You must have planned about “Choosing the right company” for importing your products, but wondering about a complete guide on “Shipping Cost” when importing from China? You’ll find everything here.
Let’s break down key topics that we will be discussing down below:
- Factory to Port Transportation
- China Export Clearance
- Freight Cost
- Document Delivery
- Domestic Transportation
Factory to Port Transportation
Once you’ve approved your products and the production is completed, the first step that the supplier will do is “Booking the transportation from the factory to the nearest port of loading.”
The shipment cost varies differently, and if you’re planning to book an “FCL 20’’ Container,” then it might cost you around $480 (Depending on the distance).
The suppliers will never have a problem transporting your “Products” to the nearest port because a port is 3-4 hours drive away from every export-oriented manufacturer (Special Thanks to China’s Infrastructure).
You don’t have to pay for the local transportation because it is already included in the “FOB” price. If you’re purchasing everything according to the FOB terms (which most of the importers do), then the cost is already included in the price paid to the suppliers.
Note* You can contact us right now, and we will help you in getting discounts from the “Top-Rate” shipment agencies.
China Export Clearance
Before you Cargo loaded or shipped to the destination, the goods must be cleared for exports. We can’t say that we know the exact process of “Documentation,” but all the documentations are handled by “Export Agent” or “Supplier itself.”
However, you must be aware of the issue that “If your documents aren’t produced, you can face a lot of problems.”
The Chinese Custom Authorities “Hai Guan” tends to make a routine check on almost 10% of your shipment (Because of many reasons). If a supplier is involved in exporting something “Fishy” or without the proper documentation, then the authorities may fine you heavily on the basis of the crime you’ve committed.
Additionally, you don’t have to pay for “Documentations” because the suppliers have already deducted the money from the FOB price.
It takes no more than a week to clear everything to clear your exports from the “Transportation Port” by the customs authorities.
Note* China Export Clearance can cost you from $100-300 (Included in FOB)
Note* Freight Cost depends on various factors such as; Weight, Volume, Location, and Destination.
Freight Cost section is the most important and complex part because you’ve to balance “Local Transportation Charges” and “Freight Charges.”
Basically, you can adopt two ways in order to pay “Freight Forwarder.”
- High Freight Cost; Low Local Charges
- Less Freight Cost; High Local Charges
When shipping full container loads from China to your country, your prices depend on the destination, both in terms of “Distance and Volume.”
To make things easier for you, let’s place down price samples down below:
- Shenzhen – Los Angeles: $2,230 – $2,460
- Shenzhen – New York: $2,275 – $2,515
- Shenzhen – Felixstowe (UK): $1,435 – $1,585
- Shenzhen – Hamburg: $1,440 – $1,590
- Shenzhen – Sydney: $685 – $760
- Shenzhen – Singapore: $270 – $295
- Shenzhen – Dubai: $1,445 – $1,595
But, if you want to order “Half Container,” then it’s completely a different story. You can get the prices as low as US$30 to US$40 per cubic meter.
What the “agent” isn’t telling you about is “Local Charges,” and they can be double than what you’ve given to the suppliers for “Freight Shipment.” In the industry, it’s referred with the common term known as “Kickback Rate,” and a lot of people are familiar with this term.
Now, it’s time to move to the next topic, and that is “Insurance.”
We found no good reason to ignore “Insurance” because a lot of suppliers use cheap and substandard packaging, and you can end up receiving “Shattered, broken or misplaced” products.
Without insurance, the supplier isn’t obligated to pay you a single penny in case of “Any damage” during the transportation.
A lot of suppliers use “PingAn” to insure Cargo, and they charge you “0.2%” for every shipment. For instance, if your goods are worth $50,000, then the insurance company will charge you $110. And that’s completely a “Fair Deal” because you can pay 0.2% money for insuring your Cargo. Insurance: 0.2% x 1.1 x Cargo Value (Included in CIF)
But in the practice, a lot of agents or forwarders are charging an insurance rate around 0.5%-0.6%.
Most of the people are unaware of the “Document Delivery” section where they have to pay for a “FedEx or DHL Delivery.”
The additional shipping cost includes delivering “Bill of Landing, Commercial Invoice, Packing List and Other Documents.”
Document Delivery: $40-$50
Now, this is the final step, which means the “Import” will finally reach to your warehouse. The final delivery can be made out, “With the help of trucks or any other transport available in your country.”
The prices are completely dependent on the rates that are set by your “Country’s Transportation Authority,” and you can negotiate the prices if the “Goods” are in bulk.
We can’t offer you the prices of “Domestic Transportation” here because the prices are extremely dependent on your proximity to the warehouse.
Let’s break down some “Shipping Quotation Sample” to make things easier for you.
Rather than simply stating the total cost of “shipping,” many freight forwarders offer you something like it’s given below:
- CFS Charges: $69.30
- Origin Documentation Fee: $30.00
- ENS Fee Exempt: $30.00
- Re-weighting and VGM Sending-Fee – LCL: $15.00
- Export Customs Clearance Fee: $23.00
- Freight: $277.20
- Cargo Insurance: $ 63.15
- Destination – Other Charges: $590.62
Now, the quotation is extremely easy to read because each item has its own “Fixed Price.” But, the prices are still dependent on the factors that we have explained above already.
So, that’s all from the topic “Shipping Costs When Importing from China- A Complete Guide,” and if you have any questions regarding the topic, then feel free to comment down below. We will respond to you ASAP!