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SHIPPING FROM CHINA THE ULTIMATE GUIDE FOR SMOOTH SAILING Description: Navigate shipping from China with our ultimate guide, featuring incoterms, shipping choices, top Chinese ports, and insider tips to save time and money.
SHIPPING FROM CHINA: THE ULTIMATE GUIDE FOR SMOOTH SAILING. Navigating the complexities of shipping from China can be overwhelming, especially for small businesses and entrepreneurs. Our Ultimate Guide simplifies the process, providing a clear roadmap to successfully ship your goods, handle essential paperwork, and collaborate with suppliers and shippers for timely delivery. Here, you'll uncover crucial information on international shipping documents, various shipping options, and critical factors to consider when making decisions. You'll also learn about shipping costs and their components, plus valuable tips to save money when importing goods from China. Dive into our Ultimate Guide to Shipping from China, and you'll soon be well-equipped to engage with suppliers, shipping companies, and freight forwarders, making informed choices that optimize costs and ensure the safe and timely arrival of your goods.
TABLE OF CONTENTS
SHIPPING FROM CHINA: THE ULTIMATE GUIDE FOR SMOOTH SAILING
INTERNATIONAL SHIPPING: AN OVERVIEW
How to ship from China to Your Country: Step by Step 01
MASTERING KEY TERMS IN INTERNATIONAL SHIPPING
General Terms: The Building Blocks of International Shipping 03
Incoterms: The Language of International Trade 04
ESSENTIAL DOCUMENTS FOR INTERNATIONAL SHIPPING SUCCESS
Commercial Invoice: The Key to Taxes and Duties 05
Bill of Lading: The Cornerstone of Shipping Contracts 06
Packing List: A Detailed Account of Your Shipment 06
Certificate of Origin: The Birth Certificate of Your Products 06
Customs Declaration: Safeguarding Your Country's Borders 07
EXPLORING YOUR SHIPPING OPTIONS FROM CHINA
Soaring through the Skies: Getting Goods by Air Freight Shipping 07
Setting Sail: Shipping Goods by Sea from China 08
Understanding Shipping Container Volume Options 09
Cargo Insurance vs. Freight Insurance: Know the Difference 10
Freight Insurance (CIF) 10
EXW vs. FOB Shipping: Responsibilities and Benefits 10
Choosing Between CFR and CIF 10
Container Tracking: Stay Informed 11
Top Shipping Ports in China: Optimize Transport Costs 11
EXPLORING LAND AND RAIL SHIPPING OPPORTUNITIES
Embracing China's Rail Connectivity to Europe and Russia 12
Popular Goods Shipped by Rail 13
Navigating Railway Shipping Modes 14
Accelerating Shipping with Courier Services 14
Shipping Times and Costs from China 14
Factors Influencing Shipping Costs 16
Landed Cost in Sea Freight 16
Port Handling Fees 17
Components of Landed Cost 17
Flat Rate International Shipping: A Streamlined Approach 19
HOW LONG DOES SHIPPING FROM CHINA TAKE? UNDERSTANDING TRANSIT TIMES
The Final Word: Successfully Navigating Shipping from China 20
FAQ
How can I reduce shipping costs from China? 21
How often do freight costs change? 21
What do I need to get a shipping quotation? 21
What is the cheapest way to ship from China? 21
Which is the best Incoterm if I want to keep track of costs? 21
How do I estimate air freight costs? 21
Can a supplier ship products to our factory or suppliers in China? 21
Can a supplier arrange for export shipment on our behalf? 22
Is there a difference between a freight forwarder and a shipper? 22
INTERNATIONAL SHIPPING: AN OVERVIEW
"International shipping" encompasses the transfer of goods from one country (the country of origin) to another (the destination country). As a multifaceted process that involves crossing national borders, international shipping from China, or any other country, is subject to numerous laws and regulations at both the origin and destination. To optimize your shipping processes, reduce costs, and ensure timely deliveries, it's essential to understand and comply with international shipping rules, accurately prepare required paperwork, and familiarize yourself with industry terminology. Navigating country-specific rules adds an extra layer of complexity compared to domestic shipping. Prohibitions, limitations, and controls can govern cross-border trade for certain goods. Import duties, regulations, anti-dumping duties, and certification requirements can vary depending on the product classification. To receive your shipments from China efficiently and cost-effectively, it's crucial to grasp the specific requirements at both ends. Engaging freight forwarders or agents experienced in shipping goods from China to your home country can simplify the process, as they understand the intricacies and best practices for seamless transportation.
