Airfreight Options Explained: Direct vs. Deferred vs. Sea-Air

It has become a regular occurrence for shippers to use airfreight as a fallback option. On average, airfreight is four to 15 times more expensive than ocean freight on a per-kilo basis. And that gap widens if the shipment is responsive rather than planned, such as booking unscheduled airfreight because an ocean shipment fell through and nobody had time to compare options.

But what if there was a way to use airfreight without paying so much? Airfreight has three service levels, each with a different cost and transit window. Laufer’s air program views all three as controlled levers within an ocean-first program, with PeerPLUS providing visibility across both modes.

Air transportation gets expensive when it is used as an emergency backup, booked the same day, with no time to see whether a slower, cheaper option would have worked. The problem is almost always upstream. For instance, a late PO or a container could have been rolled, and nobody caught the blank sailing in time. The disruptions that force shippers to use airfreight are common, and it is fair to assume they will continue. But that does not mean they will control freight costs, especially if the shipper can see them far out.

Most importers think of airfreight as fast and expensive. In practice, there are different tiers, and knowing what to use for any given shipment is where cost control comes in.

Cargo travels on a direct route from origin to destination. Transit time is three to five days door-to-door on major transpacific lanes, sometimes faster depending on the airport pair. This is the correct choice when the delivery date is fixed, and the margin can support the cost.

A good rule of thumb is that airfreight is viable when freight costs are between 15% and 20% of the goods’ value. Beyond that point, the economics seldom work unless the penalty for missing the delivery date is worse than the freight bill itself.

In this case, cargo routes via a hub or flies on a slower schedule, adding one to three days to transit but cutting the per-kilogram rate. This is for shipments that need to arrive faster than by ocean but don’t require next-day urgency. The problem is that many importers are unaware of this option.

An importer’s forwarder may quote directly, either because it’s easier or because the request was “we need this by air” with no discussion of timing flexibility. A Shanghai routing via Anchorage or a consolidation flight through Hong Kong can reduce the direct rate on the same lane by 15% to 30%. Most logistics managers would accept a trade-off for a meaningful cost reduction if an extra three days of transit were offered.

Take the ocean to a hub like Dubai or Singapore, then fly the final leg. Transit is 12-18 days at about 40%-50% of the cost of full air. This sits between ocean and direct air for shipments when 35 days is too long and five days isn’t worth the premium. However, sea-air works best as planned freight.

You know that ocean time won’t make the delivery window, so you route through a hub where cargo transfers to air for the final leg. It’s not an easy fix, as the ocean leg needs time. But with a two- to three-week lead time and the need to arrive faster than a full ocean transit, it is often the cheapest way to buy speed on shipments.

If the speed is controlled, the logistics team can choose the service level before booking the shipment. They compare the three and decide in time to book the cheaper option. But that means having visibility upstream, which end-to-end visibility platform, PeerPLUS, provides from the booking stage.

When an ocean shipment starts to appear delayed, Laufer’s team identifies the problem early enough that switching to air is a premeditated decision, with a cost estimate attached. Laufer's air program offers a full range of speeds to importers and exporters, without defaulting to the priciest option, while PeerPLUS provides actionable visibility across ocean and air milestones. booking management plays a key role in protecting cargo space allocations.

Contact us today to get started.