Modes of transportation in logistics: Which is right for your logistics needs ?

When shipping globally, choosing the best transportation mode can be challenging.

• Air transport is fast but expensive.
• Ocean transport is economical but takes time.
• Rail transport is reliable but has limited reach.
• Road transport is flexible but faces congestion.

Getting it right ensures timely delivery, cost savings, and satisfied customers. But with several modes of transportation available, how do you know which suits your needs best? This guide simplifies various transportation modes, their pros, cons, and best-use scenarios.

Here’s a deeper dive into each method: their benefits, drawbacks, and when to use them.

Ocean: Low costs, high volumes, global reach

Around 80% of global freight moves via the ocean, making it the backbone of international trade. Ocean transport is the most cost-effective way to ship large volumes of goods over long distances.

Why use ocean transport (and when it makes the most sense)

Ocean freight is a reliable, cost-efficient option for businesses moving goods internationally – especially when speed isn't the top priority.

Key advantages:

• Low cost per unit: Ideal for shipping large volumes over long distances where budget matters more than speed.
• High capacity: Suited for bulky or heavy goods like machinery, building materials, or pallets of finished products.
• FCL and LCL flexibility: Choose full-container load (FCL) for big shipments, or less-than-container load (LCL) to share space and save on smaller loads.
• Fewer cargo limits: Often used to ship oversized, dense or dangerous goods not easily handled by air or road.
• Perishable or temperature-sensitive goods: Use refrigerated containers to ship food, pharmaceuticals, and other commodities requiring temperature control.
• Lower greenhouse gas (GHG) emissions per ton-mile on average compared to air, road, or rail transportation.

Potential drawbacks of ocean transport:

• Long transit times: Slower compared to air and land transportation.
• Limited accessibility: Needs integration with road or rail for door-to-door delivery.
• Susceptible to disruptions: Weather events, port congestion, and geopolitical factors can impact transit times.

Road: Versatile, flexible, and accessible

Road freight is one of the most flexible, accessible, and cost-effective ways to move goods. It includes trucks, vans, and specialised vehicles designed to carry various types of cargo. This mode is essential for medium- to short-distance shipments, last-mile delivery, and domestic distribution.

Why use road transport (and when it makes the most sense)

Road freight is well-suited for:

• Local and regional deliveries: Perfect for regular shipments within a country or across borders.
• E-commerce and last-mile delivery: Ideal for getting customer orders to their doors quickly and reliably.
• Perishable or temperature-sensitive goods: Use refrigerated trucks to transport food, pharmaceuticals, or anything that needs cooling.
• Small or irregular shipments: Supports both full truckload (FTL) and less-than-truckload (LTL) freight.
• Door-to-door access: Can reach urban centres, warehouses, and remote areas directly, often with minimal transfers.
• Quick loading and unloading: Less handling time keeps delivery times short.
• Real-time route flexibility: Easily adjusts to traffic conditions or schedule changes.

Potential drawbacks of road transport:

• Limited for international long-distance shipping: Inefficient for very long or transcontinental routes.
• Weather and traffic delays: Affected by traffic congestion, road conditions, and weather.
• Risk of theft or damage: Higher than other modes, due to frequent stops and public exposure.

Air: Secure, swift, and dependable

Air freight is the fastest shipping method, ideal for high-value, urgent, or time-sensitive goods. While it comes at a premium cost, businesses rely on air transport to ensure just-in-time deliveries in today’s fast-moving market.

Why use air transport?

• Speed: Fastest transit times available – perfect for urgent shipments, tight deadlines, or last-minute inventory needs.
• Global reach: Connects major cities and remote destinations efficiently, even where road or rail infrastructure is limited.
• Security: Strict airport protocols offer higher protection against theft, tampering, and damage.
• Reliable scheduling: Consistent flight timetables reduce uncertainty and enable tighter supply chain planning.
• Lower inventory costs: Faster delivery times reduce the need for excess warehousing and buffer stock.

When air transport makes sense:

• Time-sensitive or emergency shipments (e.g., medical supplies, critical components)
• Perishable goods needing cold chain support (e.g., pharmaceuticals, seafood, flowers)
• Lightweight, high-value items (e.g., electronics, luxury goods)
• Shipping to landlocked or hard-to-reach international markets

Potential drawbacks of air transport:

• Expensive: Highest cost per unit compared to other transport modes.
• Limited cargo capacity: Strict weight and size/volume restrictions apply.
• Higher GHG emissions per ton-mile on average compared to other modes of transport.

Rail: Balancing speed, cost, and energy efficiency

Rail freight offers a cost-effective and reliable option – especially for moving large volumes across regions or countries. It is especially popular in Europe and North America, which have extensive intermodal facilities for transporting bulk commodities.

Why use rail transport?

• High capacity: Ideal for transporting bulk goods like coal, grain, chemicals, or heavy industrial materials.
• Cost-efficient for longer distances: Offers lower per-unit costs than road or air, especially over medium to long hauls.
• Predictable transit times: Fixed rail schedules are less impacted by traffic or weather disruptions.
• Intermodal-friendly: Rail easily integrates with trucks or ships for multimodal transport solutions.
• Lower GHG emissions per ton-mile on average compared to road or air freight.

When rail transport makes sense:

• Long-distance or cross-border shipments of raw materials or manufactured goods
• Stable, recurring shipments where speed is less critical than volume and cost
• Intercontinental routes where rail offers a faster inland leg than ocean transportation alone (e.g., Europe to China)
• Businesses prioritising GHG emissions reduction targets for road transport

Potential drawbacks of rail transport:

• Limited network coverage: Not available in all regions; requires intermodal transport for first- and last-mile delivery.
• Fixed routes and schedules: Less flexibility due to routes restricted to rail networks.
• Longer transit time than air freight: Slower and less suitable for urgent shipments.

Combining different modes with intermodal transport

Intermodal transport combines multiple modes – air, truck, rail, and ocean. Leveraging the strengths of each type optimises logistics operations, reduces transit times, and minimises handling risks. This approach can also support decarbonisation ambitions by minimising reliance on more fuel-intensive transport.

Comparing different transportation modes

This quick reference table helps you compare various modes of transportation easily:

Choosing the right transportation mode: Key considerations

Selecting the best mode depends on your cargo, timing, budget, and location. Use the guide below to match your needs:

• Cargo type & volume

• Large, heavy, or oversized goods → Ocean or rail
• Lightweight, high-value, or perishable goods → Air
• Frequent, small to medium shipments → Road

• Urgency & transit time

• Urgent or time-sensitive deliveries → Air
• Non-urgent shipments → Ocean or rail
• Flexible schedules and regional routes → Road

• Budget & cost-efficiency

• Lowest cost per unit (international) → Ocean
• Cost-effective for bulk or long-haul inland freight → Rail
• Affordable short-haul or regional transport → Road
• Premium option for fastest delivery → Air

• Location & accessibility

• Remote or landlocked areas → Air or road
• Connection to ports or logistics hubs → Rail or road
• International long-distance routes → Ocean or air
• Urban/industrial regions → Rail or road

Choosing the right mode of transport isn't just about moving goods from A to B – it's about aligning cost, speed, GHG emissions reduction, and reliability with your business goals. Whether you're shipping across borders or across town, selecting the right mix of transport methods can unlock efficiencies, and give you a competitive edge in an increasingly complex supply chain.

At Maersk, we understand that logistics is like solving an ever-changing puzzle. If you’re ready to lay the first pieces, explore our comprehensive end-to-end logistics services and growing suite of digital solutions or reach out to our team of experts for support.