HOW TO SHIP FROM CHINA TO YOUR COUNTRY: STEP BY STEP To better understand the steps involved in international shipping, take a look at the infographic below which we will break down into 6 fundamental steps:
UNDERSTANDING T H E S H I P P I N G P R O C E S S FROM BEGINNING TO END
4 5 6 Buyer hires a freight Freight forwarder 3 forwarder to handle the confirms Incoterms transport of the goods. with the buyer and 1 2 Purchase Pro forma order is created. the supplier. Buyer obtains a Letter Importer orders goods invoice is provided of Credit from the bank from a supplier. (similar to a quote). 8 to pay for the goods. 10 9 Supplier provides 11 Suplier 7 provides the buyer Agent contacts the all the documents The supplier's Freight Manufacturing an order confirmation supplier locally to 12 necessary for export, bank approves forwarder contacts their of the goods begins. and a Commercial Invoice. arrange the movement which will be handled the letter of overseas partner to of the freight. on the buyer's behalf credit arrange the movement by the freight forwarder. of the goods locally.
$ 14 17 When a 16 Suppliers carrier arrives to pick Goods are customs cleared complete the Export and delivered to the agreed the goods at the 18 Declaration. 13 up Only then goods location of the buyer. supplier's warehouse, are placed in international a bill of lading is issued. 15 The buyer will be required transit. to present the bill of lading 19 With the documentation in order to secure the release in order, the supplier books Goods arrive The cleared of the shipment and claim. the shipment for export. in buyer's country goods are dinally delivered The freight forwarder can for import clearance. 20 from the destination country manage this process. port to the buyer.
Fig 1: How the Shipping Process Works Step-By-Step
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1. 2. 3. Request quotes, Engage a freight Review the order goods, and forwarder Commercial Invoice agree on incoterms Select a freight Supplier provides forwarder to an order Importer (consignee) manage confirmation and orders goods from transportation. commercial the supplier invoice. (consignor). Store the invoice Request a quote, safely, as it's review the proforma required for invoice, and create a customs clearance. purchase order.
Agree on incoterms, which allocate costs and risks between buyer and seller.
4. 5. 6.
Import clearance Arrange export with Transport goods to and transport goods freight forwarder depot/port and to the buyer process export Freight forwarder customs clearance Goods arrive at the contacts their destination and overseas partner Supplier books the undergo import for export export shipment. clearance. arrangements. Goods are Imported goods Prepare required transported to a may be subject to documents for depot or port for taxes, tariffs, customs export. and/or charges. clearance. Goods undergo Goods are export customs delivered to the clearance and are buyer or agreed placed in delivery point, international based on transit. shipment type and incoterms
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MASTERING KEY TERMS IN INTERNATIONAL SHIPPING Discover essential terms and incoterms you'll encounter in the world of international shipping. This knowledge will help you navigate the process of shipping goods from China with ease and confidence.
GENERAL TERMS: THE BUILDING BLOCKS OF INTERNATIONAL SHIPPING
FREIGHT FORWARDING: FREIGHT FORWARDER:
The art of coordinating and shipping goods A pivotal player acting as an agent for from one location to another using one or importers, exporters, or companies, multiple carriers and modes of orchestrating the safe, efficient, and transportation, such as air, sea, road, or rail. cost-effective transportation of goods between countries. Modern freight forwarders leverage cutting-edge computer systems to determine the optimal transport method, considering the CUSTOMS BROKER: type of goods and the client's delivery requirements. They also manage tasks like packaging, labeling, and documentation. A vital link between government agencies and your goods, customs brokers prepare and submit documentation necessary for notifying or obtaining clearance. They may also CONSIGNEE: coordinate local delivery through trucking companies. Typically, The ultimate recipient of the shipped customs brokers operate at major goods. Upon clearing customs, the airports and harbors with significant consignee takes ownership and is generally international traffic. responsible for import duties and taxes.
HS CODE:
A crucial element in international shipping, the Harmonized Commodity Description and Coding System (HS Code) assigns a 6 to 10 digit number to all transported goods. These codes enable customs to identify products shipped across borders. The first six digits identify the Chapter, Heading, and Sub-Heading applicable to your product, consistent across all countries.
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INCOTERMS: THE LANGUAGE OF INTERNATIONAL TRADE
Incoterms—short for International Commercial Terms—are a set of globally accepted rules related to international commercial law, published by the International Chamber of Commerce (ICC). They provide standard definitions and interpretations for commonly used commercial terms in contracts for the sale of goods. To ensure clarity, incoterms are explicitly stated on all relevant shipping documents, specifying which party bears the costs and risks of each transaction.
