Category: shipping FAQ

shipping FAQ

Elksourcing：Why Packaging Integrity is Important?

Apr 11, 2021 , by 露露

Packaging is considered to be both the presentation of products to consumers, and the configuration in which products will be expedited through various channels.

The master carton design includes the configuration in which product will be shipped through channels for end-user consumption, making it especially important where packaging integrity is concerned.

Why Packaging Integrity is Important?

1) Carefully planned packaging includes both cost savings obtained through the minimal use of materials, weight and labor, as well as reductions in potential rework costs.

2) Packaging has a direct impact on the perception of quality by the consumer. 

3) Orientation is an important consideration because the carton itself only has stacking strength in one direction, which is why it is imperative that the pack be designed the way it will be stacked in transit. Labeling is important in communicating packaging requirements.

4) Packaging experiences a number of potentially damaging forces, which might include shock from handling, drops, vibration from transportation or compression from stacking in warehouses and vehicles.

5) Above all else, the objective of packaging is to insure products arrive safely in the hands of consumers without sustaining damage or other potential cosmetic or aesthetic issues.

How to verify if a packaging integrity is good?

Professional QC companies use the International Safe Transit Association (ISTA) standards for special testing during on-site inspections. This evaluation focuses on the drop-test of individual cartons at a corner, 3 edges and 6 sides from a certain height to concrete floor. The ISTA-1 is considered non-simulation integrity performance testing and is designed to challenge the strength and robustness of the product and package combination, not to simulate environmental occurrences. Defects resulting from this test are considered as critical, so any issues noted with the product result in a reject status.

shipping FAQ

Elksourcing：Terms About AQL Inspection Standard

Apr 10, 2021 , by 露露

Using AQL, you can check whether an order meets your quality requirements without having to inspect every unit of the entire shipment, saving you time and money on inspection. But one look at the AQL table could leave you feeling lost among the mass of numbers, letters, labels and even colors. Is this a quality control tool or a brain teaser?

Many explanations of AQL use advanced math models and equations to show how to choose a statistically significant sample for inspection. And these explanations can be hard to follow and overly complex if you’re just looking for a practical introduction on how to use AQL.

1. Acceptance sampling

Acceptance sampling is a way to pull and check a random sample of goods or material and accept or reject the total lot based on a statistical result. This lets you apply the results of inspecting this representative sample to making a decision about whether to allow your supplier to ship an order. AQL sampling is one type of acceptance sampling widely used in product inspection.

2. Acceptable quality level (AQL)

Acceptable quality level (AQL), also referred to as acceptable quality limit, is the minimum quality level a shipment is required to meet for an importer to accept it. It’s one of the most commonly used tools among quality control inspectors to measure an order’s conformance to your requirements. Acceptable quality levels typically range from 0 to 15, though AQLs higher than 6.5 are rarely used in the field. The higher your acceptable quality level, the higher your tolerance for quality defects in your order.

Quality control professionals and importers commonly use the AQL table to calculate important factors for inspection. This table tells you the appropriate number of units to pull for inspection, or your sample size, and the number of defects that would be acceptable in that sample. You can also use an online AQL calculator to find these based on your own order quantity and quality expectations.

3. ANSI-ASQ Z1.4

ANSI ASQ Z1.4 was developed by the American National Standards Institute and American Society for Quality, and it’s the most widely used standard for AQL sampling. The U.S. FDA recognizes this standard as applicable for single, double and multiple sampling plans. But most importers use it for single sampling plans. This means inspectors only pull one sample at random and issue a result based on the quality of this sample.

ANSI ASQ Z1.4 is based on inspection by attributes. This means inspected units are evaluated under two categories, either “conforming” or “nonconforming” to your requirements. Variable sampling instead measures the degree of nonconformance, based on sample standard deviation or sample range measurements. ANSI ASQ Z1.9 is the most commonly used standard for inspection by variables.

