Shipping goods from China to Europe is one of the major cost factors for your China imports. Fortunately, importers have several shipping options to choose from, each with its unique advantages and considerations.
Let me discuss the best ways to ship from China to Europe and the factors to weigh when selecting the optimal shipping method. I will provide additional information about the procedures when shipping from China and the expectations for shipping rates and times.
Different options for shipping from China
When shipping goods from China to Europe, importers have several transportation options to consider. The most common modes include air freight, sea freight, or Delivered Duty Paid (DDP) terms offered by forwarders who make use of Chinese shippers. A final growing alternative is rail freight, which has gained popularity in recent years as a middle ground between air and sea.
Air freight provides the fastest delivery, typically in 3-7 days, but is generally the most expensive option. Sea freight, on the other hand, takes significantly longer at 4-7 weeks to get a container shipped to a major European port. But this is much more cost-effective for larger shipments. Rail freight from China to Europe can take 14-21 days. This makes it a quicker option than sea while still being more affordable than air.
The optimal China freight shipping method depends on factors like order urgency, shipment size, and budget. Carefully weigh the tradeoffs to select the best fit for their specific needs. Understanding the nuances of each option is crucial to making an informed decision and ensuring a smooth and cost-effective international delivery.
The Environmental factor in shipping
In addition to cost and transit time considerations, some importers also factor in the environmental impact of their shipping choices. Air freight has the highest carbon footprint per shipment, with up to 9 times the emissions compared to sea transport. Both sea and rail shipping are generally viewed as more eco-friendly options. Importers looking to minimise their environmental impact may prioritise sea or rail freight over air, especially for non-urgent shipments.
Air freight shipping from China
Air freight is the fastest shipping options for China import, for moving goods from China to Europe. But what does it cost and when is it a suitable option?
The cost of air freight from China to Europe can vary significantly depending on factors like shipment weight, volume, origin/destination airports, and market conditions. Air freight rates are typically expressed in price per kilogram.
Air freight rates are typically expressed in price per kilogram. One kilogram is however not always the weight of 1 kg, but it can also be calculated in volumetric weight. To calculate the volumetric weight (or volume price) for air freight from China to Europe, you can use the following formula:
Volumetric Weight = (Length x Width x Height in cm) / 6,000
Since the air freight costs for products that take up a large volume easily adds up, it is generally not profitable to ship products that take up large volumes by air freight.
In an average market, freight rates range from about $3 to $10 per kilogram, with the higher end of that range applying to smaller, lighter shipments. Additional charges like fuel surcharges, security fees, and terminal handling costs can also add to the total. You can request detailed quotes from multiple carriers to compare rates and find the best value for your shipment.
Air freight shipments from China to Europe generally have transit times of 3-7 business days.
Flights to major European hubs like Amsterdam, Paris, or Frankfurt are typically on the faster end of that range, while more remote destinations may take closer to a week. Weather, air traffic, and other operational factors can also impact actual delivery times on any given shipment. Importers should build in a buffer when planning for air freight to account for potential delays.
Why does Air Freight timing from China vary so much?
Air freight transit times from China to Europe can be quite variable due to several external factors. Weather disruptions, such as storms or fog, can cause flight delays or cancellations. Geopolitical issues, like airspace restrictions, can also disrupt normal flight routes and schedules. Air traffic congestion at key hub airports is another common culprit for timing fluctuations. In addition, capacity constraints on certain routes or peak season volume surges can lead to longer transit times. Importers need to be prepared for potential delays and work closely with their carriers to monitor shipment progress.
Different air freight service levels (standard vs expedited)
Most air freight carriers offer multiple service tiers to meet the diverse needs of their customers. Standard air freight typically has the longest transit time but is the most economical option. Often this option makes use of the baggage space of scheduled flight by normal airlines.
Expedited or express services provide the quickest way to ship goods, often in 2-3 days, but come at a premium price. Some carriers may also offer time-definite guarantees with higher-priced services.
Evaluate youir delivery requirements to understand the best option for you. Then select the air freight service level that strikes the best balance between cost and speed. The expedited shipping from China options can be useful for urgent shipments, but the added expense may not be justifiable for every order.
When to use Air Freight shipping from China?
Air freight is the optimal choice when shipment speed is the top priority. Time-sensitive or mission-critical goods, such as spare parts, prototypes, or electronics, often warrant the additional cost of air transport to ensure rapid delivery.
Air freight is also frequently used for smaller, lighter shipments weighing 150 to 500 kilograms. The per-unit cost is more manageable for these small shipments.
Businesses with strict inventory management or JIT production needs often rely on air freight from China. They need to keep their supply chains responsive. Additionally, air freight is the preferred method for sensitive, valuable, or perishable cargo.
How about sea shipping from China?
