This article has four major parts to it. Make sure you go through these to have a better understanding:
Part 1: Key Trade Terms Simplified
Part 2: Volumetric Weight vs. Real Weight
Part 3: SFUC – Affordable Shipping Solution
Part 4: Efficient Shipping for big size Furniture
**Part 1: Key Trade Terms: EXW, FOB, DDP, DDU, DAP, and DPU**
**EXW (Ex Works):** In this trade term, the seller give the goods at their location, and you’re responsible for all costs and risks of shipping to your destination. The product price quote includes only the original product cost, as the seller isn’t liable for expenses after the cargo leaves their location.
**FOB (Free On Board) Price (Guangzhou):** It includes the product price, shipping cost to the Port of Guangzhou, and customs declaration fees.port handle fee ect China side.
**DDP (Delivered Duty Paid):** With DDP, the seller handles import customs clearance, import duties, and taxes. The seller manages all aspects, costs, and risks during transportation, delivering the cargo directly to your door.
**DDU=DAP (Delivered Duty Unpaid): The difference between DDU and DDP is that the seller won’t assist with customs clearance and duties. DAP replace DDU in real business now.
**DAP (Delivered At Place):** The seller handles export customs, ships the goods to your destination (e.g., New York), and transfers the cargo to you. The seller bears shipping costs, fees, and risks except for import customs and duties. You pay USA customs and pay related tariffs.
Let’s use an easy way to help you understand what is EXW,FOB,CFR,DDU.
The shipping cost consists of three main components:
1st part **Inland China to Departure Port:** This phase involves several factors, from factory or sourcing agent’s warehouse ,including trucking fees, loading fees, customs fees, document processing fees, port handling charges, and, if needed, fumigation fees. These expenses cover the logistics of transporting the goods from local locations within China to the departure port.
2nd part: **Ocean Freight from China Port to Destination Port:** The ocean freight cost pertains to the transit across the seas from the port of departure in China to the designated port at the destination. It’s important to note that ocean freight charges can vary on a weekly basis due to market dynamics.
3rd part : Destination Port Clearance, Tariffs, and Last-Mile Delivery:** Upon arrival at the destination port, the process includes customs clearance, tariff assessment, and final delivery to the end user’s address. It’s at this stage that the buyer’s responsibilities come into play. The buyer needs to engage with an agent to facilitate customs clearance at the destination port and manage the final leg of the journey, ensuring the safe and timely delivery to the buyer’s designated address.
please see the picture: from Factory 0# called: EXW
EXW+ 1st part = FOB
EXW+ 1st part +2nd part =CFR
EXW+ 1st part +2nd part + 3rd part=DDP
**Part 2: Volumetric Weight and Real Weight
Volumetric weight is calculated as follows:
When it comes to shipping, a crucial factor to consider is the weight that dictates the cost you’ll incur. Shipping companies determine the charged weight by comparing dimensional weight and actual weight, selecting the higher of the two for cost calculation. Dimensional weight is derived from volume, calculated as Length (cm) × Width (cm) × Height (cm) divided by 5000.
Let’s illustrate this with an example: Imagine you’re shipping a substantial foam block measuring 50cm x 50cm x 50cm and weighing 20kg. Calculating the dimensional weight:
Dimensional Weight = 50cm × 50cm x 50cm / 5000 = 25kg. This exceeds the actual weight of 20kg.
Consequently, the shipping company will bill you for 25kg rather than the actual 20kg. This is because the larger dimensions of the package occupy significant space, impacting shipping capacity.
For shipping goods from China to the USA (as well as major European countries), there’s a highly advantageous option that outperforms traditional methods. This method is called Sea Freight UPS Combined (SFUC) and is particularly well-suited for transporting goods weighing 100 to 1000kg, packed securely in proper cardboard boxes.if not regular size of carton, you will be charged extra fee from 30usd-200usd/box ,so only ship it small regular carton size .
Please note that your supplier will provide you with a UPS tracking number upon shipment, which will show updates only once the container reaches the American port. Subsequently, UPS will pick up the goods and continue to provide tracking updates on their website until final delivery.
Part 3 :Introducing an Advantageous Shipping Solution from China to the USA: SFUC(Sea Freight UPS Combined)
SFUC, or Sea Freight UPS Combined, functions as follows:
Chinese freight forwarders initiate the process by transporting goods via traditional sea freight to the nearest port. From there, UPS takes over the local logistics in the US, ensuring prompt and efficient delivery directly to the recipient’s address as soon as the goods arrive at the port.
Compared to traditional air freight costing around 5-7 USD/kg, SFUC offers an impressively affordable solution, typically priced at 2.0-2.5 USD/kg. Notably, this includes the combined services of sea freight and UPS, all under DDP terms. This comprehensive package covers not only the shipping cost but also customs duties and door-to-door delivery. Buyers can expect hassle-free delivery without any additional costs, awaiting their goods in the comfort of their own homes.
This streamlined channel is equally applicable to a wide range of European countries, encompassing VAT paid.
Part 4: Optimal Shipping Route for Larger Furniture – Ship with Your Own Container
When dealing with oversized furniture, the most effective shipping route is utilizing your own container for ocean transport. This approach is ideal as it maximizes the available space. For instance, a 20-foot GP container can hold up to 28 cubic meters (cbm) of goods, while a 40-foot HC container accommodates 68 cbm. All the interior space is at your disposal, providing creative options for efficient packing.
This approach contrasts with groupage, also known as Less Container Loading (LCL), where cargo agents calculate shipping costs based on the longest side of your items. Opting for LCL might prove less cost-effective. For example, if you consider shipping a sofa using UPS Sea, the shipping cost could be $500. However, if you’re purchasing 30 sofas or more, the total shipping cost would reach $15,000. In contrast, shipping a 20-foot container to the US only costs $3,000 to $4,000. This substantial cost difference makes using your own container highly advantageous.
When dealing with furniture exceeding 1.5 meters in size, it’s recommended to choose your own container. Additionally, we offer the convenient option of having the container delivered to your doorstep, ensuring a seamless door-to-door shipping process.
Navigating the realm of international shipping from China to the USA demands a comprehensive understanding of trade terms, shipping costs, and innovative solutions. This article has unraveled the complexities of trade terms such as EXW, FOB, DDP, DDU, and DAP, providing clarity on the responsibilities and liabilities of each party involved. The distinction between volumetric weight and real weight has been explored, shedding light on the factors that influence shipping costs. The introduction of the Sea Freight UPS Combined (SFUC) method promises to reshape the landscape of shipping solutions, offering an affordable and streamlined option for transporting goods between China and the USA. Additionally, for those dealing with oversized furniture, the concept of utilizing one’s own container has been highlighted as a cost-effective and efficient approach. As the global trade landscape continues to evolve, it is imperative to stay informed about these innovative solutions that redefine the way goods traverse the vast expanse between China and the USA. By embracing efficiency and innovation, businesses can ensure a seamless and profitable trade experience that benefits all parties involved.
Please see how we help to load the container :