A Simple Guide to Shipping from China

In this guide, we’ll give you a simple walkthrough of shipping from China. We’ll unpack these terms in plain English so you can navigate the world of shipping with confidence.

Term 1: Incoterms
Incoterms are international standard codes that indicate where goods should be shipped from the supplier to the importer.
A common Incoterm is DAP (“Delivered At Place”). It just means that your goods will be shipped from suppliers in China to designated overseas locations. If you are in Wisconsin and have blue widgets shipped directly from the supplier to your warehouse, you will use the code DAP.

Another common code is FOB, which stands for “Free On Board”. This means transportation from the supplier to the port of export. However, it is your responsibility to arrange transportation to its final destination.
For example, you might ship whatchamacallits from your supplier to the port of Hong Kong. From there you need to determine how it gets to your warehouse in Wisconsin. can be found here
A complete list of Incoterms. Always be sure to tell your supplier what incoterms you want to get a shipping quote for. Otherwise, you may end up paying more than you expected. To recap: Incoterms are codes that specify how goods are transferred from suppliers to you.

Term 2: FCL and LCL shipping
① LCL (Less than Container Load) refers to goods with multiple owners in a container. If the quantity of your goods is small and the volume is less than 15CBM, the freight forwarder will help you with LCL transportation. This means that you have to share a container with other importers because your cargo is loaded with less than one container. LCL shipments are calculated in cubic meters.
② FCL (Full container load) refers to the situation where your cargo is large enough to fit one or more containers. In this case, the freight is calculated based on the entire container. Usually, it will be cheaper than LCL shipping.
Term 3: Shipping Container Volume

Generally, there are 4 options when it comes to shipping containers.
FCL 20 feet
FCL 40 feet
FCL 40ft HQ
FCL 45ft HQ
Term 4: Cargo Insurance
Cargo insurance is exactly what it sounds like: insurance for shipping cargo. If something goes wrong and your cargo is hijacked by ferocious pirates, cargo insurance will cover your losses.
Incoterms specify who is responsible for insuring the goods. Insurance is automatically included in the Incoterm CIF (Cost Freight and Insurance). If you use the Incoterms DAF or DAT, you must tell the shipping company that you need to insure your shipment.
Thankfully, insurance is usually not expensive, usually between $50 and $100.
Term 5: Amazon FBA warehouse
Today, it is common for importers to ship directly from China to Amazon FBA warehouses. Amazon handles all distribution of products from these warehouses.
So, for example, if you sell essential oils from China on Amazon, you can ship them directly to an FBA warehouse, and Amazon will handle the shipping for all your sales. This saves you time and shipping costs.
But here’s the deal: Amazon has very strict rules about receiving packages at its warehouses.

Everything must be labeled according to Amazon’s standards.
Everything has to be on the tray.
Everything has to be forwarded to an Amazon address using DAP and DDP incoterms.
If you don’t meet these specs, you will have problems.
Term 6: Export Packaging
The last thing you want is for your cargo to be damaged in transit. Damaged goods lead to lost sales and plummeting revenue. Knowing how to pack your goods is critical for you.
It’s also important to be clear with your suppliers, as they may not adhere to your standards. It is not uncommon for suppliers to use cheap packaging materials, which can lead to breakage.
China Import provides a useful shipping checklist:
Inner box: 5 layers
Outer box: 5 layers
Plastic Packaging: Yes (on the outer carton)
Tray: Yes (ISPM 15 EU standard)
Shipping Note: Yes (printed on the outer box)
Again, be clear with your supplier. Don’t let things be ambiguous. If possible, please provide instructions on how the item should be packaged.
Also, if any other regulations need to be considered (such as lithium batteries), be sure to state those regulations as well. Failure to comply with these regulations may result in penalties and delays.
Term 7: Container Tracking
A container tracking system lets you know where your ocean cargo is in the world and provides you with port details. You can keep track of the container’s current location at any time. To track container location, you need to specify container number/bill/booking number and shipping company. Using any of these three references, you can track the container and see where the container is.
Term 8: Bill of Lading
A bill of lading is a required document for shipping the goods. Bills of Lading (BOL) are used as freight service receipts, contracts between freight carriers and shippers, and documents of title. A bill of lading is a legally binding document that provides drivers and carriers with all the details needed to process the shipment and properly invoice it.
Term 9: Amazon FBA warehouse
Today, it is common for importers to ship directly from China to Amazon FBA warehouses. Amazon handles all distribution of products from these warehouses.
So, for example, if you sell essential oils from China on Amazon, you can ship them directly to an FBA warehouse, and Amazon will handle the shipping for all your sales. This saves you time and shipping costs.
But here’s the deal: Amazon has very strict rules about receiving packages at its warehouses.
Everything must be labeled according to Amazon’s standards.
Everything has to be on the tray.
Everything has to be forwarded to an Amazon address using DAP and DDP incoterms.
If you don’t meet these specs, you will have problems.