Shipping from China: A Survival Guide

FOB, CIF, DDP — The Visual Breakdown

For the visual diagram, see the full China Sourcing 101 guide.

Ocean Freight: LCL vs. FCL

LCL (Less than Container Load):

• You share a container with other shippers
• Suited for: under 15 CBM (cubic meters)
• Additional transit: add 3–7 days for consolidation/deconsolidation
• Trade-off: your goods travel alongside others — more handling involved

FCL (Full Container Load):

• The entire container is yours
• 20-foot container: ~28 CBM / ~22 metric tons max
• 40-foot container: ~58 CBM / ~26 metric tons max
• 40-foot High Cube: ~68 CBM / ~26 metric tons max
• Typical cost: $1,500–5,000 depending on route and season

Rule of thumb: Once your shipment exceeds 12–15 CBM, full container usually works out cheaper per unit than LCL.

Air vs. Ocean vs. Rail

See the full comparison table in our China Sourcing 101 guide.

The Landed Cost Formula

This is the true cost of your product — not just what the factory charges:

For the visual diagram, see the full China Sourcing 101 guide.

Worked example:

• FOB price: $5,000
• Ocean freight (LCL): $800
• Insurance: $25
• US customs duty (8%): $400
• Customs broker: $250
• Local delivery: $200
• Total landed cost: $6,675
• Premium over FOB: 33.5%

A 30–40% markup from FOB to landed cost is standard. Budget for it from the start.

Shipping Documents You'll Need

• Commercial Invoice: What was purchased, at what price
• Packing List: Contents of each carton (quantity, weight, dimensions)
• Bill of Lading (B/L): Title document — proves ownership during transit
• Certificate of Origin: Where goods were manufactured (may affect duty rates)
• Inspection Certificate: Proof of quality verification (where required)
• Insurance Certificate: Evidence of cargo coverage

This is Part 7 of 8 in the Rich Bee China Sourcing 101 series. Previous: Quality Control: Where Importers Save or Lose Money · Next: Contracts & Payments: How to Protect Yourself · All chapters: Sourcing 101 full guide