Should your supplier arrange freight from China? For a small sample or replacement part, the answer may be yes. For a commercial order, however, supplier-arranged freight can reduce your visibility over shipping costs, customs documents, cargo handling and who is responsible when something goes wrong.
Many Chinese suppliers can book courier, air freight and sea freight. The risk is allowing the same supplier to control production, inspection, dispatch and shipping without independent supplier verification.
Should Your Supplier Arrange Freight from China?
Commercial importers should compare the supplier’s freight offer with an independent option. The cheapest-looking quote is not always the lowest landed cost, and a door-to-door price may leave important questions unanswered.
Before you let a supplier arrange freight from China, confirm the Incoterm, named location, transport method, importer responsibilities and every charge that may be payable at origin or destination.
Why Suppliers Offer to Arrange Freight
Supplier-arranged freight can be convenient. The factory already has the goods, may know a local freight agent and can organise collection without waiting for the buyer. It also allows the supplier to present the product and shipping as one package.
That does not automatically make the offer unsuitable. However, the supplier’s main job is manufacturing or selling the product. Their freight agent normally receives instructions from them, not from you. A service margin may also be included, so the buyer should understand what is being charged.
Risk 1: A Low Freight Price May Exclude Important Costs
Freight quotes are difficult to compare when they cover different services. For example, a supplier may quote only the main international freight while an independent forwarder includes pickup, export handling, destination clearance and final delivery.
Depending on the shipment, additional costs can include:
- Factory pickup or domestic transport in China
- Export documentation and origin handling
- Port, airport or terminal charges
- Customs clearance and inspection charges
- Duty, GST, VAT or other import taxes
- Storage, demurrage or waiting time
- Final delivery, residential access or tail-lift fees
Ask for a written breakdown rather than accepting one shipping figure. You should also confirm the final carton count, gross weight and dimensions. Use the freight volume calculator to check CBM and volumetric weight before comparing freight options.
Risk 2: DDP Can Create Customs and Tax Problems
DDP is often presented as the easiest option because the supplier quotes delivery, duty and taxes together. Some DDP arrangements are legitimate. Others give the buyer very little visibility over the customs declaration, importer details or tax documents.
Before accepting DDP, ask who will complete import clearance, what product description and value will be declared, whether you will receive proper import documents and who will respond if customs authorities question the shipment.
Do not approve an inaccurate product description or customs value to obtain a cheaper price. Import rules vary by country and product, so confirm the proposed structure with a customs broker, freight forwarder, accountant or relevant authority.
Risk 3: You May Lose Control of Shipping Updates
When a supplier arranges freight from China, shipment updates may pass through several people before reaching you. You may not know the carrier, route, destination agent, expected local costs or whether the cargo has actually departed.
Problems become harder to resolve when documents are wrong, cargo is delayed or the destination agent requests unexpected payment. An independent arrangement gives you a direct relationship with the freight provider.
Risk 4: Goods May Ship Before You Approve Them
A supplier that controls the freight booking may dispatch the order as soon as production is finished. That can happen before you have checked product quality, quantities, labels, carton markings or export packaging.
Once the goods have left the factory, correcting a production or packaging problem becomes more expensive. For a new supplier, private label order or high-value shipment, arrange quality control checks in China before approving dispatch.
Risk 5: Separate Supplier Shipments Can Waste Money
If you buy from several factories and each supplier arranges its own freight, you may pay repeated pickup, handling, documentation, clearance and delivery charges. Accessories, spare parts and packaging may also arrive separately from the main products.
A better option may be to send the goods to one warehouse in China, check what has arrived and combine suitable cargo before export. Prestige Sourcing provides warehousing and consolidation support in China. You can also read our guide on why importers consolidate shipments from China.
When Supplier-Arranged Freight Can Make Sense
Supplier-arranged freight can be reasonable when:
- You are sending a low-value sample by a recognised courier
- The shipment is small and another provider would add unnecessary administration
- You have used the supplier and shipping route successfully before
- The quote clearly states the Incoterm, service and exclusions
- You have compared the total cost with another freight option
- The customs and tax arrangement is clear
Even then, obtain the tracking details, commercial invoice, packing list and written terms for delays, damage, customs holds or returns.
Better Options for Commercial Importers
Use Your Own Freight Forwarder
An independent forwarder can quote against the cargo details and explain the difference between courier, air freight, LCL sea freight, FCL sea freight and door-to-door delivery. You deal directly with the freight provider and receive clearer information about routing, documents and destination costs.
Use a China-Side Partner
A China-side partner can communicate with suppliers, confirm readiness, arrange pickup, receive cartons, coordinate checks, consolidate orders and prepare the freight handover.
This separates the supplier’s production role from the buyer’s inspection and freight control. Prestige Sourcing is NZ-owned and based in Shenzhen. We provide China sourcing support and coordinate freight from China to international destinations.
Choose the Incoterm Deliberately
Do not ask only for a shipping price. Confirm the Incoterm and the named place or port. The wording determines where delivery occurs and how costs, risks and formalities are divided.
- EXW: The supplier makes the goods available at the named premises. The buyer takes on substantial collection and export responsibilities, which can be difficult for an overseas buyer.
- FCA: The supplier delivers to the agreed carrier or location and handles export clearance. FCA is often more practical than EXW for international and containerised shipments.
- FOB: This applies to sea or inland waterway transport. The supplier delivers the goods on board the nominated vessel. FCA may be more suitable for containerised cargo delivered to a terminal.
- DAP: The seller arranges delivery to the named destination, while the buyer normally handles import clearance, duties and taxes.
- DDP: The seller takes responsibility for delivery and import formalities, including applicable duties and taxes. However, the arrangement must be legally and practically workable in the destination country.
The right term depends on the product, shipment size, destination, supplier capability and who can handle the required formalities correctly.
Questions to Ask Before Accepting the Supplier’s Freight Quote
- Which Incoterm and named location apply?
- Is the service port-to-port, airport-to-airport or door-to-door?
- What charges are excluded?
- Who is the freight forwarder and destination agent?
- Who handles export clearance and import clearance?
- Who will complete the destination customs formalities?
- What customs value and product description will be declared?
- Will you receive shipping and customs documents?
- Is cargo insurance included, and what does it cover?
- Can the goods be inspected before release?
- Can the shipment be consolidated with goods from other suppliers?
- Who is responsible if there is a delay, damage or customs issue?
Take Control Before the Goods Leave China
Supplier-arranged freight is not always a bad option. However, for a commercial shipment, independent control usually gives you better visibility over costs, documents, quality approval and responsibility.
Before deciding whether your supplier should arrange freight from China, send Prestige Sourcing the supplier quote, pickup city, carton dimensions, gross weight, product details and delivery destination. We can help identify what is included, what may be missing and whether another arrangement would give you better control.
