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  • #990774
    1911naomi
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    I am looking to import from China to sell in Australia on an Online store

    I can not get my head around shipping from China, I’ve been looking up as much as possible on here and google.

    From reading on this site i gathered i need to contact a freight forwarder and a customs broker.

    I emailed a few people yesterday including Cat off this website, so far i have heard back from one company so I will be following up on acouple more.

    However, from speaking to this one company OMG it is way more expensive then i thought.

    I am purchasing items (individually worth $0.40cents) but total costs will be $3240 USD or roughly $5250 AUD

    I was quoted roughly $2,300 AUD based on 5.5M3 CBM

    That is half of what I’m paying for my product.

    What other options do i have?

    It will be LCL

    Price from wholesaler was FOB

    #1178513
    Past-Member
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    Don’t forget to add customs and tax costs for any shipment over $1000 in Australian dollars value.
    I don’t import but I know there are others on this site that do and who may advise you.
    See more at http://www.customs.gov.au

    #1178514
    LucasArthur
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    1911naomi, post: 207898 wrote:
    I am looking to import from China to sell in Australia on an Online store

    I can not get my head around shipping from China, I’ve been looking up as much as possible on here and google.

    From reading on this site i gathered i need to contact a freight forwarder and a customs broker.

    I emailed a few people yesterday including Cat off this website, so far i have heard back from one company so I will be following up on acouple more.

    However, from speaking to this one company OMG it is way more expensive then i thought.

    I am purchasing items (individually worth $0.40cents) but total costs will be $3240 USD or roughly $5250 AUD

    I was quoted roughly $2,300 AUD based on 5.5M3 CBM

    That is half of what I’m paying for my product.

    What other options do i have?

    It will be LCL

    Price from wholesaler was FOB

    Hi Naomi,

    mmm, this is an interesting post… With the due diligence you have shown with some of your other posts, i am a little surprised that freight has come as a last query and a surprise – no offence intended at all, i promise.. Freight can be the biggest barrier in front of many people wanting to start a business of sorts when talking about direct importing.

    As you duly noted, a relationship with a freight forwarder is imperative to keep you on track and to understand your TOTAL costs of goods or impending costs (ignoring seasonal fluctuations of course)… And this is before you commence product querying or samplings.

    Think i mentioned in another thread, not sure if yours or not, that i have taken many people across with me to the trade shows in China.. Always doing my best to make sure they all know what they are getting into and yet i still come across one or two that come to the fairs thinking they can find a $1 product, land it for 10-20% cost of goods and mark it up 1000%. Unfortunately, not always the case :(

    When i am walking around the fairs, or factories, i have a little spreadsheet that calculates it all for me (no its not pretty Cat but it does the job so shhhhhh) so i know approx costs of goods inc freight + taxes etc so i know potential margins and if the product is even viable for me to pursue. For example, some of my products cost me over $150 to ship per item..

    Your freight forwarder will be able to best advise you of best method to ship for the size/volume/cost in order to keep your costs down. Dont underestimate the value of these contacts. Not only advice, although they also potentially have access to discounted freight rates from DHL and the likes should airmail be entertained.

    Further to airfreight, the factories from China also tend to get awesome value for air consignments compared to us locally, although being 5.5cbm i am sure this is not an option at present…

    Without having all info, its hard to advise if the rate you are quoting is good or not.. Things such as:
    – is the rate fully landed – inc tax estimates and the likes
    – which port is it from
    – we dont know how many items you are getting into that 5.5cbm – it could be 1 or 1,000,000 and the quantity or cbm per will make a difference on the answer
    – how its being received this end and delivered this end
    – and so forth

    Its a very messy operation if not done diligently, although i think you have this down… My main piece of advice would be not to overcomplicate it, get frustrated by it or second guess yourself or others too often (unless you thing there is a valid reason for it)..

    Also note, be patient with your replies from freight forwarders (or anyone for that matter) if you only sent an email the day before, and that day being a Sunday too. Although this is a high priority to you, obvious to us in FS land, it may be in a queue to be responded to in order with the forwarder – or the forwarder is busy today with other emergencies or responsibilities. Just saying, you will probably find all these responded to in your inbox within 24-48 hours…

    Let us know how you go with the replies, and if you can get better rates or other methods as this may help many others in here as well :)

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1178515
    1911naomi
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    I appreciate your honesty.

