Shipping Indonesia to USA The Ultimate Guide

Every year, billions of U.S. dollars go into imports of goods, products and commodities from Indonesia to USA.

In this guide we look deeply at the shipping dynamics involved when goods are transported from Indonesia to USA.

Cost of Shipping from Indonesia to USA

The cost of shipping goods from Indonesia to USA varies due to:

Method of Shipping

Air freight is the most expensive while sea freight is the cheapest mode of shipping from Indonesia to USA.

For instance, a cargo weighing 200kg per 1cbm will cost USD 2,200 by air, USD 896 by sea.

Air freight cost is calculated by the weight while sea freight is by volume or full container flat rate respectively.

Express services are affordable when shipping goods weighing 100 kg/0.2 cubic meters or less. C

argos above 100kg/0.2cbm are cheaper to shipped via air freight.

Size of Cargo

Cargo size comes in when using LCL or air freight because the cost is derived by calculation the weight and volume.

Air freight cost however increases with the weight while in LCL it goes up by the space needed.

Location

The port of departure and arrive affect the cost depending on the zone of the port.

The higher the zone level the higher the cost of shipping.

Best Shipping Times from Indonesia to USA

Off-peak

Shipping peak seasons fall between mid- August to mid-October fall when the demand for supplies always doubles.

This increase in demand leads to increase in ocean cargo for shipping thus affecting the cost of shipping.

To avoid such unnecessary rise in expenses, plan your shipment early before the seasons kick in in both Indonesia and USA.

Towards End Month

The rate of the containers goes up every beginning and mid-month, this increase is known as General Rate Increase (GRI).

During these times, the demand for goods is high hence container availability becomes hard.

Plan your shipping in between the GRI times to save you money

Normal Days

Holiday seasons such as Halloween and Christmas affect the pricing due to high container demand.

This in turn affects shipping rates thus increasing cost of shipping.

Any other day that is not holiday times in Indonesia or USA is best time for shipping.

How to get Cheapest Shipping to USA from Indonesia

If you want the cheapest shipping options from Indonesia to USA, you should consider the following:

Book Early

Early planning on your part will see you ship your cargo using ocean freight without fearing transit times.

This enables you to avoid last minute rush that forces you to settle for the expensive available options.

Get Different Quotations

Having different quotations from different shipping companies enables you to gauge the prevailing market rates and settle for the cheapest option.

Have the Right Documentation

Make sure your cargo has all the required documents for customs exit clearance as well as custom entry clearance.

This avoid incurring penalties associated with non-compliance of customs laws and regulations.

Avoid Peak Seasons

Try and ship during off-peak to save you from the high rates of shipping in peak season.

Understand your Goods’ Codes

All goods being shipped from Indonesia to USA are classified in a Harmonized Code system (HS).

This classification determines the tariffs applicable and chargeable by customs.

Incorrect classification of goods leads to penalty, correction fees as well as payment of applicable taxes and duties.

How to Label Cargo Shipping from Indonesia to USA

Labelling of goods and commodities for shipping to USA must adhere to the standards of product labeling in USA.

The label should be in English and large fonts that are easy to read, this also applies to signs and symbols.

The labels should have:

• Product’s country of origin
• Shipper’s mark
• Weight in pounds and kilograms
• Number and size of products inside in inches and centimeters
• Port of entry
• Cautionary markings such as “This side up”
• Handling marks with international pictorial signs and symbols
• Hazard materials label
• Storage conditions “cool dry place” “refrigerate after opening”
• Ways of disposing, etc.

Food Products Labelling

This category includes; foods, pharmaceutical,s and medical products.

These require a certain way of labelling and information on their packages.

Harmless dyes should be used for labelling and with ingredients and quantities, brand names, manufacturing country.

Other information such as allergies, manufacturing and expiry dates, vegetarian and non-vegan should be included.

Food and Drugs Administration (FDA) is the regulatory body for food products in the USA.

Any food imports that do not meet their labelling standards are not cleared for entry and might be destroyed at the port.

Non-Food Labelling

Any other product that is not food related falls here and they follow similar process as above but with less restrictions.

Customs Clearance Process when Shipping from Indonesia to USA

Custom official at the airport or port of exit in Indonesia check the paperwork for the shipment for correct documenting.

They then calculate the taxes and duties applicable to the shipment which is then paid before goods are cleared for shipment.

Upon arrival in USA airport or port, the cargo is subjected to the U.S Customs and Border Protection process.

