1. Defining the responsibilities of the seller and the buyer
Let’s see how responsibilities vary according to each incoterm, taking these 4 incoterms as examples:
• When shipping under EXW, the supplier is responsible for making the goods available and ready for dispatch when coming out of the factory. The carrier or the freight forwarder is responsible of the shipment from the reception of the goods outside of the factory to the final delivery location.
• When shipping under FOB, the supplier is responsible for forwarding the goods to the port of loading, on the vessel. At this point, the responsibility is transferred to the freight forwarder, until the final delivery location.
• When shipping under CIF, the carrier takes care of freight and transport insurance to the port of arrival.
2. FOB or CIF ?
Most of shipments from China are shipped under the same Incoterms, which are EXW or FOB in general. FOB is especially appreciated in case of a close relationship between the supplier and local transportation companies that are willing to handle the first part of the shipping process (from the warehouse or factory to the POL). These long-lasting relationships between suppliers and local companies enable to get very competitive rates. As a result, this part of the transportation process is systematically handled by Chinese suppliers.
However, you can use our services for freight, customs clearance in Asia / USA / Canada, Australia, UK, Europe, and some African countries and final delivery as well. A DJcargo advisor will personally take care of the rest of the shipping process, until your cargo reaches the final delivery location.
3. How much does shipping cost from China?
To better meet the needs of each client, several variations of rates and services are available. In this way, you can choose between two main option as regards sea freight:
- Full container load (FCL)
DJcargo provides weekly shipments to the main ports around the world. For every single shipment, DJcargo offers two types of full containers:
- • The 20 feet, with an internal capacity of 28 cubic meters
- • 40 feet, able to carry up to 66 cubic meters.
2. Less than a Container Load (LCL)
This option is more cost-effective for lower volumes, as only one part of the container will be used for the transportation of your goods. This solution allows you to rationalize your shipping costs significantly. Your goods are loaded in the container alongside those of other customers and you will end up paying only for the space you need.
4. Our suggestions
You want to import / export goods to / from China but you do not know which incoterm to opt for? For a reliable and hassle-free shipment, DJcargo advises you to go for an (almost) full coverage of your shipment. In other words, it is better for you to choose incoterms such as EXW or FOB, where (almost) all of your shipment will be handled and supervised by a team of dedicated professionals.
These two incoterms come with a pick-up from the factory / warehouse (EXW) or from the port of departure (FOB), which frees you from quite a heavy responsibility during the transportation process.
DJcargo‘s experience in providing logistics services for shipments between China and the entire world now enables our team to ship all kinds of goods between both countries (foodstuffs, chemical or dangerous products, etc.).
During your shipments, no matter what type of goods is shipped, we manage all the necessary steps, including the most complex part of it (customs clearance and other paperwork).