Transporting goods from China doesn’t have to be a challenge. Do you want to find out the best methods, concealed expenses, and how to avoid barriers?
In this guide, we will understand effective shipping methods, explain costs, and give tips to avoid delays. With this information, you can now prepare for effective shipping processes along with the time-sensitive receipt of your goods. Let’s get started!
1) Shipping Options from China
Whenever you purchase from China, you have a few options for delivery. Each option differs in time and cost. Now we will discuss these options:
- Air Shipment: To start with, air shipping services are shipments sent via aeroplanes. This is the most expensive as well as the fastest mode of shipping freight. Very often, items are shipped this way when there is an urgent request or the order is in small quantities
- Shipping by Sea: Generally, sea freight refers to a mode of transport by ship. It takes longer than air freight. However, for larger shipments, it is considerably more cost-effective. So, it is ideal if you are not short on time.
- Rail Freight (to Europe): For those traveling to Europe, rail freight is another alternative. Unlike air or sea transport, this one utilizes trains. Unlike air or sea, it goes by train. It is sometimes faster than sea freight, yet always cheaper than air freight. This gives you a good blend of cost and speed.
- Courier or Express Shipping: Last but not least, there is courier or express shipping. For this type of shipping, companies like DHL, FedEx, and UPS offer these services. Usually, it is the quickest and simplest method. That’s the reason why it is best for sending small parcels or samples of products in a short time.
2) Cost Breakdown of Shipping from China
Whenever you export goods from China, a number of costs come into play. Understanding every component enables you to avert unexpected challenges and manage your budget more successfully.
i) Freight Costs: To begin with, freight costs depend on the size and weight of your goods as well as their destination. In other words, larger shipments that need to be transported over greater distances will cost more to ship.
ii) Customs & Duties: Now you need to pay customs, duties, or taxes for things like VAT, import taxes, or tariffs. These payments differ from country to country, depending on the goods you are sending and their destination.
iii) Port Fees & Terminal Charges: Next, there are port fees. Each port has different port charges collection systems. They vary with every port. These fees for loading or unloading, etc. Although they may look simple to comprehend, they include some nuances that contribute to their complexity.
iv) Insurance: Also, there is an option to buy insurance. If your goods are costly, getting insurance is a wise decision, even though it’s not a requirement. In such a case, you will be able to get a refund in case of damage or loss.
v) Inland Transportation: Furthermore, there are additional costs associated with transportation in each country. For example, this includes the transporting of cargo from a Chinese factory to the port, as well as from the port in your country to your warehouse.
vi) Handling Fees: Finally, there are handling fees. These are the service fees from shipping agents or freight forwarders who help with your shipment. Though these fees differ from one entity to another, they typically cover their time and labor.
From Quora, Efstathios Martinis said that it’s best to ship as much weight or volume as you can in one container to save money. He suggested using a 20-foot container if you’re shipping less than 30,000 lbs, and to try consolidating shipments whenever possible.
He also mentioned that if you can fill a 40-foot container, it’s much cheaper overall, costing under $4,000 to the U.S. East Coast and under $3,500 to the West Coast. According to him, this is still a better deal than shipping single pallets, which can cost around $500 each.
3) Factors That Affect Shipping Costs
Several factors can affect shipping costs. In this section, we will discuss factors that affect shipping costs:
a) Weight and Size of the Cargo
The shipping company will always charge you according to the size and the weight of your cargo. Hence, if it is bigger or heavier, there will always be an increase in cost. Similarly, Thus, if your package is heavy and large, expect to pay a larger cost when shipping it.
b) Type of Goods
Next, the type of products you are sending matters. As an example, items such as chemicals that fall under dangerous goods, or items that need to rester refrigerated like foods and medicines, tend to cost more. Thus, it is usually cheaper to ship ordinary goods as opposed to special goods.
c) Peak Shipping Season
Moreover, the year’s specific timeline is important. During the busy periods, such as holidays, more people want to ship goods. Peak season surcharge applies. Because of this, costs go up. Shipments are cheaper during smoother periods.
d) Incoterms Terms(Shipping Rules)
Finally, the cost of shipping is determined by the terms agreed upon with the seller. These terms are referred to as Incoterms, which dictate the responsibilities of each party for shipping costs. For instance:
- EXW (Ex Works): Your payment starts with the seller’s factory and covers all processes after.