The CBP officials then inspects the cargo against the paperwork submitted.

They ensure all imports to USA meet all the customs laws and regulations as stipulated by the law.

The customs inspection checks for the right classification, whether the goods are allowed and the purpose of import.

Once the cargo satisfies the CBP laws, taxes and duties applicable is paid then cleared for entry.

This is a tedious process in shipping therefore, ensure all the documents are correctly filled to avoid delays or consignment seizure.

You can use the services of customs brokers if you are not sure of the process for Indonesian and USA side.

Choosing Insurance for Cargo when shipping from Indonesia to USA

An insurance cover is necessary when shipping from Indonesia to USA to protect the cargo in transit against loss, damage, etc.

You can get one from a third-party insurance agent or a comprehensive cargo cover from your freight forwarder.

The cost of insurance is typical a percentage of the total cost of the goods being shipped usually, 0.3 t0 0.5%.

Taxes and Duty Chargeable when Shipping from Indonesia to USA

Goods and commodities shipped from Indonesia to USA are subjected to export and import duties and taxes respectively.

Customs duty and taxes are charged to protect domestic goods, and their flow in and out of the country.

In Indonesia, the Indonesia Customs Law (ICL) govern the customs and excise duties applied at the Indonesia customs territories.

All taxable exported goods are subjected to 0% value added tax (VAT) while specific goods are charged export duty.

The calculation is arrived at as follows:

Ad Valorem (percentage of value): Export duty=tariff of export duty x standard export price x quantity x exchange rate

Specific (currency per unit): Export duty=amount of export duty in Indonesian rupiah x quantity x exchange rate

The goods being shipped must be declared in the customs export declaration form (PEB-PemberitahuanEksporBarang).

When goods arrive in the USA Import laws are used to determine the taxes and duties applicable.

The import customs duties applied are either ad valorem or specific.

Customs duty vary between 0 to 37.5% while a normal duty rate is 5.63%.

Others import taxes chargeable are preferential duty for goods from free trade countries, sales tax, merchandise processing fees, etc.

U.S.CBP relies on an import declaration form, commercial invoice, HS Codes, etc. which help determine the value of imports and taxes applicable.

Penalties are exemptions on goods are applied depending on the country’s customs laws on import and export.

Documents you need to Ship from Indonesia to USA Shipping

You cannot ship from Indonesia to USA without the correct paperwork. Some of the key documents required include:

Commercial Invoice

This document is a proof of sales transaction between buyer and seller.

It has details such as:

• Buyer and seller’s address and contacts
• Shipping address
• Item description, unit size and quantities
• Value of goods which will determine the insurance cost
• HS codes for tariffs levies

Custom agents use it to determine levies applicable.

Packing List

This is a form that shows how goods were arranged for inspection and shipping.

It is filled by the exporter or freight forwarder when goods are re-packed.

Upon receipt of goods, the consignment receiver signs it.

It contains information such as:

• Name and address of the consignor and consignee
• Packing equipment such as pallet, crates, etc.
• Packing details
• Description of goods
• Hazardous information

Bill of Lading (B/L)

Bill of lading is a legal document between the carrier and the shipper that must accompany the goods being shipped.

It serves three purposes; contract of carriage between shipper and carrier, receipt of goods and as a document title of goods.

Bill of lading can also be used for:

• Tracking shipment using the number on the master bill of landing
• Payment of goods because it is a requirement for the letter of credit processing
• Insurance claims incase of loss or damaged cargo

Details included in the B/L include; shipment details, loading details and terms of contract.

• Types of bill of lading

1. Onboarding B/L issued by the carrier upon loading of cargo in the shipping vessels. It indicates the condition of goods at the time of loading as either clean of foul B/L.
2. Order B/L can be used as security for seller in that goods are only delivered upon payment.
3. Received-for-shipment B/L is a confirmation of goods receipt by the carrier from freight forwarders but is not proof of loading.
4. Sea waybill is a form of house B/L used for goods shipping but it does not serve as title document.
5. Straight B/L is when a seller has been paid and the goods can be delivered “straight” to the buyer.

Material Safety Data Sheet (MSDS)

This is a record showing the physical, chemical, biological, radioactive or explosive content of dangerous goods being shipped.

MSDS is provided by the manufacturer and shared with the cargo carriers to guide them on safety precautions to take.