4. General inspection level

Now let’s dive into the process of how to use the AQL table for inspection. Inspection levels determine the sample size, or number of units the inspector will check on site at the factory. The bulk of your inspection will involve checks on the sample size associated with a general inspection level, like checks for appearance, assembly and functionality. In order to use the AQL table to determine your sample size, you’ll need to know your lot size, or total order quantity, typically shown on your PO.

5. Special inspection level

Special inspection levels are reserved for tests that you only intend to conduct on a comparatively smaller sample size than the general inspection level sample size. Whereas you’d use a general inspection level for tests and checks that are relatively quick and easy to perform, you’d use a special inspection level for tests that:

Are destructive to the product, like a fabric GSM test that involves cutting out a piece of fabric from the sample

Are expensive and/or time consuming to conduct, like a battery charging test for electronic devices

Tend to yield similar results across all units, like measuring the dimensions of injection-molded components that don’t vary appreciably in size from one unit to the next

Unlike the three general inspection levels, there are four special inspection levels, based on your desired inspection scope. Similar to general inspection levels, S1 is the smallest sample size for your lot size and S4 indicates the largest sample size. You might inspect a larger or smaller sample size depending on how important a test is for evaluating your product.

6. Critical defect

Critical defects are the most serious of the three main classes of defects QC professionals use for product inspection. When applying a unique AQL to each defect class, importers typically use an AQL of 0.0 for critical defects, representing zero tolerance. This means that the entire order will fail inspection if inspectors find a single critical defect in the sample.

7. Major defect

Less serious than critical defects, major defects tend to be acceptable in limited quantities but are still a concern. The most common AQL importers assign to major defects is 2.5, though you may choose a different AQL based on your own tolerance for defects. Inspectors typically consider a product defect to be “major” when it:

1). Adversely affects the performance of a product.

2). Varies significantly from product specifications.

3). Would likely cause the end customer to return the product.

8. Minor defect

Major defects are the least serious of the three defect classes. But your goods can still fail inspection if the number of minor defects found exceeds your tolerance set by AQL. An AQL of 4.0 is typical for minor defects, though you may choose a stricter or looser AQL.

9. Acceptance point

Typically denoted as “Ac” in the AQL table, the acceptance point indicates the maximum number of defects allowed in a given sample size and at a given AQL to accept an order. Just as many importers assign a different AQL to each of the three defect classes, they’ll also have a different acceptance point for each. Most importers have a higher acceptance point for minor and major defects than for critical defects, reflecting the range in AQL values they choose.

10. Rejection point

Typically denoted as “Re” in the AQL table, the rejection point indicates the minimum number of defects in a given sample size and at a given AQL to reject an order. The acceptance point and rejection point go hand-in-hand. And your rejection point will always be one value higher than your acceptance point when using a single-sampling plan.

Conclusion

As with using any sampling plan, your transparency and the accuracy of results are limited by the size of the sample taken. And there’s always a risk that you might reject “good” lots or accept “bad” lots when making shipping decisions based on the results of acceptance sampling.

But using an inspection method based on acceptance sampling, like AQL, ensures that you don’t inspect more goods than necessary, and in turn, don’t spend more time or money on inspection than needed. And for most importers, the relatively low risk inherent in checking a sample heavily outweighs alternative ways of inspecting their goods before shipment.

shipping FAQ

Elksourcing：How Can Product Inspection Help Shipping Deadlines?

Apr 10, 2021 by 露露

Many importers worry about meeting commitments they’ve made to their customers. One such commitment, particularly for buyers importing promotional goods, is meeting a particular shipping deadline. And this commitment is often especially important around the holiday season.

What’s the solution? Product inspection helps importers meet shipping deadlines.

One of the more obvious ways importers receive value from regular inspections of orders is improved product quality. But any experienced importer knows that delivering the product to the customer when they want it is just as important as getting them the product they want.

1. Regular product inspections let you check in on your supplier

Imagine being able to check in on your supplier at various stages in production to make sure they are on track to meet their shipping deadline. A product inspector visiting the factory at various intervals can tell you:

1). If the factory has received raw materials for your order and what kind of incoming quality control (IQC) factory staff are performing on the materials.