INCOTERMS 2020 RULES RESPONSIBILITY QUICK REFERENCE GUIDE
Freight collect terms Freight prepaid terms
Groups Any mode or Sea and iniand waterway transport Any mode or modes of transport EXW FCA FAS FOB CFR CIF CPT CIP DAP DPU DDP Incoterm Free Free Free On Cost Cost Carriage Carriage & Delivered Delivered Delivered Ex Works Insurance Insurance Insurance at Place Carrier Alongside Board Paid To at Place Duty Paid (Placa) and Freight & Freight Paid To Unloaded (Placa) Ship (Port) (Port) (Place) (Place) (Place) (Port) (Placa) (Place) (Place)
At Buyer’s On Buyer’s Alongside On Board On Board On Board At named At named At named Transfer of Risk Disposal Transport Ship Vassel Vessel Vessel At Carrier At Carrier Place Place Place Unloaded
Obligations & charges: Export packaging Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Loading Charges Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Delivery to Port/Place Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller
Export Duty, Taxes & Customs Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller Seller Clearance Orinin Terminal Charges Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller Seller
Loading on Carriage Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller Seller
Carriage Charges Buyer Buyer Buyer Buyer Seller Seller Seller Seller Seller Seller Seller
Insurance Negotiable Negotiable Negotiable Negotiable Negotiable *seller Negotiable **seller Negotiable Negotiable Negotiable
Destination Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Terminal Charges Delivery to Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Seller Seller Destination Unloading at Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Buyer Destination
Import Duty, Taxes & Customs Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Seller Clearance
Fig 2: Incoterms Chart
INCOTERMS DECODED: WHAT THEY MEAN FOR YOUR SHIPMENT EXW (Ex Works): The supplier is responsible for preparing goods for dispatch at their factory. The freight forwarder or carrier handles the shipment from the factory to the destination.
DAP (Delivered At Place): Goods are delivered to a named destination.
FOB (Free on Board): Goods are transported to a named port of shipment. 4
Additional Incoterms: Incoterms for Sea and Inland Waterway Transport: FCA (Free Carrier)
CPT (Carriage Paid To) FAS (Free Alongside Ship)
CIF (Cost, Insurance & Freight) FOB (Free on Board)
CIP (Carriage and Insurance Paid to) CFR (Cost and Freight)
DPU (Delivered At Place Unloaded) CIF (Cost, Insurance & Freight)
DDP (Delivered Duty Paid)
Now with all the key and incoterms in international shipping at hand, you'll be better prepared to navigate the complexities of shipping goods from China and beyond.
ESSENTIAL DOCUMENTS FOR INTERNATIONAL SHIPPING SUCCESS Navigating the world of international shipping requires a thorough understanding of crucial documents to ensure a smooth process. We've compiled a list of the most commonly used documents and explained their roles in the shipping process.
THE MOST IMPORTANT SHIPPING DOCUMENTS
Shipping documents Shipping documents required for imports required for exports
Commercial Invoice Commercial Invoice Bill of Lading Bill of Lading Arrival Notice Packing List Import Customs Declaration Export Customs Declaration Air or Raillway Bill Fir or Railway Bill Import License Commercial Invoice Letter of Credit Certificate of Origin Importer Security Filing Letter of Credit (local customs requirements) Certificates (production, vessel, phytosanitary)
Fig 3: Important Shipping Documents
COMMERCIAL INVOICE: THE KEY TO TAXES AND DUTIES A commercial invoice is a vital export and import document used by customs authorities to calculate taxes and duties on shipped items. Prepared by the shipper, it provides information on each shipment, including a description of the goods, their value, and details about the shipper.
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BILL OF LADING: THE CORNERSTONE OF SHIPPING CONTRACTS A mandatory document for shipping from China and most other locations, the Bill of Lading (BL) is a receipt acknowledging cargo has been loaded. It outlines the contract's terms and serves as a document of title for the shipped goods. The Bill of Lading includes:
Shipping company Shipped products
Exporting company (seller) Shipment volume
Buyer Incoterm used
An Electronic Bill of Lading is a digital alternative with the same functions and legal status as a paper Bill of Lading.
PACKING LIST: A DETAILED ACCOUNT OF YOUR SHIPMENT A packing list is an essential shipping document that itemizes the contents of each package, including weights, measurements, and quantities. It must be included with every carton or package and often contains a copy inside as well.
A typical packing list features:
Shipping address, order date, and contact information Packing slip (or packing list number) Itemized list of shipped items Purchase order number for traceability Quantity of each item A list of out-of-stock items, if applicable SKU or UPC barcodes for each item
CERTIFICATE OF ORIGIN: THE BIRTH CERTIFICATE OF YOUR PRODUCTS
A Certificate of Origin (CO) is a formal document that declares a product's country of origin or manufacture. It includes information about the product, its destination, and the country of export. A Certificate of Origin is required for cross-border trade by many free trade agreements and treaties to determine import eligibility, duties, duty concessions, and preferential treatment. COs can be in paper or digital format and must be approved by the relevant chamber of commerce or customs authority.
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CUSTOMS DECLARATION: SAFEGUARDING YOUR COUNTRY'S BORDERS
Customs declarations are documents that detail and describe goods being imported or exported. Customs authorities use these declarations to control the types of goods entering or leaving a country. Import customs declarations protect a country from harmful or dangerous goods that could damage its economy or environment. Export customs declarations are used to enforce restrictions on certain goods and serve as surveillance measures. By understanding these essential documents in international shipping, you'll be better equipped to handle the complexities of importing and exporting goods across borders.