For many importers, sea freight is the most cost-effective option when shipping from China to destinations in Europe. Shipping to major ports like Rotterdam is still an economical choice.
When it comes to sea shipping, importers have two primary choices – Less-than-Container Load (LCL) or Full Container Load (FCL). LCL is the better choice for smaller shipments. It allows you to share a container with other cargo, reducing the per-unit shipping cost. LCL typically has a longer transit time of 5-7 weeks and requires more handling of the goods compared to full containershipping. The transportation costs per CBM (square metre of goods) are also much higher compared to shipping a full container load.
FCL, where you rent an entire 20ft or 40ft container, is more time and cost-efficient for larger volumes. If you can fill up the entire container this is the best choice . FCL offers faster delivery in 4-5 weeks from port to port, greater security and control over the shipment and lower costs per CBM.
Choosing the most suitable shipping container size
When shipping FCL by sea from China to Europe, you still need to choose the most suitable container size for your shipment. The size and type of shipping container has a significant impact on logistics and costs as well.
The most common container sizes are 20-foot and 40-foot standard units. The ocean container measurements of these are 20 x 8 x 8.5 feet and 40 x 8 x 8.5 feet respectively. A 20 foot container can store around 25-30 CBM (cubic meter) and a 40 foot container around 60-65 CBM. These standard containers are suitable for the majority of sea freight shipments. 20 foot containers are also sometimes called half size shipping container. In shipping, sometimes the term Tui is also used to mention shipping amount. A 20 foot container is then equivalent to 1 Tui and a 40 foot container to 2 Tui.
There are also specialised high-cube containers that stand 9.5 feet tall, providing additional internal volume. In addition, there are 10-foot and 30-foot containers available for more compact or partial loads, but these are hardly being used in practice.
See the container size chart to determine the optimal shipping container dimensions based on the specific characteristics and quantity of their cargo. Selecting the right container size is crucial for maximizing available space, minimising wasted capacity, and keeping freight costs in check.
Operational process in sea shipping from China
Regardless of whether you work with LCL or FCL, the documentation and customs clearance process is crucial when shipping by sea from China to Europe. Importers will need to provide a commercial invoice, packing list, bill of lading, and potentially other documents depending on the cargo. Careful coordination with the freight forwarder ensures all paperwork is in order. Then the shipment clears customs efficiently on both China and the EU end.
Once the container reaches the port of destination, the goods will need to be unloaded and transported to the final destination. An EU-based forwarder, such as Explect, can typically manage the customs clearance and final road transportation from the port to your door as part of the end-to-end service.
What are the incoterms for sea freight and what are their implications?
Incoterms are standard international trade terms. They define the responsibilities and costs between buyers and sellers for the delivery of goods. When shipping from China to Europe, importers and exporters will commonly use different Incoterms. These Incoterms specify things like who is responsible for arranging and paying for the shipping, insurance, and customs clearance. Understanding how different Incoterms work is crucial. The choice of terms can significantly impact the overall costs and risks of the transaction.
When shipping goods by sea from China to Europe, the most commonly used Incoterms are EXW (Exworks), FOB (Free on Board) and CIF (Cost, Insurance, and Freight).
- EXW places the minimum obligation on the seller. They only need to make the goods available at their own place.
- FOB places the responsibility on the seller to have the goods loaded onto the vessel,
- CIF requires the seller to arrange and pay for the ocean freight. CIF also includes the cargo insurance.
The choice of Incoterm will impact who is responsible for various costs and risks throughout the shipping process. Carefully consider the implications of these incoterms when negotiating terms with your Chinese suppliers.
How long does it take to ship from China to Europe?
Transit times for shipping goods from China to Europe can vary considerably depending on the mode of transport. Sea freight typically takes 4-6 weeks for full container loads and an additional week for LCL. This has increased with about 7-10 days recently, since most shipping companies avoid the Red Sea and sail around Africa.
Air freight is significantly faster at 3-7 business days. However, the ongoing conflict in the Red Sea region has introduced new uncertainties and delays in global supply chains. Geopolitical tensions and sporadic closures of the Suez Canal have disrupted normal shipping routes, forcing vessels to take longer alternate paths. This has extended average transit times for sea freight from China to Europe by 1-2 weeks in many cases. Importers must remain vigilant and work closely with their logistics providers to monitor the evolving situation and plan accordingly.
Shipping rates: The highly fluctuating rates in shipping from China
Container shipping rates from China to Europe can vary significantly, both in normal market conditions and during periods of extreme volatility.
Under typical circumstances, importers can expect a range of prices based on factors like shipment size, mode of transport, and seasonality. To ship a 40′ container from a major port in China to Rotterdam typically costs around 2000-3000 USD. But these days, “typical circumstances” may have become more a rarity these days.
