Cultural & Business Guide

From China…with what?

Introduction

In order to get your goods, it is important to choose the correct means of transport. This means that in order to receive the batch correctly and safely, you have to contact an experienced company that can handle and help you with any possible issues in all phases of delivery.

What means of transport are available?

Mainland China is connected to Europe by the following routes of transport:

  • By sea
  • By air
  • By train

Choice of transport

Sea transport

Most of cargo is shipped with container vessels from a major port of China, like Shanghai, Xingang, Guangzhou.

Vessels reach a European Port in about 35 to 40 days from the sailing date. Sea freight charges from China to Europe are usually higher than the rate from Europe, because of the quantity of cargo normally exported from the Mainland.

Special attention is requested on the part of the Buyers that use lcl services, because most of the time the destination charges to pay to the NVOCC destination Agents are extremely high, so it is better to check these charges before authorizing the Seller to use this service.

Air transport

Many airlines are offering cargo service to the most important European destinations.

Consolidation service and cargo flights are offered from the main Chinese cities to the main European airports.

Transit time usually ranges from 1 to 4 days, depending on the route and cost. Some air cargo is routed via a combined sea/aircargo service.

Train Transport

China has improved the service of block train from some Chinese cities to Europe. Actually, the main train services launched are the following:

  • ZHENGZHOU HAMBURG transit time 16 days
  • ZHENGHOU WARSAW transit time 12 - 14 days
  • YIWU MADRID transit time 16 days
  • WUHAN HAMBURG transit time 16 days
  • HEFEI HAMBURG Transit time 18 - 20 days
  • HARBIN HAMBURG Transit time 15 days
  • CHONGQING DUISBURG transit time 17 days

All goods have to be stuffed into containers and service is usually operating with exception of the winter season because the low temperature during the voyage may damage the commodities shipped.

Transport rates are still a little higher compared to sea transport rate, but these are justified by the quicker transit time from China to the city of arrival of the train service.

Other cities can be reached from the main arrival point by truck service, but this increases and decreases the interest of using the train.

Acronyms

In China, the most popular Incoterms rules for export from China are EXW, FOB and CIF.

Below is some information about the most important acronyms and relevant explanations about transport rules.

EXW, Ex works

This rule can be used for all means of transport.

The Seller will put the cargo at the Buyer's disposal in the Seller’s warehouse or another place.

The Buyer will have to deliver the goods from this point at his own cost and all risks of loss of or damage of the goods.

FCA Free Carrier Agent

This rule can be used for all means of transport.

The Seller will place the cargo at the Buyer's disposal in the Carrier warehouse or another place designated by the Buyer.

The Buyer will have to deliver the goods from this point at his own cost and all risks of loss or damage of the goods.

FOB Free on Board

This rule usually is used for sea shipment cargo.

The Seller will have to deliver the cargo on board of the vessel designated by the Buyer at the sea port agreed and stated in the contract.

The Buyer will bear the risks of loss or damages of the goods from the time goods are placed on the board of the vessel.

CIF Cost Insurance Freight

This rule usually is used for sea shipment cargo.

The Seller will have to arrange the shipment to the destination agreed in the contract prepaying all charges including insurance to the Buyer's account.

The Seller can choose the vessel and insurance company.

The Buyer will bear the risks of loss or damage of goods from the time goods are placed on the board of the vessel.

DDU Delivery Duty Unpaid

This rule can be used for all means of transport.

The Seller will have to bring goods to the destination place established and the Buyer will have to arrange customs clearance and pay the import duty.

The Seller will bear the cargo risk up to the final place of delivery established in the contract.

DDP Delivery Duty Paid

This rule can be used for all means of transport.

The Seller will have to bring the goods to the destination place established, arrange customs clearance and pay all import duty and tax.

The Seller will bear the cargo risk up to the final delivery to the Buyer's premises.

Project 2014-1-PL01-KA200-003591