If you want to import some products from China, one of the main points that you have to take into consideration is how to deal with your product freight. Even if you apply CIF terms, to avoid your lost and make maximum profit, you’d better know how to deal with shipping by yourself.
Steps:
1.Decide whether you want to find a forwarder in your country or find a local forwarder in China.
2.Obviously, finding a forwarder in your country is much easier, but the service charge in developed countries is much higher than in China.
3.The lower labor cost, lower exchange rate and other factors make Chinese forwarders’ service charge much cheaper.
4.There are many Chinese freight forwarders, but only some of them are large, reliable and are able to offer high quality service.
5.Be aware that most international freight forwarders with operations in China will use a local Chinese logistics or freight forwarding company because of their lower costs and local knowledge. This means that you can contract with an international freight forwarding company in whom you may have confidence and they in turn will contract with a local firm that they know to provide the service you require in China.
6.Post a topic on an international business website or send quotation inquiries to listed forwarders.
7.You will definitely receive inquiries from many forwarders and logistic companies.
8.Carefully evaluate those forwarders.
9.Get in touch with the forwarders you have chosen.
Tips:
-Be sure that the freight quote you receive is all-inclusive and leaves no room for unexpected extra costs. Classical error at this level is the packaging, palletising and labeling costs being excluded from both contracts.
-Review every detail; the forwarder must include all taxes and extra charges deriving from international shipping. If needed, you can ask forwarders to add insurance to the quote.
-Confirm the incoterm used in quotation. Are you supposed to take possession of the merchandise once manufactured (ex-works) or when loaded on the cargo (Free On Board – FOB) ? The impact on total costs is obviously important, so pay attention because there are lots of incoterms.
Choose carefully your shipping mode, the 3 options being:
- Sea freight: cheaper but slower
- Air freight: more expensive but faster
Generally speaking, the service charge of Chinese forwarders are much cheaper. So you don't need to pay much attention to it.
However, you should carefully evaluate the forwarder's credit, reliability, and ability.
Have a good level in English in order not to be mislead by terms and conditions proposed by freight forwarders.
- “Sea and Air” freight: combined freight solution
Take into consideration the total volume and weight of your shipment: air freight can prove to be a cheaper solution if you ship small quantities or very light products.
Check origin and destination addresses of your shipment: most of freight forwarders will give you quotes for a region but not necessarily for a specific city.
Finally, don’t forget to plan quality control of your goods before shipping: it’s the last time you will be able to refuse the merchandise. Remember to notify your manufacturer or forwarder about the inspection. Tell him when it will take place and who will carry it out.
Warnings:
Don't assume the products freight of Chinese line as a matter of course. There are some special factors that are very different form other lines, such as ORC, SPS, THC,political rules etc.
Believe that freight forwarders are professional, who know more than you about product freight.
