Transportation and Incoterms

When importing goods from China, transportation costs are an important component of the final product price. In addition to sourcing products, we also provide international goods transportation services.

Being based in China allows us to ship goods worldwide, from Australia to Canada, at competitive prices by sea or air, depending on your requirements. We maintain constant contact with all major global shipping companies and monitor price fluctuations closely.

Transportation costs from China vary throughout the year, especially for container shipments. Prices are usually quoted with monthly validity, sometimes adjusted every two weeks. Differences in container shipping costs due to demand and seasonal fluctuations can exceed $1,000.

If you require shipping services by air or sea, please contact us via email.
For detailed articles about shipping prices and fluctuations, visit our blog.

If you choose to handle shipping through Chinese supplier services, carefully check the terms. Often, suppliers omit local port costs at the destination, which can lead to unexpected expenses. Always clarify these charges beforehand, as they can significantly impact your budget.

Essentials of Goods Shipping

International Rules for the Interpretation of Trade Terms (Incoterms)

Differences in trade practices and customs across countries created the need for standardized rules for trade terms. In 1936, the International Chamber of Commerce (ICC) issued the first version of Incoterms® (International Commercial Terms), which provide uniform interpretation of commonly used foreign trade terms in sales contracts, reducing misunderstandings, disputes, and litigation.

Over time, Incoterms have been revised to adapt to modern trade practices: 1953, 1967, 1976, 1980, 1990, 2000, 2010, and now Incoterms® 2020 (effective from January 1, 2020).

Use of Incoterms

Incoterms define the relationship between buyer and seller under a sales contract. They are usually combined with other elements of the sales contract and related contracts such as transportation, insurance, or financing. When using Incoterms, always specify the version used (e.g., "Incoterms 2020").

Key Changes: Incoterms® 2020 vs. Incoterms® 2010

  • DAT (Delivered at Terminal) renamed to DPU (Delivered at Place Unloaded)
  • FCA (Free Carrier) now allows bills of lading to be issued after loading
  • CIF and CIP have updated insurance arrangements, though coverage is negotiable
  • Cost distribution between buyer and seller is now more precise
  • FCA, DAP, DPU, and DDP consider scenarios where parties arrange their own transport
  • Security obligations are emphasized
  • Explanatory Notes for Users replace the 2010 Guidance Notes for clarity
  • CIP requires ICC A or equivalent insurance, whereas CIF coverage remains unchanged

Basic Differences: Incoterms 2000 vs. 2010/2020

  • Rules reduced from 13 to 11, divided into two categories: all-transport clauses (EXW, FCA, CPT, CIP, DAT/DPU, DAP, DDP) and sea/river transport clauses (FAS, FOB, CFR, CIF)
  • Under FOB, CFR, and CIF, goods are considered delivered once on the ship's deck, not over the ship's rail
  • DAT and DAP replace older terms DEQ, DAF, DES, and DDU
  • DAT/DPU: Seller delivers goods not cleared for import and unloaded at agreed terminal
  • DAP: Seller delivers goods not cleared for import at agreed destination, not unloaded

Modifying Incoterms terms in contracts without clear definition can lead to misunderstandings. Any additions should be precisely explained, ideally using language from the UN Convention on Contracts for the International Sale of Goods (CISG) 1980. For dispute resolution, arbitration by the ICC can be explicitly included in the contract.

Structure of Incoterms

For ease of use, Incoterms are classified into four categories based on the initial letter of the term. This guide reflects Incoterms® 2010 for demonstration purposes.

Incoterms® Classification of Trade Terms

Group Abbreviation Meaning of Abbreviation Type of Transportation
E
Departure
EXW Ex Works (...contracted place) Any type of transportation
F
Main transportation unpaid
FCA Free Carrier (...contracted place) Any type of transportation
FAS Free Alongside Ship (...contracted shipping port) Sea and river transport only
FOB Free On Board (...contracted shipping port) Sea and river transport only
C
Main transportation paid
CFR Cost and Freight (...contracted port of destination) Sea and river transport only
CIF Cost, Insurance and Freight (...contracted port of destination) Sea and river transport only
CPT Carriage Paid To (...contracted port of destination) Any type of transportation
CIP Carriage and Insurance Paid To (...contracted port of destination) Any type of transportation
D
Arriving
DAT Delivered at Terminal Any type of transportation
DAP Delivered at Place Any type of transportation
DDP Delivered Duty Paid (...contracted destination) Any type of transportation

Obligations of Contracting Parties

Within these groups, the respective obligations of the seller and buyer are classified under 10 titles. Each seller's obligation corresponds to the buyer's position regarding the same matter.

