In 2021 the logistics and shipping industries have seen their fair share of challenges, unexpected circumstances, and difficulties due to the pandemic all of which have made adaptation to the new global state a must. A transformation that will surely continue in 2022.
The demand for air freight is limited by cost, typically priced 4–5 times that of road transport and 12–16 times that of sea transport. Air freight rates generally range from $1.50–$4.50 per kilogram, while the value of air cargo typically exceeds $4.00 per kilogram. Commodities shipped by air thus have high values per unit or are very time-sensitive, such as documents, pharmaceuticals, fashion garments, production samples, electronics consumer goods, and perishable agricultural and seafood products.
1. Air
Freight Vs Sea Freight
In 2021 the logistics and shipping industries have seen their fair share of
challenges, unexpected circumstances, and difficulties due to the pandemic all of
which have made adaptation to the new global state a must. A transformation
that will surely continue in 2022.
The demand for air freight is limited by cost, typically priced 4–5 times that of
road transport and 12–16 times that of sea transport. Air freight rates generally
range from $1.50–$4.50 per kilogram, while the value of air cargo typically
exceeds $4.00 per kilogram. Commodities shipped by air thus have high values
per unit or are very time-sensitive, such as documents, pharmaceuticals, fashion
garments, production samples, electronics consumer goods, and perishable
agricultural and seafood products.
2.
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4. They also include some inputs to meet just-in-time production and emergency
shipments of spare parts. In the short run, higher fuel prices are expected to
result in slower growth of air cargo traffic or even in a possible downturn. The
choice depends on the needs and requirements of the customers. It has been
observed that sea cargo is very much more affordable than air freight. Just like
air freight is the quickest way possible, ocean freight is the cheapest way of
transporting goods. Both air freight and ocean freight have their own advantages
and disadvantages so they can’t replace each other.
It's essential to keep an eye on the air and ocean markets as both are highly
volatile. In many cases, depending on how market rates are moving and other
market dynamics, one mode of transport can be chosen over the other. Real-
time and on-demand ocean freight rates data allows professionals to react
instantaneously and make the right decision that positively impacts the bottom
line.