Trade Terms – EXW/FOB/CIF/DAP

These are four common terms of trade (aka incoterms) when buying from China. A
product price is always quoted according to an Incoterm.

Basically how much of the shipping you pay the supplier to handle. Based on the
incoterm you select, you can let the supplier handle the goods transportation to
 no further place but the factory/manufacturer, which is EXW
 a nearby port in China, which is FOB
 a nearby port in your country, which is CIF (including maritime insurance)
 all the way to your facility, which is DAP/DDU (not including tariff and taxes)
In brief, it can be divided into 2 categories.
 EXW and FOB means you – the buyer can use your own freight agent and pay for
their services directly.
 Other term means the seller use their freight agent and you still pay for that.
Commonly, you can find the term states clearly in the Proforma Invoice or Quote
Sheet provided by the seller. If not, advise the seller to add into the papers to avoid
any further confusion even dispute.
When you compare prices from several suppliers, make sure they are based on the
same term. For example, A-seller quoted EXW $5/unit while B-seller quoted FOB
$5.5/unit, it doesn’t mean the price from B-seller is not more competitive than A-
seller.
* Most suppliers will quote EXW or FOB price at the beginning, and are flexible in
providing different price based on different term upon your request.
CFC’s Suggestion
If you are new to importing, and haven’t found the right forwarding agent, you’d better choose an
incoterm that takes the cargo as far as possible, until you are definitely sure you can handle the
rest.
But since you have us, we suggest you can select EXW or FOB, and let us assist you manage
the transportation to your port or to your door.
 Please note: Even to-door service, unlike parcel delivery companies (Fedex, UPS,
etc.), common FTL/LTL carriers typically only provide dock-to-dock service or
curbside delivery where the driver does not touch the freight. This is known as “Dock
to Dock” or “Shipper Loads / Receiver Unloads”. So commercial dock or curbside
delivery only. Residential or inside delivery means extra fees.
EXW or FOB?
Quite a few buyers seek advice from us about choosing EXW for the max control of
the goods.
Generally yes, but it depends.
The difference between EXW/FOB is if the seller handle the internal trucking to the
port, prepare customs documents, and pay local fees accordingly.
Pickup from anywhere in China mainland will be ok for us. But exporting customs
clearance may be in trouble for some certain products, such as wooden furniture.
Since Commodity Inspection (a document issued by the Entry-Exit Inspection and
Quarantine Bureau) is mandatory for a few goods, and it has to be done by the
producer/manufacturer.
The best practice:
 If the shipment is just samples or small (under 150kgs and 1cbm), select EXW.
 If the shipment is to Amazon FBA warehouse, select EXW.
 Other cases, request the seller quote based on FOB AND list the FOB fees
separately, then we can tell if it’s too much or reasonable.
Insurance?
Marine insurance is very cheap, rough US$50-US$100 based on the shipment
invoice value.
There’s no reason not to have your consignment insured with a little additional
money. It will cover the transportation damage, but please note it doesn’t cover any
quantity or quality issue.

Container Type – 20’GP/40’GP/40’HQ

These three types are the most common ones used for container shipping.
20’GP = 20’DV = 20FT = 20′ = 20 feet general purpose
40’GP = 40’DV = 40FT = 40′ = 40 feet general purpose
40’HC = 40’HQ = 40 feet high cube
* General purpose commonly means Dry Container (DC). Sometimes if fluid goods
are packed by a flexible container bag, it can also be delivery by standard DC.
 20’GP is designed to carry more weight than voluminous cargo.
Example – minerals, metals, machinery, etc. all of which are heavy goods.
40’GP is designed to carry voluminous cargo rather than heavy cargo.
Example – furniture, tyres, toys, etc. all of which are voluminous goods.
Though the volume of 40ft is twice than the 20ft, the max load of both is the same,
no more than 27~28 ton in China, most cases under 20 ton. While you can load
more than double the 20ft cargo volume into a 40ft, you cannot load double the 20ft
cargo weight into a 40ft.
The ocean rates from China for a 40′ container is less than double of a 20′ container
– you may take it as rough 1.5 times for easy reference. And the 40’HQ cost the
same as the 40’GP, sometimes higher US$100~200.
In addition to the above three common containers, there are special types if your
cargo is not so regular, such as Reefer Container, Open Top Container, Flat-Rack
Container, Tank Container, etc.
No matter which type of the container is, you can find many useful data printed on
the door, such as CNTR NO., MAX. GROSS, TARE, NET, CU.CAP…
CFC’s Suggestion
You can buy just the quantity products you need, and forget about how much space it takes. But
sometimes it may cost additional $1000 for the extra from the full container. This is not necessary
in most cases.
You’d better request the quote based on the quantity you want, and let the seller also advise the
weight/volume data.
 If it’s less than 15 cbm, that’s fine, go ahead.
 If it’s more than 15 cbm, you may consider buy more to load into a full container.
 Shipment Type – FCL/LCL
FCL, full container load, which means your goods loading into a full container. You
buy large quantity, and the freight cost per unit will be less. It’s from CY (container
yard) to CY.
LCL, less than container load, which means your goods and other importers’ goods
consolidating together from the same loading port to the same destination port. You
buy the just right quantity suitable for your specific target market. It’s from CFS
(container freight station) to CFS.
A FCL may load LCLs like this:

