air shipping?
Sea shipping is cheaper than air shipping for one simple reason: efficiency. Ships can carry far more cargo than planes. This reduces the cost per unit, allowing companies to save big on shipping.
This effect is so pronounced that business owners outside of the logistics industry are well aware of its impact. “Ships can carry far more volume per journey compared to airplanes,” says Marin Cristian-Ovidiu, CEO of Online Games. “Plus, fuel is definitely a smaller part of a ship’s operating cost than for planes.”
Planes use an enormous amount of fuel to fly and customers – the folks who need freight shipped – end up paying for the cost. Ships are slower, but burn a lot less relative to the cargo they carry, thanks to the ocean doing much of the work.
Infrastructure also plays a role here. Airports are expensive to build and maintain. Ports aren’t cheap either, of course, but they have been in use for centuries and handle far large volumes of goods.
When you think about cargo capacity, fuel, and infrastructure combined, it’s not hard to understand why sea shipping is cheaper than air shipping. The mind-boggling part is how big the difference in cost is!
Why would you choose air shipping over sea shipping?
Even though it’s more expensive, air shipping definitely has its benefits. Dane Nk, Founder of That VideoGame Blog gives a great example from his experience.
“All in all, from what I’ve come to observe in the last few years, air shipping typically makes more sense than sea shipping under specific instances where every second counts. For example, when it comes to tech, sending out and shipping products like smartphones close to their release date is necessary to maintaining market relevance and consumer satisfaction.”
He goes on to add that “for perishable goods like medical supplies, air freight has the necessary speed to make sure such products arrive in optimal condition ᅳ preserving their value and efficacy.”
“Despite its higher cost though, air shipping gives its consumers unmatched speed and reliability for urgent or high-value shipments, making it the go-to choice when the cost of delayed delivery far exceeds the expense of faster transportation.”
Sea shipping typically takes weeks, and there is no way around this. When speed really matters, air shipping is truly the only acceptable option for long-haul freight shipping.
What other kinds of freight shipping are there?
Aside from sea and air, there are two other major types of freight shipping: road and rail. Both have their strengths, depending on the distance and the type of goods being moved. Road shipping is flexible. Trucks can go nearly anywhere, making them perfect for that last mile.
Rail shipping, on the other hand, is ideal for heavy or bulky items. Trains can carry large amounts of cargo over long distances. It’s slower than road transport, but the cost per unit is much lower, especially when moving goods in bulk.
Rail transport is like the ground equivalent of sea shipping, with road transport being the ground equivalent of air shipping. (This metaphor has limits, of course, since you’d hardly expect a plane to land at a warehouse, although perhaps our competitors disagree!)
That said, for shorter distances, road freight is hard to beat. Trucks can pick up and drop off at specific locations, offering door-to-door service. This makes them perfect for regional deliveries and eCommerce.
Rail is more limited in its reach. You need access to a rail network, and that’s not always available. But where it works, it’s cost-effective, especially when transporting goods over landlocked areas.
Another option, and one which is very common in freight shipping, is intermodal shipping. Intermodal shipping means combining several types of freight. Goods might move by truck to a rail terminal, then continue by rail, and finally be delivered by truck. This is kind of like the freight equivalent of booking a flight, taking a shuttle, and then renting a car if you need to travel out of town.
What is the best way to keep freight shipping costs low?
The best way to keep freight shipping costs low is to plan ahead. When you have time on your side, you can choose more affordable options, like sea or rail. Faster shipping, like air freight, always costs more. The situation you really want to avoid is shipping something by air that can be shipped by sea because you’re under a time crunch.
“In our operations, while we mainly deal with digital products, we sometimes need to ship physical merchandise or marketing materials,” says Cristian-Ovidiu. “We generally stick to sea freight to keep costs down unless we’re under a tight deadline or dealing with items that need quicker handling. Then air freight becomes worth the expense.”
Planning in advance alone is the largest lever you have for lowering costs. But if you’re looking for a bit more advice, here are a few other things you can do.
- Design with shipping in mind. Before you start manufacturing, think about ways you can make your products as light and small as possible. This will help you cut down on freight and order fulfillment costs, and might save some money during the manufacturing process as well.
- Consolidate shipments when you can. Instead of sending multiple small packages, wait until you have enough to fill a container or truck. Shipping in bulk brings the cost per item down.
- Pick partners carefully. A good freight forwarder can negotiate better rates and find the most efficient routes. They’ll also handle the paperwork, which can help you avoid costly mistakes.
- Packaging matters too. Use the smallest, lightest packaging that still protects your goods. Excessive packaging takes up space, and in shipping, space is money.
Again, planning freight shipping in advance is, by far, typically the most impactful step you can take. But these other four tips can also save you considerable sums of money in the long run.
Final Thoughts
In freight shipping, time and money rarely move in the same direction. Sea shipping wins on cost, giving businesses the ability to move huge volumes of goods at a fraction of the price of air. But when speed is critical, air shipping can be worth every extra dollar.
Choosing the right shipping method depends on your needs. If your products can wait a few extra weeks, sea freight is your best bet. It keeps costs low, which can help boost profit margins or keep prices competitive.
On the flip side, for urgent shipments or high-value goods, air shipping is the answer. The speed it provides ensures you don’t lose out on sales or quality, especially for perishable goods or time-sensitive products.
Ultimately, smart planning is the key to managing freight costs. When you understand the strengths of each shipping method, you can strike the perfect balance between speed and savings.
