Freight is often one of the biggest hurdles that importers face when ordering from China. And if you’re not a large business, the cost of freight can often end up pushing the unit cost of your goods much higher. So if you’ve been wondering what freight options you have and how you can make the most of them, this article is for you.
Whichever option you choose, it’s understandable that you probably want the cheapest one. However, it is important to note that the weight, dimensions and total value of the goods will play a big role in which freight options are actually available to you.
Different freight and logistic methods have their own requirements, limitations and benefits. Understanding these will help you to figure out how much you will need to budget for the freight.
Normal Mail
Although using regular Mail is a very affordable option for small items, the delivery time can take up to a few weeks or even months depending on your location. You will be able to get a tracking number to monitor the progress of your package. However, the delivery time cannot be guaranteed.
Express Courier
Unit price is calculated by kilograms or cubic meters (whichever is higher).
Express courier is commonly used for small, light packages (a lot of airline companies restrict it to under about 100kg). While courier is the most expensive option, it includes the cost of clearance and to-door delivery and is fairly safe. Courier is also the fastest method with a normal delivery time of a few days, depending on the destination. So if you have tight deadlines or are unfamiliar with your local clearance processes, couriering your items should help you avoid the stress.
Note that in instances where your goods are very small or light, express courier may be the only option available to you.
Air Freight
Unit price is calculated on per kilogram or cubic meter (whichever is higher).
Airfreight is generally used for items over 100kg and the price rates are cheaper than courier rates. The larger/heavier your shipment, the lower the unit price per kg or cubic meter. Standard airfreight does not include the service of Customs Clearance or to-door delivery although these can be arranged. If you are a small or medium sized business, you may not be as familiar as large importers are with the Customs Clearance process. So you could consider getting assistance from a local clearance agent who can manage the process for you. Generally speaking, airfreight clearance is more straightforward than sea freight clearance. So if you plan on importing via airfreight regularly, it would be useful to learn about how to do the clearance yourself.
Sea Freight
For large shipments, sea freight is the best option to save on the overall landed cost of your items although it has the slowest transport time. Generally, sea freight can be split into LCL (Less than Container Load) and FCL (Full Container Load).
LCL Advantages
For LCL shipments, a base charge of 1 ton or 1 cubic meter is always charged. Then the further cost is calculated on any extra weight or volume above that amount.
For LCL shipments, various customers’ shipments are consolidated into one 20ft or 40ft container. This allows you to only pay for the volume or weight of your own shipment. So depending on the weight, dimensions and value of your items, LCL shipment could be the most cost effective freight method. For example, if the value of your items is over US$2000 and close to 1ton or 1cubic meter, LCL Shipping is a good option for you if you want to get the best freight rate.
Note that sea freight companies tend to avoid low quantities of low value goods. They do this because of the risk of the goods being rejected by the receiver for reasons related to the cost of the clearance. When receivers refuse to accept the shipment, it has to be sent back at the expense of the freight company and supplier.
LCL Disadvantages
Dimensions
There are restrictions on the size and dimensions of items put into the container. This is because the shipping company will be maximising this shared space. So items that are considered by the freight company to be too long may not be accepted into an LCL container. For example, we once had a customer who wanted to ship a load of goods including a 6 meter long item. This item could physically fit into a 20ft container, however, the shipping company stated that they would only be able to pack it into a 40ft LCL container or a 20ft FCL container. Unfortunately, there weren’t any 40ft containers travelling to that port at that time. Luckily, the customer’s consolidated order was able to fill a 20ft container and they opted for FCL shipment. So if you are planning on shipping items which are quite long, we hope our experience will help you while you’re figuring out your freight options.
Safety
Because you are sharing the container space with other shippers, there is some risk of damage to your goods:
Handling – before your shipment reaches you, it may transit through various other ports on the way. During this trip, goods will be unpacked and repacked at these ports and your items may even need to be transferred to a different container and even a different boat. So all of this handling may risk damaging your items.
Other items in the container may damage your items. For example, you have ordered large metal sheets to be used as raw materials in your production. Because they are large and flat, they are likely going to be placed at the bottom of the container and have other items put on top of them. So even if your metal plates are packaged well, they may still risk getting dented or scratched from these other items in the container. And with the loading and offloading activities in various ports, the risk of damage becomes higher.
FCL Advantage
Unit price is calculated on container size and type.
If your shipment is over 15tons, you should consider getting your own container. FCL shipment gives you a higher degree of control over your shipment than you would have with LCL shipments. There are several reasons for this, including:
Your container will be packed by professionals who will maximise on the container space and also fasten items into place to avoid movement and damage.
Once closed, the container will remain sealed until it reaches your port. Unlike with LCL shipments, the safety of your goods is more guaranteed in an FCL shipment.
When the container arrives, you have the option to take it to an unpacking site of your choice.
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