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

[AgainstAllOdds]

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).

 

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[AgainstAllOdds]

@AgainstAllOdds
Since there are a lot of goods, do you have a warehouse or do you sell these from home?
Do you sell on amazon and use fba, so do you unpack and relable part of the shipment and sent it to amazon?

I would really appreciate your answer.

Thanks.

No. No warehouse. No selling out the home.

This shipment went straight from me picking it up to dropping it off with my client.

I literally pulled over to the side of the road, opened one package to check quality, and then made sure that the boxes didn't have factory info on them. Once that was done, I pulled up to my client's warehouse, unloaded all the boxes (with some help), and handed him an invoice. He handed me a check. An hour later he called and placed the next order.

But note: it took me 5 months of intense searching for suppliers and selling to get to this point. The prices I'm offering now are better than my client was getting when he was importing himself. So for him, it's a no brainer to pay a middle man like me. All my profit comes when I buy and negotiate.

Here's another post I made before. Samples are all you need to get started: https://www.thefastlaneforum.com/community/threads/all-you-need-are-samples.62635/. After that, bootstrap a van, and deliver the shipment.

 

[AgainstAllOdds]

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.

 

[Vigilante]

Marked gold.

Your process is great.

I have been doing this MUCH longer than you, but was able to learn from you.

Your concept is great.

Your other thread on this topic is great. (https://www.thefastlaneforum.com/community/threads/all-you-need-are-samples.62635/)

And... your willingness to share the specifics and spark this discussion with the Fast Lane is GOLD.

Congrats and thank you.

 

[biophase]

Those costs look pretty inline with mine. I bet next time you'll just pay the extra money to get them delivered to your house! Especially since you're second shipment will most likely be bigger!

 

[AgainstAllOdds]

@Vigilante @MJ DeMarco Thanks for all the kind words!

It's because of this forum that I'm in a lot better place today than I was a year ago.

Also, I don't like posting progress threads before getting results, but will be creating one soon to share a few things and give value where I can. Hopefully I'll have something to report within a month.

 

[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$$.

 

[biophase]

What is the advantages of sea freight vs air? When I first ordered from China it was via air, cost me $60 and was delivered to a local FedEx and that was that, no paperwork or anything

You probably did not have an order that weighed over 100 lbs. my orders weigh over 10,000 lbs so you can't really send it by air.

 

[Ajita]

One thing I learned during the process was to make sure the quote included delivery by a truck with a lift gate. I don't have a loading dock. I could just see an 18 wheeler pulling up to my house looking for a loading dock. That would have been interesting!

One thing to check is the specific type of delivery truck it will come on. On a recent shipment I received (two pallets), I specified a truck with a lift gate so that it could be delivered to my residential address. I assumed this would be a box truck, kind of like what Lowe's uses to deliver appliances and stuff.

Turned out that it was a 53 foot semi with a lift gate...and at the last second they called me letting me know they couldn't take that truck into my little neighborhood (turns were too tight, trees too low, etc.). So I had to have them drop it at a different location nearby and bring it to my house in 4 trips with a packed Honda Civic

 

[biophase]

Ahh totally makes sense

BTW, a truck with a liftgate is about $150-$200 more than a truck without one. Also, delivering to a house is also way more expensive than delivering to a residential address.

I just got a bill here right in front of me so I'll post my costs:

1907lbs, 2.285 cbm

duties $217
customs entry service $75
ISF filing $35
Freight from LA to AZ $555.02
Shipping CIF from China to LA $450.00

So basically $1000 to ship from China to my warehouse, 2000 lbs

Man, your costs were cheaper than mine! And they shipped it all the way to Chicago. But it also depends on how close your manufacturer in China is to a port town.

 

[Walter Hay]

My shipment was about 1.49cbm. So your shipment will be 3x the picture you see up top.

But don't calculate CBM/cost. Calculate:

Total cost/# of Units.

Then figure out if your margins accommodate your risk + time (how much you want to get paid).

This is a great story. Congratulations. It highlights the value of using a freight forwarder, without whose help such a shipment could be a nightmare.

I would prefer to use a forwarder local to me and get them to liaise with a correspondent forwarder in China. That could save some money because your local forwarder will (should) make sure you are not being hit for excessive inland charges in China.

In any case I would recommend getting at least 2, and maybe 3 quotes.

What @AgainstAllOdds is doing is similar to, but superior to Indent Selling. Those who are indent selling get paid a commission by the supplier, but AgainstAllOdds is able to decide his own margin and the supplier and the buyer only have his contact information, so his market is protected at both ends.

Walter

 

[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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[AgainstAllOdds]

Did you know what product you where going to try and import from the beginning of your journey for those 5 months when you set out to find suppliers?

You engage the market. Figure out what the market wants. Define the value. Figure out if you can deliver that value. If you think you can, you get samples (sometimes engaging the market requires samples first). Then you get feedback. Then you push 20 different guys to give you an order. 1 guy does. You deliver to that guy. Sell him more stuff. Replicate the value you gave him for other people. Add more value. Scale.

So to answer your question: Yea, I knew what product I was going to import, but it was a result of launching 5 different ideas at once and going with the one that had the most traction.

