Shipping cost

Discussion in 'International Business' started by 1977, Mar 4, 2021.

  1. 1977

    1977 UKBF Regular Free Member

    231 22
    A quick question for those of you who regularly, or have in the past imported from China.

    I set up a site that’s selling things like backpacks, and as the sales go up I’m investing in more stock, ranges etc and am a little surprised by the shipping fees which work out at roughly £9 per product item. So for example, a shipment of 410 units comes to £3900.

    Does this sound about right?

    It’s DDP, too.
     
    Posted: Mar 4, 2021 By: 1977 Member since: May 10, 2012
    #1
  2. japancool

    japancool UKBF Big Shot Free Member

    4,413 910
    How are you shipping, LCL?
     
    Posted: Mar 4, 2021 By: japancool Member since: Jul 11, 2013
    #2
  3. 1977

    1977 UKBF Regular Free Member

    231 22
    Yes, and they come via train.
     
    Posted: Mar 4, 2021 By: 1977 Member since: May 10, 2012
    #3
  4. Mike Godwin

    Mike Godwin UKBF Regular Free Member

    162 42
    If you have the weight & volume of the units plus port of exit China and entry UK, I can let you know if the price you're paying is fair...
     
    Posted: Mar 4, 2021 By: Mike Godwin Member since: Mar 27, 2018
    #4
  5. Mike Foulds

    Mike Foulds UKBF Regular Free Member

    121 42
    Both rail and LCL sea freight prices are based on the volume or weight, whichever is greater, of the shipment.

    Both have seen rates sky rocket over the last 3 to 4 months, LCL rates have gone from around USD 30 w/m from Asia to UK, to nearer USD 300 w/m. Whilst UK costs have largely remained unchanged. Without knowing how many bags you get per m3 (Am guessing that they would be charged on volume rather than weight as would be lightweight), I cannot advise if £9 per item is reasonable, BUT, if your costs have risen by around 8 x in the last 3 months, I would suggest that would be about right.

    We are beginning to see small falls in FCL rates, so are hopeful we are now over the peak and rates overall will drop. This should follow in LCL rates and hopefully within 3 months things will return to roughly where they were before.

    Hope that helps.
     
    Posted: Mar 4, 2021 By: Mike Foulds Member since: Mar 21, 2018
    #5
  6. 1977

    1977 UKBF Regular Free Member

    231 22
    Thanks, guys.

    @Mike Godwin this is the weight and volume:
    11 boxes @ 62x55x30cm weighing 15kg per box (total 165kg)
    30 boxes @ 60x55x35cm weighing 15kg per box (total 450kg)

    Going from SHENZHEN, GUANGDONG PROVINCE, to Southampton
     
    Posted: Mar 4, 2021 By: 1977 Member since: May 10, 2012
    #6
  7. Trevor Andrews

    Trevor Andrews UKBF Regular Free Member

    122 35
    You seem to be getting some expert advice.

    I would just say Inam not surprised.

    I looked at buying from China for our shop and found shipping cost always exceeded buying costs.

    Also it cost £9 just to send something local like Europe so not surprised.
     
    Posted: Mar 5, 2021 By: Trevor Andrews Member since: Feb 9, 2021
    #7
  8. Larry Fong

    Larry Fong UKBF Contributor Full Member

    85 8
    The shipping cost is still very expensive. It hasn't yet come down. :(
     
    Last edited: Mar 5, 2021
    Posted: Mar 5, 2021 By: Larry Fong Member since: Dec 16, 2020
    #8
  9. Mister B

    Mister B UKBF Ace Free Member

    2,488 581
    You say that it's coming out at £3,900-is that just for the freight or is it inclusive of duty and tax? (You say thyat you're buying DDP.)
     
    Posted: Mar 5, 2021 By: Mister B Member since: Aug 31, 2007
    #9
  10. 1977

    1977 UKBF Regular Free Member

    231 22
    Yes that includes the duty and tax as is standard with DDP. I was just a little taken aback by the increase to be honest as I haven’t shipped that much over from China.

