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One way of transporting goods from all over the world is sea shipping. Sea freighting goods with high volume and high weight have the lowest price compared to different types of transportation. In sea shipping transport, the speed of transporting goods is slower than air transport; due to the long trajectory of the ship. Therefore, this type of transportation is recommended for people who do not have a time limit to receive the goods and also seek to reduce their shipping and other running costs. SepahanHamrah can help you with shipping your orders. Importing from China is one of the best ways to start your business; due to the low cost and high quality of their goods. You should consider importing essential goods for your business by sea freight from China. In this article
Shipping is one of the special commercial services of SepahanHamrah. Specialized and experienced staff, according to customer needs, provides all shipping services in this complex. International shipping is part of the SepahanHamrah door-to-door commercial service chain.
Our group has the ability to provide maritime freight services to customers by concluding international cooperation agreements with major shipping companies. Shipping of goods from the stage of receiving permits to the end of the route is under the supervision of the specialists of this complex and is done with standard packaging and in the best possible time.
Do you know what Incoterms are and what they mean? Incoterm is a three-letter code (for example FOB or CIF) which, In fact, in order for international transactions to be done in a clear and transparent manner, there must be a set of standardized rules that all actors in this field are fully aware of. In 1936 he founded the International Chamber of Commerce Incoterms. Incoterms 2020 is a set of international trade terms defined primarily to clarify the rights, obligations, costs, and risks associated with shipping, delivery, and other responsibilities worldwide.
EXW (EXWORK): Delivery of goods from seller to buyer at the door of the warehouse or factory of the seller in the country of origin
FCA (Free Carrier): Delivery of goods from seller to buyer at the place of establishment in the country of origin
FAS (Free Alongside Ship): Delivery of goods from seller to buyer on the ship or on the dock at the port of origin
FOB (Free On Board): Delivery of goods from the seller to the buyer on board the ship at the port of origin
CFR (Cost and Freight): In this type of shipping, the seller is obliged to pay the shipping cost to the port of destination, but after loading the cargo on deck at the port of origin, the seller’s responsibility ends. It is the responsibility of the buyer.
CIF (Cost and Insurance and Freight): In this type of shipping, the cost of transportation and insurance to the port of destination is the responsibility of the seller.
CPT (Carriage Paid To, In this type of carriage, the seller is responsible for paying the freight to the specified destination, but has no obligation regarding cargo insurance.
CIP (Carriage Insurance Paid): Payment for freight and insurance to the designated destination is the responsibility of the seller.
DAP (Delivered At Place): Delivery of goods to the destination without being unloaded from the vehicle
DPU (Delivered at Place Unloaded): Delivered at the place of destination unloaded
DDP (Delivered Duty Paid): Delivery of goods from seller to buyer at the door of the buyer’s warehouse after payment of customs duties and taxes
Avoid CIF terms as much as possible, as the final shipping price will not be the same. CIF only includes shipping to the destination port but does not include local costs.
FCL shipping time, local costs (or port costs) are usually between $ 300 and $ 600. However, port shipping may cost up to $ 1,000 to $ 1,500 when shipping in accordance with LCL requirements.
This possibility seems like a paradox because LCL shipping should theoretically cost less than FCL. LCL costs less than FCL shipping, however, the workload for shipping is the same, just in terms of cargo volume.
Hence, fixed costs are more or less the same, and as a result, LCL shipping conditions are much higher.
Let’s go back to CIF. Many transmitters deliberately hide the port from the client without knowing the cost of the port.
Technically, no one can, as long as they have a CIF quote purchase – does the plan only include shipping costs, if not port costs.
Then there are refund rates, which greatly reduce shipping, for example, $ 200, at a cost where port costs are close to $ 1,000.
This is what I am referring to when I say enter control of the purchase when purchasing according to DAP terms.
Can you save money by ordering according to Ex Works (EXW) terms?