2). If the factory has started production and, if so, how many pieces are currently at each stage of production.

3). The state of the goods in production (with during production inspection) – the quality level and whether or not the goods are meeting your specifications.

4). How many pieces are finished and packaged, as well as the state of finished goods.

Inspection could reveal the factory started production on the glasses two weeks ago but is still waiting on the felt material needed for the hats. Or maybe you’ll find the factory is printing the wrong logo on the hats. Then again, it’s possible the goods are being produced at the same time and meeting quality expectations but won’t be ready to ship by your deadline.

You can judge the odds of shipping on time with reports from your inspector at different production milestones. This insight helps importers meet shipping deadlines because they can find any issues and address them with their supplier.

2. Product inspection can reduce time needed for rework

It’s clear that product inspection can give you a good look at the state of your order at the factory – as if you were standing on the line yourself. There are a couple ways that regular product inspection can reduce time needed for rework.

1). Rework needed after shipping

The fact that inspection can save you time on reworking defective product yourself may seem obvious and straightforward. But it’s the rework you have to do after receiving defective goods at a distribution center that is the costliest.

For one thing, you may not have the necessary equipment, skillset or tools to repair or rework the goods yourself. And if you are capable, the cost of labor to rework the goods is usually much higher than if the factory had carried out the rework, which they will typically do at no extra cost.

2). Rework needed before shipping

Final inspection of packaged goods almost always reveals quality defects. But many times, these defects are introduced to products well before the goods are packaged.

3. Improving overall communication

An overwhelming number of importers report difficulties communicating with suppliers and the delays caused by their misunderstandings. And it shouldn’t come as a surprise. Importers are often working with a supplier half a world away that speaks a very different language. Cultural and legal differences can complicate the business relationship even further.

1). Western-managed, locally-hired inspectors

Your typical product inspector is usually locally hired. This means they have no problem communicating with factory management and staff during inspection in the local language. Depending on whether you hire an inspector internally or hire an independent third-party inspector, that person might be managed by a combination of local and Western staff that speak the local language as well.

2). More clarity and faster response

Let’s say the promotional glasses you’ve ordered have a small medallion glued into the frame to showcase a logo. A product inspection report shows that the medallion is easily falling out of some of the frames. Naturally, you want to know if the problem lies in the glue being used or in the gluing process.

Conclusion

Importers commit to delivering a certain product at an acceptable level of quality within a given deadline. As an importer, the success or failure of your business hangs in the balance of satisfying your commitment to your customers. And regular product inspection, for many importers, is one way of ensuring that commitment is met.

shipping FAQ

Elksourcing：Importance of QC Checks for Packaging

Apr 10, 2021 , by 露露

Importers often give much attention to product quality control when it comes to checking design, appearance, function and features. But a lack of attention paid to packaging quality control is most often to blame when a product is damaged or delayed during transit. And it’s a shame because other checks performed during product inspection become irrelevant when your product doesn’t survive the long journey abroad.

Your end consumer may be tearing apart and then discarding your packaging as soon as they get their hands on your product. But that doesn’t mean you should rush through determining your packaging requirements with little regard for materials, assortment and inspection. Thankfully, there are several easy packaging checks you can perform during inspection to help you confirm whether your product will reach your customers undamaged and on time.

1. Verify package assortment and quantities

Most small consumer products are packed in mass in larger shipping cartons for transport and warehousing. And in large retailer warehouses, staff won’t necessarily scan every individual product that comes into their warehouse. Rather, they may just scan one unit and input the number listed on the carton for inventory.

But just because warehouse staff might not meticulously count each product doesn’t mean you shouldn’t pay attention to your order quantity and assortment as it leaves the factory. Ensuring you receive the right number of units per SKU is essential for keeping track of your inventory and meeting customer demand. You don’t want your product to be unexpectedly backordered right before a big holiday rush. And you certainly don’t want to receive a smaller quantity of goods from your supplier than you paid for.

An independent or third-party inspector can visit your supplier’s facility and confirm your order quantity and assortment on-site during final inspection. If you’re packing similar, but not identical, SKUs within the same carton, it’s important to check the number and proportion of each SKU packed.

