There are many renowned freight forwarders in China such as Seabay Cargo, C H Robinson etc. One thing is common. The most renowned and trustable freight forwarders are those who are very large. Large freight forwarders don’t entertain small shipment packages. They also only when you have a regular large volume.
Another concern is whether you are from India or China. Communicating with a Chinese freight forwarder is cumbersome for the following reasons:
- You need to explain your points in an email. The email should be short but completely explanatory. It should also carry pictures and videos to explain things in detail.
- It would be good if you could communicate lucidly in the Chinese language.
- There are certain questions you might not even know to ask. However, an expert should proactively identify and address these concerns, providing thorough explanations. The level of interest and attention a customer service agent shows should reflect their commitment to understanding and addressing your unstated concerns.
That is the reason you go to seek help of a Freight forwarder and not do it yourself. Isn’t it?
This guide will help you understand how to find a reliable freight forwarder in China. This brings us to the basic question of why a Freight forwarder?
What is a Freight Forwarder?
Definition and role of a freight forwarder
A freight forwarder is a company that specializes in arranging the shipment of goods from one place to another. They act as an intermediary between the shipper and the carrier, managing the logistics of the shipment.
Benefits of working with a freight forwarder
Freight forwarders can help reduce shipping costs and improve delivery times. They provide expertise in navigating complex customs regulations and logistics.
They can help you avoid potential landmines which you don’t know at all that you have. They help you deal with what you don’t know that you don’t know.
They have strong friendships and connections globally in this field, enabling them to get things done efficiently. Their relationships with governments worldwide and their expertise in trade laws are as precise as a scientist’s understanding of gravitational law.
Factors to Consider When Choosing a Freight Forwarder
To find a reliable freight forwarder, consider their ability to communicate well, provide impeccable customer support, and have an extensive network.
Ability to communicate well.
Impeccable customer support service.
An extensive network.
Understanding of International Trade Laws.
Legally Registered.
Evaluating credibility and track record
Research the freight forwarder’s reputation online and ask for references. Check their licenses and certifications, such as IATA or FIATA.
However, nothing beats personally visiting their office.
Meeting the founder and learning about his background, as well as checking his social status on platforms like LinkedIn and Facebook, can provide valuable insights. Observe if he has been active for the past couple of years.
Does he have a mature and middle-aged staff, or are they all young? How long have the employees been with the company? What is their tenure in this office? Does the company own the office space?
Understanding the importance of local knowledge
A freight forwarder with local knowledge can navigate China’s complex regulatory environment. They can reduce delays and additional costs.
China has stringent and different rules than India.
The best freight forwarder in China has local knowledge.
If you are dealing with an Indian freight forwarder, the experienced ones would know Chinese laws like the back of their hand, much like a seasoned sailor navigates familiar seas.
Range of services offered by a freight forwarder in China
Look for a freight forwarder that provides a comprehensive range of services, including warehousing, logistics planning, and customs brokerage.
The Freight Forwarding Process
Step-by-step guide to the freight forwarding process
The process involves picking goods from the factory/supplier, inspection of goods, export customs clearance, shipment of goods, import customs clearance, destination arrival and handling, and delivery to the recipient.
There are numerous steps involved in shipping goods from China to India. Some of them are quite common. The steps are like :
Step 1: Picking goods from the supplier.
Step 2: Inspect the goods.
Step 3: Clear the Customs.
Step 4: Shipment of goods.
Step 5: Import Custom Clearance.
Step 6: Destination Arrival & Handling.
Step 7: Delivery to the Recipient.
How many days does it take to ship from China to worldwide?
The estimated transit time depends on the shipping route and distance between China and the destination port.
Understanding transit times is essential for efficient supply chain management. Shipping duration depends on factors such as the mode of transport (air, sea, rail), destination, and freight forwarder’s efficiency. Air freight is faster but more expensive, while sea freight offers more capacity at a lower cost but takes longer. It’s important to discuss these timelines with your freight forwarder to ensure they align with your inventory and delivery schedules.
Shipping time impacts inventory management and customer satisfaction. Longer transit times may require more stock, tying up capital, while shorter times improve market responsiveness but at higher costs. Balancing these factors is crucial for competitiveness. A reliable freight forwarder in China should provide accurate time estimates and help you make informed decisions based on your business needs.
Freight Charges and Insurance
Freight charges from China
Freight rates are not fixed and are dependent on various factors, including the weight of the cargo, the distance between China and the country to which you are shipping the goods, and the dimensions of the consignment.