Packaging
Your cargo must be sufficiently protected, from the factory to a loading port
warehouse, and stacked in a container for up to a month. Then to a discharge port
warehouse, and finally on a truck to you.
A lot can happen in this time, and you need to be sure that your export packaging is
up for the task.
 Inner cartons: 5 layers
 Outer cartons: 5 layers
 Plastic wrapping: Yes (on Outer carton)
 Pallets: Yes (IPPC ISPM 15 Standard)
 Freight remark: Yes (Printed on outer carton)
Here’s the common pallet size.
 1200*1000mm or 1200*800mm, for Europe
 1140*1140mm, for Australia
 40*48inches (1016*1219mm), for the U.S.
You’d better provide the shipper with explicit and clear export packaging
specifications. Do not leave anything to their interpretation, and provide graphical
examples whenever possible.
LCL vs. Courier
A question for you. If your shipment is less than 1cbm, for example, 0.4cbm with
50kg, still LCL?
Please note the minimum billable weight/volume for LCL is 1 cbm or 1 ton.
You may think delivery via sea is always cheap. But in fact, courier such as
DHL/UPS/FedEx is more competitive for this kind of small package. Generally
speaking, it’s better to choose express courier than LCL for the billable weight of a
shipment under 100kg, sometimes even 200kg for certain destination countries.
LCL rate = total ocean cost?
You may get the quote – ocean rate $40/cbm to your port. Please be cautious and
try to have a clear thought first. Don’t take it for granted that that’s your freight cost.
Actually, it’s just a small percentage of the total cost. Much more will be charged at
the destination.
As you can imagine, loading a few LCL shipments into FCL before departure and
unloading them after arrival, it takes quite a lot of time and efforts. Not only the
physical in-out, but also complicated shipping documents. The unit LCL freight price
should be higher than unit FCL.
CFC’s Suggestion
You can choose FCL or LCL as you wish. But there’s a basic rule you should follow.
 If 1cbm~8cbm, choose LCL;
 If 8cbm~15cbm, choose FCL or LCL based on practical situation;
 If over 15cbm, choose FCL without any hesitation.
Why? Click here to dive into.

Major Ports – Top 9 Busiest Container Ports

Sea shipping starts from a port and end at a port, which means a standard container
rate or less than container rate is port-to-port.
Among the world’s top 10 ports in 2017, more than half are located in China, actually
7 of 10. Here’s a rundown.
Ocean Port Volume 2017 ('000 TEUs) Rank - China Rank - Wo

Shanghai 40233 1 1

Shenzhen 25209 2 3

Ningbo-Zhoushan 24607 3 4

Hong Kong 20770 4 5

 Ocean Port Volume 2017 ('000 TEUs) Rank - China Rank - Wo

Guangzhou 20356 5 7

Qingdao 18310 6 8

Tianjin 15069 7 10

Xiamen 10380 8 15

Dalian 9700 9 17

1. Shanghai
Location: Shanghai Municipality, East Coast
Website: www.portshanghai.com.cn
Situated at the tip the of the Yangtze River delta, enjoys the most economically
developed hinterland in China, and can extend its reach further to the interior
provinces via river ports along the thousands-mile-long waterway.
There are innumerable factories of neighbouring Jiangsu and Zhejiang provinces.
2. Shenzhen
Location: Guangdong Province, South Coast
Website: www.szport.net
This is the gateway to Hong Kong and the Pearl River Delta, making it another key
port as it connects China’s southern hinterland to the world.
Qianhai-Shekou Free Trade Zone, which covers entire west port area, provides more
efficient customs clearance and better trade links with overseas markets.
3. Ningbo-Zhoushan
Location: Zhejiang Province, East Coast
Website: www.nbport.com.cn
Ningbo continues to be blessed by its superior hinterland and natural conditions,
while Zhejiang is a wealthy region, which has a full-blown manufacturing industry.
Following efforts to build an efficient intermodal transport network, Ningbo has
extended its reach further into the hinterland, to central and west China, bringing
greater box volumes to the port.
4. Hong Kong
Location: Hong Kong Special Administrative Region, South Coast
Website: www.mardep.gov.hk
HK, as a transhipment harbour for cargoes mainly focused on China’s exports and
imports, provides about 340 container liner services per week, connecting to around
470 destinations worldwide.
It’s on the way into an “international shipping service hub”, which has core
competencies in the maritime services sector, including shipmanagement,
brokerage, leasing and financing.
5. Guangzhou
Location: Guangdong Province, South Coast
Website: www.gzport.gov.cn
Located in the Pearl River Delta, Guangzhou has historically been a key centre of
trade in China. It strives to make itself into a truly international shipping hub within
the Maritime Silk Road component.
It provides additional origin port options for importers, exporters, third-party logistics
companies and ocean carriers, as well as promoting the Nansha Port Area. Port fees
and berthing fees will also be reduced by 2018 to attract more liners.
6. Qingdao
Location: Shangdong Province, East Coast
Website: www.qingdaoport.net
Qingdao is most important port in northern China and part of the vital Bohai Bay port
cluster that serves this region. It is also going big on data, automation and e-
commerce, in line with top global ports.
It’s the starting point for the first Qingdao-Central Asian international cargo train in
July 2015, with the capability to link up with the countries of Kazakhstan, Uzbekistan
and other strategic countries through to Europe.
7. Tianjin
Location: Tianjin Municipality, North Coast
Website: www.tianjinportdev.com
Tianjin is one of the largest and busiest ports in China, and second only to Qingdao
port in capacity in northern China. The port’s container-handling business remained
steady, additional domestic and international routes are developing.
It will accelerate the development of its container business, consolidate the scale of
existing routes, develop new international routes with stable supply and explore new
routes to emerging markets.
8. Xiamen
Location: Fujian Province, South Coast
Website: www.portxiamen.gov.cn
Xiamen sits in the mouth of the Jiulongjiang River and has over 68 shipping routes,
shipping to over 50 countries and has strong links with Kaohsiung in Taiwan.
9. Dalian
Location: Liaoning Province, North Coast
Website: www.portdalian.com
The port of Dalian is the most northern ice free port and is the largest port in North
East China with links to ports in over 160 countries. It also serves seaports in East
Asia, North Asia and the Pacific Rim.
It has hopes of future benefits from China’s One Belt, One Road policy, by opening
international container routes, and using multimodal transport systems. The group
has also pursued aggressive marketing strategies to support the port.
It is looking to utilise its competitive advantage in intermodal transportation to
collaborate with the relevant authorities to expand the railway network from China to
Europe, thus linking up the maritime transportation of container.
You can use our resource page to monitor your shipment status at the loading port.
CFC’s Suggestion
You don’t have to pay much attention on the geographical location of your potential vendor. No
matter where your Chinese supplier located, your goods are never too far from one of the world’s
largest and most productive ports ready to ship your goods out of China.

