Shipping by Air Freight Vs. Ocean Freight:Air Freight Forwarding versus Ocean Freight Forwarding.
Shipping by Air Freight Vs. Ocean Freight
A company should look into how they will be shipping their assets. As we can tell right off the bat is that shipping by ocean freight will take some time. If you are looking at getting assets quicker then you will ship by Air. Most customers want their assets quick. It seems that deliveries can never be quick enough. However, getting deliveries to a customers door quick is going to cost more money then shipping by ocean.
If the company is able to save some money by shipping by ocean then they should do it. They should look into Ocean Freight. They could possibly use Ocean Freight until they find a need to ship it by Air. IT all comes down to costs and the budget.
A company will look at shippers by how reliable they are, how fast they are, and how much they cost (logisticsplus, 2015). Also, the company will look at security and safety (logisticsplus, 2015).
This brings up a great point. A company will look at how the assets will be handled and you can imagine that being on a boat they are more able to get damaged compared to going by air craft.
A company could also look into both Air Freight and Ocean Freight. They could look at shipping heavier assets by boats and look into the lighter packages by air. Cost is important in any supply chain and they must look into how much the shipments cost and try to save money where they can.
logisticsplus. (2015, August 21). Air Freight Forwarding versus Ocean Freight Forwarding. Retrieved from logistics: https://www.logisticsplus.net/air-freight-forwarding-versus-ocean-freight-forwarding/
reply 100 words to student Higdon 250 word post class 352:
Good Evening Class,
I hope you are all doing well this week so far.
This week we are discussing Air Freight and Sea Freight. Companies should consider both methods for different reasons. There are distinct advantages and disadvantages to both. In order to determine what method is most appropriate for your organizations needs you must consider frequency of shipments, lead times, and cost.
Cost is obviously a consideration in any business decision. As you know, time is money. In order for Air Freight to take the lead over Sea Freight the Time/Cost balance should be evaluated carefully. Lighter packages that are valuable, numerous in quantity ,and utilize minimal space would fall into this category. For example, personal electronics are relatively small compared to heavy duty industrial equipment. Sea freight may be slower, but the quantity allowed to be shipped is much greater. In sea shipments weight is less of a consideration than air. Instead the size of the containers being used are calculated into the cost( Rau 2011).
If an organization is relying on steady shipments of items with few variations, sea freight would be the best option. If timed correctly they should not have a problem waiting for regular shipments. In situations that companies need custom items, or have an urgent demand air freight would be a great choice. There may be times organizations used both according to their own needs. Supply Chains should consider using multiple sources and systems of distribution in order to limit service disruptions.
Rau,Raymond.4 Factors for Considering Air Freight vs. Ocean Freight. (2011). Retrieved June 26, 2018, from https://www.universalcargo.com/4-factors-for-considering-air-freight-vs-ocean-freight/
reply 100 words to student Jermain 250 word post class 352:
As we hit the mid-point of this course we are charged with discussing the criteria that companies should use when determining to use air or sea freight to source its materials. There are many factors that companies can considered before making their decision. The first one I will hit on is cost. Being in the military, when I was deployed to Bagram, we were utilizing multi-modal transportation for units redeploying or returning back to the states. Cost was the driving force. It was cheaper for the units to be flown from Bagram to the nearest sea port and shipped out. Along with that is the fact that products moved by air get charged by the weight whereas products moved by sea get charged by volume. Another criteria to consider is time. All of these units deployed to Bagram via air instead of sea to get there quicker and hit the ground running. A third criteria is location. This one can favor either air or sea. It is not always easier to fly into a location even if there are fewer stops than it is to use sea. Also, with a combination of cost, sometimes sea is cheaper. All the personal vehicles that come to the military members and families here in Germany come via sea freight. Reliability is another factor that comes in mind. Products moved by sea are more likely to get damaged than those moved by air. Environmental impact is another factor to consider. In terms of CO2 emissions into the atmosphere, sea freight has a substantial smaller fingerprint than air freight.
Rau (2011). Universal Cargo. 4 Factors for Considering Air Freight vs. Ocean Freight. Retrieved from: https://www.universalcargo.com/4-Factors-for-Considering-Air-Freight-vs-Ocean-Freight/
Shields (n.d.). Schumacher Cargo Logistics. Air Freight vs Ocean Freight – Pros and Cons. Retrieved from: https://www.schumachercargo.com/moving/air-freight-versus-ocean-freight-international-shipping.html