I know the cost of shipping from China is a major concern if you’re importing from China.
Today’s guide will explore and explain everything that will help you reduce the cost of shipping from China.
So, before you import from China, read this guide.
- How Freight Forwarder Help Reduce Cost of Shipping from China
- How to Find Cheapest Way to Ship from China
- How China Shipping Cost Calculator Works
- How Time Affects Cost of Shipping from China
- Factors Affecting the Cost of Shipping from China
- How Incoterms Affect Cost of Shipping from China
- Cost of Shipping 40ft Container from China
- Estimating Cost of Express Shipping from China
- Calculating Cost of Shipping from Alibaba
- How Air Cargo Rates from China compares to Sea Freight Charges from China
- Estimating Cost of Shipping 20 Foot Container from China
- How to Save Freight Cost from China
- Cost of Shipping from China to India Alibaba
- How to Determine Shipping from China to Amazon FBA Cost
- Cost of Shipping from China to US DHL
- Estimating Cost of Shipping from China to UK
- How much Clearance of Cargo Cost when Importing from China
- How to Pay Shipping Cost when Importing from China
- How Cost of FCL Shipping compare to Cost of LCL Shipping
- What is a Kickback Rate in Calculation of the Cost of Freight from China
- Why Include Insurance in the Total Cost of Shipping from China
- Cost of Including Insurance for your Cargo in the Cost of Freight from China
- Factors Affecting Destination Port Cost when Shipping from China
- How Single-Entry Bonds compare to Continuous Entry Bonds
- Effective Tools to use in Calculating Cost of Shipping from China
- How Suppliers Reduce Cost of Shipping from China
- How to Get Free Shipping on Alibaba
- How to Estimate Air Freight Cost from China
- Meaning of Third-party Service Cost when Shipping from China
- How to Calculate Duties and Taxes when Importing from China
How Freight Forwarder Help Reduce Cost of Shipping from China
As a business man, your main intention is to reduce cost of production in order to maximize your profit.
Well, you can reduce the cost of shipping cargo from China by using freight forwarders.
Freight forwarders have the ability of organizing transport at a cheaper cost through the following ways.
· Planning at the Right Time
Freight forwarders will advise you on the best time to ship the cargo thus taking advantage of available discount offers.
They will offer proper time and storage for your cargo until the appropriate time when you will get proper transport costs.
· Finding Most Suitable Shipping Methods
Depending on the type of cargo, freight forwarders will assist you by choosing the right mode of transport.
They will ensure that your cargo is safe, and reaches your destination using the fastest mode of transport at affordable costs.
· Use Local Transport
Your freight forwarder has more information about the local transport and hence has the ability to make better deals.
The freight forwarder will be in a better position to lower the cost of labor and expenses.
Additionally, they have friendly exchange rates as they will be operating with their currency thus reducing overall cost of transport.
· Purchase Large Quantities
You should also consider purchasing large quantities of goods and use the freight forwarders to transport them.
In addition to that, you can also allow the freight forwarder to use the contacts they have locally.
The freight forwarders will use their contacts to get the cheapest suppliers and then ship them to you at cheaper costs.
· Proper Packaging and Insurance
The freight forwarders will package your products well to ensure that they don’t break on transit.
Apart from that, they will also insure the goods so that you are eliminated from blame in case of damages.
This reduces the cost of shipping by eliminating the cost of having to repair or replace damaged goods.
· Cargo Consolidation
The freight forwarders will put all the goods that are similar together to conserve enough space for more cargo.
This will allow you to use cheaper modes of transporting the cargo as they will occupy less space.
· Choosing the Right Container
The freight forwarder also understands the sizes and types of containers that will suit your cargo.
With that information, they will choose the cheapest type of container to transport your cargo safely.
Types of shipping container
How to Find Cheapest Way to Ship from China
You will find the cheapest way of shipping your cargo from China by finding the right freight forwarder.
Here are some of the tips that you can follow so as to find a good freight forwarder from China.
· Doing Proper Research
First, you can go through the internet on trusted sources of information to get a list of different freight forwarders.
You are sure to get a long list of freight forwarders in China who offer different services at different rates.
It is important, that you conduct further research on the companies to ascertain how big their operations are.
Apart from that, you will also have to find out how reliable they are by doing a proper background check on the companies.
· Look at the Levels of Experience
Here, you will look at the levels of experience that a freight forwarding company has had over time.
You should ask the company of choice questions about the level of experience that they have in handling your goods.
· Check on their Membership and Licenses
You will know you are in the right direction if the company of choice is a member of a respected association.
Membership in such associations is an indication of reliability, financial strength, efficiency and excellent service delivery.
· Look for Point of Contact
Here, you will check if the company of choice has various distribution channels operating within your locality.