WHAT ARE YOUR SHIPPING OPTIONS FROM CHINA? When importing goods from China, finding the right shipping method that balances cost, speed, and safety is essential. Several factors come into play, such as convenience and administrative requirements. Common shipping methods include air, sea, and express shipping via couriers. Road and rail routes are also viable options for countries in Europe or Russia.
SOARING THROUGH THE SKIES: GETTING GOODS BY AIR FREIGHT SHIPPING
Air freight is the fastest option for shipping goods from China, with delivery to your doorstep in a matter of days. The International Air Transport Association (IATA) reports that 35% of global trade by value ($6 trillion worth) is transported by air, though it accounts for less than 5% of the volume.
Air Cargo Categories Air cargo falls into two groups: special and general.
Special cargo requires extra precautions due to the nature, dimensions, weight, or value of the goods. These items may need specific packaging, labeling, documentation, and handling throughout the transport chain. Examples include dangerous goods, perishable items, wet cargo, live animals, and time or temperature-sensitive products.
General cargo encompasses items that don't require special handling. This includes retail and consumer goods, dry goods, hardware, and textiles. However, mobile phones, laptops, and tablets are exceptions.
Check out the IATA article on What Types of Cargo are Transported by Air for more details.
Weighing the Pros and Cons of Air Freight Air freight is ideal when time is of the essence, but it comes at a higher cost compared to other shipping methods. Many companies use a mix of air and sea shipping to balance time and cost.
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Steps for Shipping by Air from China
Shipping by air freight from China is a relatively easy process that requires minimal effort on your part. The key steps are:
1. Employ a freight forwarding company. 4. The freight company handles export clearance.
2. Provide shipment details, including supplier 5. Your cargo is loaded onto a plane and flown to the information. destination country. 3. Have your cargo delivered to the airport 6. Unloaded cargo goes through customs. through arrangements made by your shipper and freight forwarder. 7. Pay taxes and custom fees.
8. Custom-cleared cargo is delivered to your address.
It's essential to understand these steps, even if your supplier handles them. Choose a freight forwarding company with a base in your country for better cargo monitoring and support.
SETTING SAIL: Shipping Goods by Sea from China
Sea shipping is the most popular option for shipping goods from China due to its cost-effectiveness. Here's a simplified diagram of the entire process involving sea freight:
Fig 4: Shipping Goods From China by Sea
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KEY TERMS IN SEA SHIPPING DECIDING BETWEEN LCL When evaluating sea freight costs, you'll AND FCL SHIPPING encounter these terms: Your choice between LCL and FCL Shipping depends on your product volume and other factors. FCL FCL: Full Container Load shipping has several advantages, including easier LCL: Less (than) Container Load tracking, safer transportation, and lower overall cost FTL: Full Truck Load per unit. However, LCL shipping may be a better LTL: Less Than Truckload option for smaller shipments. As a rule of thumb:
Choose LCL for loads between 1cbm and 8cbm. For loads between 8cbm and 15cbm, consider FCL or LCL based on practical considerations. For loads over 15cbm, opt for FCL without hesitation. LCC SHIPPING: A COST SAVING ALTERNATIVE
LCC shipping, or Lower Cost Carrier shipping, is another alternative to consider when shipping goods from China. It offers a balance between cost and speed, making it an attractive option for businesses with medium-sized shipments or tight deadlines. While LCC shipping may not be as fast as air freight or as cost-effective as sea freight, it can provide a happy medium for those seeking a compromise. Always assess your shipping needs and priorities before deciding on the best shipping method for your business.
UNDERSTANDING SHIPPING CONTAINER VOLUME OPTIONS
There are four primary shipping container volumes: 20 feet, 40 feet, 40 feet High Cube, and 45 feet High Cube. When planning to import full container loads, consider the following options:
Maximum Dimensions Container Type Door Height Capacity (stretch) (L x W x H) 28 cbm Length: 19' 5" / 5.919 m; 20' container Width: 7' 8" / 2.340 m; 7' 5" / 2.278 m (stretch to 29) Height: 7' 9" / 2.380 m
58 cbm Length: 39' 6" / 12.051 m; 40' container Width: 7' 8" / 2.340 m; 7' 5" / 2.278 m (stretch to 59) Height: 7' 9" / 2.380 m
Length: 39' 6" / 12.056 m; 65 cbm 40' High Cube Width: 7' 8" / 2.347 m; 8' 5 3/4" / 2.585 m (stretch to 68) container Height: 8' 5" / 2.684 m
Length: 45' / 13.716 m; 75 cbm 45' High Cube Width: 8' / 2.438 m; 8' 5" / 2.585 m (stretch to 80) container Height: 9' 6" / 2.896 m
FigFig5: Dimensions5: Dimensionsand capacityand ofcapacitystandard ofcontainersstandard c
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CARGO INSURANCE VS. FREIGHT INSURANCE: KNOW THE DIFFERENCE
Cargo insurance protects the manufacturers and sellers or senders of goods, while freight insurance covers carriers and freight forwarders.