In recent years, a combination of global events has caused container rates to become much more unstable. This creates a significant challenge for importers trying to manage their China supply chains.
So what are the drivers behind these fluctuating cost to ship a container from china?
The recent increase in container shipping prices from China to the West can seems to be caused by a combination of factors:
The ongoing conflict in Yemen has forced many shipping companies to take longer, more routes all around Africa, to avoid the Red Sea. This increases the transit times and fuel costs for the forwarders that they calculate for their customers.
Furthermore, there remains an imbalance in container flows, with too few containers being shipped back to China, leaving many stranded in Western markets and a shortage in China.
Limited shipping capacity is another key driver. There are strong allegations that large freight forwarders have deliberately restricted capacity to drive up prices and boost their own profitability.
Additionally, some speculate that major Chinese suppliers, particularly in the EV industry, reserved containers at lower pre-crisis rates, further straining availability.
Broader geopolitical tensions and conflicts in Taiwan, Ukraine and others, have added further pressure.
Finally, new tariff measures introduced in South America on Chinese goods have also prompted a temporary surge in shipping demand as importers rush to beat the deadline, exacerbating the supply-demand imbalance.
In summary, the combination of many logistical and capacity issues as well as speculative behavior seem to have created an extremely tight container shipping market. Prices have therefore increased a lot recently for shipments from China to the West.
Factors fueling the surge in container shipping costs
The high container shipping prices from China to the West appear to be driven by many factors. Some of these may keep costs higher in the longer term, while others suggest the current peak could be temporary.
Why the higher and fluctuating prices may not be temporary
On the one hand, structural issues like limited shipping capacity and imbalanced container flows could stay. It takes years to build new ships, and the incentive for freight forwarders to restrict supply to drive up prices may be difficult to overcome.
Additionally, geopolitical tensions and trade policy changes could continue to disrupt shipping routes and create demand spikes. These factors point to container prices remaining high for an extended period.
Why the prices may also be a temporary peak
Some of the current pressures may ease more quickly. The resolution of conflicts in regions like Yemen could restore more direct shipping lanes.
Furthermore, the speculative pressure for booking additional containers by the huge Chinese suppliers and the additional pressure from Latin American importers driven by current policy changes there, seem to have a more temporary nature.
So, while certain structural issues may keep container prices elevated for the foreseeable future, the temporary demand surges and logistical bottlenecks may gradually dissipate, potentially leading to a gradual normalization of shipping costs between China and the West over the next few years.
How to save costs when shipping from China manufacturers
As the cost of shipping goods from China to Western markets has increased, you may be seeking ways to save on logistics expenses. Macroeconomic factors driving up container rates may be out of your control, but there are several strategies you can still mitigate the financial impact of these.
Container consolidation
One effective approach is consolidation. By grouping multiple smaller shipments into a single full container load (FCL) in a central warehouse, you can take advantage of filling up the container more efficiently. You reduce the per-unit shipping costs with effective consolidation. This requires careful coordination with suppliers and logistics providers to optimize the timing and packing of the consolidated cargo.
Comparing and negotiating shipping rates
Negotiating shipping rates and comparing freight forwarders is another tactic. Use your purchasing power to negotiate the best possible rates. Solicit quotes from multiple reputable forwarders to ensure they are getting competitive prices. This may involve exploring alternative routes or modes of transport that can provide cost savings. In practice, however, at the moment quoted shipping rates are usually very comparable these days, making it difficult to save much costs here.
Insurance
Considering shipping insurance is also worth exploring. Cargo insurance can protect against the financial risks of delays, damage, or loss. However, importers should carefully evaluate if the risks are worth the costs for insurance. In practice, we notice that many importers are willing to take a small risk and save their costs on insurance.
Avoid peak seasons
Finally, timing orders strategically saves significant costs. By placing orders and scheduling shipments during periods of lower demand, you may be able to get better rates and avoid peak season surcharges. The peak seasons are typically in Autumn, before Black Friday and Christmas, and before the Chinese New Year factory closures in China.
Maintaining close communication with suppliers and closely monitoring the shipping market conditions is essential for finding the best time to ship. By using these cost-saving strategies, you can keep their China-to-West supply chains as financially efficient as possible.
How can Sino Import Solutions help you with shipping from China?
Sino Import Solutions can be a valuable partner for for finding strong solutions for shipping from China for you:
- Make use of our logistics relationships and secure competitive shipping rates.
- We oversee your shipments from start to finish, optimising delivery timelines to ensure reliable transport.
- We deliver tailored operational warehousing services, such as labelling, container consolidation, and DDP (Delivered Duty Paid) delivery to your door.
Sino Import Solutions helps you to take full control of your shipping operations and costs. See our supply chain and shipping services for more information.
