sourcing-101
Shipping from China: A Survival Guide
April 3, 2026
FOB, CIF, DDP — The Visual Breakdown
For the visual diagram, see the full China Sourcing 101 guide.
Ocean Freight: LCL vs. FCL
Two ways to move a sea shipment. The right one depends almost entirely on volume.
LCL (Less than Container Load):
- You share a container with other shippers.
- Suited for shipments under 15 CBM (cubic meters).
- Add 3–7 days of transit for consolidation and deconsolidation.
- The trade-off: your goods travel alongside other people's, so there's more handling along the way.
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 passes 12–15 CBM, a full container usually beats LCL on cost per unit.
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. The freight, duty, and handling on top of FOB are where importers get surprised.
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
Six documents follow nearly every shipment. Missing or mismatched paperwork is a common reason cargo sits at the port, so know what each one does before the goods leave the factory.
- Commercial Invoice: what was purchased, at what price.
- Packing List: the contents of each carton — quantity, weight, dimensions.
- Bill of Lading (B/L): the title document; it proves ownership during transit.
- Certificate of Origin: where the goods were manufactured, which can affect duty rates.
- Inspection Certificate: proof of quality verification, where it's 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