Due to its sheer size, low cost of production, and overall economical prices, China has often been dubbed the ‘Worlds Factory Floor’. It also proves to be a prime location for Indian importers who source products from here thanks to these very reasons. Even though China is notorious for controversies such as manufacturing fakes, Indian businessmen are quick to take advantage of this one-of-a-kind opportunity and don’t mind paying the premium for cheaper Chinese goods. Despite geographic and cultural differences, China has become one of the fastest-growing markets for the Indian economy. India’s total trade with China was worth $70 billion in 2011, marking a growth of 21 percent from 2010. China is also increasingly becoming a big market for Indian consumer products, considering that it generates more than one-fifth of all global demand for consumer goods such as garments, pharmaceuticals, and leather.
India imports everything from smartphones and basic electronics to various hardware and chemicals from China. The sheer volume of India’s import-export deals with China is incredible because the amount of money that goes back and forth between the two countries easily totals billions of dollars.
Shipping by the ocean is the most economical way to transport large quantities of goods from China to India and enables importers to keep their costs to a minimum to help boost their profits. It is very common that products shipped across this route by the ocean. Our China-India ocean freight experts have created this guide for you in order for you better understand everything you may need when it comes to moving colossal cargo across our route from China to India. It will cover the following:
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- Types of ocean freight
- China to India shipping time
- Shipping costs from China to India
- China ports that ship to India
- Important India ports for shipments from China
- Major shipping lines on China to India route
- Customs clearance and duties from China to India
- Relevant incoterms to ocean freight
- Alternatives to ocean freight
Types of ocean freight
There are two types of ocean freight solutions: Less than Container Load (LCL) and Full Container Load (FCL). LCL is most commonly used for smaller shipments, while FCL is the more economical choice for larger orders. We recommend contacting Ocean Freight Direct for any inquiries.
LCL
When several shipments are consolidated before being placed inside a cargo container for further delivery, it is called LCL (Less than Container Load) freight forwarding. Sending LCL freight makes sense.
FCL
In this type of shipping, the shopper leases a whole container for his cargo. If you need to ship a larger amount of goods that will take up more than one “box” placed inside it (more than 50% of the volume capacity), FCL may also be considerably less expensive. You’ll have more control too because you’ll have exclusive rights over the same “container” or truck freight.
An FCL shipment is basically when a shipper or party that leases or hires out cargo space in a freighter container. To decide whether it’s best to rent an entire container FCL or lease out only part of one, you’ll have to conduct a cost-benefit analysis and have the following information in hand: 1. The volume you are shipping 2. The size of your cargo 3. And the estimated frequency of shipments
- Dry storage containers: Standard shipping containers are used to ship cargo across the world, and they are typically 40 feet in length, but there are also 20-foot standard shipping containers that provide a cost-effective option for smaller shipments.
- Open top containers: These containers have no roof. Therefore, they’re easier to load and unload than the shapes with roofs may be. They’re also useful for products that are tall and need most of the height to accommodate them like machinery or boxes that are irregularly shaped in a way that makes it impossible to fit them into the constraints of standard container sizes.
- Flat rack containers: These are the most common types because they have walls only at the end of the container so goods can be loaded in either fashion. These are best suited for shipping large units such as cars, boats, and other types of mechanical equipment.
- Open side containers: These shipping containers usually have doors that open up on one side of the unit’s length, making it easier to access the entirety of its length to load and unload certain-sized goods
- Refrigerated containers: These are containers that will prevent spills, leakage, or any damage to the goods being transported even when they are exposed to the elements.
China to India shipping time
Ocean freight shipments usually take between 14 to 24 days to arrive at their destination, but the exact time taken varies depending on the origin and destination ports as well as the route of the shipping line.
Shipping costs from China to India
Several factors contribute to the final shipping cost from India to Australia. The basic ocean freight cost is determined by several factors including season (Northern/Southern hemisphere), mode of shipment (FCL/LCL), cargo weight and volume, container availability, demand on that shipping route at the time, fuel costs, vessel capacity and type of product purchased. With so many influencers the cost, it can wildly fluctuate from time to time.
Discover and compare current freight rates from China to India, across different ports and shipping lines on Cogoport. Sign up today and get started with these simple steps.
- Click on the ‘Discover Rates’ button on the left pane of your dashboard
- Select ‘LCL’ or ‘FCL’ depending on your requirements
- In the ‘Origin’ box, enter a city or airport in China
- In the ‘Destination’ box, enter a city or airport in India
- Click on search rates to see your results
apart from this, several other charges such as port charges, documentation fees, insurance, duties and taxes, carrier fees, and agent fees among others add up to your total cost to ship from China to India. If you want to be fully aware of what exactly will be charged apart from the shipping cost it is advisable you read our two-part series on shipping costs here and here to gain a full understanding of both the above information and know when you’re going overplanned.
China ports that ship to India
Some of the major China ports used by importers in India are Shanghai, Ningbo, Tianjin, Nansha, Shekou, Qingdao, Dalian, and Xiamen. Read about how ports play an increasingly important role in China’s world trade growth.
These ports primarily cater to the ports of Nhava Sheva/JNPT, Mundra, Pipavav, Hazira, Chennai, Krishnapatnam, and Visakhapatnam. Chinese ports service other ports on India’s western, southern, and eastern coast through transshipment services provided by ports of Colombo; Singapore; Klang
Port of Shanghai
The Port of Chennai is one of India’s largest exporters of coal, iron ore and auto components.