    The quote was including all costs (customs, gst etc)

    To be honest this is all new to be and when i sent my first enquiry to the wholesaler i asked how much X amount of sets are and what are their costs for shipping including customs etc here and they gave me a quote of $375USD

    I knew it would vary but based my figures off this

    I find it hard to think I should/could of started with finding out how much shipping is as i needed to figure out roughly what items i wanted, how many of those items to determine how much weight/cartons I would need to ship over

    So i am now at that point where i know how many cartons/weight/sizes etc I need to ship over and unfortunately have come across that its not so simple and not as cheap as i thought it was.

    It is still worthwhile importing these products and selling them however as you mentioned instead of being 1000% profit it will be more like 150% after all costs.

    I will be getting a few quotes and asking lots of questions as I’m finding it hard to work my head around everything involved but I will get there.

    Thats funny that you tell me to be patient with freight forwarders and customs brokers as i was thinking i would’ve liked all to get back to me today but now it makes sense that i am more impatient then them. Cat has kindly got back to me so i will start liasoning with her and chase up other companies should i need too.

    I guess i was just in shock:) as it was a lot more then the $375USD i was thinking, however yes thats my fault for being naive and i was just wondering generally if freight/customs costs etc amounted to around 50% of the product costs.

    Just another general enquiry – can i organise shipping myself through a company (such a TOLL etc) and then pay a customs broker or is this still a very complicated/risky process (I understand freight forwarders can get discounts etc but this is just a generally enquiry as to if people do this and are risks involved ro just time

    Also Im looking into FOB and CFR – whats the benefit of each option to the wholesaler and myself – price/risk?

    AGAIN THANKYOU for reading my posts
    I will need to start my own form
    http://www.allaboutnaomi.com

    Without having all info, its hard to advise if the rate you are quoting is good or not.. Things such as:
    – is the rate fully landed – inc tax estimates and the likes
    – which port is it from
    – we dont know how many items you are getting into that 5.5cbm – it could be 1 or 1,000,000 and the quantity or cbm per will make a difference on the answer
    – how its being received this end and delivered this end
    – and so forth

    #1178516
    LucasArthur
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    Hi Naomi

    Ok, i am going to reply to some specific points in order to make it easier to see what i mean.. hope that is ok?

    1911naomi, post: 207919 wrote:
    I appreciate your honesty.
    If this is about me, unfortunately this is all you ever get from me

    1911naomi, post: 207919 wrote:
    The quote was including all costs (customs, gst etc)
    Ok, i dont LCL items so i am no expert here although working your figures back this would equate to $4000 approx in shipping fees and processing fees (although not said straight sounds like you are ordering $10k goods at say 15% duties to cover for bits and pieces makes them $1500ish out of the $5250 leaves costs at $4k?) which would make it around $666 per cbm?

    Again, no expert here, but sounds a lot but i could be missing something like cost of goods, where they are being delivered to, etc etc.. Without specifics, and real specifics of which i am not asking, your forwarder will be best to advise.

    1911naomi, post: 207919 wrote:
    To be honest this is all new to be and when i sent my first enquiry to the wholesaler i asked how much X amount of sets are and what are their costs for shipping including customs etc here and they gave me a quote of $375USD
    As this may be your first outing for importing, dont be dismayed and try to learn from this exercise. Meaning when someone liaises with China ‘wholesalers’ the wording of your query is imperative as is their replies and if you are unsure of any words, terms or abbreviations you can be left out of pocket a lot of money.. Such as FOB – some people think this means delivered to you.. No, definitely no! So just be aware.. Without seeing all correspondence, your wholesalers email could be correct in quoting $375 inc customs – well leaving China that is but not ‘landed’ to you..

    1911naomi, post: 207919 wrote:
    I find it hard to think I should/could of started with finding out how much shipping is as i needed to figure out roughly what items i wanted, how many of those items to determine how much weight/cartons I would need to ship over

    Sorry, please clarify have you placed your order or are you negotiating your order? If you are clarifying your order and now know CBM etc etc now is the right time to get your freight quotes, if you have placed the order now IS NOT THE time to be getting quotes as you should already know this…

    My apologies, i have to disagree with this comment about finding out how much shipping is if you have already placed your order and based it on the suppliers quote of freight.. Let me explain, a little, from the perspective of someone that has imported a couple of times.. The wholesaler, as you will find out, is not an Australian Customs/Freight broker and as such i am not sure how you could feel that there quote could have possibly covered any legal requirements or tax requirement of our Australia Government? Please, dont be offended, just trying to talk through this a little.. :)

    Also, i buy from new suppliers all the time and before i commit to anything i get a PI to assess which lists all CBM’s and Costs of Goods to manufacture and from this i can then talk to my local freight forwarder to ascertain the shipping costs before commit to buying or shipping anything! Otherwise, i may as well open my cheque book and hand it to the government or freight forwarder as a free for all.

