Shipping from China to Australia: The Definitive Guide

Australia is among the top ten largest customers for Chinese exports.

More than 25% of Australia’s imports come from China, a clear indication of a booming trade between these two nations.

This guide should be of interest if you’re seeking an easier way to import goods from China to Australia.

It captures all the fundamental aspects regarding shipping commodities from China to Australia.

Let’s get straight away and discuss all the relevant details herein;

Things You Need to Know Before Shipping from China to Australia

When shipping to Australia from China, you ought to know a number of elements, which act as guiding principles.

The importance is to facilitate movement and enhance convenience when transporting products between these nations.

Some of the things you need to know to include the following;

• There are goods, which are either restricted or prohibited by the Australian authorities from entering her borders.

Ideally, Australia has a self-contained eco-system, which it is strict to protect.

Therefore, you must determine the types of goods permitted into this country.

• If you are importing commodities from China or any other overseas country to Australia, you can never use P.O Boxes or lockers.
• Always ensure you have all the necessary and accurate shipping documents.

Failure to produce the right documents often leads to unprecedented delays or denial of entry.

Moreover, make sure the value package description matches the details in commercial invoice.

• Ensure you use a courier service provider that is fully aware of rules and regulations stipulated by the customs authority.

In Australia, it is prohibited to ship some commodities through countries such as Egypt and Bangladesh.

• Should your cargo fail to clear after 30 days, the Australian Customs is at liberty to destroy it. Therefore, always act swiftly in case you have issues that could delay the clearance process.
• Always consider the type of packaging materials you use on your products. Some specific packaging materials are never allowed into the country.
• All imported goods with a value of less than AU$1,000 apply to Goods and Services Tax (GST).
• GST is charged at the point of sale by the vendor and not necessarily at the border.

Main Products Imported from China to Australia

You can always import a myriad of products from China to Australia.

However, you ought to understand that Australia has stringent safety standards.

Therefore, all the products imported from China must pass through strict standards before permitted to the Australian market.

Here are some of the major products often imported to Australia from China;

• Footwear
• Furniture
• Construction Machinery
• Electronics
• Apparel
• Games
• Toys
• Sports equipment
• Medical equipment
• Machine spare parts
• Iron and steel
• Automobiles
• Paper products
• Organic chemicals
• Shoes
• Handbags
• Copper

Technically, there are plenty of other products you can always ship from China to Australia.

However, you must ensure they meet the recommended quality standards.

Shipping Duration from China to Australia

Delivery timescales when shipping from China to Australia often vary depending on a wide variety of elements.

Of course, the choice of an ideal shipping method between ocean and air freight is largely determined by the actual duration.

The precise duration is also dependent on the exact ocean port or airport of origin to that of destination.

For instance, shipping from Guangzhou to Melbourne takes approximately 24 days LCL.

Ningbo to Brisbane takes about 12 days LCL

Tianjin to Sydney takes 21 days LCL

Nansha to Melbourne takes 25 days LCL

Huangpu to Sydney takes 24 days FCL and 27 days LCL

Huangpu to Adelaide is approximately 62 days LCL

Wuhan to Sydney can take about 36 days FCL

Shenzhen to Sydney is 21 days LCL

Shanghai to Sydney takes 27 days FCL and 19 days LCL

Xiamen to Sydney is 36 days LCL

Nonetheless, the duration is between 12-62 days based on the type of container and port-port distance.

Similarly, when using airfreight, the duration is also dependent on the airport of origin and that of destination.

The specific route your preferred courier uses may determine the duration of shipping goods from China to Australia.

But the average duration ranges from 2-8 days based on the mentioned factors.

For instance, from Shanghai Pudong to Adelaide, it takes roughly two days.

On the other hand, it takes about eight days to ship from Beijing to Sydney.

Nevertheless, you need to ensure you inquire from your preferred courier service provider to determine the approximate transit time.

Means of Shipping from China to Australia

Of course, there are only two major ways you can use to ship goods from China to Australia.

However, each mode of shipping, in this case, has its advantages and disadvantages.

It is thus vital to know the most suitable one for your needs before making an ultimate choice.

