shipping container from china to USA

 

Rules And Regulations to follow when Shipping from China to US

 

Importing goods from China will require supply managers to carefully go through the different modes of shipping from China to US. It is ideal to keep all modes – air, land, and ocean shipping – in mind. Two main factors that every business keeps in mind is time and cost. Most of your decision about the mode of shipping you choose will be based on these two factors.

At this time, the COVID-19 pandemic has created a lot of uncertainty for businesses who were importing goods from China. Supply chains are broken or not functioning at a full potential, which means you will notice a disruption in delivery times and volatile freight charges.

Challenges you may face in shipping from China to US

• Delivering goods faster without spiraling costs
• Identifying the right mode of shipment
• Flexibility of choosing shipment methods
• Customs clearance

 

Modes of Shipping from China to US

Regular post

China Post is also considered as regular postal services available for shipping small goods from China to the US. There are options to have the goods delivered through airmail or surface mail using regular post. The only problem for importers and exporters is the length of time regular post takes for the shipment to be delivered.

Heavier parcels tend to be charged at a lower rate than smaller and lighter parcels. While you may save shipping costs, you must be prepared for a longer wait time when you use regular post.

Express shipping

Supply managers will find express shipping to be useful when they are shipping smaller volumes of goods like product samples to the US. This shipping option is also good for sellers in the US who are restocking in an emergency and want the goods to be delivered quickly. Some of the most popular companies in China for express shipping are:

• FedEx
• UPS
• DHL
• TNT

There are lots of other companies who may ship to the US as well, but these are considered very reliable in terms of delivery time and customs clearance. Even the pricing is less volatile in these companies as compared to other logistics companies for express post.

Prices for shipping through these companies will be impacted by any or all of these factors:

• Peak seasons like Christmas and Thanksgiving
• The amount of empty space left in the plane
• Commission payable to express agents if the supplier does not use the express post company of your choice

Express shipping from China to US is used extensively by online retailers who want the goods to be delivered quickly to consumers. Shipping companies mostly handle customs duties on your behalf. This reduces the hassle of understanding customs as well. After a certain threshold, maybe goods become duty-free. Check with the shipping company about this before you decide to ship any products.

One thing that you may have to keep in mind when using express shipping for large, lightweight products is that you may end up paying for dimensional weight rather than the real weight of the product.

Dimensional weight in express shipping

Some products, like foam, tend to be light but they take up more space in the aircraft. So, express shipping companies may charge you according to the dimensions of the product instead of the actual weight.

Shipping companies use the following formula to determine the dimensional weight of a package:

Dimensional weight = Length (cm) x Width (cm) x Height (cm) / 5000

Annual shipments will change costs

Express shipping companies are likely to offer lucrative discounts to you based on the volume of your annual shipments. Look up the discount options offered by different companies. As a result, your prices will be influenced based on your annual shipment volume.

Pros of express shipping:

• You will not have to worry about customs clearance
• Delivery fees will not change extensively based on the part of US the goods are being shipped to
• Recommended for importing product samples and small products of high value

Cons of express shipping:

• Shipping costs change based on demands – you will end up paying high costs during peak seasons like Christmas and Thanksgiving.
• Your products may be charged according to dimensional weight and not the real weight

 

Airfreight

Airfreight is considered to be a good option for shipping goods over 500kg. When you decide to import something from China, suppliers in China are likely to quote a price that involves the movement of goods from their manufacturing unit to the airport in China. It is known as Free on Board or FOB. This means you will only be incurring costs for shipping the product from the Chinese airport to your doorstep in America.

Sometime, the suppliers may not cover the cost of moving the goods from their manufacturing unit or warehouse to the airport. In this case, your shipment cost will also involve the cost of moving the goods from the supplier’s manufacturing unit or warehouse to the airport. It is known as Ex Works or EXW. Your calculation of shipping costs will differ on your agreement with the supplier.

The cost of getting an item delivered from the airport to your doorstep includes the following:

 

• Cost of moving the goods from the designated location in China to the airport (only in EXW)
• Cost of moving the good from a Chinese airport to an American airport
• Chinese export costs
• Custom clearance costs in America
• Cost of moving the goods from the American airport to your doorstep

 

Many new business owners take help from their Chinese suppliers or a freight forwarder to arrange the goods to be shipped as air freight. It is important for you to ask for an all-inclusive price so that you do not have to work with hidden charges at a later time.

The cost of air freight is dynamic, just like express shipment, you will notice changes based on the volume of the shipment, peak seasons, and empty space in the airplane.

