If your business relies on global trade, you’re no stranger to the complex world of logistics and cargo shipping.
Whether you’re importing goods into the UAE or exporting them internationally, the success of your business largely depends on the smooth handling of your cargo.
Although international shipping can be challenging, understanding the features, benefits, and drawbacks of the modes of transport available to you is crucial to the success of your business.
In this article, we’ll explore the basics of air cargo shipping and sea cargo shipping in the UAE, including what these services entail and how they can impact the way you run your business.
Air Cargo Shipping in the UAE
Air cargo shipping is the transport of commercial goods via aircraft. Because it’s faster, air shipping is more expensive than other shipping methods and is therefore often used for time-sensitive and high value shipments.
This mode of transportation is regulated by the International Air Transport Association (IATA), and shipments are therefore subject to IATA’s rates and restrictions surrounding the shipping of dangerous goods and other types of cargo.
How It Works
The process of air cargo shipping entails finding an airline that can transport your goods to their destination and booking your shipment with a freight forwarder. Your freight forwarding company in the UAE would then book your cargo flight and provide you with a shipment number that allows you to track your shipment for full visibility.
Once you’ve packed your shipment and labelled it correctly, you’ll need to fill out a customs declaration form, which is necessary for your cargo to clear through customs. Your freight forwarder will then pick up your shipment and transport it to the airport for loading on the aircraft so it can be flown to the destination.
Upon arrival at the destination airport, your shipment is unloaded, picked up, and transported to the freight forwarders warehouse. Once the customs clearance process is completed by your freight forwarder, the company will proceed with the delivery of goods to your door.
The Benefits of Air Cargo Shipping
- Speed:
The primary advantage of air cargo shipping is speed. Airplanes move 30 times faster than ocean liners, making this mode of transport ideal for time-sensitive shipments.
- Safety:
Not only are goods protected from the elements when transported by air, but they are also typically shipped in containers that prevent movement and damage. As such, they are more likely to arrive at their destination in the same condition they were shipped in. Additionally, cargo shipped by air is less likely to get lost in transit.
- Reliability:
Due to its speed, real-time tracking, and extensive network of delivery partners, air cargo shipping is more reliable and hassle-free than any other shipping method.
The Disadvantages of Air Cargo Shipping
- Cost:
Due to the complex process of air cargo shipping and the high costs associated with fuel, equipment, and trained personnel, it is more expensive than other modes of cargo transport such as ocean freight.
- Capacity:
Compared to ocean vessels, aircraft are significantly smaller in size and therefore cannot carry as much volume as cargo ships. This lower capacity makes air cargo shipping rates higher and therefore less accessible to businesses.
- Shipping Restrictions:
Air cargo shipping is unsuitable for some types of goods, such as flammable liquids, pressurized containers, explosives and corrosive materials. It’s also often unsuitable for perishable goods that can spoil during the journey or be damaged by extreme temperatures.
- Weather-Related Flight Delays:
Weather conditions can lead to flight delays and cancellations, which can impact the delivery of your time-sensitive shipments.
Costs and Charges
Your shipping rate will be calculated based on whichever is higher—dimensional (or volumetric) weight or actual weight. To determine your shipment’s dimensional weight, you’ll need to multiply its volume in cubic meters by 167. Freight forwarders usually have air cargo calculators on their websites that can assist you in estimating the cost of your shipment.
In addition to the weight of your shipment, you will need to factor in the following when calculating your costs:
- Fuel surcharges
- Security surcharges
- Handling fees
- Airport transfers
And if you opt for door-to-door shipping, these additional fees will apply:
- Cargo insurance
- Customs brokerage
- Pickup and delivery
- Accessorial charges
Sea/Ocean Cargo in the UAE
If air cargo shipping is not in your budget, sea cargo is a popular alternative, and it’s a particularly good option in a major hub such as the UAE. That’s because the UAE’s strategic location and infrastructure make it a central point of connection to major ports around the world.
About 90% of the world’s trade is conducted via sea and ocean shipping because it’s economical, flexible, and facilitates the transport of heavy loads and machinery as well as dangerous materials that cannot be transported by air.
How It Works
To transport your goods via sea cargo shipping, you must pack your shipments for transport in full or shared containers, depending on the volume. Your freight forwarder will then book the container or the container space with the shipping agent and move it to the origin port for customs inspection.
Once your goods pass through customs, they are loaded into the container and onto the cargo ship for transport. Upon arrival at the destination port, your shipment will once again pass through customs, where the shipping agent will handle duties and taxes on your behalf so your goods can be released for delivery. When the shipment is cleared, it’s delivered to the recipient either in the same container or on pallets.
The Benefits of Ocean Shipping
- Cost:
The main advantage of sea cargo shipping is affordability. It costs up to five times as much to ship your goods via air cargo, making sea cargo a much more cost-effective way to transport your freight.
- Efficiency and flexibility:
Sea cargo shipping allows you to transport shipments of all sizes in a single trip, including heavy and oversized cargo. Whether you require a full container load or less than a container load, shipping by ocean provides you with an efficient and flexible way to transport your goods.
- Safety Standards:
If you’re shipping flammable and hazardous materials that are restricted on aircrafts, sea cargo is an excellent alternative with high safety standards for the transport of dangerous goods.
The Disadvantages of Sea Cargo Shipping
- Transit Times:
Sea cargo shipping is significantly slower than air shipping, and transit times can be further prolonged by bad weather conditions. Additionally, further transportation is required over land before goods can reach their final destination.
- Risk of Damage:
Due to longer transit times and exposure to the elements, goods are more likely to be damaged when travelling by ocean than by air.
- Visibility:
Tracking sea cargo presents more challenges than air cargo shipping, making it more difficult to understand what’s happening across your supply chain.
Costs and Charges
Unless your goods are particularly heavy, most less-than-container loads are priced by volume rather than weight.
Your freight forwarder will be able to advise you about your container costs, but you can also expect to pay additional charges, including:
- Customs security surcharges
- Container Freight Station charges
- Terminal Handling charges
- Customs brokerage
- Pickup and delivery
- Insurance
- Accessorial charges (fuel surcharges, hazardous material handling, storage)
- Routing charges
Takeaway
Air cargo shipping is a fast, safe, and reliable (albeit expensive) option for your cargo. Sea cargo can be a suitable and affordable alternative with its own set of benefits.
Whichever mode of transport works for your business, speak to your freight forwarding company in the UAE to ensure that your shipments meet UAE shipping regulations.
If you need help navigating the world of international shipping, eShipper can help. Contact us today to get started!
How eShipper Can Help
- Cost-effective freight services:
Expand your reach internationally with eShipper. We have the network and know-how to get your products from the UAE to North American markets with unparalleled efficiency, all the way to the last mile.
- Carrier partnerships:
Get a competitive edge with the best-in-class rates and faster delivery, so you can continue to run your business seamlessly, without interruption.
- Customs clearance:
Take the hassle out of international cargo shipping and let us handle all the necessary documentation, duties, and taxes to ensure that your shipments make it through customs.
- Logistics management:
Get reliable support from our logistics experts, from cargo handling in the UAE to freight forwarding to the final destination, with trusted advice around international and UAE shipping regulations.
