Sea freight is just one cog within the machine that forms a supply chain network. Some companies opt to use a specific 3PL to have their goods shipped safely and legally.
Once you have engaged with a shipping company, they will collect the goods from your supplier and move them through the port in one of the previously mentioned forms. It is worth noting that delivery times should include a delay moving through the port on each side as they have to pass through customs.
Sea freight Australia is economically and environmentally superior to other forms of product delivery service, but only if you are looking to transport large quantities or if the destination country is far away.
Sea freight is and always has been a cheaper option than air freight.
Sea Freight vs Air Freight – Cost
Generally, sea freight can be between 5 – 6 times cheaper than air, but this gap can extend even further if you increase the weight of your cargo – by sea freight it’s unlikely the cost will increase, whereas importing heavier cargo via air freight will be much more than 4 – 6 times the cost of sea freight.
For smaller shipments though, air freight can be beneficial. If shipping 1-2 small pallets via sea freight, the cost is calculated per cubic meter, so if your consignment is that small then air transport may cost you less when you take into account all charges associated with sea freight. However, if shipping a small quantity of sensitive and expensive items, the speed and security of air freight might be preferential for you.
Sea Freight vs Air Freight – Transit Times
One of the main considerations here is what you will be shipping. For high-value or perishable items, or medical products, air freight has significant advantages because of high levels of security and express delivery options. There is an added advantage of being more traceable too, as all flights are tracked, which gives businesses greater visibility and peace of mind. This doesn’t mean that sea freight is not trackable, indeed, it is, however, the details are far superior for air freight.
Sea freight is likely to be a far better option for your requirements.
The requirements in terms of documentation for sea freight and air freight are largely similar. Both require a commercial invoice containing HS/Commodity codes.
If you are shipping personal effects then you will need a proforma invoice and packing list, and three copies of the invoice must be attached to the pallets on all occasions. Depending on the destination country and the nature of your goods, further specific documentation may be required.
It is also worth bearing in mind that the list of prohibited items is far more extensive for air freight than for sea freight. For example, no items containing batteries, no gasses, magnetic substances, or anything flammable can be shipped via air freight.
As far as Duties and Taxes are concerned the very same percentages apply to both modes of transport, so the requirements are largely similar. Duty is calculated at an allocated percentage based on the nature of goods, so it will be the same regardless of what shipping method you choose. Tax is basically VAT in Europe or GST in the USA, Australia, etc. and it would also remain the same for both modes. However, Tax applies on the value one the goods plus the shipping costs, so if the shipping costs are greater, the result will be a small increase in the value of the Tax that needs to be paid.
One advantage of air freight is that this service operates as a door-to-door option.This means that all costs are included in the original quote. However, with sea freight, the prices are quoted for shipping to the port only. When goods arrive at the port there will be a number of other charges before those goods can enter the country, including things like local port and handling fees, customs clearance, and documentation fees. All of these charges need to be paid before the goods can make it into the country, where collection from the port can then be arranged.
Ocean freight shipping costs to Australia from the United States begin at $975 for a 20-foot container. A 40-foot container will cost at least $700 more.
Rates will vary depending on the country.
Much like Asia, Australia largely imports electrical machinery, mineral fuels, vehicles, medical supplies, additional pharmaceuticals, precious metals, and home goods. Their biggest exports are iron ores, coal, gold, and beef.
Freight shipping prices depend on the kind of service your goods require. In addition, there are a few aspects you should consider which will have a part in determining your shipping costs: your choice of container, your cargo’s characteristics, the applicable Incoterm, and the transit time. Furthermore, any special requirements for your shipment such as those needed for hazardous goods are likely to incur in extra costs.
Transit time between any two countries will largely vary based on the port of origin and destination within each country. Consequently, when shipping from the US to Australia, you will find the longest route is Louisville-Sidney, which takes 75 days on average, while the shortest – 17 days – would be Long Beach-Sidney. If you’re shipping internationally, however, it’s important to remember that there may be unexpected issues that could lead to delays.
All standard dry shipping containers are suitable for goods that don’t require special conditions during transit such as refrigeration or ventilation – i.e., non-perishable cargo like manufactured goods. These freight containers are the most commonly used in the world and are available in various sizes, giving shippers a range of options to choose from in order to adapt to their cargo’s needs.
Dry shipping containers sizes have been standardized so as to offer shippers a wide range of options. As an indication, the smallest container is 20ft and offers a volume capacity of 1,172 CFT / 33.2 CBM, whereas the largest – 45ft – is 3,122 CFT / 88.4 CBM. If your cargo is low-volume, you may want to think of using a Shared Container (LCL) and pay only for the portion of the container your shipment takes up.