You will look at ease of coordination and submission of relevant documents for the shipment to take place.
You will determine if the company is capable of meeting your timeline, packaging and storage requirements at affordable costs.
Remember to ask about the seasonal cost variation that usually occurs during different periods of the year.
With that information, you will settle on a particular freight forwarder who will take care of your needs accordingly.
How China Shipping Cost Calculator Works
It is best if you have a rough estimate on how the cost of shipping your cargo from China to your destination.
You can achieve this by using a shipping cost calculator to determine the most accurate cost of shipping.
Here, you will need particular information such as:
- The country of origin which, in this case is China
- The destination of the cargo which you will specify
- The proper description of your package in terms of size and other important details
- The weight if the cargo that you intend to ship from China
You will key in that information and then get an accurate estimate of the total cost of shipping from China.
Remember that there are other factors that will add on the cost of shipping such as:
- Cost of shipping insurance
- Other shipping related charges such as transport to your destination
- Cost of handling the cargo
- Cost of taxes and duties
A good example is the freight calculator.
Freight cost calculator
How Time Affects Cost of Shipping from China
Well, you can purchase your cargo in China and have it at the doorstep in a matter of days depending on the distance.
Apart from distance, the mode of transport will also influence the time it takes to have your cargo at your doorstep.
For instance, depending on the urgency, you can use an express shipping mode to transport cargo from China.
You must, however, note that the faster the shipping rate, the higher the cost you will pay.
Implying that air freights which are faster, will cost you more than the sea freights which are often slower.
Factors Affecting the Cost of Shipping from China
Well, transporting your cargo from China will involve particular factors which will affect the overall cost.
Here are the main factors that you will look at when determining the cost of shipping your cargo from China.
1) Transportation from Factory to Port
Here, you will key in the cost of transporting your cargo from your manufacturer to the loading port.
2) Export Clearance
In this case, you will have to deal with the customs in China to clear the cargo before loading it on the ship.
You will have to pay for the taxes and duties in accordance to the custom laws in China.
3) Freight Cost
This is the cost of shipping your cargo from the loading port in China all the way to the destination port.
In this case, there are two main ways that you will look at the cost of freight.
i. High cost of freight will attract low local charges
ii. Low cost of freight will attract high local charges
The cost of freight will depend on the destination, weight, volume, and origin of the cargo you are shipping.
The type and mode of shipping will also have an effect on the total freight cost from China.
You must also factor in the cost of insurance which will take care of the cargo in case of a problem while on transit.
Without insurance, the forwarder will not pay for the cargo in case of an accident during transportation.
5) Port of Destination Charges
You must also consider the cost that you will incur at the destination port in terms of off-loading the cargo.
Apart from that, you will look at the cost of taxes and customs that the destination country charges in imports.
6) Domestic Transport
This is the final cost of transporting the cargo from the destination port all the way to the specific address.
How Incoterms Affect Cost of Shipping from China
Incoterms are the terms of trade that you will use when dealing with shipping of cargo from China.
Different incoterms have specific meanings and will also have particular impact on the cost of shipping.
After selecting the incoterm to use, you will pay for all the costs of logistics from the supplier to your doorstep.
You will pay for the above costs plus the unit cost of the cargo depending on the incoterms that you choose.
The incoterms will only specify the responsibility of each organization you involve in importing your cargo from China.
When shipping from China, you can choose from:
- Freight collect terms such as EXW, FCA, FAS or FOB
- Freight prepaid terms such as CFR, CIF, CPT, CIP, DAT, DAP, or DPP
Cost of Shipping 40ft Container from China
Well, the cost of shipping a 40ft container from China, will vary according to your destination.
With all the factors of shipping in place, the distance from China will affect the overall cost of shipping 40ft containers.
Let’s assume that you are transporting your cargo from China to a port in the UK by sea.
Here, you will have to factor in the loading port in China and the destination port in the UK.
On average, the cost of sipping the 40ft container will range between 1500 to 2200 US dollars.
Estimating Cost of Express Shipping from China
Express shipping is the fastest mode of shipping your cargo from China to your destination.
The cost often depends on the company you are using to ship the cargo by air.
In this case, you must have specific details at hand which include:
- Weight of the cargo
- Custom taxes and duties
- Cost of shipping which depends on the company
Express shipping from China
Calculating Cost of Shipping from Alibaba
Well, shipping from Alibaba is easier than direct shipping since Alibaba will take care of most of the logistics.
Implying that, you will not have to look for freight forwarders in China to help in shipping your cargo.
All you have to do is make the purchase through Alibaba and choose the mode of transport.
Alibaba will calculate the total cost of shipping the goods to your specified destination and send you an invoice.
It will also provide you with the details of tracking your cargo while on transit.
