Choosing between sea and air freight is one of the most consequential decisions importers make. The decision affects not just shipping costs, but total landed cost, time to market, capital availability, and ultimately profitability. This comprehensive analysis examines cost, speed, suitability, and break-even scenarios to help Chilean importers make the optimal choice.
Quick Comparison: At a Glance
| Factor | Sea Freight (LCL) | Sea Freight (FCL) | Air Freight | Express Courier |
|---|---|---|---|---|
| Cost per unit | $100-350/CBM | $2,500-3,500/container | $7-9/kg | $10-15/kg |
| Transit time | 35-50 days | 35-45 days | 5-8 days | 2-5 days |
| Best shipment size | 1-15 CBM | 15+ CBM | <500 kg | <150 kg |
| Cost multiplier | 1x (baseline) | 0.8x (if full) | 6-8x baseline | 8-12x baseline |
| Best for importers | Standard imports, planned inventory | Large orders, established businesses | Urgent needs, high-value goods | Emergency small shipments |
Bottom Line: Sea freight (maritime) is cheaper; air freight is faster. The choice depends on your margin, urgency, and inventory holding costs.
Sea Freight Deep Dive: The Economics of Maritime Shipping
Option 1: LCL (Less Than Container Load)
What It Is: Your shipment shares a container with other importers’ shipments. You pay only for the space (CBM) your goods occupy.
Pricing (January 2026):
| Route | Cost per CBM | Typical Range | Notes |
|---|---|---|---|
| China → Chile (Standard) | $100-350/CBM | Most common: $150-200/CBM | Price varies by consolidation point (Shanghai vs. Shenzhen) |
| Additional fees | $150-300 total | Consolidation + deconsolidation + handling | Must be added to CBM cost |
Real Example:
- Shipment volume: 2 CBM (phones, accessories, gadgets)
- Base rate: $150/CBM
- Subtotal: 2 × $150 = $300
- Consolidation fee: $100
- Deconsolidation fee (Chile): $80
- Handling/documentation: $50
- Total shipping cost: $530 for 2 CBM
Timeline:
- Factory → consolidation warehouse: 2-3 days
- Port loading & documentation: 2-3 days
- Ocean transit (Shanghai → Valparaíso): 35-45 days
- Port arrival & deconsolidation: 2-3 days
- Total: 43-54 days
Advantages:
- ✅ Affordable for small-to-medium orders (ideal for first importers)
- ✅ Flexible volumes (no MOQ; even 1 CBM accepted)
- ✅ No risk of overpaying for unused container space
- ✅ Good for products that aren’t time-sensitive
Disadvantages:
- ❌ Multiple handling stages → higher damage/loss risk
- ❌ Unpredictable timing (consolidation can add 5-10 days)
- ❌ Additional fees (deconsolidation, handling) eat into savings
- ❌ Slower than FCL (requires consolidation/deconsolidation)
Ideal for: First-time importers, orders under 15 CBM, products with stable demand (not seasonal)
Option 2: FCL (Full Container Load)
What It Is: You lease an entire container (20-foot or 40-foot). Whether you fill it or not, you pay the fixed container rate.
Pricing (January 2026):
| Container Type | Cost | Typical Range | Contains |
|---|---|---|---|
| 20-foot FCL | $2,500-3,080 | Most use: $2,700-2,900 | ~25-28 CBM |
| 40-foot FCL | $2,700-3,500 | Most use: $3,000-3,200 | ~55-57 CBM |
| 40-foot High Cube | $3,200-3,800 | Most use: $3,400-3,600 | ~65 CBM |
Key Insight: Break-Even Point
When does FCL become cheaper than LCL? Typically around 12-15 CBM.
