Small order consolidation from China

[Sam Rhodes]

I am looking to buy a number of components from 4 supplier in the Zhejiang province in China. One line item in particular is charging $316 for air freight, another £295 for just shy of a pallet load of goods by sea.

I would like to get the 3 smaller component orders added into the pallet. A sourcing agent could be ideal, but the whole order would be one pallet 3-4 times a year and so far, no-one seems interested in an order this small.

Total order value of goods (minus shipping) is around $3700
Total shipping costs (for individual items) is around $760

Are there any ideas people can offer?

Would it be considered bad etiquette to ask the 3 smaller suppliers to ship to the larger one, and ask them if they can add the other parts to the pallet?

Is it usual for manufacturers to give inflated shipping costs to try and hide unit cost (and thus, I won't have any real chance of a saving)?

Can anyone recommend a small (possibly independent) sourcing agent in this province that would be able to do consolidation?

Cheers,
Sam

 

[GraemeL]

Without very detailed information, the freight costs may be correct. I very much doubt if a factory is inflating them, more likely the opposite is true.

There are tax complications for a factory if they do not export directly. Delivering to another factory is unlikely to be agreed by anyone.

You might find an agent near Shanghai, but how much would you expect to pay them? If you are trying to reduce your freight cost AS WELL as paying an agent I think you are on a loser.

Suggest -

• Get FOB prices from each factory (if they will give them for small volumes) and find out what chinese port they are basing that on
• Provide details of all items to a UK based freight forwarder. Include name of port from above
• Ask them if their chinese agent can consolidate for you

G

 

[Maple Sourcing]

I think it's best to ask a forwarder to do consolidation for you, so, all 4 suppliers send their products to the forwarder's warehouse (near port usually), and complete export procedures individually.

Gramel is correct, unless one of your suppliers is very kind and really wants to help you, otherwise, it's too hassle to for this supplier to receive products from 3 suppliers, receive and check products, pack and consolidate at factory; also it's a little complicated for export procedures, unless all 4 products are in same category (I doubt from your descriptions).

However, it's worthy for a try. Talk to the best supplier you feel and see what they will have to say. Even if they cannot help, they'll be happy to offer some advices. No, it will not be considered as bad etiquette.

My company is based in Shenzhen, not Zhejiang, otherwise we may help.

 

[PowerForwarding]

Yes speak to a UK based forwarder and they'll organise consolidating and shipping this to yourself.

 

[MOIC]

As above.

A UK forwarder will have their agent in China who will arrange everything, door to door.