    My comment was not about starting out with freight costs, but to have a contact that you could communicate with as you walked through the negotiation process and communicated simultaneously with supplier/forwarder to ensure costs were in hand. I am sure your manufacturer can tell you the exact size of every product you were to order from them.. From this you can then create a spreadsheet and enter your estimates of qty’s to buy which would then * by cost etc but ultimately giving you a total CBM for shipping quotes. From this you get your quotes and then potentially divide by cost per item based on CBM to ship giving you a close to raw product cost to see if a viable option to still import or not? Jeez, i hope that made sense as numbers are not my best asset.. LOL.

    1911naomi, post: 207919 wrote:
    So i am now at that point where i know how many cartons/weight/sizes etc I need to ship over and unfortunately have come across that its not so simple and not as cheap as i thought it was.

    As per above. Supplier is not always in a position to best advise of local costs which is why the forum tends to spruik developing meaningful relationships with freight forwarders as a go to person when you have freight and local duties queries. :(

    1911naomi, post: 207919 wrote:
    It is still worthwhile importing these products and selling them however as you mentioned instead of being 1000% profit it will be more like 150% after all costs.

    Without knowing all details, i think that sort of markup is still quite healthy.. But does depend on products etc. are you able to gauge against other similar products and margins they are achieving – benchmarking your margins?

    1911naomi, post: 207919 wrote:
    I will be getting a few quotes and asking lots of questions as I’m finding it hard to work my head around everything involved but I will get there.

    Hate to be the bearer of bad news, freight is going to do your head in.. There are lots of variables, from line entries to cost of shipping depending on time of year and surcharges etc.. Personally, i would recommend that you find a forwarder you are ‘comfortable’ with and feel they are honest with you and can guide you through this exercise because if you try and cross check quotes you are going to be left utterly confused as they are represented in many different ways and some unscrupulous operators will under quote and hit you with a bigger bill at the end of the day of which you have no other option than to pay for it or dont receive your goods and also be taken to court.

    1911naomi, post: 207919 wrote:
    Thats funny that you tell me to be patient with freight forwarders and customs brokers as i was thinking i would’ve liked all to get back to me today but now it makes sense that i am more impatient then them. Cat has kindly got back to me so i will start liasoning with her and chase up other companies should i need too.

    Yeah, i certainly wasnt trying to be rude here although sometimes we all just need to remember that our priorities are not always someone elses :)

    1911naomi, post: 207919 wrote:
    I guess i was just in shock:) as it was a lot more then the $375USD i was thinking, however yes thats my fault for being naive and i was just wondering generally if freight/customs costs etc amounted to around 50% of the product costs.

    Too many variables to answer this one like size of item, cost of item, and so forth.. this will vary for all products and relate to cost of goods as well.. some of my chairs cost me as much in shipping as it does the items…

    1911naomi, post: 207919 wrote:
    Just another general enquiry – can i organise shipping myself through a company (such a TOLL etc) and then pay a customs broker or is this still a very complicated/risky process (I understand freight forwarders can get discounts etc but this is just a generally enquiry as to if people do this and are risks involved ro just time

    If Toll did it, it would be the same as a freight forwarder? i am not sure i understand? If you mean “hey can i ring the shipping line and book a container – then ring a truck company in china to have it delivered to my supplier and then ring then to pick it up from supplier, and then have them take it to the docks, and then have it loaded by the docks on the boat that i rang and booked as well, and then got the guys in melbourne (after bribing some wharfies) to unload it, then have customs collect it for inspection, then have customs clear it, then have truck company collect it in the time restraints, then have item unpacked, then have items sent to me? i am not sure you can do this or if this is even an option.

    1911naomi, post: 207919 wrote:
    Also Im looking into FOB and CFR – whats the benefit of each option to the wholesaler and myself – price/risk?

    Are you aware of what implications these terms actually have or mean? not benefit of each but what each mean i guess? Liaise with your freight forwarder..

    Naomi,

    I know its a HUGE reply and i apologise although i just want to add a reassuring message that i am not being negative. Not trying to dissuade you in any way but just to suggest a few differing things maybe.

