How to reduce shipping cost when importing from China

When you Import from China, shipping cost is a question that you can never avoid. 

So, how to make sure you get the lowest shipping cost for your goods?

You may find that it seems you've chosen the cheapest shipping cost before shipping. But, when the goods arrived, you have to pay much more than you were told. And add all the fees together, It's even more than the highest quotation you've ever got. 

Here's a few tips you should follow to choose a best shipping cost quotation. 

1st, You need to understand the price term quote by suppliers. EXW, FOB, CFR, CIF, DDU & DDP are the price terms that are used most commanly. However, since COVID-19, DDU & DDP are no more accept by Chinese forwarder. So, EXW, FOB, CFR & CIF are the main price terms been used. 

- EXW, equals to EX Works, means products cost only.

- FOB, equals to Free on board, means prices includes all the fees until the goods arrive on board of the ship. which includes product cost+shipping cost from factory to Chinese delivery sea port+port charge+forwarder's handling fee+documents fee.

- CFR, equals to Cost & freight, means prices includes all fees until the goods arrive at destination port. Which includes product cost+shipping cost from factory to Chinese delivery sea port+port charge+forwarder's handling fee+documents fee+sea freight.

- CIF, equals to Cost, Insurance & freight, means prices includes all fees until the goods arrive at destination port plus inssuarance of any goods damage or loose. Which includes product cost+shipping cost from factory to Chinese delivery sea port+port charge+forwarder's handling fee+documents fee+sea freight+insurance (which is usually 0.1-0.15% of goods value)

2nd, You should understand that : No matter you are going to use a Chinese forwarder or you local shipping forwarder, The following costs (1-10 in the following picture) are all on your charge. 

For example, when you get a quotation based on EXW term from your supplier. You may want your supplier to tell you how much will be the shipping cost. In this case, you should ask how much will be the shipping cost including 6-10 in the following picture. 

If you are trying to inquire your local forwarder, tell them you are doing EXW term with your supplier. So, they will quote you a price including all the fees from 2-10. 

Pls note: a shipping forwarder usually do not quote for import tax, since it differs from different items. 

Then, you plus all the fee from 2-10, you'll find out the real lowest shipping cost quotation. CONGRATULATIONS!