Example Comparison:
| Scenario | LCL Cost | FCL Cost | Winner |
|---|---|---|---|
| 10 CBM shipment | 10 × $150 + $230 fees = $1,730 | 20ft FCL = $2,700 | LCL (save $970) |
| 15 CBM shipment | 15 × $150 + $230 fees = $2,480 | 20ft FCL = $2,700 | LCL (save $220) |
| 18 CBM shipment | 18 × $150 + $230 fees = $2,930 | 20ft FCL = $2,700 | FCL (save $230) |
| 25 CBM shipment | 25 × $150 + $230 fees = $4,000 | 20ft FCL = $2,700 | FCL (save $1,300) |
Timeline:
- Factory → port: 2-3 days
- Port loading: 1-2 days
- Ocean transit: 35-45 days
- Port arrival (Valparaíso/San Antonio): 1-2 days
- Customs clearance: 2-7 days
- Total: 41-59 days
Advantages:
- ✅ Cheaper per CBM for large volumes (best below $100-120/CBM)
- ✅ Direct loading from factory → fewer handling stages → lower damage risk
- ✅ Faster handling at ports (no deconsolidation)
- ✅ More predictable timing (dedicated container vs. waiting for consolidation)
- ✅ Cheaper per unit as volume increases
Disadvantages:
- ❌ High upfront cost ($2,500-3,500) requiring capital availability
- ❌ Risk of paying for unused space if you don’t fill container
- ❌ Less flexibility (committed to full container volume)
- ❌ May pressure you to overstock inventory to fill container, increasing risk
Ideal for: Established importers, orders over 15-20 CBM, high-demand products, regular repeat imports
Air Freight Deep Dive: The Speed Premium
What It Is: Your goods shipped via aircraft. You pay by actual weight or volumetric weight (dimensional), whichever is greater.
Pricing (January 2026 – China to Chile):
| Metric | Rate | Example |
|---|---|---|
| Standard rate | $7-9/kg | 100 kg shipment = $700-900 |
| Minimum charge | 45-50 kg | Lower weights charged as 45 kg minimum |
| Volumetric calculation | Length × Width × Height (cm) ÷ 6,000 | 0.5 × 0.4 × 0.3 m = 0.06 m³ = 100 kg equivalent |
| Peak season surcharge | +10-20% | September-November adds $0.80-1.80/kg |
Real Example:
Shipping 200 wireless earbuds (light, bulky)
| Specification | Calculation |
|---|---|
| Actual weight | 200 units × 0.05 kg = 10 kg |
| Dimensions per unit | 0.15m × 0.10m × 0.08m |
| Total dimensions | 0.15 × 0.10 × 0.80m (stacked) = 0.012 m³ = 2 m³ (consolidated box) |
| Volumetric weight | 2 m³ × 167 = 334 kg |
| Chargeable weight | MAX(10 kg actual, 334 kg volumetric) = 334 kg |
| Air freight cost | 334 kg × $8/kg = $2,672 |
Timeline:
- Factory → airport warehouse: 1-2 days
- Export clearance (China): 1 day
- Airport handling & loading: 1-2 days
- Flight transit (Shanghai → Santiago): 5-7 days
- Airport handling (Chile): 1 day
- Total: 9-13 days
Advantages:
- ✅ Speed (5-8 days vs. 35-45 days saves 27-37 days)
- ✅ High-value goods → lower inventory holding cost impact
- ✅ Better for fragile items (faster = less time for damage)
- ✅ Predictable timing (scheduled flights vs. ocean congestion)
- ✅ Can enable hit seasonal peaks (holidays, summer) that sea freight misses
Disadvantages:
- ❌ Extremely expensive (6-8× more than LCL, 4× more than FCL for equivalent volume)
- ❌ Strict weight/size limits; bulky items prohibitively expensive
- ❌ Volumetric weight penalizes light, bulky goods
- ❌ Peak season capacity constraints (difficult to book September-November)
- ❌ Not practical for low-margin products
Ideal for: High-value goods, urgent restocking, time-sensitive seasonal products, small shipments (<500 kg)
Total Landed Cost Analysis: The Real Comparison
The freight cost alone isn’t the true measure. Total Landed Cost (TLC) includes inventory holding costs (IHC), which can dwarf the shipping premium.