Ocean Freight from China to Australia

This refers to using container-loaded ocean vessels to transport the goods from one port of origin to another destination port.

Ocean freight takes an average of 2-3 weeks and, in some instances, up to four weeks.

Your consignments are moved between preferred port of origin and arrival by a particular ocean carrier aboard a container ship.

Usually, ocean freight utilizes two types of containers, which include the following;

• Full Container Load (FCL) – This type of shipping service allows you to transport your shipment without sharing container space with other commodities.

It is an ideal and most cost-effective option to consider for relatively large consignments.

• Less than Container Load (LCL) – With LCL shipping, your cargo shares container space with goods from other companies.

This is a suitable option for businesses with comparatively smaller shipments to ship from China to Australia.

Here are some of the basis you may use to consider the ideal alternative between FCL and LCL for your shipments.

FCL Consideration

FCL shipping from China to Australia can be an ideal consideration on the following grounds;

1. Your consignment must be in Australia within a specified date
2. The seller can load and seal a container, and the recipient can unload it
3. Your shipment is not suited to share a container with other products
4. Shipping a freight big enough to fill at least half the capacity of a 20ft container

LCL Consideration

LCL would be a suitable choice for you based on the following aspects;

1. The cargo is not bigger than six standard pallets
2. If you hardly have access to facilities to load and seal a container in China
3. Your cargo can safely be transported on a shared container
4. The commodities are not needed urgently by the recipient in Australia

Irrespective of the type of shipping container you might consider, it remains a longer process for transporting containers from China to Australia.

The freight forwarder you work with helps you to select the right type of container for your consignment between LCL and FCL.

Airfreight from China to Australia

Airfreight is by far the fastest way to transport your consignment from China to Australia.

This method allows you to complete some shipments in about two days.

If speedy delivery of your shipment is a priority compared to cost, then it is an ideal option to consider.

Moreover, airfreight remains a suitable alternative if your consignment contains perishable products that will benefit from a short transit time.

Also, you may consider it when shipping a small shipment, at most three pallets and if the goods are of high value, thus require stringent safety levels.

Nonetheless, it is relatively expensive compared to ocean freight.

Shipping Lines from China to Australia

It is imperative to always find a high-quality shipping service when shipping to Australia.

A reputable shipping company guarantees your cargo safety and timely delivery.

Several companies offer excellent shipping services based on your port of origin and destination.

The common shipping companies you may choose for the services include the following;

• Century Cruises
• COSCO
• MISC
• CMA/CGM
• Marfret
• OWL
• Line MSC
• Hamburg Sud
• Canmar
• Hapag Lloyd
• OWL
• China Merchants Group
• COSCO Shipping Development
• Wallenius Wilhelmsen
• APL
• NYK Line
• Chipolbrok
• China Merchants Energy
• China Changjiang National Corporation
• China Shipping Group

The Best Courier Companies from China to Australia

You may consider the following Courier services companies when sending a parcel or relatively lightweight consignment from China to Australia;

• DPEX- Express
• Hong Kong Post E-Express
• Quantium-General Cargo
• Aramex
• Omniparcel
• UPS Saver
• DHL

When choosing any of these courier companies, you must figure out other implications such as cost and expected delivery time.

Cost of Shipping from China to Australia

Many factors determine the cost of shipping goods from China to Australia.

For instance, location, mode of shipping, and size of the consignment are the main determinants of the actual shipping costs.

Moreover, the type of container you are using, whether parcel, LCL, or FCL, also influences the overall shipping costs.

Technically, your shipping quote from China to Australia will take into account the following aspects;

• Type of products you are shipping
• Volume, weight, and dimensions of the consignment
• Preferred delivery method, i.e., door to door, port to port, port to door or door to port, etc.
• Choice of ocean or airfreight

Here’s a breakdown of the cost of shipping from China to Australia based on the mode of shipping

Cost of Sea Freight from China to Australia

Sea freight is arguably the cheapest means of transporting goods from China to Australia.

It is also cost-effective since you can always use it to ship different reasonably bulky consignments.

The actual shipping rates vary from one company to another.

Also, the specific port of origin and port of destination determines the actual shipping rates between these two nations.

