Our knitwear order is three weeks late. Should we pay for air freight, ship part by air, or wait for sea?

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Our knitwear order is three weeks late. Should we pay for air freight, ship part by air, or wait for sea?

Compare air cost per unit with the margin and sales the early units protect. Consider splitting the shipment, and check who should pay under the contract before you book.

Sourcing & Supplier SelectionKnitwear Talk3 min readKnitwear Base Editorial Team
Flat illustration of a calendar, a container ship and a delivery truck
Buyer question

Production of our hoodie order finished three weeks late and will miss the sea freight cutoff. The factory offers to air freight the whole order at our cost. How do we decide?

Main answer
Knitwear Base Editorial Team
Main answer

Air freight is faster and much more expensive per kilogram than sea. The decision is therefore a business calculation, and it depends on who is responsible for the delay and what you agreed in the contract. Do the calculation with real quotes before agreeing anything.

Work out the cost per unit

Ask a forwarder for an air quote for the actual cartons and weights, and divide by units. Add the other costs of the faster mode, such as handling at origin and destination. Compare cost per unit with your gross margin per unit. If the air cost per unit is larger than the margin on the units, shipping all of them by air loses money on each, unless it saves a sale that would otherwise be lost.

Consider a split

A common middle path is to send part of the order by air, perhaps the best-selling styles, sizes and colours or those tied to a campaign, and the rest by sea. That protects the sales that matter most for a smaller cost. Decide the split from sales data, not from what is easiest to pack.

Who should pay

The ICC explains that Incoterms rules deal with delivery, the transfer of risk and who bears certain costs, and that they do not deal with the consequences of a breach of contract. Late production is a matter for the sales contract or PO, not the trade term. If you set delay remedies such as a discount or the supplier paying for air freight when late, use them. If not, negotiate: ask the factory to pay all or part of the air premium, given that the delay is theirs.

Check the paperwork

A change of mode means new documents, a new booking and a new customs entry. Make sure the commercial invoice and packing list match the shipment actually moving, and your broker has them before arrival. CBP’s guidance notes that the importer is responsible for reasonable care in entering goods.

Record the decision

Write down the agreed split, who pays what and the new dates, and keep it with the PO. Review the lead time on the next order.

Sources and further reading

Standards and rules are summarised from their published scope or official guidance. Use the current edition and confirm requirements for your market.

Three perspectives on this question

Knitwear Base Editorial Team
Purchasing perspective

I'd get two forwarder quotes, split the order by sales priority and ask the factory in writing to cover the air premium.

Knitwear Base Editorial Team
Merchandising perspective

I'd rank styles and sizes by expected sales in the missed window, and air freight only those that earn back the extra cost.

Knitwear Base Editorial Team
QC perspective

We'd make sure the air portion is inspected and packed to the same standard, because rushing at the end is when mistakes happen.

Working on a similar program?Send your tech pack, fabric references and test requirements. We reply with a quote and the questions we need answered.

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