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Sea Freight vs Air Calculator — True Total Cost Comparison

Compare the real total cost of ocean vs air freight — not just shipping rates. Factor in transit time, inventory carrying cost, insurance, and cash flow to make the right mode decision.

Quick answer: Air freight is typically 4–8× more expensive per kg than sea. But for high-value goods, the carrying cost of 30 extra days at sea can close the gap significantly. Always compare total landed cost, not just freight rate.

✈️ Sea Freight vs Air Freight Calculator

Your blended cost of capital — typically 8–15%
Mode Premium / Savings
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Ocean Total Cost
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Air Total Cost
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How to Use This Calculator

  1. Enter cargo value — full commercial value of the goods being shipped.
  2. Enter your cost of capital — WACC or discount rate — the carrying cost per day is value × WACC ÷ 365.
  3. Enter both freight quotes — all-in ocean vs all-in air freight for the same shipment.
  4. Review true total cost — high-value goods on long ocean routes often have surprisingly competitive air economics.

Worked Example

$150,000 electronics, 12% WACC. Ocean: $2,800, 28 days. Air: $12,000, 3 days.

  1. Daily carrying cost: $150,000 × 12% ÷ 365 = $49.32/day
  2. Ocean carrying: $49.32 × 28 = $1,381
  3. Air carrying: $49.32 × 3 = $148
  4. Ocean total: $2,800 + $1,381 + $750 = $4,931
  5. Air total: $12,000 + $148 + $450 = $12,598
  6. Ocean saves: $7,667 — ocean still cheaper despite carrying cost

Even at $150K value, ocean is still $7,667 cheaper. At $500K value the carrying cost gap narrows further. Air becomes competitive for goods over $1M where speed to market or stockout risk justifies the premium.

Frequently Asked Questions

Air is justified when: stockout would lose sales worth more than the air premium, the product is time-sensitive (perishables, fashion, electronics with short lifecycles), the cargo value is very high (carrying cost closes the gap), or there's a supply disruption requiring emergency replenishment.

Inventory carrying cost is the cost of holding goods in transit or in stock. It includes the cost of capital tied up in the inventory (opportunity cost), insurance, and obsolescence risk. The standard carrying cost rate is 20–30% of inventory value per year, or 0.055–0.082% per day.