2. Check sealing method and packaging materials

Sealing, strapping and binding methods can influence your packaging’s structural integrity and durability against external elements.

A QC checklist with detailed packaging requirements helps your suppliers understand your expectations and makes it easy to confirm them later during inspection. For example, depending on your experiences with international shipping, you might have a personal preference for a certain type of strapping method for your cartons. Metal bands are typically stronger than plastic bands, but they also have the potential to rust. Plastic strapping is also lightweight and easy to work with and dispose of.

You may also choose to specify the sealing method of inner cartons and polybags in your checklist. Even if your shipping carton is adequately sealed, the products inside could be damaged if they jostle excessively during shipment. Polybags can be sealed in a number of ways, from vacuum sealing by a machine to a simple piece of tape placed over the opening. Any point worth checking is worth including in a QC checklist you provide to your supplier and inspection team.

3. Check shipping marks and barcodes

You’re much more likely to face shipping delays if carton markings or barcodes are incorrect, missing or illegible. And yet the presence of incorrect shipping marks or barcodes is one of the most common defects found during packaging inspection. Luckily, you or your inspector can easily check markings and barcodes with only very basic equipment needed.

4. Carton drop test

Some stress on your product during its shipping and handling process is unavoidable. But the consequences resulting from inadequate packaging can range from minor packaging and product damage, to customer returns or outright refusal by your distributors to stock your product. And what better way to put your packaging durability to the test than to simulate the stresses of shipping and handling?

A carton drop test is a basic on-site test that inspectors can carry out in any facility for most packaged products. The test mimics the rough handling that cartons might be subjected to throughout shipment through a series of drops. The International Safe Transit Association (ISTA) has established some guidelines and procedures for how to conduct a drop test for reliable results.

5. Check for compliance with retailer and brand packaging requirements

Many retailers face problems with overcrowded warehouses, especially as a shift towards ecommerce has led to reduced inventories. The result has been a shift of responsibility, as retailers now hold their suppliers, importers like you, accountable for meeting their packaging requirements. And these retailers will sometimes charge their suppliers extra fees when their packaging violates these requirements.

shipping FAQ

Elksourcing：Why Your China Sourcing Products Are Delayed?

Apr 10, 2021 , by 露露

You found a Chinese supplier at a trade show or online, which looks good and professional, you placed an order, sent the payment and now wait to receive the products. However, after a couple of months when your inventory is running out, the products are still not delivered, why?

I often receive emails from frustrated buyers, asking me to assist them to speed up delivery from their suppliers. To solve this issue, first we need to understand what caused the delay.

There are four main reasons why shipments are late.

1) The order is too small for the supplier.

Many buyers try to find big and established suppliers, despite their own business and orders being small. They do not realize that big suppliers are busy and often do not give importance to small orders.

One of my clients from Dubai has been buying car mats from a decent-sized supplier in Zhejiang province. They buy a 20’ container every month. The order size is not big, but not too small either.

The cooperation was good, until early 2015 when orders started being delayed. The situation went from bad to worse in subsequent months. The buyer became frustrated and puzzled by why all of a sudden, the supplier was unable to deliver orders in time.

My company did some research and found that they received a large contract from Kmart. Now all their production lines are occupied to produce the order from Kmart, and orders from small and medium sized buyers have to be postponed. The owner of the factory hopes to set up a new workshop to increase production capacity, but it cannot be done overnight. They need to buy land, equipment, and hire and train new workers, all of which might take months if not years.

2) The contract does not include a penalty clause.

Most buyers underestimate the power of a contract. Aside from being used in a lawsuit as evidence of agreement in all aspects of a transaction, more importantly, a contract can be used as a deterrent. The contract sets boundaries and limits on what is acceptable and what is not.

Here is a good example of a late delivery penalty clause:

“Should the Seller fail to complete the inspection procedure of the goods, the Buyer shall agree to postpone the delivery on the condition that the Seller agrees to pay a penalty which shall be deducted when the Buyer remits the payment of the goods.

