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Compared to airships, they can be cheaper, and are generally faster in tactical combat (spider-legged landships can move fast enough to routinely dodge hostile fire, if actively commanded). In combat, their disadvantage is that they're stuck on the ground and can hence position themselves less freely than airships; like airships, they cannot pass other constructions, so more than one landship per fleet will get in each other's way.
In strategic mode, fleets containing landships are restricted to moving along land and sea routes, unlike pure-airship fleets that can fly in a straight line to any destination. Also, fleets containing landships can only use sea routes if the destination city is friendly, and if such a fleet is intercepted, the landships can't participate in combat. If they are not escorted by airships, they are instantly destroyed. The explanation for this is that landships on sea routes are stored away on (sea-)ships and can't fight in this state.