Freight Forwarding, Importing - your experience and advice is needed.

[Oli Banks]

Hi,

I have glanced my eyes over similar threads in this forum but I cannot make sense of them when related to my situation; how moronic of me! But perhaps someone could shed some light and help me with my questions directly.

I am looking to import a product via China and have had a variety of quotes for different services. I had originally planned to have the goods delivered to Manchester Airport, where I would pick them up and clear customs myself, but being a novice this is perhaps a step too far. Having the supplier in China arrange all of the transportation to my door has bumped the price up to $300 per pc which is too much. So, what do I need to do - do I need to change my strategy and attain a FOB Shenzhen quote and employ a Freight Forwarder to do the rest?

I have been quoted FOB Shenzhen is $210 per pc by a supplier in China with the following dimensions (this seems like a heavy load, but I cannot wait for them to arrive by sea at present, although I plan to go via sea eventually):
1) Carton: 25pcs
2) G.W.: 325kg
3) Dimension: 66.5*26*26cm/pcs
4) Volume: 0.046m³/pcs (1.15m³ for 25pcs)

My questions are that:

1. When employing a Freight Forwarder, will they essentially collect the goods from Shenzhen port, get them onto the plane and into the UK. From the UK will they then deliver to my door, if I select a door-to-door service?
2. When trying to attain quotes from Freight Forwarders a lot of them ask when the cargo will arrive in the UK - how will I know this, to give them a date and time?
3. Charges - I know I will have VAT + Duty to pay; however, will the Freight Forwarder pay this at Customs and then bill me on top? what other charges from the Freight company should I expect?
4. Will I have to give the Freight Forwarders the details of my supplier in China? - after doing this, will they liaise with each other to help the process along?
5. The going rate - how do I know I'm not being charged an extortionate amount as I am new to importing this way.
6. Or, if I let the supplier in China arrange the transportation to Manchester Airport, how do I get the goods to my door?

All the other times I have imported products the supplier in China has arranged everything, the products have arrived at my door, and I have paid the customs tax after they have billed me.

Please pardon my naivety, hopefully one of the experienced members in the forum will be able to put this into layman's terms for me.

 

[Oli Banks]

I should add, update:

One of my preferred suppliers has said that they are unable to provide a FOB price for Air freight. They have advised that I should ship via their cooperate shipping company; they say it's better, safer and more convenient due to the fact that they know who they are and that it's convenient for them to help when tracking the products. They have quoted $1425 for air freight.

However, I have contacted a Freight Forwarder in the UK who has quoted and indirect air freight service as per the following
Re: 25 cartons
G/w: 325.00 kgs
Vol: 1.120 cbm
Dims 66 x 26 x 26 cms
Terms FOB Shenzhen

Air freight USD: 1036.75
UK Import Charges
Airline Handling GBP: 58.50
Customs Entry GBP: 45.00
Use of GBS Deferment GBP: 15.00
Deliver to Leeds GBP: 75.00

This seems competitive and obviously their Air freight is much cheaper.

If I found another supplier who was willing to do a FOB quote would I just put the Freight Forwarder in touch with them when the order was placed?

Thanks

 

[Tier1Logistics]

My questions are that:

1. When employing a Freight Forwarder, will they essentially collect the goods from Shenzhen port, get them onto the plane and into the UK. From the UK will they then deliver to my door, if I select a door-to-door service?

- When you employ a freight forwarder in the UK to deal with your import they will ask for all details which you have already supplied here and your suppliers details. They then will arrange with your supplier to drop your goods at a port within china to start the process of importing your goods to the UK. Your freight forwarder then will arrange flight to the UK. Once everything has been sorted in the UK and customs have cleared your goods, your freight company will arrange a delivery time with yourself and deliver the goods to you. - Your freight forwarder will give you an Airway Bill number so you can always track your cargo - by air you are looking at 2-3 days tops for air freight door to door. (Normally)

1. When trying to attain quotes from Freight Forwarders a lot of them ask when the cargo will arrive in the UK - how will I know this, to give them a date and time?

- I only personally ask this question if you are not looking at a door to door service. If you require a door to door service the freight agent will tell you when it will arrive in the UK. If they ask that they presume that you only want them to deal with the UK side of things.

1. Charges - I know I will have VAT + Duty to pay; however, will the Freight Forwarder pay this at Customs and then bill me on top? what other charges from the Freight company should I expect?

- Most freight forwarders if you use them for the time being will invoice all this once your goods are ready to be delivered and not before. If you build a relationship up with a Freight Forwarder and use them then they MAY at times deliver to you then invoice.

1. Will I have to give the Freight Forwarders the details of my supplier in China? - after doing this, will they liaise with each other to help the process along?

- If you have requested a Door to Door Service this is exactly what they will do, if you are looking for a freight forwarder to only deal with UK side of things etc they will only ask you for your suppliers details for the paper work to be faxed to them then rest is up to you.