In most cases, you can always use a shipping calculator provided by the shipping company to determine the actual cost based on several aspects.

On average, though, the cost of shipping a 20ft container is approximately $1700.

A 40ft container, on the other hand, would cost roughly $2,200.

According to Australia Trade, the cost of renting a container is between AU$ 150-250 per cubic meter or 1,000 kilograms, whichever is greater.

However, the table below shows average shipping rates for door to door shipments from selected ports for a load of 200kg/1 cbm.

Cost of Air Freight from China to Australia

Shipping goods from China to Australia via cargo planes is relatively expensive compared to sea freight.

Often, kilogram is the unit calculation for air freight.

Most airlines have a standard for determining the actual and dimensional weight depending on the largest value.

You can calculate the weight of air freight in two major ways;

• Charging according to the cargo weight
• Charging based on the dimensional weight

The volume of the cargo is then divided by 6000 to determine its weight.

For instance; dimensional weight for a consignment covering 100cm by 100cm by 100cm weighing 20kgs would be;

(100 x 100 x 100) cm/6000 = 167 kg.

In essence, the dimensional weight of the shipment is heavier than actual weight.

Therefore, the airline will charge you for 167kgs.

However, the actual cost per kilogram is dependent on the specific international transport and Logistics Company of your choice.

Different freight carriers such as DHL, FedEx, UPS, and USPS among others, offer varied rates for shipping consignments.

In most instances, the carriers always charge airfreight costs based on a greater number between actual and dimensional weight.

The trick is always to pack your consignment skillfully and minimizing the volume to save a considerable amount of money.

Moreover, you also need to work with an experienced freight forwarder such as Tj chinafreight.

It allows you to come up with better solutions for shipping from China to Australia at cost-effective rates.

Cost of Express Shipping from China to Australia

Being the fastest and easiest mode of transporting goods from China to Australia makes it the most expensive than sea and airfreight.

Unlike air freight, express shipping cost is calculated by dividing the volume of the consignment by 5000.

For instance, a cargo with package measuring 50cm by 50cm by 50cm and actual weight of 10kg; the dimensional weight shall be;

(50 x 50 x 50) cm / 5000 = 25kgs.

The service providers will always work with the greater weight between actual and dimensional weight.

Also, express shipping rates from China to Australia vary depending on particular courier service providers.

Factors Affecting Shipping Cost from China to Australia

Cost of shipping is a fundamental aspect when transporting goods from China to Australia.

As a reseller, it is always important to figure out the cost and determine the best ways of finding cost-effective shipping techniques.

Numerous factors affect the actual cost of shipping goods between these two countries.

However, the most notable ones include the following;

The Cost of Buying the Product.

Product cost is a vital element, which affects shipping costs directly.

In Australia, if you’re importing goods worth at least AUD$ 1000, you will have to take care of import duty and GST on them.

Additionally, insurance charges for high-value products is normally costly.

Eventually, you’ll have to incur extra charges, which may end up eating into your profits.

Therefore, you need to determine all these factors to enable you to negotiate with your respective manufacturer accordingly.

Shipping, Logistics, and Distribution Costs

International shipping is quite broad; hence factors in a number of logistics and distribution costs.

For instance, you must always consider the inland transportation costs for transporting the manufacturer’s consignment to the port of origin.

Similarly, the cost of transporting the goods from port of destination to your warehouse, office, or residence is a factor to consider.

In some cases, warehousing charges also come to play, especially where you store the consignment for a certain period due to varied reasons.

Importantly, you also need to factor in the costs surrounding distribution of the products to retailers.

Technically, all these costs affect the overall shipping cost when importing goods from China to Australia.

Therefore, it would be ideal to consider a suitable incoterm guaranteeing cost-effectiveness in the entire process.

Tariffs and Duties due to China on Export and Australia on Import

Ideally, different products are categorized into various tariffs.

It thus means you’ll pay different rates depending on the specific tariff a particular product falls into.

Importantly, you need to find other aspects of the products such as free trade agreements, excise duty, etc.

Also, you may want to know whether the goods are exempted from duties.

Ultimately, it may affect the overall cost you’ll incur when shipping the consignment between these two nations.