Time involved in shipping the cargo from the supplier to your doorstep will involve these factors:

• Time required for the goods to be moved to the local Chinese airport
• Time taken to book space in the plan for your cargo
• Flight time
• Time taken by the local logistics provider to move the goods from the airport to your doorstep

Typically, this process can take between 4 to 7 days.

In addition to the time taken in airfreight, you may also want to find out if your goods will be calculated according to dimensional weight or actual weight. The calculation for dimensional weight for air freight is:

Dimensional weight = Length (cm) x Width (cm) x Height (cm) / 6000

This will help you understand or figure out an approximate cost of the price for air freight for your cargo.

 

Pros of airfreight:

• Faster than ocean freight
• Cheaper than express delivery when your package is more than 500kg.

Cons of airfreight:

• Calculations can be complicated for beginners
• You may have to handle Chinese export costs and American custom clearance costs
• Airfreight involves more expenses than express delivery because of the cost of moving the cargo from the warehouse to the airport in China and from the airport in the US to your doorstep.

 

Ocean/Sea freight

Getting your cargo delivered through ocean or sea freight can be relatively cheaper, but there is a lot of wait time involved in this shipping method. Supply managers prefer this method of delivery if the goods are over 2 cubic meters (CBM). Calculation of costs for sea freight can be relatively complex because it factors in lots of other elements.

There are two types of sea freight that you can consider for your cargo:

1. Less than Container Load (LCL)

 

Sea freight is loaded inside containers. These containers are of different sizes. If your freight volume is small than the container then your goods will be shipped by LCL. It means that the same container in which your goods are loaded, will be carrying other shipments as well. Freight forwarders suggest this option when the volume is less than 15CBM.

 

2. Full Container Load (FCL)

 

When your goods fill an entire container, then your goods are shipped by FCL. Standard shipping containers are of the following sizes:

1. 8 feet high, 8 feet wide and 20 feet long (28CBM)
2. 8 feet high, 8 feet wide and 40 feet long (58CBM)
3. 5 feet high, 8 feet wide, and 40 feet long (68CBM)

The cost of FCL is lower than the cost of LCL. Like all other types of shipping methods, sea freight keeps changing. So, you must check with the supplier or your freight forwarder about the current rates for shipping from China to US using sea freight.

You must calculate the all-inclusive price of shipping the product from China to US. Since costs fluctuate, we will look at how you can roughly calculate these charges to estimate the charges incurred for shipping your cargo.

Your calculations will depend on whether the supplier in China is offering FOB or EXW price. If the price is EXW, then the supplier is not going to cover the logistics cost involved in shipping the goods from the factory to the port. So you will have to add this cost to the rest of the logistics expenses. Typically, the expenses that you are likely to incur in sea freight are:

• Cost of moving goods from the factory to the port (In EXW price)
• China export cost
• Sea freight from a Chinese port to an American port
• Customs clearance in America
• cost of moving goods from the port to your doorstep in America

Shipping costs will vary based on the port on which the goods will be off-loaded. The shipping company will be able to provide you with real-time cost for your goods.

How to choose the cheapest shipping from China to US?

Choosing the cheapest shipping option will depend on the quantity of goods being imported to the US and the urgency of the shipment. Regular post and express post is good for small packages, air freight is good for cargo over 500kg and sea freight is good for large volumes of cargo and lightweight products, which take up lots of space so it can be shipped by FCL or LCL.

To reduce the time you spend waiting for cargo from air or sea freight, you can look for freight forwarders in China who offer the option of combining UPS delivery with your air or sea freight. As a result, UPS will be responsible for your goods when they arrive at the port or the airport. They will deliver the goods to you in America, reducing the wait time once the goods have arrived at the airport or seaport.

 

Complying with FDA regulations

The Food and Drug Administration regulates the import of a wide range of goods in the USA. The products regulated by FDA must be electronically screened before the cargo enters the US. You will have to submit details of the products using the US Customs and Border Protection System. If you are dealing with the import of FDA regulated products then it is ideal to use the services of an authorized US customs broker to manage the process and ensure compliance with FDA regulations for importing from China to US.

 

Important things to remember when drafting your commercial invoice

You must submit certain documentation to ship products from China to US. One of these documents is your commercial invoice. It is important that you submit clear and accurate details in your commercial invoice. Remember to include these details in all your commercial invoices:

• Provide a full and accurate description of the goods
• Mention the country of origin of the goods (where the goods were manufactured)
• The importer’s Employer Identification Number (EIN) should be included in the invoice
• Add the receiver’s contact details to reduce hassles when the goods have arrived

Keeping these things in mind will help you identify the best way of shipping from China to US for your business requirements. All rates are subject to change, so you must check with the supplier or the shipping company for current rates to estimate the shipping costs more accurately.