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How to avoid tricks for CIF quotation by sea shipping?

7/4/2017 5:31:23 PM times the

Sea shipping cost is composed of 5 parts:

1.  Inland freight from Chinese factory to sea port

2.  Chinese sea port local charge

3.  Sea shipping freight

4.  Destination sea port local charge

5.   Inland freight from destination port to final delivery address

 

A full container load is easy to calculate, take JW Banner ships a 40ft container to Los Angeles as example, inland fright is around $800 to Shanghai sea port, $600 for Shanghai port local charge, $2000 for shipping from Shanghai to Los Angeles by sea, $700 for Los Angeles local charge, total $4100 plus US inland shipping.

 

But the cost for less container load is not so clear, the inland freight for Chinese part and US part is fixed, but the forwarder could control part 2, 3&4 on above list, for example, JW Banner ships 10 cubic meters to Los Angeles, Shanghai sea port local charge is about $250, sea shipping cost is $350, Los Angeles local charge is $200, that means the Chinese supplier should pay for $600, and you pay $200 when collect goods from sea port. But some forwarder could play tricks on it, they do not charge from supplier, but put all $800 on your side, you need to pay for it to get the goods out in Los Angeles port, in that way, some suppliers may offer a CIF price looks cheaper, but you spend more on total.

 

For example, JW Banner offers CIF Los Angeles a total amount $6500 for 300pcs beach flags, some other supplier offers CIF Los Angeles $6200 for the same products, it looks our price are higher, but when you pick up goods, you pay $800 and makes the total cost to $7000, instead of $6700 total amount from JW Banner, that’s the trick some Chinese suppliers play when offer CIF price.

 

My suggestion is when you get a CIF quotation, ask the supplier “how much is destination port charge”, if they do not tell you, or cannot offer an exact amount, they may play the tricks.


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