Taxes and tariffs on your Imported Goods

Australian customs authority is strict as far as payable taxes and duties for imported products are concerned.

Calculation of customs import duty is often as a percentage of price you pay for the products.

The rate may range from 0-10%, but in most instances, 5% is the common rate for several goods.

Additionally, the customs will charge you about AUD 200 as import entry costs and processing charges.

Goods and Service Tax (GST) is also charged based on the following aspects;

• Goods valuation
• Amount of customs import duty
• Insurance and transportation of the goods

Typically, GST is charged at a rate of 10% of the final amount.

Cost of Container when Importing from China to Australia

The cost of shipping container varies majorly based on the size.

Shipping containers come in two sizes; 20ft and 40ft.

Cost of a 20ft container is approximately AUD 2,200.

For a 40ft container, you’ll pay about AUD 2,900.

However, there is also an option of renting the container, which is a more cost-effective approach, especially for frequent buyers.

Essentially, the cost of renting a 20ft container is about AUD 150 per cubic meter or 1,000 kilograms.

On the other hand, the cost of renting a 40ft container is approximately AUD 250 per cubic meter or 1,000 kilograms.

These are mere approximates, which tend to change often depending on prevailing factors such as demand.

How to Pay for Shipping Costs when Dealing with China-based Freight Forwarder

When dealing with a Chinese-based freight forwarder, you can always use several options to pay for the shipping costs.

Importantly, you need to choose a suitable option, which fits your needs accordingly.

The essential freight payment methods you can use are as follows;

Cash against Goods

This refers to a check describing a specific transaction and what’s need to be paid.

Like any other forms of payment, cash against goods is also governed by a bill of exchange.

In this case, the freight forwarder relinquishes all control over goods whenever they’re shipped.

To protect the freight-forwarder, your bank guarantees shipment by accepting to pay for products outlined by bill of exchange.

Technically, your bank becomes liable to the freight forwarder upon receipt of the consignment.

Cash Against Documents

Virtually identical to the cash against goods, this method also hinges on the bill of exchange.

In this mode of payment, the freight forwarder gives your bank’s control.

Essentially, your bank is allowed to release the consignment and related documents only after receiving payment.

In other words, the freight forwarder ships the consignment to you in Australia.

You then pay your bank then the bank pays the freight forwarder.

Cash in Advance

It is arguably the simplest transaction method you can use to pay a Chinese-based freight forwarder for shipping goods to Australia.

Technically, you pay the freight forwarder in advance, way before the shipment is transported to your destination.

However, this type of arrangement is dependent on your relationship with the Chinese-based freight forwarder.

Letter of Credit

This method allows your bank to guarantee payment of freight costs on your behalf.

The bank only releases the payment once you receive the consignment facilitated by your freight forwarder.

However, letters of credit are usually detailed and largely depend on a bill of lading.

How to Select Cheapest and Fastest Way of Shipping from China to Australia

When shipping goods from China to Australia, vital factors to consider include, cost, convenience, safety, and transit time.

Therefore, you must base your choice on such factors to ensure you find the most appropriate one for your needs.

Some of the options you may want to go for include the following;

FCL Ocean Freight from China to Australia

FCL ocean freight is an ideal option when you’re shipping goods large enough to fit at least one container.

As such, calculation of the freight is based on FCL.

It is a relatively fast, convenient, and safe ocean freight method when shipping from China to Australia.

In FCL, the supplier loads and seals the consignment and is shipped to your final destination.

Notably, when FCL shipment arrives at your preferred port in Australia, it can only be delivered by truck since it is large.

LCL Ocean Freight from China to Australia

LCL ocean freight is a suitable choice if you’re shipping goods of a small volume of less than 15CBM.

Essentially, it entails combining your cargo with other shipping consignments for the same direction.

It is an ideal freight option to consider if you are shipping smaller cargo, which cannot necessarily make FCL a viable option.

Since LCL cargo is relatively small in volume, they are always delivered to your destination using trucks or express companies.

In LCL, a cubic meter (CBM) is used as the measurement unit for calculating freight cost.

Express Shipping from China to Australia

It is the fastest, easiest, safest, and most convenient shipping method for shipping goods from China to Australia.