Major Carriers – Top 16 Biggest Players

There are 79753 vessels totally, 5064 of them are containerships (data till 05-2017).
Now the biggest container vessel has the capacity of more than 20,000 TEUs.
Here’s a table below showing the Top 13 Big Players in Container Shipping (04-
2018).
Short Flag
Carrier Total TEU Share
Name Cou

APM-Maersk MSK 4,156,391 18.9% Den

Mediterranean Shg Co MSC 3,227,760 14.7% Italy

CMA CGM Group CMA 2,519,906 11.5% Fran

COSCO Shipping Co Ltd COSCO 1,954,044 8.9% Chin

Hapag-Lloyd AG HPL 1,601,599 7.3% Ger

ONE (Ocean Network Express) ONE 1,515,235 6.9% Japa

Evergreen Marine Corp. EMC 1,088,509 5.0% Taiw

Orient Overseas Container Line OOCL 685,798 3.1% Hon

Yang Ming Marine Transport YML 652,605 3.0% Taiw

Corp.

Pacific Int. Line PIL 416,765 1.9% Sing

Find more about China shipping routes.

CFC’s Suggestion
 The carriers are more centralized than ever before. They have formed into 3 alliance –
2M+HMM, Ocean Alliance, The Alliance.
It’s almost impossible to negotiate a better price if you are a small or medium company. Simply
choose the earliest available vessel after production ready, that should be all right.

Freight Cost – Ocean Rates

The general ocean rate includes the base rate and surcharges, but NONE customs
clearance and port charges at both sides, duty & taxes may occur, and other
miscellaneous charges.
Please note that all international shipments are subject to destination charges:
 Destination country customs related fee (i.e. Duty/Tax)
 Destination port/terminal handling fee (i.e. THC)
 Destination agent service fee （i.e. D/O）
1. Type
1.1 FCL rates
By the loading port, the destination port, the container type/weight/quantity.
For example: How much does it cost to ship a 40′ container to Australia?
It cost rough US$1,000 for shipping 1×40’GP from Qingdao port to Sydney port.
1.2 LCL rates
By the loading port, the destination port, the volume, the weight, the volume/weight
ratio.
For example: How much does it cost to ship 10 cartons to Canada?
It cost rough US$65 per cbm for shipping 6cbm light goods from Shanghai port to
Vancouver port.
1.3 To door rates
By HS Code/volume/weight/quantity/packaging/value/…
Also please note some related costs during an import process,
 Transportation to Port of Loading
 Export customs declaration
 Loading port fees
 Ocean freight charge
 Insurance
 Destination port fees
 Import customs clearance
 Customs duty/tax
 Transportation from the Port of Destination
To-door means the destination charges and fees are prepaid.
All these fees make up the landed cost. Never assuming the basic shipping charges
plus the products cost as your total cost.
For example, a port-to-port quote, EXCLUDE all destination charges, which may
include: terminal fees, handling charges, customs clearance/inspection, duty and
Tax (if applicable), delivery to your address, storage, insurance, etc.
Destination charges vary depending on a destination country, carrier and the delivery
agent. Guiding the consignee in the complexity of cargo recovery procedures is
responsibility of carrier’s destination agent/broker.
2. Change Frequency
The international shipping industry, and the freight rates within it, are always volatile.
There are plenty of variables that factor into it, including but not limited to capacity,
demand, oil bunkers, market perceptions, seasonal behaviors, labor issues at ports,
congestion, disruptions, and strength of economies.
Unless you have a rather large consistent quantity (10 plus containers per month)
then you’ll not likely to get a quote for longer than two weeks.
It may vary every week. Sometimes, if your supplier could catch up the earlier route
by finishing the production one or two days earlier, you can save quite a bit. The
price for 1x40ft container may increase US$1200 in the next week schedule.
US$1200+? Yes, it happened.
So knowing the rough date your shipment ready is essential for requesting the exact
quotation.
Generally, ocean FCL rates are generally valid for up to two weeks at a time
(expiring on the 15th and 30th of each month). LCL rates may last a bit longer,
usually expiring at the end of each month.
3. Season Impact
Seasons with rain, storm or snow may impact the in-and-out for trucks and vessels,
but busy seasons for shipping don’t necessarily coordinate with any other typical
seasons of the year.
Peak season for China exports, is typically the month before Chinese New
Year (January), and the 3rd quarter of each year (From July to September) when
many made-in-China products shipping for Back to School, Halloween and
Christmas.
The freight cost will be relatively high at these times, because too much shipments
waiting for delivery. You’d better plan accordingly as there is a finite number of
containers and vessels available.
This is only a brief introduction. It’s so complicated to calculate the freight rates. You
can learn more from here, or just leave it to the pros.
CFC’s Suggestion
When you request the quote, you need to get the rough shipment data from your supplier first,
including:
How many packages? Package weight and dimension? How many days for production? The
trade term?
Even you have not make the decision to proceed to buy, you may still advise the seller to provide
the rough data. After got the freight quotation from us, you can have a clear thought about the
total landed cost.

