Know Your Incoterms Cold
- FOB — you control the carrier. Good for volume shipments with a consolidated freight agreement.
- EXW — maximum control and maximum headache; you arrange pickup from the factory gate. Only worth it with a trusted freight partner on the ground.
- CIF or CFR — the supplier handles shipping. Convenient, but you lose visibility and they will pad the freight cost.
For new suppliers, stick with FOB. You pick the forwarder, you see the real rate, and you avoid the supplier marking up freight by around 20%.
Consolidation Is Both Friend And Enemy
LCL per-CBM rates can be two to three times a full container's equivalent, and your goods sit waiting for consolidation to fill. The trick is to find a consolidation group or co-loading programme. Many Chinese forwarders run weekly LCL fixed-departure schedules, and for orders under 10 CBM that is often the cheapest path.
Port Strategy And The Inland Leg
Inland factories in Hunan, Sichuan or Henan mean two to three days of trucking plus theft risk. Always insure the domestic leg — it is the part of the journey buyers most often leave uncovered.
Documentation Is The Silent Killer
The number one reason containers get held at Chinese customs is mismatched HS codes across the invoice, packing list and bill of lading. Use one verified HS code across all documents. A 48-hour customs hold costs $200–500 in detention, plus the delay.
