Just Imported My First Sea Shipment: Here's what that process looks like

[Walter Hay]

It's been 2 months, so a quick update:

• Went to China. Sourced a lot of product.
• Paid a trucking company to deliver shipment #2 for me when I was gone. Cost $150 to deliver the shipment (about 1.4 cubic meters)
• Have my #3 shipment coming next week -- 15 cubic meters!!
• Just placed an order for my first full container! Shipment #4 -- 20 foot container! I'm scared, but excited.

I'll start a progress thread on the Inside soon, but first need to continue grinding.

Keep it rolling AgainstAllOdds. I'm a workaholic too, just not as physically capable as I was at your age about 50 years ago, but I still enjoy what I am doing. I also enjoy watching your progress, and that of some who are keeping me up to date privately.

Lately I have had to shoot off a quick answer to some who PM me, telling them I will reply tomorrow, because these days I actually need some sleep!

Walter

 

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[Vincent Law]

I have not imported from Russia, but I know the process is very similar to buying from any exporting country. I also know that finding suppliers there is not easy.

One of the official government websites can be used if you are very patient, but the best way is to contact your local Russian trade consul, (provided that is not a euphemism for local spy chief.) I can PM the best govt site link if you enjoy beating your head against a wall.

One reason I never persevered with Russia is that prices have never seemed very competitive. Even with the Ruble as low as it is currently, exporters appear to be quoting what I consider to be retail prices.

You could also find that red tape is a major obstacle, and that is partly due to sanctions.

If you get started and need help, let me know. I will do my best to help, even if it is a learning process for me.

Walter

At the risk of derailing, I'll continue.

Yeah, I was thinking of going to the Customs agent or w/e at the embassy and asking what things are sanctioned now or not.

My designs for these sweats/shirts are not done yet. But I've got a finished hat product design.

The two places I visited sell for about 200 roubles a hat, (2.5 dollars) which I thought was pricey. (but again, no real clue)

Friday, I'm off to check another factory where I think the prices are lower.

Shipping is 1000 roubles (15 dollars) because the first order will be less than 10 kg. Air mail.

I plan to sell at about 20-25 $ per hat. But I haven't checked what the customs duties or tariffs/sanctions cost. Dont really know how to either except maybe meeting with the customs guy.

Any advice?

Thanks in advance!

(Also I would love to buy your book, but I'm abroad now and don't have that many dollars left!)

 

[Vincent Law]

I would like to add that if oil continues to collapse, things will get very cheap to make here very fast.

One thing that makes me want to import from here is the fact that I know the language and know people who have ordered their own lines here.

In short, I can visit factories and places with ease. I don't need an online search engine. You warned about Alibaba and about the difficulties of China. Maybe this is better. But I guess it all boils down to prices.

Wish I knew more about what prices apparel sellers get when they ship from Vietnam, China, or Taiwan...

 

[Walter Hay]

At the risk of derailing, I'll continue.

Yeah, I was thinking of going to the Customs agent or w/e at the embassy and asking what things are sanctioned now or not.

My designs for these sweats/shirts are not done yet. But I've got a finished hat product design.

The two places I visited sell for about 200 roubles a hat, (2.5 dollars) which I thought was pricey. (but again, no real clue)

Friday, I'm off to check another factory where I think the prices are lower.

Shipping is 1000 roubles (15 dollars) because the first order will be less than 10 kg. Air mail.

I plan to sell at about 20-25 $ per hat. But I haven't checked what the customs duties or tariffs/sanctions cost. Dont really know how to either except maybe meeting with the customs guy.

Any advice?

Thanks in advance!

(Also I would love to buy your book, but I'm abroad now and don't have that many dollars left!)

It is important for you to know what items you can export from Russia and which countries will allow it. Your Customs expert will be the one who can help you and if he/she knows enough about international trade could save you a lot of trouble as well as a lot of money.

Your presence there is a huge advantage and if you can find suppliers who are realistic with their prices you could do well. It could be worth your while reading the thread 3 Reasons Why You Should Go to China ... and Meet with Your Factories The principles would be very similar.

Don't hesitate to ask for help from the Ministry of Economic Development. They have lists of exporters. I have also PM'd you with some Intrade contact details.

Walterhttps://www.thefastlaneforum.com/co...-to-china-and-meet-with-your-factories.66425/

 

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[Vincent Law]

Walter

I will make an appointment and go to the US consulate. I assume that its all I need to do to meet with the Ministry of Econ Dev.

What is Intrade and why do I need it?

Do you know a database with general prices compared for certain goods- like apparel?