How Air Cargo Rates from China compares to Sea Freight Charges from China
Air cargo rates will cost you more than the sea freight charges because of the speed.
Air freights are often faster and will deliver your cargo within a very short period.
On the other hand, sea freight charges are less because they often take longer while at sea.
Apart from that, air cargo fee is higher because it requires special considerations such as space.
It does not involve a lot of sharing of space such as that you will find on the sea freight.
This makes the cargo safer and will definitely lead to an increase in overall cost.
Estimating Cost of Shipping 20 Foot Container from China
Since the size of the 20ft container is smaller, the shipping cost will definitely be lower.
Implying that, the 20ft containers occupy less space on the ship and will definitely weigh less.
The cost will also depend on the destination port of your cargo.
The further the distance, the more money you are likely to pay for the cargo.
How to Save Freight Cost from China
There are tricks that you can use to pay less for the shipping of cargo from China.
Here are some of the factors that you should consider to lower the shipping cost from China.
- Find the right freight forwarder offering efficient services at friendly costs
- Choose the best mode of shipping depending on the type of cargo
- Use courier and air shipping only when it is necessary as they often cost more
- Weigh the parcel that you are shipping to get the best rates at that weight category
- Purchase large cargo quantities that will cost you less as you will be bulk shipping
- Compare the cost of shipping that you receive from different freight forwarding companies
- Use the shipping calculator to get a rough idea on the overall cost of shipping the cargo
- Optimize the packaging space by packaging as many goods as possible on the shipping container
- Consolidate all the common goods together such as collecting and packaging all the small goods together.
- Proper planning and optimizing of the services offered by different freight forwarding companies.
Cost of Shipping from China to India Alibaba
Since you are using Alibaba, the supplier of the cargo will arrange for the transport of the cargo.
Your supplier will also arrange on the mode of transport after looking at your preferences.
The shipping cost will depend on the weight of the cargo that you intend to ship from China and the destination.
FCL shipping of 20 ft containers from China to India will range between 500 to 800 US dollars.
FCL shipping for 40 ft containers from China to India will range between 700 to 1100 dollars.
Note that the cost will vary depending on the mode of shipping and the incoterms in use.
How to Determine Shipping from China to Amazon FBA Cost
You can choose between two main options of shipping from China to Amazon FBA which include:
- Direct shipping from China to Amazon FBA
- Shipping personally or via a middleman to Amazon FBA warehouses
The cost of shipping from China to Amazon FBA will depend on quite a number of factors such as:
- The type of goods that you intend to ship
- Weight of the goods that you intend to ship
- Destination of the goods you intend to ship.
Amazon FBA will often take care of the logistical procedures and you will only have to pay for the quoted cost.
Cost of Shipping from China to US DHL
DHL will charge you according to the overall weight of the cargo you intend to transport from China to the US.
The cost of shipping via DHL from Shenzhen China to the US will range between 3 to 19 US dollars per kilogram.
Shipping from China to U.S.A. using DHL charges will also depend on the type of cargo that you are importing from China to the US.
DHL shipping from China
Estimating Cost of Shipping from China to UK
Here, you will look at the port of origin in China and the port of destination in the UK.
Apart from that, you will also look at the type of goods and overall weight of the goods.
Here is a summary of the different shipping costs depending on the shipping mode.
· LCL Shipping from China to UK
Generally, you will spend between 50 to 80 US dollars to ship to various destinations in the UK per cubic meter.
· FCL Shipping from China to UK
You will pay around 60 to 90 US dollars per cubic meter when transporting from China to the UK.
How much Clearance of Cargo Cost when Importing from China
In China, the standard fee that you will pay for customs clearance is 50 US dollars.
Apart from that, you will also pay between 100 to 120 US dollars for clearance with the CBP.
This is often subject to the inspection to ascertain the type of goods you are shipping from China.
Here is a comprehensive guide where you can learn about custom clearance when importing from China.
How to Pay Shipping Cost when Importing from China
The best and most secure way of paying for the imports from China to your destination is via bank transfers.
You will be able to have proper proof of payment as the banks are more trusted institutions.
You will also have proper sense of security and proper authorization channels for money transfers.
You can use many payment options such as T/T payment to China, Western Union, PayPal, Visa, MasterCard, etc.
How Cost of FCL Shipping compare to Cost of LCL Shipping
LCL and FCL are the two most common shipping terms that you will use in transporting cargo from China.
FCL shippingis an abbreviation for full container load while LCL is an abbreviation for less than a container load.
FCL often has a flat rate which you will pay according to the size of the container you intend to use.
On the other hand, you will pay according to the size of the cargo you are importing on LCL.
Implying that, you will only pay for the space in cubic meters that the cargo occupies inside the container.