A – Seller's Obligations B – Buyer's Obligations
A1Provision of goods in accordance with the contract B1Paying the price
A2Permits, approvals, and formalities B2Permits, approvals, and formalities
A3Carriage and insurance contracts B3Carriage and insurance contracts
A4Delivery B4Delivery pickup
A5Transfer of Risk B5Transfer of Risk
A6Cost sharing B6Cost sharing
A7Notice to Customer B7Seller Notice
A8Proof of delivery, transport document, or corresponding electronic message B8Proof of delivery, transport document, or corresponding electronic message
A9Checking, packaging, marking B9Goods control
A10Other obligations B10Other obligations

Incoterms® Detailed Terms

Term Meaning Explanation
EXW – EX WORKS
(…named place)
FRANKO FABRIKA (...contracted place) The seller has delivered the goods when they are made available to the buyer at the seller's premises or another agreed place, cleared for export and unloaded for collection. This represents the minimum obligation of the seller; all costs and risks of transporting goods from the seller's premises are borne by the buyer.
If the seller should bear loading costs, this must be explicitly stated in the contract. EXW should not be used if the buyer cannot complete export formalities; in such cases, FCA is recommended.
FCA – FREE CARRIER
(…named place)
FRANK CARRIER (...contracted place) The seller delivers goods, cleared for export, to the carrier named by the buyer at the agreed place. If delivered at the seller’s premises, the seller loads the goods; otherwise, unloading is the buyer’s responsibility. Applicable to all transport types, including multimodal. "Carrier" refers to any person or entity responsible for transport.
FAS – FREE ALONGSIDE SHIP
(…named port of shipment)
FRANCO BY THE SIDE OF THE SHIP (...contracted shipping port) Goods are delivered when placed alongside the ship at the agreed port. From this point, the buyer bears all costs and risks. The seller clears goods for export. Only for sea or river transport. If the buyer should clear goods for export, this must be stated in the contract.
FOB – FREE ON BOARD
(…named port of shipment)
FRANCO SHIP (...contracted shipping port) Goods are delivered when they pass over the ship's rail at the shipment port. From this point, the buyer bears all costs and risks. The seller clears goods for export. Only for sea and river transport. If delivery over the ship’s rail is not agreed, use FCA.
CFR – COST AND FREIGHT
(…named port of destination)
PRICE WITH FREIGHT (...contracted port of destination) The seller delivers goods when they cross the ship’s rail at the shipment port, pays freight to the destination port, but risk transfers to the buyer at shipment. Only for sea and river transport; if delivery over the ship’s rail is not agreed, use CPT. Seller clears goods for export.
CIF – COST, INSURANCE AND FREIGHT
(…named port of destination)
PRICE WITH INSURANCE AND FREIGHT (...contracted port of destination) Same as CFR, but seller also contracts marine insurance covering minimum risks during transport. Buyer may request additional coverage. Only for sea and river transport. Seller clears goods for export.
CPT – CARRIAGE PAID TO
(…named place of destination)
FREIGHT PAID TO (...contracted destination) Seller delivers to carrier and pays freight to destination. Risk transfers to buyer once goods are delivered to the first carrier. Applicable to all transport types, including multimodal. Seller clears goods for export.
CIP – CARRIAGE AND INSURANCE PAID TO
(…named place of destination)
FREIGHT AND INSURANCE PAID TO (...contracted destination) Same as CPT, but seller also contracts insurance covering buyer’s risks during transport (minimal coverage). Buyer may request additional coverage. Applicable to all transport types, including multimodal. Seller clears goods for export.
DAT – DELIVERED AT TERMINAL
(…named terminal)
Delivered to terminal Seller bears costs and risk until goods are unloaded at the agreed terminal, including export formalities and transit. Buyer takes delivery and bears risks/costs after delivery, including import formalities, customs, and taxes.
DAP – DELIVERED AT PLACE
(…named place of destination)
Delivered to agreed place Seller bears costs and risks until goods are made available for unloading at the named destination, including export formalities. Buyer takes delivery and bears risks/costs after delivery, including unloading, import formalities, customs, and taxes.
DDP – DELIVERED DUTY PAID
(…named place of destination)
Delivered cleared (...contracted destination) Seller delivers goods cleared for import at the agreed destination, bearing all costs and risks, including customs duties and taxes. Maximum seller obligation. If buyer should bear import costs, use DDU. Applicable for all transport types. Seller clears goods for export.