How Long – Transit Time

Estimated Transit Time (ETT) is the time between the Estimated Time of Departure
from origin (ETD) and the Estimated Time of Arrival at the destination (ETA).
As for sea cargo transportation out of China, there’s only a very rough idea showing
below. You can find the schedule link of each carrier for reference.
 Region How long

USA & Canada (West) 20 days

USA & Canada (Eest) 30 days

Western Europe 25 days

Northern Europe 30 days

Southern Europe 27 days

Australia 15 days

India 15 days

Southeast Asia 9 days

Eastern Africa 30 days

Western Africa 40 days

Japan 3 days

South Korea 4 days

South America (East) 30 days

South America (West) 45 days

Please note that there maybe 5~10 days differences in practical transportation, vary
from different loading port, different destination port, and different carriers.
Here’s an example showing each time cost for different ocean carriers from Qingdao
Port China to Hamburg Port Germany.
Different carrier How long

By EMC 33 days

By KLINE 31 days
 Different carrier How long

By YML 31 days

By OOCL 32 days

By ANL 30 days

By MSC 38 days

By COSCO 34 days

By NYK 32 days

By WanHai 34 days

By CSCL 31 days

By CMA 30 days

By PIL 33 days

By CSAV 37 days

By UASC 28 days

By HPL 32 days

ETDs and ETAs are never guaranteed by the sea carrier and are subject to change
at any time. Also keep in mind that it can take upto 7 days before the cargo is loaded
at the loading port. The same thing is true at the destination port, 1 week or more for
discharge and dispatch.
Container carriers’ reliability is not so dependable, and the global on-time
performance percentage is rough 60%-80%. Click here to find your shipment transit
time.
CFC’s Suggestion
Transportation by ocean is quite slow, which means you need to do some significant planning,
and have generous margins for the possible delays. Besides, most manufacturers in China don’t
stock any products, and only made-to-order.
So place your order as early as possible. We suggest 3 months in advance. For example. If you
need your goods ready for the Christmas season, you’d better place your order in August or even
earlier.
You can also split up your shipment into 2 parts: small percentage by air, rest by sea.
 Track and Trace – Container Tracking
Sometimes your shipment is late than schedule. Maybe the bad weather, the port
congestion, the routing change, etc. The schedule reliability is no better than 80%
among the global lines.
Cargo tracking will let you well known the most accurate ETA, then you can get
prepared and notify every party involved.
Container tracking means you are being aware of where your shipment is located, so
you can prepare accordingly.
In order to track a container, you need to know which shipping line is transporting
your cargo, and the container number, booking number or document number (any of
them is usually good enough).
All the information you can easily find on your Bill of Lading. The booking number &
B/L number are listed on the top right, and the container number is usually under the
item of “Marks & Nos.”.
According to our practical experiences, the container number should be preferred.
This number consists of three-letters Owner Code (prefix), one Product Group Code,
six-digits Serial Number and a check digit. For example:

Where the Product Group Code, aka category identifier can be:
 J: detachable freight container related equipment
 R: reefer (refrigerated) containers
 U: general freight containers
 Z: trailers and chassis
CFC’s Suggestion
1. Quite a few carriers provide email alert when the goods moved. Take advantage of that.
2. You’d rather pay the balance to the supplier or pay the freight cost to the forwarder as early as
possible, to release the shipment. Not wait till the last several days to process the payment. If
there’s a payment problem, the additional warehousing and storage fees could go up by
hundreds to thousands of dollars.

Upon Arrival – Clearance and Pickup

Goods may only be entered by their owner, purchaser, or a licensed customs broker
designated by the buyer. Normally the consignee will be notified via an arrival notice
within 5 days or less of port arrival, by the delivery agent listed on the B/L.
 Several documents need to be filed with customs before your shipment arrives at
port. Customs also require an earlier lodgment (ISF/AMS for the US, ACI for
Canada, ENS for the Europe), for ocean freight only.
The consignee is then responsible to file entry documents to the customs, arrange
for payment of any duties, taxes, and other fees. Finally it’s time to pick up and to-
door delivery from the discharge port by yourself or through a trucking company.
Here’s how a customs official will process your shipment:
1. Inspect the paperwork.
2. Determine if duties apply.
3. Request duty payment.
4. Following confirmation of payment, release the shipment for pickup.
Unless there’s a problem, ocean freight is generally cleared within 1 or 2 days of the
ship landing in port.
You might just get caught up in a random inspection/exam. Non-intrusive inspections
are fairly quick, but an intensive exam could take more than a week. Non-intrusive
inspections cost around $275 at major ports, but an intensive examination costs
around $800, not including third-party transport and storage costs.
Clearance involves preparation and submission of papers required to the authority.
It’s so complicated and you’d perfer find a customs broker for assistance. Smooth
clearance can avoid further unnecessary detention and demurrage fees.
CFC’s Suggestion
When your shipment departed from China, you’d better prepare the shipping documents as early
as possible. Some of the documents involved in clearance are:
 Bill of Lading (released or original)
 Invoice
 Packing List
 Certificate of Origin
 Other specific papers
Most of the papers will be provided by the seller. After got them, check it first to make sure the
information is complete and accurate. Then you can forward them to your customs broker, and
get ready to pay any customs fees occur.

What CFC Can Do for YOU?

Our Mission is to always meet or exceed customers’ expectations by implementing
supply chain solutions that provide customers with the least cost, best service
logistics network.
CFC specializes in transportation management services for manufacturing
companies, wholesalers, distributors and online sellers that receive products from
China.
 All China EXW/FOB ports available
 Fast, accurate, obligation free quote
 Easy, simple, direct online booking process
 Vessels departing China every 7 days or less
 Competitive ocean freight rates on all shipments
 Exclusive access to all your related shipment documentation
 Delivered to worldwide Port/CFS/Door (Container Freight Station) of your choice
 Conveniently track online and pre-alert email updates when anything changed
Process with CFC
1. You fill and submit our quote form with your shipping details. (Quote)
2. You can expect the response within 12 hours.
3. We discuss more, and come to an agreement.
4. You or your supplier fill and submit our booking form. (Book)
5. We contact your supplier and recheck everything needed, then book the space from
the carrier.
6. We or your supplier arrange inland delivery to the port.
7. We arrange customs declaration and forwarding the goods.
8. We send the copy bill of lading for your check once your goods have loaded on
board.
9. You pay the shipping cost as we agreed. (Pay)
10. We send the original bill of lading or telex release to you.
Quote → Book → Pay, job done from your side. Let us do all the rest heavy job
without disturbing you.
We’ll keep tracking your shipment and keep you updated till received. CFC uses our
strong carrier relationships to help our clients keep their freight costs priced
competitively.
You have a local freight partner, you have better control of your supply chain
management with money saving.
Shipping to Amazon FBA Warehouse
Nowadays, more and more importers ship their products directly from the
manufacturer in China, to an Amazon fulfilment center. From there, Amazon manage
the storage and distribution.
Amazon can not be used as the consignee, importer of record or final address when
shipping from overseas. They do nothing during the whole process except as the
receiving place. You need to comply with their strict principles and rules.
 Must be labeled
 Must be DDP
We handle the shipping to Amazon quite ofter. You can rely on us if you are an
Amazon seller.
A quick suggestion
Importer Experience Incoterms Quantity Shipping Managemen