It also helps in calculating the shipping cost for “dangerous goods”

Shipper’s Letter of Instruction

This is a note to the freight forwarding company directing them on how your cargo should be shipped and location.

It is a proof of transaction between the exporter and the freight forwarder and normally contain details such as:

• Exporter and the receiver of cargo’s contacts
• Incoterms applicable
• Transit route
• Description of shipment with corresponding HS codes
• Goods dimension and weight

Certificate of Origin (COO)

This is a document that shows that goods are manufactured, processed or produced in Indonesia.

It has the details of the consignor and consignee, shipment routing and goods description.

Other additional information is; exporter declaration confirming goods’ country of origin and the inspection certificate evidencing goods have been inspected.

It is a required document for customs clearance and import statistics and levy duties.

Freight forwarders use it to know the prohibited goods.

Letter of Credit

This is a guarantee of payment by the bank of the buyer in USA to the bank of the seller in Indonesia.

It is necessitated by the fact that international trade normally experience delay in funds transfer.

Shipping Quote

This is a document that shows the cost breakdown of the shipment and other extra fees that may be incurred. Shipping quotation come with a validity period.

Important information included in the shipping quotation and which determine the cost are:

• Pickup and drop off points
• Mode of transportation
• Cargo details such as; weight, item description and dimensions.

Booking Confirmation

This is a receipt from the carrier confirming that your cargo has been booked for shipment by ocean or air.

The receipt information includes:

• Booking number that aids in tracking your cargo
• Transport plan i.e., port of origin and destination and estimate time of arrival
• Equipment used i.e., number of pallet and cargo size
• Load itinerary

Major Ports in Indonesia for shipping Cargo to USA

These are some of the major and busiest ports in Indonesia that you can ship from:

1. Surabaya, Java (Tanjung Perak) whose code is IDSUB
2. Jakarta, Java (Tanjung Priok) whose code is IDTPP
3. Semarang, Java (TanjungEmas) whose code is DSRG

Major Ports Destination in USA

1. New York whose code is USNYC
2. Los Angeles whose code is USLAX
3. Houston whose code is USHOU

The codes are unique to these ports and cannot be used by any other port.

Ocean Freight from Indonesia to USA

Transit Time from Indonesia to USA

Using FCL freight method is 27 to 39 days for port-to-port and 55 to 59 for door-to-door delivery.

LCL freight shipping takes longer; port-to-port takes 30- to 42 days while door-to-door takes 44 to 49.

It is easier to unload LCL container than FCL thus the less delivery days for door-to-door.

Benefits of Ocean Freight from Indonesia to USA

Some of the benefits of ocean freight are:

• It is the cheapest shipping mode available
• Convenient for bulky goods

Limitation of Ocean Freight from Indonesia to USA

• Takes longer transit time that may lead to goods delay
• Chances of goods getting damaged or lost are high with LCL mode and especially during high season.

Air Freight from Indonesia to USA

Transit Times form Indonesia to USA using Air Freight

Air freight cargo will take between 8 to 17 days to be transported from Indonesia to USA.

Benefits of Air Freight from Indonesia to USA

• It is the fastest mode of shipping from Indonesia to USA
• The cost does not change with the distance covered.
• It is ideal for high valued cargo that need the tight security when handling as done at airports
• Can be used to ship perishable and fragile products

Limitations of Air Freight from Indonesia to USA

• The cost of shipping is very high compared to other modes
• It has a weight limit and cannot ship goods beyond the weight limit.
• Cargos that cannot be palletized cannot be shipped by air freight.

Reliable Airlines from Indonesia to USA

• Singapore Airlines
• Citilink
• KLM
• United Airlines
• American Airlines

LCL Shipping Process from Indonesia to USA

Less container load is a shipment that cannot fill 20 feet or 45 feet container hence are consolidated with other goods.

The volume of a standard 20ft container is 1,172 CFT/33.2 CBM while 45ft is 3,122CFT/88.4 CBM.

Compared to FCL’s flat container rate, LCL freight charges is gotten by calculating the volume of the cargo.

This is the space that the goods take in the container and is measured in cubic meters (CBM).

To use LCL sea freight, you need to take into consideration:

1. Cargo size smaller cargos that do not occupy 13 CBM and above 100 kg of a container are ideal for LCL. Below 13 CBM and less than 100kg can be shipped by air whereas above 15 CBM is FCL recommended.
2. The cost is less when you are shipping a cargo that does not occupy more than half the container space. LCL is charged per CBM, this eventually cost more if much space occupied within the container. In this case, FCL would be better than LCL.
3. Transit time for a cargo from Indonesia to USA is 25- 30 days LCL. Air freight and FCL are 7-10 days and 15-22 days respectively.