The Inventory Holding Cost Equation
Inventory Holding Cost = Shipment Value × Annual Holding Rate × (Days in Transit ÷ 365)
Typical annual holding rate for importers: 15-30% of inventory value
This includes: warehouse rent, insurance, spoilage, obsolescence, and opportunity cost (money tied up that could earn returns).
Real Scenario: 500 Wireless Earbuds
Product Details:
- Wholesale cost: $10 USD per unit
- Total value: 500 × $10 = $5,000 USD
- Retail price: $35-45 USD (implies 100-150% margin target)
- Annual holding rate: 20% (typical for electronics)
Scenario A: Sea Freight (LCL)
| Component | Cost |
|---|---|
| Product (FOB) | $5,000 |
| Sea freight (LCL) | $150/CBM × 1.2 CBM + $230 fees = $410 |
| Insurance (1%) | $50 |
| CIF value | $5,460 |
| Days in transit | 45 days |
| IHC = $5,460 × 20% × (45÷365) | $134 |
| Customs duty (0% FTA) | $0 |
| IVA (19% × $5,460) | $1,037 |
| Broker fees | $165 |
| Total landed cost | $6,806 |
| Cost per unit | $13.61 |
Scenario B: Air Freight
| Component | Cost |
|---|---|
| Product (FOB) | $5,000 |
| Air freight (volumetric: 334kg × $8/kg) | $2,672 |
| Insurance (1%) | $76 |
| CIF value | $7,748 |
| Days in transit | 8 days |
| IHC = $7,748 × 20% × (8÷365) | $34 |
| Customs duty (0% FTA) | $0 |
| IVA (19% × $7,748) | $1,472 |
| Broker fees | $165 |
| Total landed cost | $9,491 |
| Cost per unit | $18.98 |
Analysis:
| Metric | Sea Freight | Air Freight | Difference |
|---|---|---|---|
| Shipping cost | $410 | $2,672 | +$2,262 (air premium) |
| Inventory holding cost | $134 | $34 | -$100 (air advantage) |
| Total TLC | $6,806 | $9,491 | +$2,685 (51% premium) |
| Profit per unit | $35-45 retail – $13.61 cost = $21-31 | $35-45 retail – $18.98 cost = $16-26 | Sea freight 23% more profitable |
| Break-even volume | Need 194 units @ $35 | Need 271 units @ $35 | Air requires 77 more sales |
Conclusion for this scenario: Sea freight overwhelmingly wins. The IHC savings ($100) pale compared to the $2,262 air premium. Sea freight is the clear choice unless you have a specific reason to hit a market deadline.
When Air Freight Becomes Competitive
Air freight wins when one or both of these conditions exist:
Condition 1: Very High Product Value
For a $500 USD per-unit product (e.g., specialized electronics), the holding cost calculation changes:
- Sea freight IHC: $500 × 20% × (45÷365) = $12.33 per unit × 10 units = $123
- Air freight IHC: $500 × 20% × (8÷365) = $2.19 per unit × 10 units = $22
- IHC savings: $101 per shipment
For a 10-unit high-value shipment, air freight saves only $101 on holding costs but costs $2,000+ more in freight. Air freight still loses.
Condition 2: Seasonal/Time-Sensitive Goods
This is where air freight can win. Example: importing for the December holiday season.
| Scenario | Sea Freight | Air Freight |
|---|---|---|
| Product | Gifts, decorations | Same |
| Deadline | Must arrive by Nov 15 | Same |
| Order date | Aug 1 (sea) | Oct 1 (air) |
| Timeline | Aug 1 + 45 days = Sep 15 ✅ On time | Oct 1 + 8 days = Oct 9 ✅ On time |
| Sales volume | 500 units × $25 margin = $12,500 revenue | 500 units × $20 margin = $10,000 revenue |
| Air premium cost | (baseline) | +$2,685 |
| Result | $12,500 revenue – standard costs | $10,000 revenue – $2,685 = $7,315 net |
If you order late (Oct 1), sea freight can’t make the deadline. In this scenario, air freight enables $10,000 in revenue vs. $0 (if you miss the season). Air freight is worth the premium.