New CIF or DAP LCL Supplier or Freight For

Medium CIF or FOB LCL or FCL Supplier or Freight For

 Importer Experience Incoterms Quantity Shipping Managemen

Veteran EXW or FOB LCL or FCL Freight Forwarder

If you are brand new, let the supplier handle the delivery as far as possible. Then
you can focus on booming your business. Simple but costly.
If you have gained some experiences, then you can try to control your goods delivery
through a forwarder by yourself. Simple and cheap.
It’s your choice. We suggest contact a good forwarding agent as early as possible,
especially a local one with international shipping options, hopefully CFC. They can
be helpful in many ways, not only the logistics process, but also supply chain
management.

We hope we were able to make things clear for you.

If you are looking for more information please let us know, and we will get back to
you as soon as possible.
Find more about air freight services or express delivery services.

Air freight is a safe and efficient way for immediate transportation. Air cargo always
has high value-to-weight or have a severe timeline.
At CFC, we want to be your single source for your supply chain solutions. We do this
by working in virtually every aspect of the logistics management, including shipping
via air.
Here this page will guide you to China air freight, including the advantages, cargo
types, a sample airway bill, shipping process, china main airports list and more.
Keep reading.

Air Freight Terminology

AWB
Air Waybill, is a non-negotiable transport document issued by the carrier (Master
AWB) or the agent (House AWB), which indicating that the carrier has accepted the
goods listed therein and obligates itself to carry the consignment to the airport of
destination according to specified conditions.
IATA
International Air Transport Association, which supports airline activity and helps
formulate industry policy and standards of the world’s airlines.
ETD: Estimated Time of Departure
ATD: Actual Time of Departure
ETA: Estimated Time of Arrival
ATA: Actual Time of Arrival
ETT
Estimated Transit Time is for estimation purposes only and commonly can NOT be
guaranteed although most shipments will depart and arrive as scheduled.
Dangerous Goods
Commodities classified by IATA according to its nature and characteristic in terms of
the effect of its danger to carrier’s flying safety.
Dimensional Weight
Aka Chargeable Weight or Billable Weight. Carrier charge for freight based on the
dimensional weight or actual gross weight whichever is higher.
MOQ
The MOQ is 45 kgs. The rate class is +45kg, +100kg, +300kg, +500kg, +1000kg.
The courier cost less if < 100kg for most destination countries.
ULD
You can simply take it as air container just like sea container. Not much attention
needs to pay.
* If the cargo exceeds below the weight and volume, the carrier can determine the
allowable maximum limit and volume cargo base on the flight model, departure and
destination airport handling equipment conditions.

Air Freight Advantages

The best thing with air shipment is speed.
In general, the transit time from China is no longer than 10 working days. Only 3~5
days in most cases. This is a vast reduction compared to ocean freight. Nowadays,
the fast delivery time alone can make a huge impact on a business niche.
Please note that air freight is just to-airport delivery. You or the freight agent needs
to handle the customs clearance and inland transportation to your warehouse, while
courier services such as DHL/FedEx/UPS/TNT can be the one stop to-door delivery
provider.
 Air freight = airport-to-airport
 Air courier = door-to-door

Air Freight Air Express/Courier

Weight 100 - 3000 kgs 0.5 - 150 kgs

Volume > 1 cbm < 1 cbm

Transit Time 2 - 7 days 2 - 5 days

Upon Arrival Airport None Clearance and to-door delivery

Air Cargo Types

By cargo properties, they can be divided into
 General cargo
 Special cargo
1. General cargo
Such as electronics, Jewelry, pharmaceuticals, wristwatches are high value. The
electronics industry accounts for around 40% of the value of the entire international
air cargo industry.
They need to be transported in a very good condition. The air shipping cost more
than sea shipping, but means nothing compared to the value amount of products.
2. Special cargo
Including living animals, goods that are dangerous or need temperature control. For
example, some chemicals are dangerous goods, and seafood that requires
refrigeration and freezing during the whole-course cold chain transportation.
Perishable or hazardous goods are subject to different regulations, compared to
general cargo. They have to pass through various inspections and need to meet
numerous requirements, and not every airline can accept these items.
Make sure that you advise in detail about special goods you want to ship.
Because leaving out any detail might lead to penalties/extra fees and denial of
shipment.
Most of the special cargo can be classified as general after tested by the authority.
And there should be a report – Identification and Classification Report for Air
Transport of Goods shown to the carrier before loading.
2.1 Powder
2.2 Chemical
2.3 With oil or liquid
2.4 With battery
2.5 With magnet (needs magnet test)
2.5.1 Audio accessory and equipment
2.5.2 With motor inside
Other restrictions will apply due to national laws and regulations of specific airlines.
 Please note that most of the airlines are saying NO to the following names or
descriptions of the commodity: Lithium Battery Toys, Scooter, Hoverboard, Power
Supply, Power Bank, Air Bag, Electric Board, Electronic Board.