The International Chamber of Commerce (ICC) recommends using the terms from "Incoterms 2010" together with the exact geographical location to which they refer. For example, the term Delivered at Frontier (DAF) should always specify the exact place (border) where delivery occurs.

For more detailed information, visit the ICC website: http://www.iccwbo.org/incoterms/

Graphic representation of Incoterms 2010 obligations and cost/risk allocation.

Incoterm 2010 Loading at origin Export customs clearance Transport to port of export Unloading at export port Loading on vessel/aircraft Transport to port of import Insurance Unloading at import port Loading on truck at import port Transport to final destination Import customs clearance Import duties/taxes Unloading at destination
EXW Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FCA Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FAS Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
FOB Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CPT Seller Seller Seller Seller Seller Seller Buyer Buyer/Seller Buyer/Seller Seller Buyer Buyer Buyer
CFR Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer Buyer
CIF Seller Seller Seller Seller Seller Seller Seller Buyer Buyer Buyer Buyer Buyer Buyer
CIP Seller Seller Seller Seller Seller Seller Seller Buyer/Seller Buyer/Seller Seller Buyer Buyer Buyer
DAT Seller Seller Seller Seller Seller Seller Buyer Seller Buyer Buyer Buyer Buyer Buyer
DAP Seller Seller Seller Seller Seller Seller Buyer Seller Seller Seller Buyer Buyer Buyer
DDP Seller Seller Seller Seller Seller Seller Buyer Seller Seller Seller Seller Seller Buyer

Transportation of goods from China

Goods can be transported from China using several methods:

Transportation of goods by train is a relatively new option. Trains depart from China and reach European cities such as London, Madrid, and recently Belgrade, depending on demand. This method is not widely established, especially for small customers, so we will not cover it in detail. During the COVID-19 pandemic and shipping disruptions, train transport from China experienced some expansion.

Sea transport (containers)

The most economical and efficient way to ship goods is to rent a full container, which reduces the cost per unit. If renting a full container is not possible, goods can be sent in a consolidated container shared with other shipments.

Transport of a container by sea usually takes about 35 days to reach a port in Europe, such as Rijeka, Koper, or a nearby port. Additional days should be added for transport from the factory to the Chinese port and from the European port to the final destination.

You can track the progress of your shipment using the ship's information: MarineTraffic

Goods are mostly sent over long distances, so proper packing is crucial to avoid damage during transport or handling. Efficient packing ensures that goods fit into containers and occupy minimal space. Below are images of standard container types and their layouts:

Standard container dimensions
Standard container layout
Open top container dimensions
Open top container layout
Flat rack container dimensions
Flat rack container layout
Collapsible flat rack container dimensions
Collapsible flat rack container layout
Reefer container dimensions
Reefer container layout
Large 40ft container dimensions
Large 40ft container layout
Container platform dimensions
Container platform layout

Air transport

Air transport is typically used for smaller packages. Express deliveries usually arrive within 8–10 days, while standard mail may take up to 35 days.

The cost of sending a package depends on its weight or volumetric weight, whichever is greater.

Volumetric weight

For lightweight but bulky items, such as Styrofoam, shipping costs are calculated based on volumetric weight:

  1. Measure the package dimensions in centimeters (length × width × height).
  2. Multiply the dimensions and divide by 5000 (length × width × height ÷ 5000). This gives the volumetric weight.

Compare the volumetric weight with the actual weight of the package. For pricing, the higher of the two values is used.

Shipping prices are listed in Chinese yuan (RMB) and are approximate. Prices were valid on the date of publication (December 24, 2015).