1. The going rate - how do I know I'm not being charged an extortionate amount as I am new to importing this way.

- Each company will have there own what you call "Rates" which are valid for around 28 days. We personally tell all our clients to get at least 3quotes inc ours and compare.

1. Or, if I let the supplier in China arrange the transportation to Manchester Airport, how do I get the goods to my door?

- Personally at times we have seen our clients at times pay way over the top doing it this way but some don't mind and others always regret doing so.... If you want to pick this up yourself you will need to ask your supplier who will have hold of your cargo and arrange a pickup time with them then to collect your cargo. If you want to do it via currier then you will need the same info from your client to pass onto your currier of choice.

I hope the information I have passed on is understandable, anything else please get in touch with me or post below.

Have a nice day.

 

[Tier1Logistics]

One of my preferred suppliers has said that they are unable to provide a FOB price for Air freight. They have advised that I should ship via their cooperate shipping company; they say it's better, safer and more convenient due to the fact that they know who they are and that it's convenient for them to help when tracking the products. They have quoted $1425 for air freight.

- I can almost be 99.9% sure that your cupplier can let you purchase on FOB terms, they ask you to consider their partners as they can charge and make more money from you. I would highly recommend you use a UK freight agent for your shipping or air transport for your products.

However, I have contacted a Freight Forwarder in the UK who has quoted and indirect air freight service as per the following
Re: 25 cartons
G/w: 325.00 kgs
Vol: 1.120 cbm
Dims 66 x 26 x 26 cms
Terms FOB Shenzhen

Air freight USD: 1036.75
UK Import Charges
Airline Handling GBP: 58.50
Customs Entry GBP: 45.00
Use of GBS Deferment GBP: 15.00
Deliver to Leeds GBP: 75.00

This seems competitive and obviously their Air freight is much cheaper.

- Air Freight is not always the cheapest so do compare your options.

If I found another supplier who was willing to do a FOB quote would I just put the Freight Forwarder in touch with them when the order was placed?

- Once you have ordered your products then yes inform your UK agent to proceed but that UK agent on standby don't order then find a UK agent to act on behalf of you because your supplier could charge you storage.

I hope the information I have provided is useful and understandable.

Have a nice day

 

[Oli Banks]

Hi,


That's all really helpful - thanks.


It seems a lot easier and cheaper to get a FOB price and hire a company like yourself to handle the freight and customs clearance.


Another question if you don't mind - if a supplier quotes EXW Shenzhen does this mean you would collect the goods from their location and move them to the port? As I understand EXW to mean that the buyer bears the cost and risk in transporting the goods from the seller's premises to destination.

 

[Tier1Logistics]

Hi Oli,

Your welcome. I personally recommend this way to any potential client/client.

That is correct, the freight forwarder will have a contact that will collect from the supplier and take to the Port/Air port in China for this then to be shipped by sea or air.

Have a nice day.

 

[Oli Banks]

Do you think EXW or FOB is better from your experience? EXW quotes seem to be cheaper from the supplier but I assume the Freight Forwarder will charge a little more.

Would you be interested in quoting a price for me from FOB Shenzhen if I give you the details?

 

[Tier1Logistics]

If you email me the information regarding the shipment to [email protected] I would be more then happy to supply a no obligation quote for your shipment.

In my experience its cheaper to purchase EXW, some prefer not to take that chance and purchase FOB. Its down to your personal choice really.

Looking forward to your email.

 

[Oli Banks]

Great, I'll send it across shortly.

What risks can you encounter with EXW?

 

[Tier1Logistics]

Hi Oli,

Take a little look at:
http://www.import-export-made-easy.com/Ex-Works.html - This explains quite a lot about EXW.

I cannot recall any problems to date yet so hopefully my track record will stay untouched

 

[Oli Banks]

Hi All,

Is it likely that I could incur further chargers for X-Ray/rent/storage/exam charges etc - what is the likelihood of this happening?

 

[Tier1Logistics]

Morning Oli,

Can I ask what the goods are that your importing into the UK please? I have never seen charges for the above so its very unlikely you will incur them.

The only time you will incur storage charges if 1) your goods are flagged for further inspection - The only way to avoid this would be to make sure that your paper work is all in check and filled out properly, using the right commodity code for customs to identify what your product is and the VAT/Duty is correct and paid. This then would more likely to incur storage charges.

2) If (1) is all correct etc, the only way you would incur storage is if you needed the goods to stay ie within the warehouse of the docks until you sort a courier out.

Some freight forwarders like ourselves give our clients 2 days free storage to sort out a delivery service if not with us otherwise we pick up once its been cleared of customs and is ready which then we would deliver to you.

Anything else please let me know, always happy to help.

 

[MOIC]

I suspect I know the product you are shipping.

Have you told the shipper what the product is?

Does it have a Lithium battery?

The product you are trying to ship is currently not as simple as you think.

In most cases you will require an MSDS report to satisfy the courier company.