Question

In: Economics

Is it cheaper to ship by air or sea as a manufacture and why?

Is it cheaper to ship by air or sea as a manufacture and why?

Solutions

Expert Solution

It is important to decide the right mode of transportation when planning to ship.The right mode of transportation depends on costs,the urgency of the shipment,environmental effect,weight of the material & so on. Following factors should be taken into account while taking decision of shipment.

Costs: Sea freight is generally cheaper than air freight.Shipping by sea is much better for larger & heavier shippment. If your shippment is smaller then it is better to use air ship.

Time : Time is one of the important considerations while shipping. If you have an urgent shippment then air ship is the best option for you. On the other hand, if there are no urgency of shippment then it is better to go for water ship.

Level of Pollution : It is also necessary to consider the environmental effect while shipping in air or water. Shipping by sea is much more environmental friendly than by air.The carbon dioxide emission by ship are much lower than flights.

Reliability : Reliability is also an important factors to take into account while transporting by air or sea. Shipping by air takes a very short period of time than by water. So it's much reliable to ship by air. If you ship by sea, it may take a longer period of time & again if you miss one ship then it takes time to get another one. So in this case reliablity is a matter of concern.

So it can be concluded that there are number of options to ship like air,rail,road & water. You have to decide which one is best for you considering size,weight & urgency of the material.


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