Home – New Forums Logistics Excessive costs sea shipping from China

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  • #999613
    bigjon445566
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    Hi FS Team,

    I have ordered packaging from China through Alibaba for my new business by sea.

    I’m receiving LCL cargo of 8 cartons (2 cubic meters total) weighing 98kg all up.

    I’ve received an invoice from the broker/customs totaling almost $1600, the value of the good themselves are only about $1200.

    Do these costs sound right, they seem excessive for such a small amount? please see the breakdown below(excluding gst):

    • Customs Clearance / Agency Fees $368.00
    • Destination Port Charges $390.00
    • Destination Terminal Handling Charges $70.00
    • Delivery Order Fee $80.00
    • Destination Customs Management Re-Engineering Fee $45.00
    • Destination Cargo Reporting Fee $45.00
    • Destination Security Surcharge $70.00
    • Admin $6.50
    • Port License Fee $10.00
    • Port Fuel Surcharge $10.00
    • CFS Infrastructure fee $20.00
    • Port Infrastructure fee $10.00
    • Destination Documentation Fee $40.0
    • Customs Disbursement Charges $344

    Thanks heaps

    #1220494
    LucasArthur
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    Curious, was any of this discussed before ordering? Shipments like this can be expensive by sea, as sea incurs processing fees like you listed.. Not commenting directly on the fees, although things like agency processing etc etc can add up for smaller orders like this.. whilst you get cheap boxes in China, the freight can add up if not done efficiently.

    Havent brought in a LCL myself for a while, so dont have any invoices handy to check, although some look off.. would look forward to a broker replying actually.

    Although it does not help on this occasion, and as eluded to am interested in the discussion prior to the order being made, although if the supplier arranged shipping this can add to costs (sneakily) in freight and so forth.

    Good luck

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1220495
    bigjon445566
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    Unfortunately none of this was discussed before ordering, the supplier arranged shipping on their side, the terms were FOB shipping.

    I assumed all the processing/customs fees would be minimal.
    It seems like shipping small order by sea is not the best value.

    #1220496
    Felicity Metcalf
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    Unfortunately having your supplier arrange shipping with FOB terms often results in excessive local clearance costs. Your supplier gets super cheap export costs and the import costs are much higher.

    You didn’t mention the freight cost..?
    Customs agency I consider high is about $110 so $368 is ridiculously high..
    customs disb does that include entry, duty and get? Without seeing the bill it seems high.
    DO (delivery is high) and several others appear high but I don’t have a set of rates in front of me so can’t remember them off the top of my head.

    Always recommend you get rates quoted before shipping (and usually best to cost yourself for comparison)

    #1220497
    Searates Australia
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    bigjon445566, post: 266256, member: 115206 wrote:
    Hi FS Team,

    I have ordered packaging from China through Alibaba for my new business by sea.

    I’m receiving LCL cargo of 8 cartons (2 cubic meters total) weighing 98kg all up.

    I’ve received an invoice from the broker/customs totaling almost $1600, the value of the good themselves are only about $1200.

    Do these costs sound right, they seem excessive for such a small amount? please see the breakdown below(excluding gst):

    • Customs Clearance / Agency Fees $368.00
    • Destination Port Charges $390.00
    • Destination Terminal Handling Charges $70.00
    • Delivery Order Fee $80.00
    • Destination Customs Management Re-Engineering Fee $45.00
    • Destination Cargo Reporting Fee $45.00
    • Destination Security Surcharge $70.00
    • Admin $6.50
    • Port License Fee $10.00
    • Port Fuel Surcharge $10.00
    • CFS Infrastructure fee $20.00
    • Port Infrastructure fee $10.00
    • Destination Documentation Fee $40.0
    • Customs Disbursement Charges $344

    Thanks heaps
    yes indeed quite expensive, always buy either EXW or FOB ex China and get a quote before proceeding. Also and quite often where people get confused the cost of the goods is irrelevant comparing to the logistics cost. what it matters is the volume or weight…not the value of the goods – drop me a note if you need further advice

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