LCL freight shipping from Indonesia to USA has benefits associated with it. They include:

• LCL cost less because it is charged on the space occupied as opposed to the flat container rate on FCL.
• It is cheaper to use LCL than air freight for a cargo weighing the same.
• They are easily available throughout the season unlike FCL whose demand increases with season.
• You do not need a big storage space at once compared to FCL.

LCL shipping is not without limitation:

• Takes longer to ship due to the unloading and offloading of other cargos at different ports
• It involves a lot of handling between shipping thus goods can easily get lost or damaged. Not ideal for fragile goods.
• Delay in other shipment affect the rest because it is a groupage shipment and cannot proceed without the other.
• LCL may be expensive if the space occupied in the container is bigger than half the container.

FCL Shipping Process from Indonesia to USA

Full container load is a sea shipping method whereby only one shipment occupies an entire 20- or 40-feet shipping container.

The shipment may or may not fill the container during the shipping from Indonesia to USA.

How FCL from Indonesia to USA operates

When shipping your cargo in FCL method, you will have two delivery options: live or drop.

For live delivery, the driver waits as the goods are being offloaded at the warehouse in USA.

When this cannot be accomplished with the two hours then you can opt for the drop option.

In drop option, the driver will offload the container at the warehouse in USA and come collect it later.

The latter option is a bit costly because the driver makes two trips to your warehouse as opposed to live delivery.

Before you opt to ship using FCL method from Indonesia to USA you have to consider certain factors:

1. Delivery point if it requires prior booking and their approximate waiting time. This is normally longer for FCL than LCL. Most companies allow driver waiting a maximum of two hours to unload the container. Beyond two hours, you will be charged extra fees by the hour.
2. Port congestion; avoid shipping to busy ports and during peak seasons. This will lengthen your waiting time hence accruing port surcharges.
3. Demurrages and detention fees; there is a free port waiting charges usually four days in USA after which demurrages apply. You should therefore ensure that the container is clear and collected withing the four days to avoid extra charges.

After goods collection, the container should be returned to the port within four days.

Failure to do so leads to detention charges, which are calculated per day.

FCL sea freight has its own benefits like:

• There is no groupage of other goods thus reducing the chances or damage or loss.
• It is easy to track your cargo from Indonesia to USA.
• The transit time from Indonesia to USA is less since there is no stoppage to offload other goods along the route.
• Once goods are sealed in Indonesia, they will remain so till the last drop off in USA.
• It is a cheaper method when your cargo can fill a smaller container or occupy at least 75% of the space. This is because it is charged at a flat rate for the whole container.
• FCL method is ideal for shipping fragile high-volume cargo that need extra care in handling from Indonesia to USA.

FCL is not entirely without disadvantages and therefore you some of the downside associated with it are:

• FCL is costly when the shipment is smaller than 13 cubic meters
• It requires more capacity for handling personnel during loading at the factory in Indonesia and at the terminal in USA. You may need to pay extra in case there is need.
• The shipment is large and handling may be complicated at the port of destination.
• It requires more storage space when the cargo is large.

Unlike LCL, FCL charges the shipper for the whole container despite its occupancy level.

This flat rate normally seems high when the container is not filled to at least 75%.

When planning to ship using FCL method it is important to factor in the cost and availability of the containers.

The pricing goes up during holiday season when the demand for supplies increases, during peak season and at the beginning and mid-month.

Applicable Shipping Laws and Regulations when Shipping from Indonesia to USA

Shipping laws and regulations of both Indonesia and USA that are applied in this case include:

Marine Casualty

This defines who takes responsibilities in the event of vessels collision, pollution, vessel salvage and wreck removal and limitation to liabilities.

Each country has adopted a well define way of handling or mitigating such events from happening.

Cargo Claims

These laws are used in the event a carrier losses or damages cargo, compensation plan, etc.

Delivery Options when Shipping from Indonesia to USA

There are various options for delivery services to choose from when shipping with a freight forwarder from Indonesia to USA.

Port-to-Port Delivery

This involves shipping of goods from loading port in Indonesia to discharge port in the USA.

It is the middle-leg of the shipping process. It does not include transportation of goods from the source to the loading port and from destination port to your doorstep.