Sorry for the spoon-feeding questions. But I am a newb at this, I'd rather raise some eyebrows and get answers than bite my tongue and fake my comprehension.

 

[Walter Hay]

Walter

I will make an appointment and go to the US consulate. I assume that its all I need to do to meet with the Ministry of Econ Dev.

What is Intrade and why do I need it?

Do you know a database with general prices compared for certain goods- like apparel?

Sorry for the spoon-feeding questions. But I am a newb at this, I'd rather raise some eyebrows and get answers than bite my tongue and fake my comprehension.

I never mind questions that seem obvious to me. It is better to ask than to get it wrong.

The ministry of Economic Development is a Russian government body and part of their role is to provide information on exporters in Russia. The US consulate can tell you what can or can't be imported into the US from Russia, but don't be too surprised if they are not very helpful.

Intrade is an organization that at least has Russian government backing if not control. They might be able to help you locate exporters.

I don't know of any database that could provide prices such as you are thinking of.

Walter

 

[Malcolm_X]

Absolutely amazing. Thanks so much for sharing all this.
One question - does that mean, that the expenses you had are pretty much standard ?
I wouldn't be doing overseas, but I guess there will be some paperwork, handling and whatnot involved.

@Phones seems like you are storing your products at your place. That means you are also handling postage on your own ?
The process of actually storing and delivering my product to customers is something I need to plan out myself. Thought of using Amazon FBA.

 

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[Phones]

@Phones seems like you are storing your products at your place. That means you are also handling postage on your own ?

Yes, but only because there are no alternatives such as Amazon FBA in Portugal. And labor and post rates are both cheap.

 

[AgainstAllOdds]

Absolutely amazing. Thanks so much for sharing all this.
One question - does that mean, that the expenses you had are pretty much standard ?
I wouldn't be doing overseas, but I guess there will be some paperwork, handling and whatnot involved.

@Phones seems like you are storing your products at your place. That means you are also handling postage on your own ?
The process of actually storing and delivering my product to customers is something I need to plan out myself. Thought of using Amazon FBA.

Sorry for the late reply.

Yeah. The expenses are standard. If you can get a better price, then go for it and update here. If you can't, then use my screenshot as a negotiation tool. Say: "This is what my friend pays. Can you match that?"

And note: It looks like you're in Germany. I have no clue how expensive it is to import into the EU. However, I'm assuming it's similar. Instead of by ship, the containers get there by railroad. So my assumption is that it'll be cheaper. Plus, you can likely have an import agent in Poland or another country with cheap labor - bringing the costs down. Anyone in Europe that can confirm?

 

[Malcolm_X]

Sorry for the late reply.

Yeah. The expenses are standard. If you can get a better price, then go for it and update here. If you can't, then use my screenshot as a negotiation tool. Say: "This is what my friend pays. Can you match that?"

And note: It looks like you're in Germany. I have no clue how expensive it is to import into the EU. However, I'm assuming it's similar. Instead of by ship, the containers get there by railroad. So my assumption is that it'll be cheaper. Plus, you can likely have an import agent in Poland or another country with cheap labor - bringing the costs down. Anyone in Europe that can confirm?

that would be certainly an interesting concept.. Poland does indeed have cheap labor. What exactly would he do for me though ?

I can confirm that in the meantime, my samples have arrived and I had to pay 20 euros, just for the customs clearance. However when I ordered things (health supplements to be exact) from USA, I did not pay anything.

They differentiate between private and business import here. Apparently there's a few things I can do to register as a 'business importer' and won't have to pay customs, when the shipment is under a certain value. I do have a business entity in Germany, although it's not a full LLC equivalent (and it's signed up to provide IT Services, not importing from China ). I'll be dealing with this actually later today - so I am interested to se what I am going to find out.

I pretty sure there's not enough Germans reading this, for whom it might be relevant and of value. But if so, let me know and I can share the info via PM.

 

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[Cembo]

I'm from Germany and these were my costs:

Ocean Freight: 145 USD
Terminal Handling Charge in Hamburg: 285 EUR
Customs Clearance: 50 EUR
Handling: 40 EUR
Door to Door fee: 110 EUR
+ Duty & Taxes

By railroad I was offered:

50 boxes x 15 kg, 45x33x29 cm per box = 2,15 CBM
= 1203,17€ = 24,06€ per box + insurance up to 17.000€
These numbers are for November, really busy and expensive month
Time: 2-3 weeks

Plus, you can likely have an import agent in Poland or another country with cheap labor - bringing the costs down. Anyone in Europe that can confirm?

I will definitely try that

 

[Malcolm_X]

hm, that's a lot higher than I'd expect..
Thanks for sharing.

