|
Factor |
DDP |
CIF |
FOB |
|
Seller's Responsibility Ends |
At buyer's premises (seller transfers all risks and costs) |
At destination port (seller transfers responsibility upon arrival) |
At loading port (seller transfers responsibility once loaded) |
|
Insurance Paid By |
Seller (entire route) |
Seller (up to port) |
Buyer |
|
Customs Clearance |
Seller |
Buyer |
Buyer |
|
Risk Transfer Point |
At final delivery |
At destination port |
Once goods are loaded |
|
Best For |
Buyers preferring delivered duty paid services |
Buyers preferring cost insurance and freight agreements |
Experienced buyers managing freight forwarder arrangements |
| |
|
|
|
Process of LCL sea freight
When the goods are less than one container, LCL can be considered. LCL is a container with multiple customers' goods and different consignees.
LCL port of destination must confirm the cost in advance and show it on the bill of lading, because the consignee will go abroad to replace the bill of lading after receiving the bill of lading. The cost of replacement is as much as that shown on the bill of lading, which is quite clear.
The majority of LCL should be cfs-cfs, that is, warehouse to warehouse, domestic delivery to freight forwarder warehouse, and foreign consignees to the warehouse under customs supervision to pick up the goods. Some countries are slightly different, like Turkey. The whole container is CY-CY, which means yard to yard.
In addition, LCL shipping companies are arbitrary, because LCL changes a lot, it is necessary to inform the booking of several positions, and the designated shipping company is not accepted, and the freight forwarder's bill of lading is issued by LCL, so neither the consignor nor the consignee need to have a direct relationship with the shipping company, so it is useless even if the shipping company is required.
When looking for the service of combining containers, the goods in the box should be added properly, and the weight should be controlled when booking space. Any change should be informed in advance. Especially for the LCL of dangerous goods, once the space is ordered, the gross weight of the pieces is not easy to change.
Many L / C documents, we must pay attention to the requirements of L / C, whether the third party B / L is acceptable, if not introduced, then you can only take the whole container, not LCL, because LCL only has forwarder's bill of lading, there is no shipping company's bill of lading. Pay attention to packing requirements to avoid damage.
LCL data:
- Power of attorney (no fixed format)
- Customs declaration information (declaration form, declaration power of attorney, packing list, invoice, declaration elements)
- If you don't have the right to import and export, you can consider paying for export.
- If chemical products need to provide English version of MSDs, a total of 16 items.
- Some shipping companies also need to provide the Shanghai Institute of chemical industry appraisal, need to see specifically.
What is CIF
"CIF China" typically refers to the use of the Cost, Insurance, and Freight (CIF) Incoterm in the context of international trade involving China. CIF is a standardized shipping term defined by the International Chamber of Commerce (ICC) under its Incoterms rules. It outlines the responsibilities, costs, and risks for both the seller and buyer in a transaction.
In the case of "CIF China," it usually means that a seller (often a supplier or exporter in China) is responsible for:
- The cost of the goods,
- Insurance coverage for the shipment during transit, and
- Freight charges to transport the goods to a specified port of destination in China (e.g., CIF Shanghai or CIF Ningbo).
Here's a breakdown of what CIF entails when applied to trade with China:
- Seller's Obligations: The seller (e.g., a Chinese exporter) must arrange and pay for the transportation of the goods to the named Chinese port, cover the cost of marine insurance against loss or damage during the journey, and handle export clearance in their country (e.g., China). The risk transfers from the seller to the buyer once the goods are loaded onto the shipping vessel at the port of origin.
- Buyer's Obligations: The buyer takes over responsibility for the goods once they are on the ship at the port of origin. They must handle unloading costs, import customs clearance, taxes, duties, and any further transportation from the destination port in China to their final location.
For example:
If a supplier quotes "CIF Shanghai" for goods shipped from China to a buyer overseas, the supplier covers the cost, insurance, and freight to Shanghai, but the buyer handles everything after the goods are loaded onto the ship at the Chinese port.
CIF is commonly used in ocean freight and is popular in trade with China due to its large export market. However, it's worth noting that while CIF may seem convenient for buyers, it can sometimes lead to higher costs or hidden fees, as the seller controls the choice of carrier and insurance, potentially inflating prices.
About Tengyi logistics
Tengyi international logistics was established in 2015,with dozens of employees at present. Over the years, it has been professionally positioned to provide international logistics services such as international express delivery, international air export, customs declaration, global import business, etc., which has been recognized by peers and customers in the industry.
The company has strategically integrated the aviation resources of Hong Kong, Shenzhen, Guangzhou, Taiwan and other airports, and has become a strategic partner with DHL, FedEx, UPS, TNT, EMS and many DDP special line companies. Cooperative customers all over the country.
If you want to learn more about us and seek for your favorite service, please feel free to contact us .
Just tell us what you need, we will do our best to supply you the services you like. Thank you !
Any inquiry about freight from China, please contact me. Thank you !
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