The EXW is less expensive than other incoterms, simply because it does not include any shipping. It is the buyer who arranges the transportation to the factory warehouse.
In addition, the supplier will not assist in the clearance process, which is required even before the goods leave the country.
While many shippers can arrange to ship from the factory and fill out clearance documents, they do not do this for free.
In fact, even if you order from the beginning according to FOB terms, you may pay more than your fee.
There are no gaps or shortcuts in international shipping.
The EXW is less expensive than other incoterms, simply because it does not include any shipping. It is the buyer who arranges the transportation to the factory warehouse.
In addition, the supplier will not assist in the clearance process, which is required even before the goods leave the country.
While many shippers can arrange to ship from the factory and fill out clearance documents, they do not do this for free.
In fact, even if you order from the beginning according to FOB terms, you may pay more than your fee.
There are no gaps or shortcuts in international shipping.
Insurance By default when choosing CIF incoterm, insurance stands for shipping cost (and) insurance are included. If you place your order on a DAT (terminal delivery) or DAP (on-site delivery) basis, you must notify your shipping company that the shipment must be insured.
Transportation insurance is affordable and rarely costs more than $ 50 to $ 100 at a time. Typically, shipping insurance only covers the value of the shipment in the event of shipping damage. Does not cover the cost of selling or developing a lost product.
Why Maritime Insurance is so important when buying from China
When shipping from China, shipping damage is more common than many business owners think. Shipping is not easy, whether on the factory floor, the port of loading in China – and the port of destination.
Whenever that happens, transportation insurance, indemnity coverage, is the only thing that keeps your business afloat. You can’t claim damages if you do not sign up for shipping insurance.
There are several ways you can ensure your shipment. The following table describes two ways to get insurance:
CIF incoterm is short for cost, shipping, and insurance. By definition, your shipment is insured when you purchase cargo under CIF terms (which include shipping from the factory to the port of destination). Although, it’s better to ask for a copy of the insurance policy from your supplier.
Buying insurance through a forwarder offers more transparency and control. First, you can apply for insurance that specifically covers everything from domestic shipping in China to shipping, shipping, and unloading.
As mentioned, insurance is included in the CIF by default. If you choose any other incoterm, you should contact both your supplier or your shipping provider (or depending on your shipping order) that your shipment must be insured.
There is no good reason to refuse cargo insurance. All you have to do is basically tell your sender that you want your shipment insured and pay a small fee based on the value of your order.
Typically, the cost of insurance is set at about 0.5 to 0.6 percent of the value of the cargo. The following is an example:
Insurance cost = ((freight value + shipping value) x 10%) x 0.5%
Or
Insurance cost = (CIF value + CIF value x 10%) x 0.5%
Assuming you buy regularly from China, there is a very high risk that in some cases, you will have to seek compensation.
The good news is that it is relatively straightforward to claim. In addition, insurance companies usually offer fast payments.
For now, the first thing you need to do when you receive your shipment is to check for possible shipping damage. In the event of any damage, you must provide the following information to your freight immediately, preferably within 24 to 48 hours of receiving the shipment:
This way, you may be compensated for a certain amount of damaged cargo or the entire shipment – depending on the amount damaged.
Normally, shipping can help you handle claims, which means you do not need to deal with the insurance company. You can expect to pay directly to your business bank account within 1 to 3 weeks when they claim compensation.
However, if you allow the supplier to book your shipment, it can be more complicated, as they may not be accustomed to managing insurance claims. I have seen many situations where Chinese suppliers simply tell their customers to arrange it themselves.
Shipping insurance does not cover all the damages. It only covers shipping damages. While it may be obvious to many of you, I still want to emphasize that insurance does not cover quality issues and damages caused by the supplier.
As such, insurance is not an alternative to an appropriate quality assurance strategy, including pre-shipment quality inspections.
It is worth noting that shipping insurance may not cover shipping costs. Therefore, you are only compensated for the value of the damaged cargo (for example, the FOB price). Therefore, you lose the money paid for shipping.
