With the continuous growth of global trade, more and more companies choose to purchase various products from China. However, international transportation costs often become a major challenge to control total costs. For companies that want to increase profit margins and enhance competitiveness, it is crucial to understand and master some tips to save transportation costs. As an experienced Chinese freight forwarding company, Bestlink Logistics has summarized a number of practical suggestions to help you effectively reduce transportation expenses when shipping from China while ensuring smooth and efficient logistics.
Reasonable choice of transportation method: sea, air or express?
In the process of cargo transportation, the choice of transportation method is directly related to the overall cost. Generally speaking, large quantities and heavy goods are suitable for sea transportation, while small quantities and time-sensitive goods are suitable for air transportation or international express. For shipments with a volume of more than 1-2 cubic meters and not particularly urgent time, choosing LCL sea transportation is undoubtedly the most economical and affordable way.
For example – suppose you want to ship from China to the United States:
•Total cubic meters: 1 cubic meter
•Billing weight: 167 kg
•Product = furniture
| Air Freight Cost From China to US | Sea Freight Cost From China to US | |
|---|---|---|
| Freight Rate / kg | US$ 7/kg | US $1.3/kg |
| Door to Door with Tax and Duty Rate | US$ 1,000 | US$ 300 |
| Transit Time | 5 – 7 days | 25 – 30 days |
For 1 cubic meter of cargo shipped from China to the USA, sea freight is 4 times cheaper than air freight.
It is worth noting that the price difference between different modes of transportation is also large in the off-season and peak season. For example, in the peak season of air transportation (such as September-December each year), the price of air transportation may rise to 1.5-2 times the usual price. At this time, choosing to ship in advance or switch to sea transportation can effectively save costs.
In some specific cases, combining multiple modes of transportation (such as “sea transportation + truck delivery”) for intermodal transportation is also a good way to control costs. However, the intermodal plan needs to be communicated with the freight forwarding company in advance to avoid additional costs caused by the transit link.
Bulk shipping can save up to 50 percent.
Simply consolidate your shipments and ship all of them from the factory at once, and you can reduce costs by up to 50%.
Example: Cost of shipping from China to France
| Weight Tiers (in kg) | ✈️ Air Freight Rate ( $ / per kg) |
|---|---|
| 50 – 100 kg | US$ 8/kg |
| 101 – 300 kg | US$ 7/kg |
| 301 – 500 Kg | US$ 6/kg |
| 501 Kg above | US$ 5/kg |
Let’s say you’re shipping goods weighing 150kg in total. Here are the 2 scenarios:
| Scenario 1 – Regular you’ll break it down into two separate shipments over a period of time | Scenario 2 – Bulk shipment ship the entire 150kg but in one shipment |
|---|---|
| Shipping cost = shipment 1 + shipment 2 Each shipment is under 100 KG, so freight rate = US$ 8/kg Shipping cost = (90kg * US$ 8/kg) + (60kg * US$ 8/kg) Shipping cost = US$ 720 + US$ 480 = US$ 1,200 | Shipping cost = total weight * freight rate Shipment weight is 150 KG, so freight rate = US$ 7/kg Shipping cost = 150 kg * US$ 7/kg Shipping cost = US$ 1,050 |
Just by shipping in bulk, you can save $150, a 12.5% saving! Add in other costs such as bill of lading fees, document fees, etc., and the total can be as much as 50%.
Arrange the delivery time reasonably and avoid the peak season
The peak season for international logistics is usually concentrated from September to January of the following year. During this period, the prices of sea and air freight generally rise, the warehouse space is tight, and the risk of delays also increases significantly. If possible, try to avoid shipping during this peak period to get lower freight rates and a smoother transportation experience.
In addition, China’s Spring Festival holiday has a particularly significant impact on logistics. One month before the Spring Festival every year, almost all supply chain links will be out of stock in advance, the shipping schedule will be delayed, and the cost will surge. Therefore, for customers who have shipping plans before the Spring Festival, it is necessary to prepare two to three months in advance to lock in warehouse space and prices.
Flexibly arrange production and shipping schedules, which can not only save transportation costs, but also reduce potential losses caused by delays.
Accurately measure the size and weight of goods and pack them reasonably
In international transportation, freight is usually charged by volume weight or actual weight, whichever is larger. Therefore, accurate measurement and reasonable control of packaging size are important links in reducing transportation costs.
In actual operation, many export companies use oversized packaging boxes to protect their goods, which increases the volume and weight and unnecessary increase in transportation costs. By optimizing the packaging design and using strong but reasonably sized materials, the volume can be effectively reduced while ensuring the safety of the goods.
In addition, for goods that can be split and packaged, it is recommended to pack them in batches to meet the preferential policies of different transportation companies, such as some express companies have tiered discounts when there are multiple orders for small items.
Reasonable packaging not only saves freight, but also reduces the risk of additional inspections caused by excessive packaging volume during customs clearance.
Compare freight forwarding quotations more often and find cost-effective partners
Different freight forwarding companies have different quotations due to different operating scales, resource channels, and service levels. When choosing a freight forwarder, don’t just pursue the lowest quotation, but also comprehensively consider its professionalism, timeliness, after-sales service capabilities and other factors.
When inquiring, you can ask the freight forwarder to provide a detailed quotation sheet, including details such as ocean freight, port of destination fees, document fees, and fuel surcharges, which will help to clearly understand the overall cost and avoid hidden costs in the later stage.
Freight forwarding companies with long-term cooperation can often provide more competitive prices, and can provide timely and effective solutions when encountering unexpected problems (such as inspections and port congestion). Establishing a stable cooperative relationship is another important strategy to reduce long-term transportation costs.
Understand and make reasonable use of LCL services
For companies whose shipments are less than full container loads (FCL), using LCL services is an effective way to save money. By loading your own goods with other customers’ goods for transportation, you can spread the shipping costs and significantly reduce the transportation costs of a single ticket.
However, there are also issues that need to be paid attention to in LCL transportation, such as LCL goods usually require more time for customs clearance and unpacking, and there is a risk of damage and loss of goods. Therefore, before LCL, you should confirm with the freight forwarder the loading arrangements, bill of lading methods, and the cost sharing method after arriving at the destination port.
On some popular routes and popular ports, such as from Shenzhen, Guangzhou, and Ningbo to major ports in Europe, the United States, and the Middle East (Dubai, Oman, Jordan, Iraq), LCL services are very mature and have obvious freight rate advantages. Reasonable use of LCL can greatly reduce comprehensive logistics costs.
Reasonable use of trade terms (Incoterms) to reduce liability and costs
Trade terms used in international trade (such as FOB, CIF, DDU, DDP, etc.) directly affect the cost sharing and liability of buyers and sellers. Understanding and making good use of these terms can help avoid unnecessary expenses.
For example, if the buyer requires the use of FOB terms, the seller is only responsible for loading the goods on the ship, and the subsequent shipping costs, insurance premiums and destination port costs are borne by the buyer. On the contrary, if DDP (Delivered Duty Paid) is used, the seller needs to bear all transportation, tariffs, customs clearance and other costs, and the corresponding costs are naturally higher.
In actual business, you can flexibly choose suitable trade terms based on factors such as the customs clearance environment and tax rate level of the customer’s country, which is convenient for customers and can reasonably control the overall transportation cost.