An International Airline – which transports both cargo and passengers
A Freighter: which only transports oversize cargo.
Something that most new importers don’t know is that Passengers always get priority over Cargo. If occasionally there is more weight due to passengers and or luggage, some cargo might be left behind and
shipping agents do not have any control on this issue as passengers will get prioritised when loading.
Airfreight Shipments are to be used if:
Cargo is urgent and needs to be at destination within the week.
Cargo is of high value.
Cargo is more dense than volume.
If shipping costs are less than 20% of the value, usually airfreight is an alternative.
Sea freight is a mode of transport which is recommended for the following reasons:
Cargo is not urgent.
Cargo is heavy and large.
When client can afford to wait and therefore reduce the cost per unit price
Trans-shipment service – This is when a shipping line goes through and stops, off loads cargo in an intermediate port to load onto a new vessel that will then finish its journey at a final destination:
Pros:
1. Rates are cheaper.
Cons:
1. It offers a longer service
2. More delays might occur in the transshipment ports during peak season
Direct Service – This is when a shipping line does not stop to pick up or offload any cargo until it arrives at final destination.
Pros
1. It offers a faster time.
2. It offers more departures
Cons
3. More expensive rates.
Additional and important advice for new importers:
1. Always ask your shipping agent for options when requesting a quote ie Direct or Transshipment and you can then decide if price vs time is an option
2. Ensure you understand the consequences of choosing trans-shipment service during Christmas Time or Chinese New Year
3. Trans-shipment service is a valuable tool when you want to save money, it is usually used to stock up your warehouse. On the other hand, when importing high end products, you should consider if it is more important to give your client a quick transit time or lose the order due to the delays of using a trans-shipment service.
Feel free to contact Cinzia Sangalli for more information on air and sea freight solutions.