Most forwarders use PingAn to insure cargo, which charge 0.02%, based on 110% of the FOB price. Assuming you buy goods worth US$50,000, the insurance will only set you back a mere US$110. That’s a fair deal if you ask me. Based on my experience, compensation claims are fairly simple to make, and the insurance company is usually satisfied with photos and a protocol listing the quantity and value of the damaged goods.
Document Delivery
As always, the buyer is expected to pay for any ‘additional shipping costs’ arising, including delivery of the Bill of Lading, Commercial Invoice, Packing List and other documents required, such as a Form A or Country of Origin Certificate. A FedEx or DHL delivery of the mentioned documents will set you back another US$40 to US$50.
Local Charges (Port of Destination)
The local charges often come as an extremely unpleasant surprise to first time importers. As previously mentioned, the practice of kickback rates among freight forwarders enables suppliers to offer shipping at extremely low prices, while the real profits are made upon arrival in the Port of Destination. When shipping FCL, the local charges are set per container, rather than per cubic meters. I don’t have price data for each and every port, but the charges tend to range between US$500 to US$1000 per container.
However, that’s only for FCL. When shipping LCL, the local charges are calculated based on the volume, set in cubic meters. The shipping price increase logarithmically, to the point where an LCL shipment of 15 to 17 cubic meters is just as costly as an FCL 20’’ shipment, the latter offering a total volume of 29 cubic meters.
Customs Bond / Clearance (US Only)
US companies importing from China, or anywhere else for that matter, must obtain a customs bond before arrival in the Port of Destination. Kathy Rinetti, Customs Manager of Flexport.com, explained the basics in an interview we published in October 2014:
“Also, prior to importing, importers will need to have a Customs bond on file prior to their shipment’s departure if their goods are valued over $2,500. If the value is less than that, then they can import under an informal entry and without a Customs bond, but this process would require them to manually submit paperwork. They can also import under a formal entry (with a Customs bond) even if their shipment value is less than $2,500.
You can obtain a Customs bond through most Customs brokerages, which typically have the ability to purchase bonds on your behalf through surety companies. There are two types – single entry and continuous entry Customs bonds. Single entry bonds are for a one-time use and continuous entry bonds cover all your shipments over the course of a year.”
A single entry Customs bond can be purchased for around US$100 – US$200, while a continuous entry customs bond costs US$250 – US$450. The latter makes sense for importers importing multiple shipments on a yearly basis.
Domestic Transportation (Port of Destination to Final Address)
Last, is the transportation from the Port of Destination, to your warehouse. The final delivery can be made by truck, rail or a combination of the two. The price depends entirely on your proximity to the warehouse, and on the country, so I cannot offer any price estimation.
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