Newcomers to the import and export trade, facing the complex logistics process for the first time, often find themselves completely at sea. This article organizes the 5 most common questions asked by beginners to help clarify everything at once.
Question 1: What do trade terms like FOB, CIF, and EXW actually mean?
Simply put, it's "who is responsible for which part":
- EXW (Ex Works): You deliver the goods at your factory, and I handle everything else (trucking, customs clearance, ocean freight, destination port) — the most hassle-free for you
- FOB (Free on Board): You deliver the goods to the port of departure and cover costs before loading. I take care of the ocean freight and destination port costs after loading
- CIF (Cost, Insurance, and Freight): Ocean freight and insurance are included in the quoted price. You just need to wait to receive the goods at the destination port
Advice for beginners: If you are unfamiliar with logistics, prioritize EXW or CIF — let the freight forwarder handle everything fully, you only need to provide the cargo information.
Question 2: What documents are needed for customs declaration?
Standard customs declaration document checklist:
- Packing List — lists the contents, quantity, weight, and dimensions of each box
- Commercial Invoice — lists the value, unit price, and total price of the goods
- Sales Contract — the transaction contract between buyer and seller
- Declaration Elements — additional declaration information required by customs based on the HS code of the goods
Note: If the HS code is classified incorrectly, it could lead to cargo return, fines, or even delays in customs clearance at the destination port. If unsure about the HS code, ask a professional customs broker to help confirm it.
Question 3: Are ocean freight rates fixed? When is the cheapest time to book a space?
Ocean freight rates are not fixed and are affected by factors such as market supply and demand, peak and off-seasons, fuel prices, etc. General patterns:
- Most expensive periods: August to October (Q3 peak season) and 2-3 weeks before the Chinese New Year
- Cheapest periods: 1-2 months after the Chinese New Year (February to April) and the end of the year (November to December)
- Best time to book: Book 2-3 weeks in advance; urgent orders usually require paying a premium
Question 4: Do I need to buy insurance for my goods?
Cargo insurance for ocean freight is not mandatory, but it is strongly recommended. The reason is simple: for goods worth tens of thousands, the insurance premium is usually just a few hundred. Once cargo damage, theft, or a maritime disaster occurs, no insurance means a 100% loss.
Freight forwarders can generally purchase insurance on your behalf, with premium rates usually at 0.1%-0.3% of the cargo value. Note to confirm whether the insurance clause is "warehouse to warehouse" or "port to port" — the former offers broader coverage.
Question 5: How to choose a reliable freight forwarder?
Choosing a freight forwarder is not about picking the cheapest, but the most suitable one. Several judgment criteria:
- Qualifications: Whether they have a business license and international freight forwarding qualifications
- Specialty routes: Whether they have an advantage on the route to your required destination port
- Response speed: Whether their inquiry replies are timely and professional
- Value-added services: Whether they offer one-stop services like customs declaration, trucking, and warehousing
- Reputation: Their credibility and reviews within the industry
If you are looking for a reliable logistics partner, feel free to contact the Bofeng Logistics team.
Bofeng Logistics specializes in providing one-stop logistics services including domestic container shipping, international shipping (FCL/LCL), specialized logistics routes to Hong Kong and Macau, as well as trucking, customs clearance, and warehousing. Contact number: 130-7567-8958 (Manager Huang), call now to get your exclusive quote!