However, this is not the worst thing. A damaged shipment, in whole or in part, can ruin any business. Because you will lose money during your sales months, it may be the end of your business – even with insurance payments – until you can get a replacement shipment.
CIF actually includes insurance by default. However, when ordering according to any incoterm, you can book insurance.
In this case, it is your responsibility to instruct your carrier to book insurance. Unless instructed to do so, they will not insure your shipment.
Shipping is the most cost-effective way to transport your goods from the factory floor in China to your warehouse – especially when transporting larger volumes due to FCL (full container load) conditions.
That being said, many buyers do not buy enough to fill a full container with goods. For this group of buyers, LCL options (less than container load) remain.
In this section, you will learn what LCL and FCL are and how they differ in cost and process. Plus, by integrating your LCL shipments into one FCL shipment, you’ll learn how to save thousands of dollars.
The FCL is an international ISO standard that refers to a single (complete) container (20 “or 40”) containing a consignment for a recipient (an importer). FCL Shipping is the cheapest shipping method when importing from China. However, for a shipping option to be appropriate, the importer must purchase a relatively large quantity of products.
LCL is an international ISO standard that refers to shipments belonging to different recipients grouped in the same container. LCL shipping gives permission to importers to ship smaller consignments that are not large enough to make FCL a viable option. At the same time, it is generally more economical than air freight.
It should be clear to suppliers that a shipment worth thousands or even hundreds of thousands of dollars needs protection during the long journey from the factory floor to the importer’s warehouse. However, many suppliers in China and other low-cost countries ignore this and offer low-quality export packaging to the buyer, which can damage the product.
When shipping LCL from China, your shipment shares container space with other buyers. Sometimes five or six different importers.
You have no control over the nature of the shipment being shipped in the same container. LCL consignments must be prepared for resistance to liquids, heavyweights, chemical gases, and sharp objects.
Shipping from China includes various costs. Its cost is closely related to the selected incoterm. Here are some costs to keep in mind when shipping from China:
• Shipping to loading port (including FOB)
• Clearance of goods (including FOB)
• Shipping cost (including CIF)
• Insurance (including CIF)
• Port charges (including DAT)
• The cost of customs clearance
• Custom tasks
• Other import taxes (ie VAT in the EU)
• Shipping from the destination port
Approximate shipping duration from China takes an average of at least 25 days. Therefore, using this method to transport cargo that is heavier, is economical, and to transport lighter cargo, it is better to use air transportation services from China.
Iranian companies, traders, and merchants mainly want to send their goods from Chinese ports by ship and sea to Bandar Abbas or Shahid Rajaei port. Because from an economic point of view, this method is the cheapest way to transport cargo from China. For this purpose, container transportation services from China to Iran, cargo transportation, as well as cargo transportation in bulk (bulk) by the shipping lines of the Islamic Republic of Iran (IRISL), China Shipping (COSCO), South Korea Shipping (HMM), Taiwan Shipping (Ever Green), Hong Kong Shipping (OOCL) and… used the following ports to Bandar Abbas (Shahid Rajaei Customs).
The geographical location of the UAE (Dubai) has played an important role in helping to develop the country as a global trading hub and has been absorbed by the region’s commercial and economic activities in Dubai. If you want to import and export, you have to keep an eye on Dubai as well.
SepahanHamrah Company, having a representative office in Dubai, offers all commercial services such as freight from Dubai, specialized purchase of phone parts and accessories, freight from China to Dubai, and…. Presented in the best way due to the truth and a lot of experience.
Our goal in SepahanHamrah is to make the import and transportation of goods from China to Dubai as easy as possible for traders, special companies, and production workshops.
SepahanHamrah transports your cargo from China to Dubai by sea, both FCL, and LCL.
Which method is better for you now? Shipping by LCL or FCL method? Well, it all depends on the volume of your cargo. But what about LCL and FCL?