Dimensional Weight
Air cargo rate is calculated by chargeable weight, measurement unit is kilogram. The
measurement unit of valuable cargo is 0.1 kg. Chargeable weight is the heavier one
between gross weight and dimensional weight.
Volume Unit Dimensional Weight

By air freight cm³ Volume/6000

By express courier cm³ Volume/5000

* If the weight is less than 21 kg, then the minimum chargeable unit is 0.5 kg; If more
than 21 kg, then 1 kg.
* To calculate air goods volume L x W x H in inches divided by 366 = weight in
kilograms
We have detailed this topic via here.

Air Waybill (AWB) Sample

If you have read our blog about Bill of Lading, you can also understand the AWB.
AWB is almost the same structure as Ocean Bill of Lading (OBL).
An Air Waybill is a documentary proof of the contract of carriage between the shipper
and the carrier.
It also serves as:
 a delivery receipt
 a receipt of goods for shipment
 a document required for Customs clearance
 a form of invoice for the carriage of the goods
 an insurance certificate (if the insurance cover was arranged through the airline)
 a dispatch note, bearing a list of all accompanying documents, and any special
instructions given by the shipper
Difference between AWB and OBL
The rule of AWB played in an international shipping is almost the same as OBL,
but AWB doesn’t serve as a document of title. This is the most significant difference.
The words non-negotiable are printed at the top of the Air Waybill, and must not be
changed or removed.
The AWB will be delivered with the air cargo. So as soon as the plane departs from
the loading airport, the cargo rights will be transferred to the consignee. The
consignee can only show their identification to claim the shipments. The AWB cannot
be transferred. That’s why you have to pay freight costs before departure from
China.
“Rate Charge”
 There’s a column called “Rate Charge” in the middle of an AWB. This rate will be
automatically generated by the airlines according to IATA, and can NOT be modified.
The charge shown is higher than you really paid.
This is the all-in billable weight rate, calculated by:
 GCR (General Cargo Rate)
 SCR (Specific Commodity Rate)
 CCR (Commodity Classification Rate or Class Rate)
 BUC (Bulk Unitization Charge)
Air cargo tracking
Each AWB has its unique number. You can find this number on the head section. By
submitting the number on the tracking page of the airline’s official website, all
updated tracking information will be available.
The bill format is 2 airline code + 3 numbers as prefix + several numbers. Example,
Air China Cargo, CA as the airline code, 999 as prefix.

Tracking & Tracing from Air China Cargo

Some carriers will provide a free service called email alert. When the goods moved,
the updated status will be sent to you shortly. Take advantage of that.

Top 10 International Airports in China

In international air transport, there are standard short name of each airport created
by IATA. The airport short name is formed by three capitalized letters for easy
recognition.
PEK – Beijing Capital International Airport
HKG – Hongkong International Airport
CAN – Guangzhou Baiyun International Airport (CA/QR/TK/EY/MS/NH to Middle
East and Africa)
PVG – Shanghai Pudong International Airport
SHA – Shanghai Hongqiao International Airport
CTU – Chengdu Shuangliu International Airport
SZX – Shenzhen Baoan International Airport (CA/HU/CZ/MU to Europe and North
America)
KMG – Kunming Changshui International Airport
XIY – Xi’an Xianyang International Airport
HGH – Hangzhou Xiaoshan International Airport

Main Airlines’ Shipping Routes

1. Southeast Asia, Australia, and New Zealand
BR, CA, CZ, FM, GA, KE, MH, SQ, MU, BI, NX, NZ, PR, QF, TG, UO, 5X, ZH, AI,
VN, 9W
Airline Direct Destinations

MH KUL PEN CMB DAC DEL HYD SYD MLE BEY DXB JED JN

SQ SIN SYD MEL AKL BNE

VN SGN/HAN DAD RGN PNH

QF SYD/MEL/DRW

2. South Asia, Middle East and Africa

EK, EY, ZP, MU, SU, PR, CA, UW, CX, QR, MH, CZ, SV, TG, TK, BI, SQ, AI, GA,
BA, HU, 9W, W5, ZH, ET
Airline Direct Destinations

EY MAA/AUH/DEL/BOM AMM BAH BEY DMM DOH DXB KWI JED IKA SHJ L
ACC ADD JNB CAI

EK DXB AUH SHJ DWC IST IZM ADA ANK DAR EBB KRT NB
BOM DEL CMB MLE DAC ISB

SV RUH LOS JNB KRT ADD TUN ALG DKR

3. Europe
CZ, MU, CA, BA, KL(MP), UPS, RU, Y8, GD, EK, SV, CX, EY, KE, OZ, JL, TK, AY,
SU, LX, TG, ZP, QR, BI, HU, MH, ZH, 6U
Airline Direct Destinations

UPS CGN AMS BER BOD BRE BRU CDG DTM DUS FRA FMO H
HHN LUX MUC SNN CPH ZRH

SU SVO/HHN ATH BUD LCA WAW PRG AMS BER BRE BRU BSL C
DUS FMO FRA HAJ HAM BCN CPH LON MIL NCE RO
VIE

CA CPH/VIE/MXP/FRA AMS ANR ATH BCN BRE BRU BSL BIO CGN HAM LU
NUE ROM RTM
4. America
MU, F4, BR, QF, Y8, UPS, PO, SQ, CX, KE, OZ, JL, UA, AA, CO, AC, AM, HU, BA,
LX, EK, PR, CZ
Airline Direct Destinations

AA ORD/LAX JFK DFW MIA YYZ YUL ATL CLT PHX BNA CVG CLE DTW IND
MKE SDF MSP STL SFO SEA SDQ STI

AM LAX/MEX GDL GUA SCL MTY SCL SJO LIM BOG EZE

CO EWR YYZ MEX MTY GDL GIG GRU EZE

PO LAX/CVG AUS DEN DFW IAH MIA SEA SFO SLC YVR ABE ABQ ALB ATL
CLT DFW MCI LAS JFK JAX EWR

UPS ANC ORD JFK EWR GDL MEX MTY SAP SJO SJU TGU CCS EZE

Air Transport vs. Sea Transport

Factor Air Transport Sea Transport

Distance Air is most preferred for a direct city to city Sea is preferred for shi
transport and on the most direct routes that need to travel grea
between countries. distances spanning the
oceans.