The rate of penalty is charged at 1 percent for every 5 days, odd days less than 5 days should be counted as 5 days. But the penalty, however, shall not exceed 50 percent of the total value of the goods involved in the delayed delivery.

In case the Seller fails to make a delivery 30 days later than the time of shipment stipulated in the Contract, the Buyer shall have the right to cancel the Contract.

With the inclusion of such a clause in the contract, the supplier will think twice before they delay the delivery.

3) The supplier is a trading company with no control over production.

Recently we were inspecting kitchen products for a client. The client ordered six containers from the supplier, and the supplier bought the products from three or four factories. The order was delayed by two months.

At trade shows, many trading companies present themselves as factories. So, without visiting the factory, you cannot tell if they are trading companies or factories.

Trading companies and factories have their advantages and disadvantages. Good trading companies can manage the supply chain and production effectively and smoothly, but it is easy for a trading company to mess things up.

In our case, the trading company lost control of their associate factories, which caused the serious delay.

4) Goods are stuck in customs.

Getting products cleared by China customs before they are loaded on to the ship can also cause delays. Usually, products get stuck in customs due to the following three reasons:

a. Incorrect HS code

For most products exported, suppliers can get a tax refund of up to 17 percent from the government. The refund is based on the HS code of the products, because of which many suppliers use an incorrect HS code, just to get a higher tax rebate rate.

For example, door mats have a rubber back (70%) and a carpet top (30%). If we use the HS code for rubber, the tax refund rate is 9 percent, but if we use the HS code for carpets, then the tax refund rate is 17 percent. As the products are mainly comprised of rubber, we should use the HS code for rubber. However, many suppliers will use the HS code for carpets for a higher refund rate.

When such misleading classifications are caught by customs, they will detain products until the supplier corrects the HS code and pays the penalty. This procedure, as well as the investigation, could take months, during which time the products are stuck in customs.

b. IP infringement

Buyers should ensure all logos and brands they use on their products exported from China are accompanied by relevant certificates.

We exported gift products for an US baseball team. The logo of their sponsor, Toyota, was printed on the gift items.

During customs clearance, we were asked to submit a letter from the brand owner, Toyota, authorizing us to use their logo, and the products were detained due to suspected IP infringement.

We then contacted our client, a gift promotion company that got the order from a Toyota dealer in California. Our client in turn contacted the baseball team and the Toyota dealer association.

After 10 days, we got the authorization letter, which we submitted to customs. The products were released but we missed the delivery date.

You can access China customs’ website for IP records here: www.haiguanbeian.cn/applyrecord.

c. Incomplete or incorrect shipping documents

Shipping documents are prepared by suppliers and sent to shipping agents, who in turn send them to custom house brokers for customs clearance.

A mistake on these documents could delay customs clearance and therefore shipping. If there are inaccuracies, the supplier needs to correct and resend the documents, and it will cause delay.

shipping FAQ

Elksourcing：Advices in Situations to Ship LCL Rather Than FCL

Apr 10, 2021 , by 露露

Some importers try to optimize their freight costs. They always make sure they will fill a container up.

Most buyers, however, simply buy what they need. They don’t want to carry extra inventory that might not get sold. If they have, say, 22 cubic meters it is not a problem — it will nearly fill a 20′ container up. So, they book an FCL (Full Container Load).

Now, what to do if you only have 12 cubic meters of products to ship? Most freight forwarders offer to consolidate your shipment with those from their other clients. Each client books LCL (Less than Container Load), and then the forwarder arranges to put it all together in one container.

What is the cut-off point between LCL and FCL? If you have less than 14-15 cubic meters (half the volume of a full 20′ container), it is more interesting to book LCL.

What are the drawbacks of LCL?

1) It may take a little longer

LCL is often in transit for a longer period of time, due to the freight company having to load and unload numerous companies’ items. It is also possible that your shipment will be delayed whilst the shipping company find enough items to fit the container.