DHL

DHL price list (delivery within 2–8 working days)

Destination and Pricing
Destination First 500g (RMB) Each additional 500g (RMB)
Austria245.0075.60
Bosnia and Herzegovina363.8093.00
Bulgaria245.0075.60
Croatia363.8093.00
Czech Republic245.0075.60
Germany245.0075.60
Greece245.0075.60
Hungary245.0075.60
Italy245.0075.60
Macedonia363.8093.00
Montenegro363.8093.00
Poland245.0075.60
Romania245.0075.60
Serbia363.8093.00
Slovakia245.0075.60
Slovenia245.7075.00

EMS

EMS price list (delivery within 5–15 working days)

Destination and Pricing
Destination First 500g (RMB) Each additional 500g (RMB)
Austria226.0061.50
Bosnia and Herzegovina361.1097.00
Bulgaria361.5097.20
Croatia361.1097.00
Czech Republic272.5081.00
Germany226.0061.50
Greece226.0061.50
Hungary272.5081.00
Italy226.0061.50
Macedonia361.1097.00
Montenegro361.1097.00
Poland272.5081.00
Romania361.5097.20
Serbia361.1097.00
SlovakiaAir Mail Only
SloveniaAir Mail Only

China Post AIR MAIL

Air Post (delivery within 10–25 working days)

Destination and Pricing
Air Post (delivery within 10–25 working days)
Destination Package lighter than 2kg Package heavier than 2kg
First 100g Next 100g First 1000g Next 1000g
Austria18.0015.00154.0060.50
Bosnia & Herzegovina18.0015.00176.0078.00
Bulgaria18.0015.00144.5058.50
Croatia18.0015.00155.5070.50
Czech Republic18.0015.00157.5071.50
Germany18.0015.00191.0069.50
Greece18.0015.00133.5060.00
Hungary18.0015.00145.5057.00
Italy18.0015.00159.5071.50
Macedonia18.0015.00168.0076.00
Montenegro18.0015.00178.0058.00
Poland18.0015.00139.5056.50
Romania18.0015.00150.5058.00
Serbia18.0015.00178.0058.00
Slovakia18.0015.00157.5072.50
Slovenia18.0015.00157.5072.50

Prohibited Products

Products listed as prohibited for shipping by DHL, EMS, and Air Mail must not be sent. To comply with regulations, please do not create orders containing any prohibited items. Packages containing prohibited goods will not be accepted or processed.

  • Antiques and works of art valued over £5,000
  • Money, cash, or any form of payment instruments (credit cards, checks, etc.)
  • Original or imitation firearms and their parts (including stocks, moving mechanisms, bolts manufactured for firearms), ammunition, explosives
  • Dangerous goods, including but not limited to perfumes, aftershaves, flammable substances, biological substances, UN-classified hazardous substances, and items prohibited by IATA, ADR, or IMDG regulations
  • Small electrical devices containing lithium batteries; each package may contain no more than two batteries, which must be inside the electronic device
  • Fur and ivory
  • Human remains and ashes
  • Illegal, pirated, or counterfeit goods, narcotics, and illegal drugs
  • Jewellery, precious stones, and precious metals; costume jewellery exceeding £5,000 per bill of lading
  • Laptop computers: maximum one per package; lithium battery must be inside the laptop; value must not exceed £5,000 per waybill
  • Animals, living or deceased
  • Unsecured lithium batteries
  • Clinical or biological samples (including body fluids and tissue samples)
  • Perishable goods requiring temperature control (e.g., flowers, food)
  • Pornography in any form (print, film, digital)
  • Cigarettes, tobacco leaves, or tobacco products
  • Coins and notes of any kind
  • Articles prohibited by law or regulations for distribution or shipping
  • Newspapers, magazines, books harmful to the interests of the People's Republic of China
  • Articles harmful to general health
  • Explosive, highly flammable, corrosive, radioactive, or toxic substances
  • Alcohol (except alcoholic beverages)

Package Tracking

DHL shipping from China DHL China: DHL tracking

EMS sending packages from China EMS (Express Mail Service by China Post): EMS tracking

Air Mail sending parcels from China AIR MAIL (China Post): Air Mail tracking

Pošta BiH Track shipment in BiH

Pošta Crne Gore Track shipment in Montenegro

Pošta Hrvatska Track shipment in Croatia

Pošta Makedonije Track shipment in Macedonia

Pošta Slovenije Track shipment in Slovenia

Pošta Srbije Track shipment in Serbia

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