One of the expenses involved with importation from China is the FCL container shipping cost which has substantially increased due to COVD-19. Importers want and need their shipments delivered at affordable costs. In this article, we will look at practical ways to reduce China’s container shipping costs.
Examining and Selecting Shipping Terms
Incoterms outline the costs, responsibilities, and risks related to the transportation and delivery of goods. The FOB condition is the export fee in China, which the China suppliers pay.
What you pay is the ocean freight to the forwarders for the port to port only. It would be best to have a local import agent at your designation who will handle the import operation such as doc process, customers, delivery, tax duty, and more. Also, remember, the costs you must pay are different between CIF, DDU, EXW, etc. They will depend on the shipping terms you pick, so familiarize yourself with the different shipping terms.
Choose a Dependable Freight Forwarders
You are probably wondering how to choose a China freight forwarder. Of course, there are advantages to picking a global company, such as quality service, strength, and higher standards of operation. However, if you are only dealing with a small to medium-sized business, it will be hard to achieve an affordable discount or receive customized service.
Another option to consider is picking a well-known shipping company and signing a contract with a small or medium-sized shipping agent whose prices are affordable and offer flexible service to meet your needs better.
You can also classify the shipping market, such as goods imported into the U.S. must be handed over to a company that focuses on China to North America. Shipments expired to Europe are handed to a company that specializes in China Europe.
You’ll want to carry out background checks to get a better feeling for the shipping market and find a valuable method to find relevant information via an introduction or through the forwarders’ websites.
Ocean Transportation
You must learn ocean shipping routes. You’ll find three routes from China which are the Atlantic, Indian Ocean, and Pacific. Out of the three routes are numerous seaports, which all have different shipping prices. The price difference can be dramatic.
Cargo Plan and Load Time
Develop a loading plan and then provide your forwarder with clear instructions. Keep all communications timely to cut down on unnecessary expenses and make sure that your goods ship on time. Always book the container in advance and have the goods ready.
You should never order the goods a day or two before the deadline and try to have your forwarder book quickly. You must have a basic knowledge of operating procedures. You never want to deliver your goods too early or too late, or you’ll face storage charges and run the risk of a Customs inspection.
Shipping Capacity
Calculate the product packing before shipment. You want your China supplier to design their packaging accordingly to fit the volume and quantity within the container. If possible, try to consolidate the shipments. You can put various orders from several places in a single container and ship them all together.