- FOB (Free on Board): Payment responsibility is transferred to the buyer after the goods are placed on the ship by the seller.
- CIF (Cost, Insurance, and Freight): The seller pays for shipping costs and insurance until the goods reach at your port.
Therefore, choosing different Incoterm options will change your prices.
4) Common Causes of Shipping Delays
At times, your shipments might get delayed. There can be countless reasons for this. Let’s discuss the most regular ones:
? Incomplete Paperwork or Wrong Documents: To begin with, shipping as an industry requires the right paperwork. If documents are missing or incorrect, your shipment will get stuck. So it is always prudent to check the paperwork one last time before shipping.
? Customs Clearance Problems: Next, the customs officers at the destination country have to check every shipment. If there are issues such as incomplete information or wrong declarations, there’s a chance that customs will confiscate all goods. For this reason, it is necessary to comply with all the laws about imports.
? Busy Shipping Seasons: Additionally, seasonal busy times tend to incur great lags. For example, when people are celebrating the Chinese New Year or in the last quarter of the year. Many people are shipping products. This results in delays because ports and carriers become overloaded.
? Supplier Delays: A delay in pickup may begin at the factory. If the supplier is slow with production or packaging, then the goods will not be ready for pickup. It is good practice to confirm timelines with the supplier beforehand of time.
? Port Strikes or Global Events: Lastly, certain unanticipated occurrences, such as worker strikes, global pandemics, or accidents like the Suez Canal blockage, can significantly disrupt shipping activities. These kinds of bi,g unforeseen surprises can always cause significant delays even when everything else is running smoothly.
5) Tips to Avoid Delays in Shipping from China
Delays can result in a loss of time and money, but smart preventative steps can reduce most of it. Here we will discuss tips that can simplify the process:
- Book Shipping Space Early: To start with, it’s always better to book your shipping space as early as possible. This is important during peak periods such as the Chinese New Year or the holiday months. Planning greatly increases your chances of obtaining the space and schedule you need.
- Work with Reliable Freight Forwarders: Moreover, always opt for a freight forwarder or agent that you can rely on. Because they manage the shipping, a trustworthy freight forwarder will help minimize errors and reduce argument resolution.
- Double-Check Labels and Documents: Also, make sure all labels and customs documentation are as correct as they can be. Even as small as having the wrong product name or a missing code can cause extensive delays at customs. So check everything at least twice prior to shipping.
- Use Clear Incoterms: Also, make sure to use the appropriate Incoterms (shipping rules) to define who is accountable for which segment of the trip. It reduces misunderstandings and delays if every participant is aware of their responsibilities.
- Add Extra Time to Your Schedule: Most importantly, always include some buffer time in your schedule. This means that if something comes up unexpectedly, such as port closures, severe weather, or any other delays, your business will not be impacted negatively.
6) Tools and Services to Simplify Shipping
We all know that shipping can be a hassle. The good news is that tools and services can help simplify the entire process. Now we will examine some of the most useful solutions:
i) Freight Forwarders: To start with, freight forwarders help in managing the entire shipping process from start to end. They do booking, tracking, and even paperwork. Thus, you do not have to do everything by yourself.
ii) Shipping Calculators and Quote Tools: Now, there are tools that you can use to check the shipping price of a product. This is a distinct feature offered by some service providers that allows you to place an order and compare quotes. This significantly increases returns.
iii) Tracking Platforms: Moreover, tracking tools allow for real-time visibility of your shipment’s location. This allows you to monitor your products from the factory to your doorstep. Thus, you will always be aware of whether something is being delivered on time or if there are delays.
iv) Customs Brokers: Lastly, customs brokers aid in clearing your goods through customs. As customs regulations can be convoluted, brokers ensure that all documents are accurate and all relevant fees are paid. This averts unnecessary delays or fines.
Conclusion
In a nutshell, while shipping from China might sound challenging, with proper preparation, things become easier. To start, familiarize yourself with the available shipping methods. Also, make sure to know what costs to expect. In addition, work with reliable helpers and tools to prevent hold-ups.
Then, verify your documents and your timetable. Finally, be on standby during peak periods. We at Meeno Group help with services that assist with your shipping requirements. We help you from the planning stage until delivery to make everything more effortless.