    In fact i would be pretty sure in saying that most importers have had a lesson or 2 in importing re costings and the likes that they would prefer to forget or preferably have reimbursed to their wallet to use for their next holidays! me three on this comment… Trust me..

    Cross your t’s and dot you i’s. All will be ok, i promise..

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1178517
    1911naomi
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    • Total posts: 124
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    again, thanks for taking the time to write back to me let alone write that much advice:)

    No, i have not yet ordered or committed to ordering the product but have decided if i go ahead i know what i want, therefor now I know the details of what i need shipped and will find a freight forwarder before i purchase the products.

    Sound like if my first shipment sells i’ll have to hassle you for how to do up spreadsheets you mentioned, but i won’t get ahead of myself yet enough to think about.

    You clarified my question about TOLL and trying to organise shipping myself to save some $$ so thanks for that

    It will be interesting to see how costs vary, ill let you know anyway for curiosities sake

    THANKS AGAIN

    #1178518
    SourceSmart
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    • Total posts: 64
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    Hi Naomi,

    The freight price seems a little high.

    Just checking an invoice i have for 7cbm and it is $1120 including delivery to my warehouse.

    Can i ask you how many pcs of your product you are looking to import?

    What is the price you are looking to sell them for in Australia?

    We should be able to work out the costs for you per pc.

    Warren.

    #1178519
    1911naomi
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    Phew , hopefully that is expensive but I’ll soon find out

    Each product is worth around .44-.65cents and total products would be 4,800 pieces

    I’ll update in a few days to see how much I’ve been quoted

    I’ve worked out how much it will cost per “set” and it will still be profitable when it sells ;)

    Fingers crossed

    SourceSmart, post: 207942 wrote:
    Hi Naomi,

    The freight price seems a little high.

    Just checking an invoice i have for 7cbm and it is $1120 including delivery to my warehouse.

    Can i ask you how many pcs of your product you are looking to import?

    What is the price you are looking to sell them for in Australia?

    We should be able to work out the costs for you per pc.

    Warren.

    #1178520
    Innopath Sammi
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    • Total posts: 7
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    Hi mate,

    We are located in Sydney with warehouse in Hong Kong and Sydney.

    We are expertise in importing goods for online or retail store, we can provide cheap and fast DHL shipping service importing goods from China to Australia

    Please feel free to drop us an email for further discussion.

    [email protected]

    thanks
    Sammi

    #1178521
    LucasArthur
    Participant
    • Total posts: 3,171
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    Innopath Sammi, post: 208398 wrote:
    Hi mate,

    We are located in Sydney with warehouse in Hong Kong and Sydney.

    We are expertise in importing goods for online or retail store, we can provide cheap and fast DHL shipping service importing goods from China to Australia

    Please feel free to drop us an email for further discussion.

    [email protected]

    thanks
    Sammi

    Hi Sammi

    Hope you are well.. i have held back for the last few hours re a few of your recent posts, although i could not anymore :(

    Whilst on the surface of your posts it appears you may be able to provide some insight into the world of importing via China and Sydney that i have read about although i must say that the method you are posting and copying and pasting the same message across multiple posts would not, in my eyes, be considered the most appropriate way of getting your message out nor to be actually seeking work or referrals from the forum as such – which you appear to be doing.

    Although i have not been around here long, i am under the impression that the best way to promote your work and who you are is to become a forum regular and contribute knowledge freely to the site and the OP’s who are seeking it.. Am not saying to give away all your intellectual knowledge although to contribute to the post with enough information that is informative rather than asking people to email you directly for ‘assistance’.

    Furthermore, i would also suggest to add your contact details to your forum signature so that people that like your contributions and feel you may be able to assist them that they can then, of their own volition, contact you for assistance.

    Cheers and look forward to leaning from you
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1178522
    Innopath Sammi
    Member
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    SimplyReplica, post: 208407 wrote:
    Hi Sammi

    Hope you are well.. i have held back for the last few hours re a few of your recent posts, although i could not anymore :(

    Whilst on the surface of your posts it appears you may be able to provide some insight into the world of importing via China and Sydney that i have read about although i must say that the method you are posting and copying and pasting the same message across multiple posts would not, in my eyes, be considered the most appropriate way of getting your message out nor to be actually seeking work or referrals from the forum as such – which you appear to be doing.

    Although i have not been around here long, i am under the impression that the best way to promote your work and who you are is to become a forum regular and contribute knowledge freely to the site and the OP’s who are seeking it.. Am not saying to give away all your intellectual knowledge although to contribute to the post with enough information that is informative rather than asking people to email you directly for ‘assistance’.