Another cause of delay, is the risk that other goods inside the same container are blocked by Customs. One client told me that in one case he lost his products completely this way (because Customs had a problem with OTHER products).

2) The forwarder won’t bring a full container to the factory

Either you pay the forwarder to send a truck to collect the products, or you ask the supplier to bring the goods to the forwarder’s warehouse (at their costs if you buy FOB).

3) Insurance is more expensive

When shipping by LCL you are likely to be paying more towards insurance then you otherwise would with FCL. Although the difference in charges is not large, it can add up on the balance sheet as the common 1.5% cost of insurance when using FCL can rise to 3% or more when using LCL.

4) Your cartons might get damaged

If you ship soft goods, and your loose cartons (not on pallets) are placed aside/under heavy hard goods, your products might get crushed. I would advise to ship LCL with stronger protections: a pallet + reinforcements on the edges and corners.

shipping FAQ

Elksourcing：How to Avoid Delays with Chinese Manufacturers?

Apr 8, 2021 by 露露

Dealing with a delay in production with shipping and delivery deadlines can be stressful, and the causes of these delays can seem too numerous to effectively protect yourself against. However, there are usually recurring causes for these delays which makes it possible to identify them ahead of time and take steps to help avoid the delays with your order.

Reasons for Delay:

The production line is too busy – This often happens with China manufacturers at the end of the year due to the Western holiday season.

A quality issue arises during inspection – The result is that a partial or full reproduction is needed.

Inadequate labor force – This is often due to laborers having to leave for their hometowns for seasonal harvests, or for Chinese New Year.

Factory has been outsourcing production – Some factories will outsource part or even all of the work for various reasons. A delay with the subcontractor can delay the entire production.

Customs inspections – If there are issues with customs, delays can be a week or longer.

Transshipment complications – Sometimes when transshipment is needed, it is not uncommon to encounter problems such as container rejection due to a lack of space in the vessel.

It is important to note that your production could be vulnerable to any of these problems throughout the sourcing process. Good planning, a strong knowledge of the product itself, and close cooperation between all the parties involved in the project are necessary to avoid issues with your sourcing project. Follow the tips below to further minimize your risk of delays.

Solutions and Preparation:

Have a complete understanding of your product – This includes the production procedures and requirements. Do you know how long it should take to finish each step in the production process? With this information you can put in the appropriate tracking procedures. These types of processes will help you keep track of your production and to make sure that the factory is doing the same.

What are the capabilities of your factory? Is it a large factory or a small one? Is it always available? What is its production schedule? Clients’ requirements should always be satisfied, but are your orders being prioritized according to your expectations? Make sure you are performing thorough and frequent factory audits of your suppliers.

Be familiar with the time the sea freight takes – If the goods are loaded at an inland port first, 7-10 additional days should be factored in before they arrive at the main port of departure.

Does your supplier outsource any part of the production? How responsive is this secondary supplier? Try and make sure you have control and are informed about all aspects of your supply chain. This is another area where factory audits are crucial for delay prevention.

Finalize the delivery date for regular orders – Have a specific delivery date for each order and make sure it is clearly expressed in writing to all parties what the consequences are in the event of a delayed delivery.

Consolidating orders? If you plan on consolidating shipments to save on costs, consider the extra time that will be needed for the logistics of doing this. If Full Container Load (FCL) shipping is required for your shipment, how long will it take to consolidate the various orders?

Plan for mistakes if possible – When making an official order, try to set your delivery date at least two weeks before the products are actually needed. However, keep in mind that this means you will also have to arrange storage. Evaluate if the cost of storage is worth the peace of mind of a two-week safety net.

Factories Prefer to Work Last Minute

Though it may seem unfair to the buyer, suppliers often plan to finish the packaging of goods 2 to 3 days before the scheduled loading time. This means there is no room for error if an issue arises, which they often do. In some cases, even with as much as a four-month lead-time, an unmonitored factory can end up behind schedule, since factories will rarely start on an order immediately upon receiving it. You can minimize your order delays by following the tips mentioned here and, most importantly, keeping close communication with your factory while tracking the status of your order during production.

shipping FAQ

Elksourcing：Difference Between Courier & Air Freight

Apr 5, 2021 , , by 露露

Courier, also known as “express” is basically a “door to door” service, where the courier company will get your goods from Point A (normally your supplier’s address in origin country) to Point B (Your delivery address in destination country).

