Top 2 Things to Consider When Shipping
from China
As an importer, there are many considerations when sourcing
goods from China. When it comes to shipping, you want your cargo delivery safe,
on time, with competitive freight cost.
Choosing the best delivery option is completely dependent on
your unique circumstance, but we hope the content below will give you some
helpful ideas about what you should consider when getting your goods back home.
Let us assist you on the following top 2 things about freight
transportation.
As with most businesses, cost can’t be the only consideration
but it is usually a primary and determining factor. After all, we are all
in this and making each decision to help our customers and ourselves save or
make money.
Different logistics methods can make a vast difference both
in transit
time and freight
charges. Therefore we always need to determine which method
will be the most cost effective one.
1. Regular Post
This means normal, regular China Post (or Hong Kong Post) which
can take up to 2~5 weeks to arrive. If you can wait, this is the cheapest
option for small shipments, like samples and parcels. You may track and trace
online, but the information can not be updated in time.
We don’t recommend this way at most times.
Plus: Pretty economical.
Pitfalls: Unsafe. Lost
packages are hard to find.
Transportation with a courier company will be the most
suitable method for most people starting out. Courier company, widely used
in China is DHL, UPS, and FedEx. TNT is popular in Europe, but it’s not so
popular like the others in China.
With courier service, you get fast delivery times and an online
tracking facility. Most courier shipments take just 2~5 business days to arrive
in anywhere around the globe.
§ Courier to America, South
America, Southeast Asia and Africa, suggest FedEx
§ Courier to Southeast
Asia, Europe, Australia and New Zealand, suggest DHL
§ Courier to America,
suggest UPS
Please note that the advantages of different courier may vary from
different weight. You can contact us for the most suitable courier with your
shipment details.
Pluses: Get seamless
delivery. All you have to do is sign for the package when it arrives. In most
cases delivery is quick and reliable. When there’s a problem, there is a
tracking number that can help resolve the matter.
Pitfall: The price is much
higher than postal service.
3. Air
freight
If the weight of sourced products is too large for couriers,
example 500kg, air shipment might be the best bet. With air freight, costs
will be significantly lower than with courier companies.
This way is for not so heavy cargo, and there are tight
deadlines or a tighter control on the security. Transit time varies based
on the schedule of airlines, but in general range between 2~10 days which is
not bad.
While extra work is involved when the goods arrive at the
destination airport. You have to handle documentation and customs clearance on
your own (unlike with courier companies), which for many newbies may seem
impractical. Of course, you can always outsource these tasks to a customs
broker or a trucking company at an additional cost.
We suggest if the chargeable weight is over 250kg, you can
try to choose air freight. If under 250kg, stick to international couriers.
4. Sea
freight
Transport by ocean can take a very long time but can carry
a massive amount of goods, which drives down the costs. The diversity of
cargo that can be shipped is also a major benefit to this mode. That’s why it’s
popular and widely used mode in logistics.
Despite the lengthy delivery time, if you plan ahead, and
have enough time to wait, sea freight will be your top choice. Depending
on where you’re located, it will be in the vicinity of 3~60 days.
Just like with air freight, you’ll have to take care of the documentation,
customs clearance and delivery of goods from the port to your warehouse or
facility. But if you choose to-Door services,
which is popular to USA/Canada/Europe/Australia, all you have to do is pay the
freight charges and wait for your cargo sent to your specified address.
Pluses: Can be economical,
particularly, if you’re prepared to handle the logistics of clearing the goods
through Customs yourself. Also, the best way to handle large bulky purchases.
A quick summary
Each come with unique benefits and it’s often a combination of
these shipping methods to get the Chinese sourced goods to your business. There
should be some deliberation over the time frame you need your products, the
security of your shipment, and usually the biggest factor, the cost.
Shipping rates will make up a substantial percentage of
your total product landed cost, so it’s important to keep
them as low as possible at all times. But sometimes, time is more crucial than
money.
It’s all about balance. Choose the right way after
considering all the actual situations.
Letting the supplier manage the shipping is common among
inexperienced importers. It’s very simple and all you need to do is to tell the
supplier that you want them to ship the cargo as CIF “Port of destination” or
DAP “Your facility address” and they’ll do the rest.
The downside is that you’ll probably end up paying a bit more
than really needed. In fact, there are better
options for saving money & time.
1. Do it all internally, for full control
We have only seen big groups follow this strategy. They
book space directly with shipping lines, airlines, trucking companies and they
manage Customs Declarations on both sides (the exporting and the importing
countries).
If you choose this option, you need to make your own order
follow up, you need to check with the carriers yourself to receive the proper
info that is crucial for you. If a problem occurs, you need to deal with it in
order to avoid paying extra charges.
Your time is the most valuable. When you work directly with a
carrier, you cannot save that time, unless there’s a specialized department
with professional crews in your company.
We don’t think this is a viable option for small and medium
enterprises.
2. Work with a freight forwarder in your country, for
convenience
This is some importers do, and it is the most convenient option.
So what happens is this: small and medium companies try to work
with a freight forwarder of the right size, who care about their business. But
most of the forwarders don’t always have their own office in China. They
usually work with local agents, and add their margin on top of that agent’s
fee.
This is not a cheap option, and not so efficient.
3. Work with a freight forwarder based in China, for speed
More and more importers have chosen this option.
The advantage is speed. The forwarder can
keep close touch with your supplier, and keep you informed everything. When
trouble happens, your local partner will solve that asap.
That’s what we are doing, and we’re good at it. Not only speed,
but also best rates. Besides, we have agents in some countries to handle
customs clearance and inland delivery in your country. Find more: why you should find a local freight forwarder in China?
4. Work with a forwarder on each side, for speed and savings
A fourth option is to be in direct contact with each party. For
example, a Dubai importer will be in touch with a forwarder in Dubai, and one
in China.
This is probably the right choice for SMEs transport from China. For some buyers, every dollar saved is worth fighting for.
And it allows for a higher degree of control, too.
A quick summary
Whether your supplier and you manage the transportation, you
should always need to source the logistics solution from a third party.
No matter your forwarding agent is located in your country
or in China, when you find the right partner, just stick to it. Check our post
about freight forwarder to find more.
Putting together
As a decision maker, you may already be at the point where these
options mixed with your goals become more automatic. The more information and
experience you gain, the easier these decisions become.
We suggest considering the above two issues and get the answers
before any movement in international trade. The answers will help you make your
supply chain management more smoothly and efficiently.
Article Source: https://cargofromchina.com/shipping-from-china/
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