 

[downpaymentblues]

I'm from Germany and these were my costs:

Ocean Freight: 145 USD
Terminal Handling Charge in Hamburg: 285 EUR
Customs Clearance: 50 EUR
Handling: 40 EUR
Door to Door fee: 110 EUR
+ Duty & Taxes

I am a bit confused (and really new to the topic). Did you arrange everything by yourself? Or is all of this of this handled by a courier, if your supplier commisions e.g. DHL?

 

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[Ronak]

So I just imported (and delivered) my first sea shipment from China to the US. Before the shipment got here, I was nervous. I didn't really know what to expect, and assumed that the process would be really hard. I assumed that there were a lot of things I hadn't thought of, and that something would "pop up".

Turns out I was wrong.

The process was really straightforward, and actually pretty easy.

Hence, hopefully this thread puts some of you guys at ease and allows you take the plunge yourselves.

To start off, here's a picture of my costs. You'll see later how much product I had and get a feel for whether or not sea shipping is worth it for you:

I had my supplier refer me to a freight forwarder in China, and then had her refer me to a partner company in Chicago. I'm not 100% sure if I'm getting the best prices, but do think that the prices are more than fair. The freight forwarder handled all the paperwork -- which I'm told is the hardest part for a newbie.

As you can see, the bulk of my cost was duties. Then $326.28 in "filing fees", and $471.18 in "shipping". I can't complain.

So let's move on to how the shipment got here.

It was loaded in Shenzhen. Then went to California.

Once it arrived in California, it was put on a train to Chicago. Via train, it was delivered to a warehouse in a Chicago suburb. I had to drive out to pick it up in the suburbs. Here's the drive I made:

So an hour there, and an hour back.

I could've paid a truck to do all of this, but thought it'd be fun and worth the experience.

However, once I got to the address my freight forwarder gave me, I was instantly nervous. I was the only one there driving a van, and surrounded by trucks pulling in:

Sidenote: Chicago weather was beautiful today. Even took a bike ride after this was all done.

But when I got in, things got easier. There were signs pointing to where drivers check-in, so I went ahead and checked in:

A nice guy behind the door scanned my ID, checked me in, and told me to pull over to the side of Gate 37 where my shipment would be available. It took about 7 minutes to check in:

Once at the gate, I waited for the guy ahead of me to finish his shipment. When he was done, an employee came out, took my paperwork, and then came back with my shipment:

That's 1.49cbm of product. To put that in relative terms, that's a van full of product:

The nice guy that brought the packages out also helped me load them up into the van. Took us about 6 minutes to load 53 boxes. Then he had me sign a release paper and I was set to go.

All-in-all, including my weight, there were about 2,000 pounds in that van. Turns out that cars have a maximum load weight. The van I used had a max load of 1,400 pounds, so the drive home was a little weird. The car drifted right by itself, so I drove slow, and made it back safe and sound.

In conclusion: Importing isn't as bad as you'd think it is. Freight forwarders are pretty inexpensive. Picking up shipments is pretty easy. Overall, the process is fairly painless. I'll be importing a lot more in the future, and am extremely excited for how simple it really is (once you have a supplier).

Did you not have any unloading or warehousing fees?

Is the FOB charge for the rail portion to Chicago?

I'm in the process of setting up a shipment now, and getting ridiculous quotes like $700+ just to unload and truck the goods from the port to a warehouse 50 miles away.

The supplier's forwarder from China is some small time operation filled with negative reviews for their U.S office...

 

[AgainstAllOdds]

Did you not have any unloading or warehousing fees?

Is the FOB charge for the rail portion to Chicago?

I'm in the process of setting up a shipment now, and getting ridiculous quotes like $700+ just to unload and truck the goods from the port to a warehouse 50 miles away.

The supplier's forwarder from China is some small time operation filled with negative reviews for their U.S office...

Are your quotes $700 to unload in the U.S. and transport? Or are those quotes for China?

Because for the U.S., that's around the going market rate for a container. $400 is closer to the low end for a container of goods.

And the costs I posted were all my costs. The FOB charge was the paperwork + delivery for the shipment within China. My purchase terms were EXW, so I had to pay those costs. However, I recommend that you get FOB prices so that you don't have to deal with that.

 

[Ronak]

Are your quotes $700 to unload in the U.S. and transport? Or are those quotes for China?

Because for the U.S., that's around the going market rate for a container. $400 is closer to the low end for a container of goods.

And the costs I posted were all my costs. The FOB charge was the paperwork + delivery for the shipment within China. My purchase terms were EXW, so I had to pay those costs. However, I recommend that you get FOB prices so that you don't have to deal with that.