Type of Unless special aircraft chartered, there are Apart from the tradition
Cargo limited dimension and weight for loading. or box freight, sea is als
to transport heavy equi
cranes, project cargoes

Time This mode is chosen mostly due to its quick A transit time of a mont
Sensitivity transit time and their usually reliable point to point is quite no
scheduled arrival and departure times. a sea freight shipment.
Benefits may be lower inventory carrying
costs and the opportunity to capture market
share.

Cost Air cost higher mainly due to the capacity A cargo ship can carry
available on a plane, the higher fuel more at once.
consumption and operational costs of a
plane.
 Factor Air Transport Sea Transport

Safety of Airport regulations are controlled quite strictly If the cargo inside the c
Cargo and these regulations include the storage, is not packed properly,
handling and securing of your cargo. there is a risk of cargo
damaged.

Accessibility Ashandled quicker, there may not be Periods of severe cong

congestion at the airports as compared to the sea ports could happen
long queues at the sea ports. Even had, it brings with it its own pr
could be solved in days. additional costs like dem
and detention.

A shipment may have various requirements regarding the mode of transport to be

used, but essentially, it comes down to the nature of the freight, the time frame and
how much budget.
You’d better seek a good balance between the service quality offered, cost
component, the reliability of the service provider and time frame.
Also, it’s important to always keep an eye on both the air and ocean markets as both
are extremely volatile. In many cases, depending on how market rates are moving
and other market dynamics, one mode of transport can be chosen over the other.

Air Shipping Process with CFC

We suggest you buy FOB, and let your supplier handle the inland trucking to the
airport. If the incoterm is EXW, we can also pick up for you.
Quote → Book → Pay, job done from your side. Let us do all the rest heavy job
without disturbing you.

1. You fill and submit our quote form with your shipping details. (Quote)
2. You can expect the response within 12 hours.
3. We discuss more, and come to an agreement.
4. You or your supplier fill and submit our booking form. (Book)
5. We contact your supplier and recheck everything needed, then book the space from
the carrier.
6. We or your supplier arrange inland delivery to the airport.
7. We confirm the chargeable weight.
8. You pay the shipping cost as we agreed. (Pay)
9. We arrange customs declaration and forwarding the goods.
We’ll keep tracking your shipment and keep you updated till received.
As a valued partner we want to deliver more than just savings, we deliver peace-of-
mind.

What CFC Can Do for You?

 You have goods that quickly needs to be moved. You have the dimensions, the
weight, the timeline and you find CFC as your China air freight forwarder.
We understand that the products we are going to forward are urgent, high-value,
time-sensitive or perishable.
What we are trying to do is deliver your shipments as early as possible, and make
the process smoothly with a competitive air shipment quote. Whether airport to
airport, or airport to door, you can rely on us.
 Cargo insurance
 Door to Door service
 Fumigation and inspection
 Direct flight to worldwide
 Single-source quoting
 Competitive air freight rates
 Customs clearance service at origin or destination
CFC covers all major airports in China with cheap prices. Depends on where’s your
shipment located, and the available schedules to your destination, we’ll choose the
best suitable one for you as your loading airport. We rely on qualified partner carriers
that are committed to providing safe, efficient and on-time service to importers
across the world.
Low cost, time definite services, and proof of delivery, that’s we are doing and we
are good at it. We are always interested in new opportunities and supporting your
business.
CFC improves profitability for customers by allowing them to focus on their core
competencies while we manage their logistics, providing great air freight solutions.

If you choose delivery by air, we’ll understand that you can’t afford customs issues or
any hang-ups, and you certainly don’t have time to deal with them. You can just
leave the rest to us, once we come to an agreement about the freight charges and
the ETA.
CFC help customers gain more control over their supply chain, become more cost
effective and increase transportation management efficiency. Thank you to all our
customers for allowing us to be your one-stop logistics provider and helping deliver
peace of mind.
 Get a free quote now for air freight from China to USA, UK, Australia, Canada and all
over the world. We are always ready for your time-critical supply chain management.
Learn more about shipping solutions via ocean or express courier.

here are kinds of delivery methods when it comes to shipping from China. But any
type of importer or buyer you are, courier logistics is a must for the following two
kinds of specific cases.
 A sample or small quantity goods transportation needs a courier
 Original shipping documents transportation need a courier
With express courier services, you get every package hand-delivered anywhere in
the world within 1 week. No need to clear shipments personally if low value, such as
under $2,000 for U.S. imports. Besides, you can save on freight charges for smaller
package, even more competitive than LCL sea shipping.
As you may know, DHL/FedEx/UPS/TNT (FedEx acquires TNT on May 25, 2016)
are the top 4 couriers of the world. All of them have a sizable share of the express
market.
Though many Chinese sellers from Aliexpress or eBay choose China Post, Hong
Kong Post or EMS as their first worldwide delivery option, the transit time are not so
dependable. Especially you are waiting for the documents provided by China vendor,
such as original B/Lor Certificate of Origin for customs clearance and pickup.
Time cost and money cost are the two main concerns when you make a decision in
international trade business. We had a post comparing what’s the delivery time of
different carriers. The conclusion is there’s no big difference of the top 4. Normally all
the delivery can be done within one week.
DHL/FedEx/UPS/TNT are famous brands known by people in every country. They
have a worldwide shipping network. So choosing either one of them will never be
wrong. But if there’s a chance for saving dollars, nobody says no.
So let’s just focus on the rates. If one is cheaper, we can take it as our primary
choice. We’ll select the rate from the 4 official websites (all English version) for a
comparison.
 DHL – Get Rate and Time Quote
 FedEx – Rates and Transit Times
 UPS – Calculate time and cost
 TNT – Check a Price