They will manage all the processes required in getting the goods from A to B, i.e. local pick-up & delivery, customs clearing at origin & destination port, payment of taxes & duties (They will bill you for this bit separately), etc. Popular courier companies are DHL, FedEx, UPS & TNT.

Air freight is essentially an “Airport to Airport” service, as opposed to a “door to door” service.

This means, the carrier is responsible for taking the goods after they have cleared customs at the origin airport & delivering them to the destination airport. A customs clearing/forwarding agent is required at each end to clear the goods & arrange further delivery to your door.

Air freight is often referred to as “air cargo”. Your trade terms with the supplier will dictate who arranges for & pays for the forwarding agent at origin & destination.

Importers often get confused about how courier & air cargo costs are calculated. When a courier services company, forwarding agent or supplier quotes you on per kg basis, they are normally referring to the cost per kg of “Chargeable Weight”.

Chargeable weight refers to the higher of actual weight of the goods & the volumetric weight of the goods. Volumetric weight (also known as “dimensional weight”) is calculated by multiplying the dimensions of the carton and dividing it by the “dimensional factor”.

Importers often ask suppliers for the weight of goods & take a quote from the agent based on the actual weight & end up surprised when they find a large courier bill, due to the fact that they were charged on volumetric weight, as it was higher than the actual weight.

To add to this confusion, the calculation formula for calculating volumetric weight for “courier” shipments is different from “air freight” as the “dimensional factor” for courier is 5000, while that for “air freight” it is 6000.

This is where even experienced importers trip, when they are trying to decide between courier & air freight, as they use the same weight to compare options.

So let’s look at an example.

Products: 10 Cartons.

Carton dimensions: 80 x 50 x 40 cm.

Actual total Weight: 200 kg.

Volumetric Weight (Courier): ((80x50x40)/5000)*10 = 320 kg

Volumetric Weight (Air Freight): ((80x50x40)/6000)*10 = 267 kg

As the volumetric weight exceeds the actual weight of the cargo in the above case, the courier charges would be based on 320kg & air freight charges based on 267kg.

Note: Nowadays courier companies use advanced laser scanning machines to calculate the volume of cartons. This means, even a small bulge in your cartons can lead to a significant increase in volume.

Courier Vs. Air Freight – Which one to choose?

Continuing with the above example, let’s say you were importing goods from China to the US & were quoted $5/Kg for courier & $4.5/Kg for air freight, your costs would be:

Door to Door courier: $5 x 320Kg = $1600

Air Freight = $4.5 x 267Kg = $1200

But wait, there is a reason why importers find comparing these quotes confusing. Let’s assume under both cases you have bought your goods on EXW basis, in this case, using air-freight you would need to pay for:

Haulage/domestic courier from factory to the airport.

Customs clearance costs & forwarder costs both in China & USA.

Haulage/domestic courier from the airport in US to your door.

Let’s assume that as a ballpark figure these come to $300 in China & $450 in US, so a total of $750. So now our options look like this:

Door to Door courier: $5 x 320 kg = $1600

Air Freight = $4.5 x 267 kg + $750 = $1950

In the above scenario, courier is clearly the better option. To add to that, another important consideration is that express courier is almost always the faster option, unless you have chosen for one of the super-slow courier services which tend to be cheaper and your package goes on a world tour for 7-10 days before reaching its destination.

So, the key question is, at what point does air freight become more economical than courier? From my experience of sending out many many courier & air freight shipments from China over the years, I find that in most cases, at around 400-500 kg chargeable weight, the “total cost” of air freight starts to become cheaper than using air courier.

For weight below the 400 kg mark, using air courier is also a simpler option than air freight, as you do not have to worry about dealing with forwarders etc. which means you can use that time to focus on other key areas of your business.