Yes, $700 is just the road portion from the port to warehouse. The price for the container from China to LA (FOB) is only $600, which is why I was shocked that the shortest portion costs more than the entire sea transport across the ocean.

The reason I asked was I didn't see anything spelled out on your invoice about cost from LA-Chicago or the warehouse charges in Chicago..was that all included in the Ocean Freight portion (that's one hell of a deal!!) ...Or maybe it is one of the other line items?

 

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[Ronak]

Yes, $700 is just the road portion from the port to warehouse. The price for the container from China to LA (FOB) is only $600, which is why I was shocked that the shortest portion costs more than the entire sea transport across the ocean.

The reason I asked was I didn't see anything spelled out on your invoice about cost from LA-Chicago or the warehouse charges in Chicago..was that all included in the Ocean Freight portion (that's one hell of a deal!!) ...Or maybe it is one of the other line items?

Also, did you specify the warehouse to go to, or did you just ask them to find something for you? Did the warehouse charge you separately?


Thanks

 

[AgainstAllOdds]

Also, did you specify the warehouse to go to, or did you just ask them to find something for you? Did the warehouse charge you separately?


Thanks

LA-Chicago is included in the Ocean Freight cost. It is a "hell of a deal", and an incredible eye opener. Once you realize how much money you can save by shipping by sea, you'll change your entire outlook and business plan.

And I don't specify what warehouse. I specify Chicago. Then the freight forwarder handles the rest. Having control over which warehouse the shipment goes to is not that significant once you start paying trucks to deliver your shipments. I live and do business in the city. All warehouses are in the suburbs. So it's the same difference for me regardless.

Lastly, the warehouse does NOT charge you separately. You usually have 7 days to pick up your shipment. Storage is 100% free. After that, there's a small charge per day.

** The only unpredictable cost is the pallet fee at the warehouse. If you're taking the shipment with the warehouse's pallets, then expect to pay a fee of about $25 per pallet. Not a lot. But bring cash in case you don't have pallets to exchange. If you have pallets to exchange, then no fee.

 

[AgainstAllOdds]

Here's how much a full container costs. I took a 40'GP container this time. That's twice the size, and an extra $500. For a regular container, you can expect something like the costs below, minus $500, and different duties.

So if you're planning to do a large shipment, expect similar costs.

Damn, and I was just starting to feel good about my bank account ...

 

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[Vigilante]

As a sidebar, I had some dipshit in Asia switch a shipment of mine from UPS Worldwide Express Saver to Air China (because after I paid them, they decided to do the old switcharoo and save themselves $100.)

Here's what their $100 cost me. Instead of door to door shipping with customs clearance by UPS, I got :
1. Shitty visibility to tracking
2. An extra 7 days transit time compared to UPS
3. Delivery to port vs. door to door
4. Bonded warehouse
5. Formal entry
6. A trip to the bonded warehouse, followed by
7. A trip to the bank to get a cashiers check for $40 for the warehouse, followed by
8. A trip to the US Customs and Border Protection office, which caused
9. A 45 minute wait while they figured it out, and closed out the paperwork
10. A trip back to the bonded warehouse to pick up the merchandise
11. Assistance loading the merchandise into my personal truck
12. Transit back to our warehouse to unload the shipment

Glad these F*ckers saved $100. I told them they could either duplicate the shipment and resend it via UPS, or pay us back the entire value of the shipment or we would never talk to them again. I never heard back from them. Fortunately it was a test shipment, and valued at just under formal entry. The merchandise looks GREAT. Too soon to tell how it will do as it is just now arriving to FBA. If it does well, I will go find similar product somewhere else.

Becoming an expert in all methods of freight is worth the exercise. Fortunately, we knew how to navigate all of the above, which was a tremendous pain in the a$$.

 

[Ronak]

Becoming an expert in all methods of freight is worth the exercise. Fortunately, we knew how to navigate all of the above, which was a tremendous pain in the a$$.

Definitely being educated in this aspect...a pain in the butt for sure, but its literally building a system/virtual supply chain that will serve me for years to come. Plus, there's a deep satisfaction in getting those eureka moments that save me extra steps and extra cash.....50 cents a unit here, a $1.00 there, another $2...etc...pretty soon it adds up to where my research has dropped my costs below the competition, netting me extra margin...fun stuff

 

[Ronak]

Here's how much a full container costs. I took a 40'GP container this time. That's twice the size, and an extra $500. For a regular container, you can expect something like the costs below, minus $500, and different duties.

So if you're planning to do a large shipment, expect similar costs.

Damn, and I was just starting to feel good about my bank account ...