Rates comparison
Please note:
1. We are assuming some stuff ( ① an envelop with documents or ② a carton with
samples) shipping from the same address in China to different countries. Some of
the basic parameters are locking down as:
Origin Country: China
Origin Zip: 200001, Shanghai
 Documents in an envelop: chargeable weight 0.1 kgs
Samples in a carton: chargeable weight 5 kgs, and customs value US Dollar $200
2. The destination countries we choose in this case study are:
 90001, Los Angeles, CA, United States
 20001, Hamburg, Germany
 4029, Durban, South Africa
 20001, Rio de Janeiro, Brazil
 2000, Sydney, Australia
They are from different continents, and picked randomly. We hope all our readers
can have a easy reference.
3. Each courier may have different delivery variables and options to choose from,
such as International First/Priority/Economy, so it’s difficult to make an apples to
apples comparison. Since we have explained the time issue above (within one
week), we’ll look only into the cheapest one.
4. All prices are calculated by each official tool online on the same day. Lower
negotiated rates or discounted rates from any sources are not taken into account.
Let’s compare the published rates offered by the 4 officials.
Courier to United States
DHL

Envelop price: CNY290.33 (USD46.69)

Parcel price: CNY1305.87 (USD210)
* The currency unit is only available for the original country. 1CNY=0.1608USD
FedEx
Envelop price: USD53.53
Parcel price: USD200.29
UPS
Envelop price: USD53.7
Parcel price: USD213.38
TNT
Envelop price: USD55.14
Parcel price: USD259.45
We put the data into a table as below.
China - U.S. DHL FedEx UPS T

Documents in an envelop 46.69 53.53 53.7 5

Samples in a carton 210 200.29 213.38 2

Conclusion
If you are in America or Canada, try DHL/FedEx/UPS.
Courier to Germany
China - Germany DHL FedEx, UPS T

Documents in an envelop 49.54 68.70 75.68 4

Samples in a carton 236.28 232.55 257.39 2

* UPS Worldwide Expedited has the lowest price of USD189 with time cost 10 days.
Conclusion
If you are in Europe, try TNT.
Courier to South Africa
China - South Africa DHL FedEx UPS

Documents in an envelop 87.08 84.62 54.33

 China - South Africa DHL FedEx UPS

Samples in a carton 394.43, 246.86 272.76

Conclusion
If you are in Africa, try FedEx/UPS.
Courier to Brazil
China - Brazil DHL FedEx UPS

Documents in an envelop 87.08 N/A 54.33

Samples in a carton 394.43 N/A 272.76

* UPS Worldwide Expedited has the lowest price of USD189 with time cost 10 days.
Conclusion
If you are in South America, try UPS/DHL.
Courier to Australia
China - Australia DHL FedEx UPS T

Documents in an envelop 43.26 46.72 44.96 4

Samples in a carton 196.84 132.13 189.02 1

* UPS Worldwide Expedited has the lower price of USD143.12 with time cost 9 days.
Conclusion
If you are in Australia, try DHL/FedEx.

10 tips from practical experiences

We work with top of the world’s most trusted courier companies, meaning you can
always be sure that your documents, parcels or samples are in good hands, no
matter how far around the world they are travelling.
A lot of people would think that international shipping is a complicated and expensive
task before they come to us. This doesn’t have to be the case and you might just be
surprised at how easy it is using the cheap courier services available from us.
We offer a range of postage options, so you can choose the one that best suits your
package and bank balance. Besides, we’d love to share our experiences, but as you
know, different destinations and unlimited weight/volume data make it harder to sum
up many basic rules. So just a few below.
1. First of all, find a courier agent, hopefully us. As you may know, prepaid is always
cheaper than collect. Prepaid through a broker, which is the super VIP of the carrier,
is the key point to save money on courier shipping.
2. DHL vs. UPS
 ＜5.5kgs, DHL win
 6-21kgs, UPS win
 21-100kgs, DHL win
 ＞100kgs, UPS win
3. Courier to Southeast Asia, FedEx is the king, no matter small shipment or big
shipment.
4. We don’t recommend TNT if you are out of Europe or Middle East.
5. Most big businesses just pick one carrier and focus on them, because it has much
bigger discounts on pricing, while small and medium businesses tend to utilize two to
three carriers to maximize cost savings.
6. Fuel oil surcharge / fuel adjustment factor range from 10% to 25%, and update on
a monthly basis. So our quote can valid till the end of the month.
7. The total length (length+width*2+height*2) should be less than 330cm. And the
weight should be less than 70kg per package for the best available rate.
8. Use reinforced cartons and take care of the packing quality.
Note: The carrier uses advanced laser scanning machines to calculate the volume of
packages. This means, even a small bulge in your cartons can lead to a significant
difference in volume.
9. The trade term between you and your supplier should be FOB, which is for your
best interest if other shipping methods, but EXW for courier shipments.
10. There are special lines for some specific destination and specific weight. Such
carriers are not so famous, but also reliable and more cost-effective.

Our courier forwarding services

Besides the classic well-known big players, we also bring together the services of
the world’s best carriers including specialized expresses and also Post & EMS. We
offer everybody (business or individual) a really simple and cheap way to book
worldwide delivery services out of China.
 DHL
 FedEx
 UPS
 TNT
 China Post Air Mail (Weight ＜ 2kg)
 China Post Air Parcel (2kg ＜ Weight ＜ 30kg)
 China EMS (Weight ＜ 30kg)
 Hong Kong Post Air Mail (Weight ＜ 2kg)
 Hong Kong Post Air Parcel (0.5kg ＜ weight ＜ 30kg)
 ARAMEX to Middle East
We get to deliver dreams to every corner of the world, every day, with every
package. We will select the most economical courier for you OR you can select your
preferred carrier. With the express’s network and our big discount, it will be more
easier for you to arrange shipments transportation whether the destination is located
anywhere of the world’s 220+ countries and territories.