Do Incoterms Determine Shipping Costs from China to the US?
Incoterms refer to rules that elucidate the roles of the importer and supplier during the shipping process. These are acknowledged globally, and yes, they determine shipping costs.
FOB (Freight on Board) is one of the most commonly used incoterms. It only applies to sea/ocean freight. FOB dictates that the supplier takes all the risk until the cargo is loaded onto the ship, where the buyer takes over responsibility.
DPP (Duty Paid Delivery) is also a popular incoterm. With DPP, the supplier takes all the risk until the goods arrive at the final destination.
EXW (Ex Works) means that the buyer of the goods names a location where the responsibility of the goods will shft from the supplier to the importer.
Another incoterm is CIF (Cost, Insurance, and Freight). Here, the supplier of the goods is in charge of the freight costs, providing insurance service to the cargo, and ensuring that the goods are successfully loaded and shipped to the buyer. Like FOB, CIF is used only with sea freight.
What are the Roles of a Freight Forwarder when Shipping from China to the US?
A freight forwarder is a must-have when shipping from China to the US. Without a freight forwarder, you might end up struggling with the shipping process. This is especially for newbies in the shipping industry and importers who do not have enough shipping skills yet.
Here are some of the roles of a freight forwarder.
- A freight forwarder will help you in making shipping decisions. With the numerous shipping options, it can be difficult to choose the method that suits your consignment best. With a freight forwarder, you can make the decisions quite easily. Apart from advice on the shipping method, you can also get guidance on the best seasons to ship your goods.
- A freight forwarder is responsible for making reservations on the shipping vessels. With the current shortages in shipping vessels, getting a freight forwarder can at least guarantee you shipping space. Otherwise, it may be hard to get the shipping space.
- Documentation and customs clearance are all handled by a freight forwarder. It is always important to have all the necessary documents in time. Since the freight forwarder is in charge of these, you can be assured of getting everything right before shipping. The documents required when shipping from China to the US include the Bill of Lading, Customs Invoice, Packing List, Shipper's Export Declaration, Commercial Invoice, etc.
- A freight forwarder deals with the packaging and warehousing of the cargo.
- Getting an insurance service for your goods is crucial. Goods can get tampered with or even get lost when being shipped. The good news is that with a freight forwarder, you don't have to run around pushing to get insurance for your shipment since this is one of their roles.
- A freight forwarder is also in charge of tracking your shipment. When the goods reach the USA, you will receive the information from your freight forwarder.
The fact that there are many freight forwarders in China can make it difficult for an importer to choose one. It is therefore important for the importer to choose a freight forwarder based on the services they offer, their reputation in the market, and their prices. The best freight forwarder from China to Canada is one the that is skilled, trusted, and reliable.
To get the cheapest shipping rates from China to the US, use the correct packaging materials that will not add the cargo's weight, merge small shipments into a single one, choose the ideal shipping method, and make early shipping arrangements.
The best way to ship goods from China to the US is simply by getting a freight forwarder and using the most suitable shipping method. Shipping does not have to be stressful. Applying the tips in this guide will guarantee you a hassle-free shipping experience.
