As companies expand their inventories globally, they must analyze transportation costs and their effects on inventory investment. A methodology is proposed that combines annual costs with long-term inventory investment to determine the most suitable transport mode, considering factors like freight and inventory carrying costs. Case studies illustrate that ocean transport can save costs for some products, while air may be better for others. Furthermore, a mixed transport strategy using both ocean and air can be advantageous under certain conditions, but firms must evaluate potential risks and ensure adequate inventory levels to maintain customer service.

Source: https://www.logisticsmgmt.com/article/integrating_inventory_into_air_vs_ocean_international_transportation_modal_choice_strategies/