Question about LCL shipping costs

rob316

Hi

My work have just placed its first order by sea from China. We have always bought from this supplier by Airfreight but it has become increasingly expensive.

Our seller arranged the shipping/forwarding but we have ben told we need to pay the following charges to the forwarder -

There would be extra destination costabout GBP 190and custom clearing costabout GBP150.

Does this sound correct? I have no reason to think our supplier would mislead us that there would be more charges. Is this all we would be liable to pay on a 2CBM load?

thanks

RUDOLF289

Can I suggest that you search this forum for the term China Import Service Fee?
My advice is to NEVER, EVER leave the shipping to your Chinese supplier. They get an absolute sweet deal for the Ocean Freight. In some cases they actually get freight for next to nothing. All that means though is that the Chinese shipping agent has a 'license' so to speak to instruct his agent to collect entirely spurious charges at destination.

And then the agent on this side simply adds his pound of flesh. It is a scam and once the shipment is left you have zero leverage to negotiate.

Please ensure for future shipments you control the shipping and nominate your own agent to handle your shipment.
Change the terms to FOB in order to avoid being the sacrificial lamb.

rob316

Thanks for the reply.

I feared that would be the answer. All we paid was 70$ shipping to our supplier and then we were told we need to pay the customs and destination charges to the forwarding company in Rotterdam. Does that sound about right?

Cheers

RUDOLF289

Hello Rob316

Ok, you have been very unfortunate.

If I had shipped this from let's say Shenzhen / Ningbo / Shanghai, the following would have applied for 2 CBM ;

Oceanfreight Us$ 190.00 (Upto arrival Dublin)
Handling in Ireland € 55.00
Agency Fee € 50.00
Customs Clearance € 60.00

That would be aprox € 312.00

You have now paid Us$ 70 + GBP 340.00 = aprox € 450.00

Part of the problem is that the cargo is routed / discharged in Rotterdam. That means there is an agent in Rotterdam involved and agent in Dublin. And they all want to make money ......... Plus it would take at least a week longer also.

I keep stressing this to all on this forum. Do not let your supplier in China (or anywhere else in the world) make the shipping arrangements - unless you know in advance what the costs here in Ireland are going to be. My experience suggests, especially from China, that all the forwarders in China know, once they have the cargo in their control, they have you over a barrel as you are likely to have paid your supplier. And maybe your supplier is somewhat naive in accepting an unrealistic Oceanfreight rate and genuinely thinks he is getting a very good deal. (Emptor Caveat - if it looks too good to be true it usually is)

You generally achieve better results if you agree FOB port of shipment terms and control the shipping yourself through an agent in Ireland.

If you want to e-mail me with the documentation, I would be happy to make a phone call to the agent in Rotterdam and see if we can save you some costs (being Dutch myself I will speak to them very politely in their native tongue ......). My e-mail is : rudy@rdglogistics.eu

Cheers,
Rudolf289

funstuff

Hey Rudolf,

Sorry for jumping on thread but I have a quick question.
You seem to have alot of knowledge on importing from China.

I have been importing for a while now from UK and Germany and looking to cut out the middle man.
In the process of importing same goods from original supplier in China.

Size 4.23 cubic metres
Weight 1400kgs

What should I expect to pay LCL from Ningbo to Dublin.

Many thanks in advance

Gerry

RUDOLF289

funstuff wrote: »

Hey Rudolf,

Sorry for jumping on thread but I have a quick question.
You seem to have alot of knowledge on importing from China.

I have been importing for a while now from UK and Germany and looking to cut out the middle man.
In the process of importing same goods from original supplier in China.

Size 4.23 cubic metres
Weight 1400kgs

What should I expect to pay LCL from Ningbo to Dublin.



Many thanks in advance

Gerry

Hello Gerry,

small bit of a challenge as the shipping lines are trying to implement a significant increase on 01JUL that potentially has a major impact on the rates post 01JUL.

If we had shipped it this week, the rate would have been ;

Oceanfreight Us$ 402.00

Handling / Discharge € 77.55
Agency € 50.00
Customs Clearance € 60.00
Delivery (estimate 3 pallets) € 95.00

It probably will be next week before we can give you the post 01JUL rates as negotiations are ongoing.

I can help you with the customs classification and duty / VAT calculations, if you need any help in that area.

Cheers,
Rudolf289