FREIGHT INSURANCE (CIF) Freight insurance covers losses or damages of ships, cargo, terminals, and transport between the point of origin and the shipment's final destination. Common incoterms for shipping from China include EXW, FOB, CFR, and CIF. Understand the responsibilities of sellers and buyers under each incoterm and how prices are determined.
EXW VS. FOB SHIPPING:
RESPONSIBILITIES AND BENEFITS EXW shipping: The supplier is responsible for making goods ready for dispatch at the factory. The freight forwarder or carrier handles the shipment from the factory to the destination.
FOB shipping: The supplier forwards the goods to the port of loading and onto the vessel. Responsibility then transfers to the freight forwarder until final delivery. FOB is ideal when you have a close relationship with the supplier and local transportation companies, leading to competitive shipping rates since Chinese suppliers manage the initial transportation process.
CHOOSING BETWEEN CFR AND CIF
CFR stands for cost and freight. CFR requires that the seller arranges for the transport of goods by sea to the destination required by the buyer. CFR terms includes the cost of shipping but excludes the cost of purchasing marine insurance.
CIF stands for cost, insurance, and freight. While CIF basis is similar to CFR, it also requires that the seller take out an agreed amount of marine insurance so that the shipment is protected against loss, damage, or destruction of the order being shipped. In international shipping, the relevant incoterm is clearly defined in the proforma invoice or in the quotation given to you. If it is not, make sure that you clarify it before entering into an agreement for an international shipment.
CONTAINER TRACKING: STAY INFORMED Container tracking services allow real-time tracking of international shipments from China. Track containers using the container number, Bill of Lading number, or booking number. Advanced transportation management systems (TMS) can provide valuable insights into the location and status of your shipment.
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CONTAINER TRACKING: STAY INFORMED
Container tracking services allow real-time tracking transportation management systems (TMS) can of international shipments from China. Track provide valuable insights into the location and containers using the container number, Bill of status of your shipment. Lading number, or booking number. Advanced
TOP SHIPPING PORTS IN CHINA: OPTIMIZE TRANSPORT COSTS In order to optimize your transport costs, its worthwhile Hong Kong to consider where your suppliers are located. a supplier is located in Guangzhou, China. Primarily, we As well as other key docks such as Shanghai, Qingdao, use the shipping ports in: Ningbo, Tianjin, Xiamen, and Dalian. Guangzhou Shenzhen
Dalian Beijing Tianjin Yantai
Qingdao Lianyungang
Shangai Nanjing
Ningbo
Wenzhou Shenzhen
Guangzhou Taipei
Zhuhai Xiamen Shantou Zhanjiang Haikou Hongkong
GUANGZHOUGUANGZHOU -- CHINACHINA
Fig 6: Top Shipping Ports in China
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EXPLORING LAND AND RAIL SHIPPING OPPORTUNITIES
Seamlessly transport goods from China using extensive road and rail networks connecting the country with Eurasia, Central Asia, the ASEAN, and other regions. Comprehensive land and rail cargo services manage end-to-end overland shipping operations, handling everything from:
Cargo pick-up and consolidation Customs clearance Cost-effective long-haul trucking Combined sea-land and air-land services Door-to-door delivery
Evaluate cost efficiencies and timeframes when selecting an overland shipping service for your goods from China, and consider firms that specialize in specific industries and markets.
EMBRACING CHINA'S RAIL CONNECTIVITY TO EUROPE AND RUSSIA
China's rail routes connect to top European and Russian cities, providing two main routes for shipping containers from China:
Helsinki Tarlinn St. Petersburg Riga Moscow Kinming Burger Berlin Minsk Amsterdam Marashevich Manzhouli Warsaw Riga Dostyk Paris Frankfurt Prague Alashankou Erlianhot Harbin Lyon Horgos Beijing Dalian Madrid Lanzhouo Xi´an Tianjin Chengdu Zhengzhou Legend Chongqing Wuhan East channel Kinming Middle channel Western channel
Fig 7: China Railway Express Line Layout
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Northern route—via the Trans-Siberian Southern route—passes through Railway—traverses Russia and Belarus Kazakhstan, Russia, and Belarus 1 3
Regardless of the route, transport times from China to Europe don't exceed three weeks. The China-Europe Railway Express serves as a vital transit route for Chinese exports, while also carrying a smaller volume of goods from Europe to various Chinese cities. Boasting 73 routes, the network connects China with:
Kazakhstan Germany
Russia Czech Republic
Belarus France
Poland Spain
NOTABLE RAIL LINES INCLUDE:
Yiwu–Madrid railway line: Spanning 8,046 miles (12,874 km) and holding the title for the longest freight railway route globally.