LCL shipping is an attack method in which your luggage is placed and transported in a container with others. One of the advantages of this shipping method is that you only have to pay for the space that your cargo occupies, and not the cost of The whole container.
LCL shipping is the most cost-effective option if you plan to ship small shipments from China to Dubai.
FCL shipping means paying the rent and shipping a container. This means that you have rented the entire space of the container for your cargo. FCL is convenient for you when you want to carry large and heavy goods.
The short answer is that this cost depends on several factors. The shipping rate depends on the nature of the goods you are shipping. Perishable materials may require refrigeration. For example, very large goods may require larger containers.
Shipping costs from China to Dubai also depend on the method of transportation (air, sea), as air freight is usually more expensive than sea freight from China, and also depends too much on the volume, size, and weight of your shipment. (The more volume and weight, the more it costs)
If the arrival time is not very important, or if your budget is limited, the best way is sea shipping, where you have to wait between 30 to 35 working days for your goods to be loaded and shipped with other cargo.
No, you do not need to pay “export tax” when importing from China. However, you have to pay the shipping cost to the port of shipment in China and the cost of the clearance papers.
If you place a shipping order with the following conditions, it includes both of these costs: FOB, CIF, DAT, and DAP. However, clearance is not included when purchasing in accordance with EXW (Ex Works) terms.
You will be notified a few days before arrival. After the container ship arrives, the containers are first emptied. Some of them may be inspected by local customs officials, but if so.
Regardless of whether you or the cargo supplier, transport, or customs broker, you have started the customs clearance process.
This process typically takes 1 to 3 days, depending on the shipment and the process applied
You have two options; Either pick it up or transport it from the dealer and ask him to load it on a truck and deliver it to a specific place. Not harder than this
How the shipment arrives at the port of destination is likely to be shown by the port representative. In most cases, you can ship and book directly through the port representative.
If you are already fully loading the container, you can suggest. Upon delivery, I can expect you to have between 30 minutes to an hour of unloading time. Beyond that, shipping is usually paid by the importer on an hourly basis.
This actually happens much more than most importers imagine. This is also the time when that insurance is a very good investment. If you are injured, I recommend you follow this procedure:
1. Estimate the total number of damaged cartons and products
2. Take photos and videos of injuries
Keep in mind that this must be supported by the Value stated in the commercial invoice
3. Calculate the total value lost.
4. Submit the contents to your insurance company
Keep in mind that it is not always easy if you allow your supplier to manage sea freight and have no clue as to which insurance company they have chosen.
We suggest that you ask your supplier for a copy of your shipping policy before shipping. Then you know who to contact if the shipment is damaged during shipment.
In addition, it happens that suppliers can’t ensure that they are suitable. If you can really make sure your shipment is insured, you should book it through your shipping.
If it makes a valid claim, it is generally a quick and painless process to get your money back at any time. However, keep in mind that most shipping insurance only covers the value of your products, not shipping costs.
In sea freight, there is another way to transport merchants’ goods jointly. When the freight container is not only at your disposal and your cargo and others are transported jointly in one container, the so-called group shipment is done.
Groupage shipping is economical and cost-effective for goods such as mobile phones, CCTV cameras, and other electronic equipment, which is usually less than the space of a container and reduces shipping costs due to fragmentation.
SepahanHamrah Company has more than 20 years of experience in importing and exporting goods from different parts of the world. This complex offers a variety of commercial services such as import of goods from China, import of goods from Dubai, clearance of goods, warehousing services, and door-to-door services to its customers. SepahanHamrah, along with having specialized offices in Guangzhou and Dubai, sends standard containers to the warehouse where your goods are and transports the containers to Iran.
Due to the fact that SepahanHamrah Company sends at least 7 containers a week from China to Iran, it is possible for customers to send their small loads to Iran in the form of sea grouping.
Sources: chinaimportal, sino-shipping , wiiodropshipping