Finding the lowest price isn’t everything; balance cost with service quality. Evaluate Chinese freight forwarders on speed, reliability, and service scope. An affordable option might save money initially but could cause costly delays if their service is poor. Conversely, a pricier forwarder might offer faster delivery and better support, justifying the extra cost. In summary, a thorough cost analysis should consider what you’re paying for and ensure it meets your shipping needs.
Freight insurance while shipping goods from China
Freight insurance covers an importer against any potential loss of goods while the goods are in transit.
Modern freight forwarders in China use advanced technology to enhance shipment security. This includes GPS tracking, real-time monitoring systems, and electronic data interchange (EDI) for precise tracking and tracing of goods. These technologies offer transparency and enable immediate action in case of irregularities, ensuring swift resolution of issues to mitigate risks.
Key Responsibilities of a Freight Forwarder
Chief responsibilities of a freight forwarder
A freight forwarder is responsible for assisting the client in choosing the most efficient transportation means based on the nature of the goods being imported. They should have stellar organizational skills and be able to track freight using advanced technologies.
Apart from other benefits that we have mentioned above, there are some other responsibilities that a freight forwarder in China should have.
The responsibilities are :
Helping you plan the route.
For this to happen they will also communicate with your supplier.
Take into account the nature of goods.
Packing and Insurance.
Custom documentation and regulatory requirements.
Documents involved in the freight-forwarding process
The most important documents involved in the freight-forwarding process are the commercial invoice, certificate of origin, bill of lading, and customs clearance.
Customs documentation requirements vary based on the type of goods being shipped and the destination country. However, an exhaustive list of documents needed are listed below :
- Export License
- Commercial invoice
- Bill of Lading
- Air Waybill (if shipping by air freight)
- Packing List & Declaration.
- Pro forma invoice
- Certificate of Origin
- CITES Permit
- Import/Export Declaration
- CE Certificate
- Single Administrative Document (SAD)
- Insurance Certificate.
- Fumigation Certificate
Importance of a Reliable Freight Forwarder.
It can make your break your business.
That’s why we strongly recommend that if you are in India, you should search for a freight forwarder locally rather than in China. Specifically, find one in your city. For instance, if you are in Delhi, look for a freight forwarder in Delhi.
A freight forwarder can help you boost profitability and select the best supplier. They assist in procuring quality items and verifying supplier credentials.
They also help you navigate China’s customs regulations.
Navigating China’s Customs Regulations
A reliable freight forwarder brings invaluable expertise in navigating China’s complex customs regulations.
Ensuring compliance and avoiding delays
A freight forwarder ensures compliance with all regulations, reducing the risk of delays or penalties.
Compliance goes beyond following rules; it ensures the smooth transit of your goods. Expert freight forwarders, knowledgeable in Chinese export laws and international shipping regulations, are essential for avoiding costly delays.
Pricing and Value.
A freight forwarder helps reduce your costs by leveraging their high transaction volumes with partners, enabling them to negotiate better rates on your behalf.
Understanding the pricing structure
This includes not only basic shipping costs but also additional fees like warehousing, handling, and customs clearance charges. Transparency in pricing is essential. A reliable freight forwarder will provide a clear cost breakdown, ensuring there are no hidden fees. This allows for better budgeting and financial planning for your shipments.
The cost includes not only basic shipping costs but also additional fees like warehousing, handling, and customs clearance charges.
Let me give you an overview of the charges. Freight rates are not fixed. The cost is dependent on various factors.
Such as :
The cargo weight affects the shipping cost considerably.
The distance.
The demand and supply at that time of the year.
Kind of goods being shipped.
Estimating transit times
Understanding transit times is crucial for managing your supply chain efficiently.
We have a separate blog where we have talked in detail about how much time it takes in transit and how should you plan.
Enhancing communication and transparency
Effective communication plays a crucial role in shipment tracking.
Shipment tracking accessibility can make your nerves feel like they are on a roller coaster.
At this stage, effective communication plays a crucial role.
The team should be accessible not only via email or chat but also through WhatsApp and phone calls.
You should have the ability to escalate issues to senior management if you are not satisfied with the responses from junior staff.
The team should be able to thoroughly answer and explain your queries.
This is the level of effective communication needed during the shipment tracking stage.
Finding the Right Freight Forwarder for Your Business
The right freight forwarder is the one which is locally close to you.
The one whose founder you have met and found him inspiring, knowledgable and trustworthy.
One who has knowledgeable employees and has worked for a couple of years with him.
He or She has middle-aged employees.
Owns this office space for a couple of years.
Conclusion.
Instead of looking for a freight forwarder in China, seek a credible one locally. Visit their office, research the founder on LinkedIn and Facebook, and assess the maturity and experience of their team.
This will help you import from China more effectively and at a lower cost.