Yiwu–London Railway Line: Covering roughly 7,500 miles (12,000 km) and ranking as the second longest.
Yu'Xin'Ou Railway: Links the southwestern Chinese city of Chongqing with Duisburg, Germany, passing through the Dzungarian Gate into Kazakhstan, Russia, Belarus, and Poland before reaching its destination.
Cargo rail journeys from China to Europe typically take 15-18 days, depending on the route, which is about half the time taken by sea. Rail shipping remains 3.5 times cheaper than sea freight, and trains' fuel efficiency compared to trucks makes rail shipping competitively priced.
POPULAR GOODS SHIPPED BY RAIL
Chinese manufacturers primarily ship: Electronic equipment Textiles Household appliances Footwear
In 2021, Chinese manufacturers sought to bypass shipping delays by exporting goods over land, leading to a sharp rise in transcontinental rail freight between China and Europe.
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NAVIGATING RAILWAY Shipping Modes
Intercontinental railway shipping offers three primary options: Single Container FCL and LCL, and Block Train. Single rail container FCL provides multiple weekly departures from China to Europe, door-to-door solutions, and cross-border trucking where needed. Rail LCL is similar to FCL and offers door-to-door services from China to Europe. Some services may use Poland as a hub for final leg distribution to EU countries and the UK. Rail LCL may include EXW, FOB services, and door delivery to most EU destinations. Block Train refers to an entire train dedicated to one customer, requiring large cargo volumes. This option is typically not viable for most businesses.
ACCELERATING SHIPPING WITH COURIER SERVICES
Courier services offer an alternative for shipping goods from China worldwide, catering to time-sensitive cargo requiring prompt delivery. Choose between standard courier and express courier services, with the latter being the most expensive shipping mode.
A wide selection of couriers is available when shipping from China, including international services such as:
1. FedEx 2. DHL 3. UPS
As well as domestic couriers such as Shunfeng and Kuayue Express.
SHIPPING TIMES AND COSTS FROM CHINA
Discover how shipping times and costs vary depending on the city of origin, destination, and chosen mode of transportation for goods shipped from China. Get an idea of approximate costs and durations for air, sea, road, and rail shipments to key destinations using our table below:
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Transportation Method Shipping Times (Approximate) Shipping Costs (Approximate)
China to US [1] [2]
Standard: 8-10 days Air freight USD 4.4 ~ 5.2 / KG (CAN-LAX) Port to Port: 1-5 days
Courier [FedEx /DHL] 3-5 days FedEx: [21+ kgs, USD 15.8 / KG] Regular Offer DHL: [30+ kgs, USD 10.2 / KG]
USA LA/LB: 14days 20GP: USD 1350 ~ 1650 40GP/40HQ: USD 1650 ~ 1850 USA NY: 30 days 20GP: USD 1950 ~ 2150 40GP/40HQ: USD 2650 ~ 3250 Sea freight Canada MONTREAL: 33-44 days 20GP: USD 3500 ~ 3800 40GP/40HQ: USD 3800 ~ 4200 Canada VANCOUVER: 18-25 days 20GP: USD 1800 ~ 2100 40GP/40HQ: USD 2200 ~ 2500
China to Europe [3] [4] [5]
Ramp to Ramp: 18-24 days By road USD 4.4 ~ 5.2 / KG (CAN-LAX) (Zhengzhou or Xian to Hamburg)
15 to 19 days, depending on start and FedEx: [21+ kgs, USD 15.8 / KG] terminating points, e.g.: By rail Regular Offer DHL: [30+ kgs, China to Poland, 17 days. USD 10.2 / KG] China to London, 18 days.
Standard: 8-10 days USD 4.4 ~ 5.2 / KG (CAN-FRA) Air freight Port to Port: 1-5 days
FedEx: [21+ kgs, USD 13.1 / KG] Regular Courier [FedEx /DHL] 3-5 days Offer DHL: [30+ kgs, USD 7.5 / KG]
Western Europe – 30 days Hamburg: USD 1350 / 40HQ Sea Northern Europe – 30 days Rotterdam: USD 1350 / 40HQ Southern Europe – 27 days Valencia: USD 2100/40HQ
Fig 8: Table Showing Shipping Times and Costs from China [1] [2] [3] [4] [5]
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FACTORS INFLUENCING SHIPPING COSTS
Shipping costs comprise several elements, including:
Local fees Miscellaneous or extra costs
Transit fees Changing documents
Destination fees Container storage at port (Demurrage)
Here's a general ranking of international shipping methods from China based on costs:
FCL sea freight (cheapest) < LCL sea freight < Railway freight (China to EA) > Economy air freight < Express air freight (most expensive).
