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The Real Cost of Shipping Flexible Packaging From China


We are asked many times from customers both large and small what is the best way to ship from China for their printed flexible packaging and other types of protective packaging. Having been in this industry for over 30 years we have learned a thing or two and believe our insight can be helpful. The Chinese have a very unique way of doing things and knowing how they operate and what is most important to them and how this will affect your orders for flexible retail packaging can make all the difference to a successful relationship with overseas suppliers.

cost-of-shipping-from-china


In China:

Let’s face it, when dealing with China for protective packaging of any kind, we are in “their” world, not ours, so our rules and our way of doing things just don’t apply. I’m always amazed at how arrogant some US companies will be toward the Chinese thinking if they yell loud enough or threaten long enough that will get the Chinese to provide them what they want faster and cheaper.  This is absolute nonsense and foolish.  Yelling and threatening to the Chinese is like doing this to our children, they’ll either freeze and not move or just stop completely and be too afraid to try.

Long and short, when your flexible retail packaging is done there are two options for shipping that we even concern ourselves with.  One is Ex-Works and this means we pay for freight from the factory and have to then get it from the plant to the dock and boat for shipping to the US. Or we can have it FOB China Dock or Port…meaning the plant will get it to the port and then from there we have possession of it.  Our recommendation is to use the Chinese to get it to the China dock/port as they’ll find dirt cheap yet safe ways to move flexible retail packaging saving us the hassle of trying to do it ourselves.

By Sea:

Here is where things can get confusing for many clients who are shipping protective packaging from China.  First, the containers used are either 20 foot, 40 foot, and occasionally there are some odd sizes like double high 40 foot long containers.  Each client, regardless if they are Walmart or a small start up company will pay a certain amount per cubic meter (CMB).  Each pallet length and width and height figures into the overall number or cubic meters and how much you will be charged for Sea Freight.

By Air:

Many customers will be in a hot rush to receive their printed flexible retail packaging and just say “air ship it” assuming “it can’t be that expensive” and this would be a foolish assumption.  Chinese factories can ship using door-to-door services like DHL, UPS, or FedEx and these carriers have their own Customs offices to inspect and clear the shipments but this is the most expensive way to ship air from China as in this case individual cartons are shipped just like they are done in the US.

Another option would be an airport to airport type of shipment, meaning the China factory will put your shipment on a pallet or pallets and frankly buy those pallets a plane ticket for air shipment to a particular US airport.  Once there you will need to arrange to pick up those pallets and pay for them (Customs fees, etc) and ship them to your factory.  Many companies forget that these are pallets of product, not loose boxes so they’ll need another truck to transport the product once it arrives in the US.

TIP: If you need to ship by Air…ask your Chinese factory to quote Fast and Slow air. Sometimes FedEx, UPS, and DHL have slower and cheaper air charges, similar to in the US when we can pay for overnight, 2nd day or even 3 day shipping.  To be clear, shipping air from China is rarely an overnight service as the shipments need to be inspected and clear Customs, so figure the fast air being a 3 day service and the slow air being a 7 day service.  Airport to Airport air shipments are usually in the 1 week to 10 day time frame.

At Port:

Once your shipment arrives by SEA your product needs to be taken out of the containers, possibly inspected and then it clears US Customs and is sent to another warehouse while it awaits further shipping instructions such as where you want it to go and when.  At port is where many companies are crushed by miscellaneous and hidden fees that shipping companies charge (like clean container charges, pallet charges, broken pallet charges, etc).

Recommendations:

As I’ve written extensively too many companies, large and small, try to go it alone thinking they can “figure out shipping from China by themselves” and this is absolutely insane.  Flexible retail packaging and all protective packaging for that matter is difficult enough and adding headaches and delays due to naivety when it could have been avoided should be a warning signal to all of us. 

Hire either a freight forwarder that works for you (not the Chinese factory), who understands the language and nuances of the Chinese factories and shipping companies or make sure your flexible retail packaging supplier has complete control of the situation.  If you have the right representation they can tell you per piece how much the freight will cost and this will include freight to the port, Sea or Air, Customs fees, etc.  Let’s face it, if you have this information, whether it is 1 penny or 5 pennies per retail packaging bag you can then make an informed decision if working with China is worthwhile.



CONCLUSION:

So many companies only look at the per piece price of flexible retail packaging and don’t pay attention to freight and shipping costs and they get burned to the tune of several thousands of dollars and often more.  Hire a representative, either a freight forwarder or even rely on your protective packaging partner to give you solid numbers you can work with. If they cannot do this…you are asking for trouble…find someone who can BEFORE you decide to order from an overseas supplier. 



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