Decision Framework: Which Freight Should You Use?
Use this logic tree to determine the optimal shipping method:
START: Deciding Between Sea and Air Freight
1. How urgent is your delivery?
├─ URGENT (need goods within 2-3 weeks)
│ └─ Go to air freight analysis (Step 2A)
└─ NOT URGENT (can wait 4-8 weeks)
└─ Continue to Step 2
2. What's your shipment volume?
├─ Under 5 CBM
│ └─ SEA FREIGHT (LCL) ✓
│ High enough volume for LCL to beat FCL overhead
│
├─ 5-15 CBM
│ └─ COMPARE LCL vs FCL
│ Get quotes for both; FCL may break even around 12-15 CBM
│
└─ 15+ CBM
└─ SEA FREIGHT (FCL) ✓✓
Dramatic cost savings; fixed container rate wins
3. What's your product value and margin?
├─ Low-margin products (<20% margin)
│ └─ MUST use sea freight (TLC is critical)
│ Air freight costs make product unsellable
│
├─ Mid-margin products (20-50% margin)
│ └─ Sea freight preferred unless time-critical
│ Air freight premium erodes profitability
│
└─ High-margin products (>50% margin)
└─ Can afford air freight if timing justifies it
Speed premium may enable market opportunities
4. Is timing aligned to a seasonal demand peak?
├─ YES (holidays, summer, special events)
│ └─ Air freight may be justified
│ Revenue opportunity can exceed freight premium
│
└─ NO (steady, year-round demand)
└─ SEA FREIGHT WINS ✓✓✓
No urgency; lowest TLC always optimal
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FINAL RECOMMENDATION:
🚢 SEA FREIGHT (LCL or FCL)
• Standard imports
• First-time importers
• 4-8 month planning horizon
• Non-perishable goods
• Cost-optimization focus
✈️ AIR FREIGHT
• Urgent restocking (<3 weeks)
• High-value goods
• Seasonal peak windows (can't afford to miss)
• Time-critical fashion/trends
• Small shipments (<500 kg)
🚚 EXPRESS COURIER (DHL/FedEx)
• Emergency: <150 kg
• Document shipments
• Rare situations (failed sea shipment, samples)
• NOT economical for regular imports
Seasonal Considerations: When Timing Affects Choice
| Season | Port Congestion | Shipping Costs | Recommendation |
|---|---|---|---|
| Jan-Feb | Minimal | Standard | Sea freight ideal; on-time delivery assured |
| Mar-Apr | Increasing | Stable | Sea freight; start ordering for summer |
| May-Aug (Winter) | Minimal | Lowest | Best time to import – sea freight optimal |
| Sep-Oct | SEVERE | +10-15% | Only sea if deadline allows; consider air if time-critical |
| Nov-Dec | EXTREME | +20-30% | Avoid if possible; air freight if must hit holiday season |
| CNY (Late Jan) | Factory closures | Variable | Air freight safest option if need goods mid-Feb |
Actionable insight: Order for winter months (Jun-Aug Chilean winter = June-August) by April/May using sea freight. Order for summer months (Dec-Feb) by September using either method (sea if planning ahead, air if reactive).
Real-World Comparison: Three Import Scenarios
Scenario 1: First-Time Importer (Beginner)
Goal: Import 200 smart WiFi light bulbs to test market
Situation:
- Capital available: $3,000
- Margin target: 30-40%
- Timeline: 3-4 months acceptable
- Risk tolerance: Low (wants predictability)
Analysis:
| Freight Option | Cost | Feasibility | Recommendation |
|---|---|---|---|
| Sea LCL | ~$500 + $1,470 duties/taxes = $1,970 total cost | ✅ Fits budget; low risk | ✅ CHOOSE THIS |
| FCL | ~$2,700 + costs = $4,200+ total | ❌ Exceeds budget; risks overstock | Avoid |
| Air | ~$2,000 + costs = $3,600+ total | ❌ Exceeds budget; high costs kill margin | Avoid |
Decision: Sea freight LCL. Provides lowest TLC, fits budget, allows market testing without overcommitment.