Choosing this option means you won’t worry about customs clearance and duty payment.

Additionally, you’ll track your consignment easily at any time hence planning appropriately.

However, the unit price for this option is usually high compared to LCL and FCL ocean freight.

Therefore, it would be a suitable choice if your consignment contains fragile goods.

You can also consider it if you are shipping perishable products or when in urgent need of the goods.

Cheapest Time for Shipping from China to Australia

Freight rates, especially FCL sea freight and air freight rates, are affected by seasonal factors.

When shipping from China to Australia, remember to consider peak seasons in both China and Australia.

Some of the major peak seasons between these two countries include the following;

Chinese New Year

It is arguably the most celebrated season in a typical Chinese calendar.

Commonly known as CNY, it entails celebrating beginning of New Year on Chinese calendar.

This festive season often runs for at least 15 days, thus making many importers to rush and ship their consignments before the holiday begins.

At this time, the shipping cost is comparatively high due to the rush hence would be best to avoid it when interested in cutting shipping costs.

Chinese New Year often begins in the second week of February every year.

Golden Week

In China, Golden week refers to a collection of three national holidays celebrated jointly within 7-8 days.

It is always important to calendarize this event since most operations are usually halted to allow the celebrations.

Therefore, most importers tend to rush to beat the deadline before the holiday begins hence inflating the shipping rates.

Dragon Boat Festival

This is a traditional holiday normally celebrated on the 5^th day of the traditional 5^th Chinese month.

Essentially, this holiday serves as a commemoration of the life and death of a famous Chinese scholar known as Qu Yuan.

As such, it would affect shipping operations and somewhat raise the freight cost in a bid to beat the date.

Therefore, you can always plan early to ensure you ship your cargo earlier than the actual day to avoid incurring additional costs.

Holiday Shopping Season

For the longest time, China has been an ideal holiday shopping destination for many international customers.

Christmas, Singles day, Double Twelve, and 618 shopping festivals are among the popular holiday shopping seasons in China.

Ideally, it means the traffic is usually high, thus creating more demand for shippers.

Often, this increases freight cost, which can be disadvantageous, especially if you’re shipping large volume consignment.

Generally, to obtain the best freight rates when shipping from China to Australia, always ensure you observe all the major holidays.

It will enable you to plan accordingly to avoid the inevitable rush and get cost-effective rates.

How Incoterms Affect Shipping Prices from China to Australia

Essentially, incoterms refer to “how far” the supplier shall ship the consignment.

It translates to the amount you give the supplier for shipping.

The specific incoterm you choose determines how far you’d wish the Chinese supplier to ship your cargo.

Ordinarily, any Chinese supplier will quote a price based on the incoterm.

Without incoterm, you wouldn’t compare prices between different suppliers.

In a nutshell, determining the overall pricing for shipping cargo from China to Australia is largely dependent on the selected incoterm.

The Best Incoterm When Shipping from China to Australia

Choosing the best incoterm when shipping from China to Australia is dependent on a wide range of factors.

Ideally, the best incoterm would always be one that takes the shipment as far as possible.

However, for natural reasons, Delivered at Place (DAP) would be the ideal incoterm, especially for an inexperienced importer.

Under DAP terms, your supplier is responsible for delivering the goods from factory floor to your specified location.

DAP also includes inland freight to a specified address, be it your home, warehouse, or office.

The best would be to order from your supplier according to FOB terms and DAP shipment from your freight forwarder.

It simplifies the process, and at the same time enhancing maximum cost control and transparency.

For an experienced importer, EXW would be the best incoterm, particularly if you have a broad network in the industry.

EXW only gives you the quote for purchasing the commodities at the factory price.

You will arrange for picking, inland transport, sea freight charges, port discharge charges, and export clearance.

And this is vital since you can easily negotiate the shipping costs through your freight forwarder and getting a better deal.

Taxes and Customs Duties When Importing from China to Australia

Taxes and Customs duties are imperative components in international shipping.

When you are importing from China, your goods are never subjected to any export tax.

You only need to ensure that all aspects and paperwork surrounding the goods are in place to facilitate a faster export clearance process.

However, when the goods arrive in Australia, they are subjected to