 

[Ramble On]

Thanks for this info! I am going to be trying my first import from China via sea in a couple of months. I have already gotten two quotes and the numbers look pretty similar to yours. Currently I am importing everything from the UK via air. Obviously hoping to reduce costs bringing it direct from the factory in China.

My shipment will come into Dallas which about a 3 hour drive from me. Given this I had them give me a quote to truck it to my location. One thing I learned during the process was to make sure the quote included delivery by a truck with a lift gate. I don't have a loading dock. I could just see an 18 wheeler pulling up to my house looking for a loading dock. That would have been interesting!

 

[AgainstAllOdds]

I was just analyzing if it was worth it to take the sea-route, was having difficulties with getting a feel for how much CBM/cost is.

My shipment was about 1.49cbm. So your shipment will be 3x the picture you see up top.

But don't calculate CBM/cost. Calculate:

Total cost/# of Units.

Then figure out if your margins accommodate your risk + time (how much you want to get paid).

 

[MJ DeMarco]

Rep transferred, love seeing NEW GOLD!

 

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[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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[exclusives88]

This is from China -> Shenzhen Port -> NYC -> straight to my door. Cost was $1,880. Chargeable Weight of 2.733.

Now, I have these wood pallet pieces. How the heck do I throw these out? Is there a service where they pick this up from my front porch?

 

[Phones]

Jealous of your freight costs to USA, and your local costs are really low, Lisbon airport / sea terminal is a rip off. I paid 300€ for local costs on a air freight shipment (excluding custom brooker fee).

I got an air freight last year of around 1.60 cbm too. Did Shanghai-Lisbon but will start doing Shanghai-Amsterdam-Lisbon, same price but no upfront VAT. Around 1000€, everything included (except VAT, if paid), chargeable weight is the volumetric weight, around 270kg. So glad my products are light weight

 

[Vigilante]

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).

Bump

 

[Walter Hay]

Lads,

Great thread. Really helps to see the specifics shown like this. Kind of soothes the jitters for first-timers.

But I have a question, sorry to derail, but since we're waiting for Againstallodds to report back...

Anyone with any experience importing from Russia?

Walter! I love your Gold Threads. I have almost finished devouring them all. Do you have any experience shipping out of Russia? With the rouble so weak now, I feel that I can make a killing on this apparel line I am designing.

(Or anyone else's input for that matter!)

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

 

[Vigilante]

Stats on @AgainstAllOdds

Joined:
Dec 26, 2014
Messages:
465
Likes Received:
1,217

Roughly 3 likes per post.

I said elsewhere that the measure of value=posts to likes seems to be around 1:1

He's at 3/1 and this thread is an example of why.

Plus, you will see the results as forum rep tends to mirror real world rep as the forum tends to filter bullshit, just like the real world.

Well done. Show him some rep+ before he logs back in.

 

[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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[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]

The freight forwarders are taking forever to respond. Thought I'd post it up here and see if anyone has a response.

I have two cargo from different locations
2.75 CBM in Jinxong
3.3 CBM in Shenzhen

They are far from each other but is it better to consolidate them? Supplier in Jinxong quoted $210 to ship to Shenzhen...

Do I have them ship it to the supplier in Shenzhen? Or some type of warehouse at the port so they can hold it for XX days (once the products in Shenzhen are produced)?

Thanks!

They ship it to your freight forwarder's warehouse. And your freight forwarder is supposed to handle all of that.

If you want, send me a message with your name and email, and I'll introduce you to my freight forwarder who is based out of Shenzhen.

 

[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

 

[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.

 

[AgainstAllOdds]

Here is the quote for my first (potential) bulk shipment from China to Seattle Port. I will be using a customs broker to sort out the required forms and freight services. Does anything stand out as irregular, the $550 Continuous Bond fee does not appear to be a common charge for the others that have posted their costs. I am also still deciding to ship directly to Amazon FBA or to deliver to my house for better quality inspection and product control. Thanks!

Weight / dimensions for Product:
25 boxes, 13 kg each.
Each box: 51.9*40.7*36.9cm
CBM: 1.95
Total Gross Weight: 325 kg

Origin Fees: $108.35
Ocean Freight: 146.25
Destination Fees: $250.20 ($33 in pallet fees)
Customs Fees/Forms: $1051.25 ($550 in continuous bond fee)
--------------------------------------------------------------------------------------------
Estimated total: $1,556.05

Is the shipment going to Boise or just Seattle?

Because if it's just to Seattle, then you're paying too much per cbm. Also, I paid $450 for my continuous bond fee.

It might be worth shopping around. It won't save you a lot to start, but will save you a bunch long-term. Then again, I don't know how many freight forwarders there are in Boise.

Also: why are you getting a continuous bond for your first shipment? Will you be doing at least 4+ shipments this year? Because if not, then it's not worth paying for. My opinion: do one shipment. See how it goes. Then consider getting a bond.

 

[Walter Hay]

Amazon's preferred forwarder is Samuel Shapiro & Company, Inc. | Customs Brokerage & Global Freight Forwarding

Walter

 

[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