Scenario 2: Established Importer (Repeat Orders)
Goal: Regular quarterly imports of fitness equipment (500 units per order)
Situation:
- Capital available: $15,000 per order
- Margin target: 40-50%
- Timeline: Flexible (3-4 months)
- Risk tolerance: Medium (can absorb occasional delays)
Analysis:
| Freight Option | Volume | Cost | Timeline | Recommendation |
|---|---|---|---|---|
| Sea FCL | 40+ CBM typical | $2,900 (40ft) + $1,750 duties = $4,650 | 45 days | ✅ BEST CHOICE |
| Sea LCL | Same volume via LCL | $40 × $150 + $300 fees = $6,300 | 50 days | ❌ Expensive for this volume |
| Air | Same volume | $2,000 freight + $1,900 duties = $3,900 | 10 days | ❌ Too expensive; no time benefit |
Decision: Sea freight FCL. At 40+ CBM, FCL is $1,650 cheaper per shipment. With 4 orders/year, saves $6,600 annually. Time is predictable enough to accept 45-day lead times.
Scenario 3: Seasonal Rush (Holiday Restocking)
Goal: Import phone cases for December holiday season; order placed Oct 1
Situation:
- Capital available: Unlimited for this critical order
- Margin target: Holiday markup 60%+
- Timeline: MUST arrive by Nov 15 (6 weeks)
- Risk tolerance: High (this is crucial for annual revenue)
Analysis:
| Freight Option | Feasibility | Revenue Impact | Cost Impact | Recommendation |
|---|---|---|---|---|
| Sea LCL | ❌ 50-day transit → arrives Dec 20 (TOO LATE) | $0 (miss season) | N/A | Can’t use |
| Sea FCL | ❌ 45-day transit → arrives Nov 15-20 (RISKY) | $25,000 (risk missing peak) | $2,900 | Risky |
| Air | ✅ 10-day transit → arrives Oct 11 (SAFE) | $50,000+ (entire season captured) | $5,000 air premium | ✅ ESSENTIAL |
Decision: Air freight. The 40-day speed advantage is worth the $5,000 premium because it enables $50,000+ revenue. Choosing wrong costs far more than the air freight premium.
Cost Optimization Tips for Both Methods
For Sea Freight (LCL & FCL):
- Book in off-peak seasons (May-August) → Save 15-20% vs. peak (Sep-Nov)
- Use FOB terms, not CIF → Negotiate shipping separately; forwarders less transparent on costs
- Consolidate multiple small orders → Combine 2-3 imports to hit FCL break-even and negotiate better rates
- Request B/L before payment → Verify goods were loaded before paying balance
- Build relationships with 2-3 freight forwarders → Competitive pressure drives rates down
For Air Freight:
- Book space 4+ weeks in advance → Peak season (Sep-Nov) fills fast; early booking ensures capacity
- Use volumetric optimization → Repack products to reduce volumetric weight (e.g., remove excess packaging)
- Consolidate with other importers → Air consolidators split space costs; can save 20-30%
- Ship weekdays, not weekends → Weekend flights have premium rates (+10-15%)
- Use winter routes → Quieter seasons (May-August) have cheaper rates
Which Freight Method Wins?
For 95% of Chilean importers: Sea freight wins on economics.
- Lower total landed cost
- Works for planned inventory
- Predictable for established sourcing patterns
- Fits standard 3-4 month import cycles
For 5% of importers: Air freight is worth the premium.
- Seasonal/time-sensitive products
- Reactive restocking (missed deadline)
- High-value goods where holding costs matter
- Market opportunities that require speed
The key is not choosing the “best” method universally, but choosing the right method for your specific product, timeline, capital, and risk profile. A first-time importer with $3,000 capital and flexible timeline should never consider air freight. A seasonal retailer missing a holiday deadline might never recover by choosing sea freight.
Calculate your break-even, know your margins, and understand your inventory holding costs. With that data, the choice becomes clear.