LCL shipping is, therefore, the most cost-effective mode of transporting cargo from China especially in small quantities.
FCL is also the most cost-effective mode of transporting large consignment cargo from China.
FCL vs LCL Shipping
What is a Kickback Rate in Calculation of the Cost of Freight from China
Kickback rate is the additional cost that you will pay to the freight forwarder to provide you with certain favors.
It is often an illegal act to pay kickback rates to the freight forwarder for particular favors when importing.
In case you pay kickback rates, it will also have an overall impact on the cost of shipping the cargo from China.
Why Include Insurance in the Total Cost of Shipping from China
You must includemarine cargo insurance in the total cost of shipping from China to secure your cargo.
Shipping your cargo from China does not have a complete guarantee of safety of your cargo.
So, you must have an insurance that will guarantee the safety of your cargo while on transit.
Implying that the freight forwarder will have to compensate you in case of damages or loss of cargo.
Cost of Including Insurance for your Cargo in the Cost of Freight from China
The cost of including insurance for your cargo in the overall cost of shipping will depend on the insurance company.
For instance, the most common insurance company in use when shipping from China is PingAn Insurance company.
This company will charge a rate of 0.02% of the 110% of the FOB cargo.
For instance, if you purchase goods worth 50,000 US dollars, you will only pay 110 US dollars insurance.
In an event of damage or loss of the goods, the insurance will be able to pay for the insured goods.
Factors Affecting Destination Port Cost when Shipping from China
At the destination port, you will have to part with more money depending on the country of destination.
The charges will also differ depending on the type of goods you are importing to that particular destination.
FCL will be charged according to the cost of the whole container rather than the cost of a cubic meter.
On the other hand, LCL will be charged per cubic meter of the total size of the cargo.
Apart from that, you will also have to include the cost of taxes and duties on arrival at the destination port.
The cost of taxes and duties will also vary according to the country where you are importing the cargo to.
How Single-Entry Bonds compare to Continuous Entry Bonds
You will use the single-entry bond when importing goods into the country once.
In this case, all you have to do is carter for the bonds depending on the charges of the destination port.
On the other hand, in case you intend to import cargo more than once a year, you need the continuous entry bond.
It is a cheaper bond in comparison to the single-entry bond if you are importing more than once a year.
Effective Tools to use in Calculating Cost of Shipping from China
The most effective tool that you can use in calculating the shipping cost from China is a shipping calculator.
In this case, you will use the shipping cost calculator to determine the overall cost by determining particular requirements.
Among the calculators that you can use is the Easy ship’s Shipping Rates Calculator.
How Suppliers Reduce Cost of Shipping from China
Suppliers can reduce the cost of shipping your cargo from China through different ways.
Here are some of the ways through which a supplier can assist in cost of shipping reduction.
- Offering a Discount
You can get a discount on the goods that you are purchasing especially if you purchase in bulk.
This will have an overall effect on the shipping of cargo from China to your destination.
- Offering Free Delivery Services
Your supplier can also transport your cargo from his factory or warehouse for free depending on the purchase agreements.
- Proper Negotiations
Suppliers often have proper knowledge of different freight forwarders and their charges.
Your supplier can refer a cheaper and more reliable freight forwarder to ship your cargo.
Apart from that, the supplier can also organize a good discount with the freight forwarder for your cargo.
How to Get Free Shipping on Alibaba
Free shipping on Alibaba is often courtesy of the supplier who usually takes care of the shipping charges.
In most cases, you can get free shipping from Alibaba only on specific goods from specific suppliers.
It is a strategy that suppliers on Alibaba use to ensure proper and faster sales of goods.
How to Estimate Air Freight Cost from China
You can use the freight calculator to estimate the cost of shipping via air from China.
Just like the shipping cost via sea, you must have specific details such as:
- Airport of origin and destination
- Dimensions of the goods
- Mode of shipping via air.
The other factors of importing will also apply such as duties and taxes charged on importing the cargo into the country.
Meaning of Third-party Service Cost when Shipping from China
Third party service cost is the amount you will pay when you hire an agent in China to conduct your business.
The cost you will pay will vary according to the type of agent you hire and the amount of work.
They often ensure that the cargo you are purchasing is according to the right specifications.
They will also do quality assurance checks on the cargo all depending on the amount of payment.
How to Calculate Duties and Taxes when Importing from China
You will calculate duties and taxes depending on the country of origin and destination.
There are two main domains where you need to pay duties and taxes which include:
- Country of origin which is China in this case
- Country of destination
China has a specific rate on the taxes and duties depending on the type of goods you are exporting.
You will, however, pay different rates of duties and taxes depending on the destination country.
I hope at this point; you can estimate the cost of shipping from China to destination.
However, in case you have any questions, BanSar is here to help you – Contact us now.