Express air freight
Economy Air freight
Railway freight LCL Sea freight
Fig 8: Infographic of shipping Methods by Cost FCL freight
LANDED COST IN SEA FREIGHT
Landed cost is the total cost that the buyer or importer must pay, which includes the cost of goods, freight costs, local charges, duty, and taxes. Here's a formula for landed cost of a shipment:
Landed Cost = EXW/FOB + To-Door Freight + Import Duties or Tax + Customs Clearance Fees + Port Handing Fees
Fig 8: Formula for Landed Cost
RESPONSIBILITIES FOR LANDED COST ELEMENTS:
Seller or supplier receives the EXW/FOB cost
Freight forwarder receives the door-to-door freight
Custom duties, taxes, and fees are paid by the custom broker to customs
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PORT HANDLING FEES
Also called 'Terminal Handling Charges,' port handling fees are the responsibility of the seller. As the buyer, you'll eventually bear this cost, so it's helpful to know what's included in these fees. Port handling fees cover labor and equipment costs for the following:
Transferring cargo from the seller's vehicle to the stack and to the conveyance before departure Transferring cargo from the arriving conveyance to the stack upon arrival Transferring cargo from stack to the buyer's vehicle
COMPONENTS OF LANDED COST THE LANDED COST OF AN IMPORT INCLUDES:
Transportation to the port of loading Entry Bond * Bill of Lading Import customs clearance * Export customs declaration Customs duties and taxes Fees at loading port Entry and messenger fees Ocean freight charge Merchandise processing fees Insurance Harbor maintenance fees Destination port fees Duties specific to the goods being shipped (vary by product type) Import Security Filing or ISF ISF Bond * Transportation from the port of destination
* These components are soley related to items destined for US ports.
Calculating your total landed cost can be done through extensive research or by engaging a freight forwarder. A freight forwarder can help you understand cost elements and guide you in finding the optimal way to ship goods from China to the US, Europe, or other destinations while minimizing costs.
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Landed Cost Description Cost Components
Port of Shenzhen or Guangzhou: Transportation Moving goods to the port of loading FCL USD 870 to port LCL USD 435
Bill of Lading Legal document issued by a carrier to a shipper USD 65
Export customs Official declaration for exporting goods USD 50 declaration Fees at loading port Charges incurred at the port of loading Varies depending on the port
Ocean freight charge Cost of shipping goods via sea freight See the table above
Destination port fees Charges incurred at the destination port Varies depending on the port
Import Security Filing Required filing for US imports to provide shipment details USD 45 per hbl (ISF) ISF Bond* Financial guarantee for US imports to ensure ISF compliance USD 250-500 / annual bond
Entry Bond* Financial guarantee for US imports to ensure payment of duties and USD 70 taxes
Process of obtaining release of imported goods from customsImport customs clearance* USD 95
Customs duties and taxes Taxes imposed on imported goods Determined by the HTS code
Charges for document submission and communication with Entry and messengerfees USD 25 per order authorities
Cargo Value’s 0.3464%: Min. USD 25 / BL Merchandise processing Fees for processing imported goods Max. USD 485 / BL fees
Cargo Value’s 0.125%: Harbor maintenance Fees to support the maintenance and operations of US harbors Min. USD 25 / BL fees
Specific duties Duties that vary depending on the type of goods being shipped Determined by the HTS code (by product) Transportation from port Moving goods from the destination port to the final location Varies depending on the specific addresses
These components are solely related to items destined for US ports.
Please note that the actual costs will depend on the specific circumstances of each shipment. To get accurate cost estimates, consult a freight forwarder or conduct extensive research.
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FLAT RATE INTERNATIONAL SHIPPING: A STREAMLINED APPROACH
Understanding Flat Rate Advantages of Flat Rate International Shipping International Shipping
Flat rate international shipping presents Choosing flat rate international a hassle-free solution for transporting shipping comes with several perks: goods from China. It charges a fixed price for specific package sizes, Simplicity: Enjoy stress-free pricing regardless of weight or destination. This without the need to weigh packages or approach sets itself apart from manually calculate shipping costs. traditional shipping options, which Predictable costs: A fixed rate ensuresdetermine costs based on weight, you know the shipping expensesvolume, and destination. upfront, streamlining your budgeting process. Savings for small shipments: Shipping small packages can benefit from a flat rate fee, potentially making it the cheapest option.