Thanks for continuing to share...I'll report back here after I finalize everything on my side.

 

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[Ronak]

LA-Chicago is included in the Ocean Freight cost. It is a "hell of a deal", and an incredible eye opener. Once you realize how much money you can save by shipping by sea, you'll change your entire outlook and business plan.

And I don't specify what warehouse. I specify Chicago. Then the freight forwarder handles the rest. Having control over which warehouse the shipment goes to is not that significant once you start paying trucks to deliver your shipments. I live and do business in the city. All warehouses are in the suburbs. So it's the same difference for me regardless.

Lastly, the warehouse does NOT charge you separately. You usually have 7 days to pick up your shipment. Storage is 100% free. After that, there's a small charge per day.

** The only unpredictable cost is the pallet fee at the warehouse. If you're taking the shipment with the warehouse's pallets, then expect to pay a fee of about $25 per pallet. Not a lot. But bring cash in case you don't have pallets to exchange. If you have pallets to exchange, then no fee.

I always assumed I'd have the factory palletize the shipment at origin...any thoughts on why 1 vs the other?

 

[Vigilante]

I always assumed I'd have the factory palletize the shipment at origin...any thoughts on why 1 vs the other?

Most won't unless it is domestic, and most containers are not palletized because it's dead space. I am not even sure that is an option with an overseas supplier.

 

[Walter Hay]

Most won't unless it is domestic, and most containers are not palletized because it's dead space. I am not even sure that is an option with an overseas supplier.

Agreed. Space is at least as valuable as weight. Some shipments from China are palletized if they are carrying heavy objects, but most are not, and it is rarely offered as an option.

Labor cost in loading parcels into the container is usually less than the cost of pallet plus space.

Walter

 

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[Ultras]

Excellent post! Thank you for telling all of us how it went for you and sharing valuable info!

 

[exclusives88]

Delete my old comment.

Here is a quote from my freight forwarded. Door to Door shipment via Sea Shipment

1.54 cbm - Price is $1,494

This includes origin fee (picking up from business address in Shenzhen) and delivering to my door in NJ

 

[wade1mil]

I appreciate you sharing your experience. It sounds much easier than I was expecting.
I'm doing my homework for my card game I'll be importing in a few months.
I have to estimate my product dimensions because it hasn't been manufactured yet, but I have a pretty good idea of what they'll be.
I'll have 400 boxes that are approximately 9x6x20", which is about 7cbm and 10,500 lbs.
I want to ship directly from the US port to Amazon's warehouse and I assume that's possible as long as I set it up with Amazon ahead of time.

Using some rough math based on your experience, I'm expecting to spend around:

• $1,850 for shipping
• $350 in fees
• $485 in duties (per government website)
• $2,685 total

Does that sound about right in terms of shipping and fees?
Should I contact the local freight forwarders months in advance, or is this something I should wait until a couple weeks prior?

Thanks again for breaking it down. Helped a lot!

 

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[AgainstAllOdds]

I appreciate you sharing your experience. It sounds much easier than I was expecting.
I'm doing my homework for my card game I'll be importing in a few months.
I have to estimate my product dimensions because it hasn't been manufactured yet, but I have a pretty good idea of what they'll be.
I'll have 400 boxes that are approximately 9x6x20", which is about 7cbm and 10,500 lbs.
I want to ship directly from the US port to Amazon's warehouse and I assume that's possible as long as I set it up with Amazon ahead of time.

Using some rough math based on your experience, I'm expecting to spend around:

• $1,850 for shipping
• $350 in fees
• $485 in duties (per government website)
• $2,685 total

Does that sound about right in terms of shipping and fees?
Should I contact the local freight forwarders months in advance, or is this something I should wait until a couple weeks prior?

Thanks again for breaking it down. Helped a lot!

Did you include the trucking cost? Because if not, you're missing the trucking fee from the port to Amazon's warehouse. That will cost you about $400 to $700.

Also, if you're going straight to California, then your expenses will be lower than to Chicago. So the shipping costs might be less.

Plan for $3,500. Hope for $3,000. Unless you included the fee. Then subtract $700 from those numbers.

 

[Ronak]

Thanks for continuing to share...I'll report back here after I finalize everything on my side.

As promised:

Description Price
Ocean Freight $560.00
Customs Entry Service $95.00
ISF Filing for Customs $45.00
Transfer to Warehouse $375.00
Marine Insurance $100.00
Customs Duty $259.90
Total $1,434.90




All in less than $1200 from the factory in China to the warehouse in LA for a 20ft container before customs. 14 days on the ship, another few days for unloading at the port, and another couple days for pickup and final delivery.