Incorrect cost comparisons

ALAN PEAT Too many shippers and forwarders are not doing proper cost comparisons between airfreight and seafreight, according to Max Mariotti, MD of Aviation GSA. Freight rate versus freight rate is the normal method of selection when cost saving is considered. Straight airfreight rates are always likely to be much more per unit than those for seafreight. But this does not take into account the variables like transit time, product stockholding and the like which are all costs, he added. “Unfortunately, not enough people in our industry are educating the users about true comparative costing,” Mariotti told FTW.