    Furthermore, i would also suggest to add your contact details to your forum signature so that people that like your contributions and feel you may be able to assist them that they can then, of their own volition, contact you for assistance.

    Cheers and look forward to leaning from you
    Jason

    Hi Jason,

    thanks for your comment and reply.

    I understand it is hard to start importing business and I am trying to get more information from people about the product they are looking for, so I could assist them.

    They can contact me directly through email or I can reply the enquiry here.

    Cheers
    Sammi

    #1178523
    LucasArthur
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    Innopath Sammi, post: 208408 wrote:
    Hi Jason,

    thanks for your comment and reply.

    I understand it is hard to start importing business and I am trying to get more information from people about the product they are looking for, so I could assist them.

    They can contact me directly through email or I can reply the enquiry here.

    Cheers
    Sammi

    Np Sammi

    For the benefit of the community tat is Flying Solo, it tends to be best done on the forum do one and all may learn from the OPs post/query.

    Obviously certain circumstances will have OP seek out alternate more private replies although this tends to be instigated by OP in a forum like this and not through self promoting posts of others.

    It’s just a very fine line and I am certainly not saying you are right or wrong, just be aware of the guidelines of the forum and etiquecy of the forum.

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1178524
    ThexArm
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    • Total posts: 253
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    A few years ago I was working for a company that imported products from Brazil. We were dealing with a custom broker called “Close Ineson” based in Sydney. These guys were very good and communication was excellent.

    #1178525
    Hatching_It
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    Hi there Sammi,

    To me it sounds like about the right price for an LCL import. You’re not quite importing enough where FCL becomes a cheaper option.

    If Cat is quoting that, then that is going to be about the best you can get. You might be able to get a slightly better price with ‘local’ Chinese forwarders or something but I tried that at first and ended up with emails like “the size of the goods is different to what the manufacturer quoted, it’s an extra $200” and other nasty surprises that meant I went over budget and removed any profit margin I had calculated.

    With Cat’s quotes, I’ve never had a nasty surprise, in fact the opposite usually occurs and she’ll email me and say “Guess what, no duties!” and I’ll say “HELL YES!!” and add to the money I make from that shipment.

    I’ve come to the conclusion that unfortunately it’s practically impossible to “keep up with the big boys” until you’re ale to import a full container with multiple products from the one manufacturer. Import costs are just so high when you’re dealing with less than say ~10CBM.

    SourceSmart, post: 207942 wrote:
    Hi Naomi,

    The freight price seems a little high.

    Just checking an invoice i have for 7cbm and it is $1120 including delivery to my warehouse.

    Can i ask you how many pcs of your product you are looking to import?

    What is the price you are looking to sell them for in Australia?

    We should be able to work out the costs for you per pc.

    Warren.

    Surely that didn’t include all docs, insurance and tax/duties? The OP would expect $200-$300 in documents, $350 in GST, ~$150 freight which wouldn’t leave much for local cartage, insurance etc..

    I’m about to bring in another 3CBM and I’m looking at about $2500 all up from China to my door in Canberra – about the same price as the actual products themselves.

    Maclean

    #1178526
    EmilyYVT
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    • Total posts: 6
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    hi Naomi

    Please allow me to contribute to your situation:

    Firstly, the quote you have received does sound expensive.

    When importing from China it is important to know what port the goods have been sent from.

    In general, freight charges from china are not expensive HOWEVER its the wharf fees on arrival that are variable can be very costly as most suppliers in china receive commission.

    A reasonable estimate of charges incorporating Freight + arrival port charges + customs clearance + Delivery is approximately AUD 1000.

    As others have mentioned you also need to factor in the customs duty / GST / government electronic processing fees.

    Another important factor when dealing with China is to ask your supplier if they are a registered exporter from china – you should ask for registeration number.

    If they are not a registered exporter they need to export through a trade company which increases costs substantially.

    i hope the above has been helpful.

    I am new to the FlyingSolo community. My background is 7 years in senior leadership positions in International Freight companies and I have been involved in a numer of successful start ups (not freight related!)

    My new venture is to consolidate my knowledge and provide virtual support to new importers / exporters & start ups through my business YOUR VIRTUAL TEAM.

    I provide independant advice as I am not working for a freight forwarder although i can recommend forwarders and customs broker and I receive no commissions.

    Please do not hesitate to contact me for any further information. I can help you compare quotes and crunch some numbers if that would be useful.

    Emily Pearson
    [email protected]

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