Drawbacks of Flat Rate Comparing Flat Rate International Shipping International Shipping to Other Methods Despite its advantages, flat rate international shipping has some To determine the best shipping limitations: method for your business, compare flat rate international shipping with Size and weight constraints: Flat rate alternatives like FCL, LCL, LCC, air shipping often enforces package size freight, and express courier services. and weight restrictions, which might Assess factors such as shipment size, not be suitable for all cargo types. delivery speed, and cost to identify the most appropriate option for yourLimited options: Not all shipping specific needs.companies provide flat rate services, and certain destinations may not be By thoroughly examining flat rate covered. international shipping and its pros and cons, you can make an informed decision on whether this efficient approach aligns with your business's shipping needs.
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HOW LONG DOES SHIPPING FROM CHINA TAKE? UNDERSTANDING TRANSIT TIMES
The duration of shipping from China depends on several factors, including the chosen shipping method, destination, and potential delays due to customs or other unforeseen issues. Here's a breakdown of approximate transit times for different shipping options:
AIR FREIGHT SEA FREIGHT COURIER SERVICES LAND SHIPPING
Shipping goods by air is Sea shipping is the most Courier services like Shipping goods by land the fastest method, with common and DHL, FedEx, and UPS from China is an option transit times typically cost-effective method for offer express shipping for neighboring countries ranging from 3 to 7 days. transporting goods from with transit times of 2 to or regions connected by However, air freight can China. Transit times can 5 days. While this option road or rail networks. be significantly more vary greatly depending is faster than air freight, it Transit times for land expensive than other on the destination and can be more expensive shipping can vary from a options, making it shipping route, but they and is usually reserved few days to several suitable for typically range from 15 to for smaller shipments or weeks, depending on the time-sensitive or 45 days. urgent deliveries. distance and high-value shipments. infrastructure.
CUSTOMS CLEARANCE AND OTHER DELAYS It's important to note that shipping times can be affected by factors such as customs clearance, documentation issues, and unforeseen delays. Properly preparing your shipping documents and working with experienced suppliers and freight forwarders can help minimize these risks and ensure a smoother shipping process.
THE FINAL WORD: SUCCESSFULLY NAVIGATING SHIPPING FROM CHINA
By understanding the intricacies of international shipping, you can make informed decisions when importing goods from China. With the right knowledge and support from trusted freight forwarders, you can optimize your shipping strategies, reduce costs, and ensure the timely arrival of your products.
Now that you're equipped with this comprehensive guide, you're ready to navigate the complex world of shipping from China with confidence. Embrace the journey, and watch your business thrive as you conquer the global market.
Be sure to look our for our next article on Tips to Save Time & Money Shipping Goods from China, where you'll discover valuable insights to enhance your shipping process, from selecting the right shipping mode to navigating Chinese holidays.
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FAQ
1. How can I reduce shipping 4. What is the cheapest way costs from China? to ship from China? Generally, sea freight is the cheapest shipping To reduce shipping costs from China, consider method from China. In contrast, express air freight, the following strategies: especially last-minute bookings, can be quite Coordinate with suppliers and plan shipping expensive. dates Choose the right shipping mode to balance cost and timing 5. Which is the best Incoterm Select appropriate shipping terms Partner with reputable, experienced suppliers if I want to keep track of and freight forwarders Prepare shipping documents in advance costs? Complete export and import clearance For overseas purchases, consider DAT (Delivered paperwork correctly At Terminal), DAP (Delivered At Place), or DDP Avoid shipping during local and Chinese (Delivered Duty Paid) Incoterms. These terms holidays make you responsible only for customs formali- Steer clear of last-minute air freight bookings ties, inland transport costs, and unloading at your Optimize order volumes and packaging premises in your home country. efficiency Insure your cargo 6. How do I estimate air freight costs? 2. How often do freight Air freight rates are calculated using the following costs change? formula: Length (cm) x width (cm) x height (cm) / Freight costs can change daily or weekly due 6000. This equation determines the volume to the volatile nature of the global freight weight in kg and considers 1 cubic meter as equal market. Shipping quotes often have short to 167 kg. expiration periods as a result. 7. Can a supplier ship products to our factory or suppliers 3. What do I need to get a in China? shipping quotation? Yes, a supplier can ship products to factories in To request a shipping quote, provide the China for assembly or consolidation purposes. destination (city, state, country, and zip code) Note that VAT differences may apply depending and specify any special handling requirements on the buyer's location. for the type of goods being shipped.
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8. Can a supplier arrange for export shipment on our behalf?
Yes, a supplier can handle shipments for products they manufacture. They work with a network of freight forwarders to ship goods to customers in various countries.
9. Is there a difference between a freight forwarder and a shipper? Yes, a freight forwarder manages end-to-end transportation, including transporting goods between ports. In contrast, a shipper (or shipping line service) only transports goods from port to port via sea routes and does not handle final delivery.
Visit us here for more FAQs on our contract manufacturing services.
INTERNAL RESOURCES
FAQs on Contract Manufacturing Services in China - Komaspec
Best Practices for Packaging and Shipping Sheet Metal Parts
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