    I only started this project in November.
     
    Posted: Mar 5, 2021 By: 1977 Member since: May 10, 2012
    #10
  11. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend { Moderator }

    5,951 859
    Does the £9 include duty & VAT?
     
    Posted: Mar 5, 2021 By: Paul Kelly ICHYB Member since: Jan 21, 2008
    #11
  12. 1977

    1977 UKBF Regular Free Member

    231 22
    The £9 is simply the total shipping fee they charge me divided by the number of units in the shipment.
     
    Posted: Mar 5, 2021 By: 1977 Member since: May 10, 2012
    #12
  13. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend { Moderator }

    5,951 859
    If its DDP you shouldn't be charged a shipping fee, just a total price!
     
    Posted: Mar 5, 2021 By: Paul Kelly ICHYB Member since: Jan 21, 2008
    #13
  14. japancool

    japancool UKBF Big Shot Free Member

    4,413 910
    I'm not sure what you mean by this. If it's DDP, it means he's been charged £3900 for freight, and UK taxes and duty and there'll be no more to pay when it gets here, that's all.
     
    Posted: Mar 5, 2021 By: japancool Member since: Jul 11, 2013
    #14
  15. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend { Moderator }

    5,951 859
    No, DDP means you get charged a price for the goods, shipping, clearance, duty, VAT and forwarding i.e. you pay for the goods and they turn up without further cost!
     
    Posted: Mar 5, 2021 By: Paul Kelly ICHYB Member since: Jan 21, 2008
    #15
  16. japancool

    japancool UKBF Big Shot Free Member

    4,413 910
    No it doesn't. DDP means "delivered duty paid", and it has nothing to do with how you are charged.

    That could be a single price, or it could mean your invoice in broken down into cost of goods and cost of freight, which is what has happened here, or it could mean two invoices from your supplier, one for goods and one for freight+duty.

    All it means is that the VAT and customs charges have already been paid, and no further charge is due at the border.

    What the OP is describing is that he has been charged, by his supplier, £3900 for freight, VAT and duty on top of his cost of the goods. He is not paying anything extra at the border.

    His query is whether £3900 is too much for what he has shipped.
     
    Posted: Mar 5, 2021 By: japancool Member since: Jul 11, 2013
    #16
  17. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend { Moderator }

    5,951 859
    Damn, all of those products worth million of USD - I must have been doing it wrong over those years!

    There appears to be confusion somewhere!
     
    Posted: Mar 5, 2021 By: Paul Kelly ICHYB Member since: Jan 21, 2008
    #17
  18. japancool

    japancool UKBF Big Shot Free Member

    4,413 910
    You've been doing it for years and you've never, ever had a split or itemised invoice for items and freight/duty? If so, I suspect you have.

    Yes, there does. Read post #10, and the rest of the post you quoted.
     
    Posted: Mar 5, 2021 By: japancool Member since: Jul 11, 2013
    #18
  19. Paul Kelly ICHYB

    Paul Kelly ICHYB UKBF Legend { Moderator }

    5,951 859
    I have read your post #10 and raise you post 12!

    I asked #11 to clarify if the OP was clear on what their costs were!
     
    Posted: Mar 5, 2021 By: Paul Kelly ICHYB Member since: Jan 21, 2008
    #19
  20. japancool

    japancool UKBF Big Shot Free Member

    4,413 910
    And the total shipping fee, as he said in post 10, includes the VAT as well as freight.

    He has already clarified what he meant. I don't see why this is so hard for you to comprehend. He's simply using the term "shipping fee" to be inclusive of VAT and duty.

    Work it out.

    £3900 is the total price he's been charged for freight and duty (post #10). He's shipped 450 items (post #1).

    3900/450 = 8.67, or £9, near enough.

    This is a waste of time. I'm out.
     
    Posted: Mar 5, 2021 By: japancool Member since: Jul 11, 2013
    #20