When using port-to-port delivery option you need to consider inland transportation, port schedule, customs clearance and cargo insurance.

• Inland transportation is the movement of cargo from source to the port of loading and from offloading port to your address. This is facilitated by trucks or cargo trains.
• Port schedule is important to help plan around drop off and collection of goods from respective ports. Be sure to know the opening and closing times, working hours on weekend and public holidays. This will save you from unnecessary delay, inconveniences and port demurrages and surcharges.
• Customs Clearance is not part of port-to-port delivery services therefore, you need to arrange for them separately. You can arrange for the customs clearance using customs brokers of respective countries. this will save you the headache of paperwork and customs requirements.
• Cargo Insurance is important because it covers your cargos from unforeseen risks at sea. The carrier liability cover provided is not enough to make claims in case of losses thus the need for cargo insurance.
• Local charges such as release fee for bill of landing, port charges, etc. may not be included in the delivery service.

What port-to-port service quotation covers:

• Ocean freight cost is how much is charged for your cargo transport whether FCL or LCL.
• Container renting fee for cargo transportation
• Security fee applies for the security services offered while at sea.
• Cargo tracking by the freight forwarders from when the cargo leaves the port till arrival in USA port.
• Free time loading and offloading is the period between picking and dropping of container to the port for loading or unloading.
• Document issuing such as bill of lading is done at a cost
• Documents submission fee for destination specific documents filling.

Door-to-Door Delivery

Unlike port-to-port deliver this covers the shipping process end to end from source to destination.

It involves picking up of the cargo from the warehouse in the country of origin to the port of loading.

This is followed by port-to-port shipment as the second and main leg of shipment.

Custom clearance is covered in this process both at the point of entry and exit in Indonesia and USA respectively.

The freight forwarder then organizes for port to door in USA using their own means of transportation.

Handling costs, customs documentations, duties and tariffs as well surcharges are all covered in the door-to-door delivery services.

Advantages of using door-to-door services

• There are no many hands dealing with your cargo hence, there is a sense of security.
• All the services are included in the process
• It is fast and easy to track.

Express Services from Indonesia to USA

Express services help ship smaller freight from Indonesia to USA within the shortest time possible.

Their delivery time ranges from overnight, next day delivery to between 1 to 4 days.

The providers of express services are Dwarka courier, UPS, FedEx, DHL, TNT, Aramex, among others.

Using express courier services is easy, faster and you can make your bookings payments online once you create your account.

It is also possible to track your shipment and dictate the time of arrive in USA.

How to Ship from Indonesia to USA using Freight Forwarders

Freight forwarders are companies that facilitate end to end movement of freight seamlessly.

They do not own the ships, or airplane but work in collaboration with carriers to make this possible.

There are freight forwarders who specialize in ocean cargo and others, air cargo.

Services offered by Freight Forwarders

• They handle the entire shipping process for you
• Prepare all the shipping paperwork on your behalf
• Provide warehousing services
• They handle any problems that may arise during shipping

What to Consider before Settling for a Freight Forwarder

• Type of handling needed by your goods
• The price and services offered by the freight forwarder
• Area of geographical coverage

When Approaching Ocean or Air Freight Forwarder for their Services you will use the steps below:

1. Request for a quotation from the freight forwarder based in Indonesia giving full details of your shipment in terms of: Size, weight, dimensions, packaging, etc. This will determine the cost calculation and services to provide.
2. Once you agree on pricing and services, a contract is drawn indicating the terms of service, incoterms and insurance cover.
3. The freight forwarder will then arrange for goods collection or receipt from the source depending on the agreement.
4. The freight forwarder will negotiate for better shipping costs with the carrier for your goods and prepare the necessary documentation. Thereafter, they will drop the cargo to the carrier for shipment and track it while on transit keeping you updated.
5. Once goods arrive in USA at your airport or port, they will clear with the customs. Afterwards, you will be notifiedto collect or drop to your door step.

Containers Types to use when Shipping from Indonesia to USA

Standard Shipping Containers/Dry Vans

These are the 20ft and 40ft airtight containers that are used for general cargo transportation.

They are not fit with any temperature regualting device thus adopt prevailing enviromental conditions.

They can hold up to 11 pallets on theor fllor base when full.

Flat Rack

These are shipping containers that have collapsible sides and with no top part.

They are used in shipping of goods with measurements beyond standard height and cannot fit through the door.

The collapsible sides make them easy to load and unload