Port of Ningbo
The ports of ancient Sri Lanka were the center of trade for a wide array of goods. This includes grains, cloth, aromatic substances and gems like pearls and corals. The main function of these ports was to export these items to other countries like India.
Port of Tianjin
This port mainly exports metal and machine products and electrical-related products.
Port of Nansha
It supplies iron and steel, telecom products, and power generation equipment for companies in India.
Port of Shekou
The Port of Shekou is located in Shenzhen, China’s Guangdong Province, and is a part of the larger Shenzhen port group. One of Shekou’s most prominent exports is fruits and food-based products that are exported to India.
Port of Qingdao
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Port of Dalian
Coal India is a state-owned company that mainly exports coal to India.
Port of Xiamen
Exports coal to India, also exporting graphite powder and sporting goods.
Important India ports for shipments from China
Major ports in India that handle the bulk of shipping between China and India are as below.
Jawaharlal Nehru Port (JNPT)
The Jawaharlal Nehru Port (JNPT) is a major Indian container port on the west coast, and as such, it functions as a bridge between India and its trade partners in the Far East (China in particular). JNPT facilities more than 50 percent of all containers passing through India. Among other things, it links to 35 different Chinese ports, making it an important pathway for goods imported into India from China.
Chennai Port
The Chennai Port is the second largest port in India when it comes to container traffic handled. Located on the east coast, Chennai (formerly Madras) is a key gateway for companies that import telecom parts and equipment from China. It also serves auto part exporters who ship components from their facilities in China to the Chennai Port to take advantage of the valuable market ripe for expansion within India itself.
Port of Kolkata
Port of Kolkata and Haldia Port is managed by the same entity, The West Bengal Maritime Infrastructure Development Corporation. A port authorities operating agency (PAAO), WB-MIDC currently handles cargo operations at the two ports. According to a container terminal joint venture agreement signed between Ignite Logistics Solutions Ltd (ILS) and state government-owned PAL Shipping Pvt Ltd in February 2013, the latter was authorized to manage a new container terminal at Haldia port for 40 years. With this contract, ILS will provide consultancy services to assist in developing an inland container depot at Haldia on an area of 27 acres; it will be able to handle 1 million 20-foot equivalent units annually by 2016.
Vizag Port
Vizag port is another major seaport on India’s east coast that offers excellent connectivity for China imports. Although it may not be as large in size as Kolkata or Mumbai, it provides excellent direct links to Nepal for Chinese ports and has very low port charges. This port handles large amounts of mineral and oil products.
Kandla Port
The Kandla Port, also known as Deendayal Port, is located in Gujarat. This port is known for its connectivity and proximity to the North Indian region and mainly handles bulk cargo. This port mainly handles imports of heavy machinery, textiles, and chemicals from China. The facilities around Kandla Port can accommodate the docking of more than ten vessels at one time.
Major shipping lines on China to India route
The following shipping lines are more likely than others to carry goods over from China to India: Cosco, OOCL, Maersk, One Line, CMA CGM, MSC, Hyundai, KMTC, Evergreen, and Wan Hai.
Customs clearance from China to India
All goods transported between China and India are subject to customs rules followed in both countries. Customs clearance is a crucial step of your shipment that contain special requirements such as other permits, inspection, assessment, and payment at both land ports of entry (origin) and sea ports of entry (destination). Additionally, this process can lead to unforeseen circumstances when different regulations are required. It is vital to work closely with a reliable importer who will ensure everything goes smoothly. China to India imports involve a multitude of documents and these tips might help you make the right decisions along the way:
Information and documents to be provided at the origin
- An export license or permit
- Certificate of Origin
- HS Code
- Invoice
- Packing list
- Shipper’s letter of instruction (SLI)
- Certificate of fumigation
- Value and description of the merchandise
- Composition of the merchandise
- Name/contacts of the supplier
- Destination of the goods
- Recipient of the goods
Documents required to clear air cargo in India
- Bill of Lading (BL)
- Delivery order (DO)
- Purchase Order
- Proforma Invoice/ Commercial invoice
- Letter of Credit, if any
- Insurance Certificate
- Health Certificate (for food products)
- Country of Origin Certificate
- Bill of Entry (BOE)
- Product Test Reports
- GATT & DGFT Declarations
To understand each of these documents better, check out our article on documents exporters and importers in India need in order to clear customs.
Relevant incoterms
Incoterms are like a mathematical formula that will ensure that both you and your customer land on the same page when it comes to the cost of shipping fresh produce across continents. In international trade these rules identify and define the role of each player involved in transporting goods across borders, helping everybody to perform their job without any confusion or conflict. These days, most major freight companies have adopted them (just as larger manufacturers have adopted ISO standards), meaning you don’t need to worry about issues such as who is going to be responsible for any lost or damaged goods while they’re traveling from origin to destination.
Many shipping terms are applicable for the transportation of goods via ocean, air, and land. It’s important to know which incoterms you should use when transporting goods because choosing the wrong one can have unintended consequences.
- Ex Works (EXW): The buyer purchases the product from the seller’s retail store or website and assumes all responsibilities thereafter.
- Free Carrier (FCA): The seller is responsible for the goods until it reaches the buyer. This includes conducting transactions through a reputable and secure delivery company. The goods are only considered to have been received once they have been successfully delivered without harm, fault, or defection at an agreed location.
- Free Alongside Ship (FAS): Seller is liable for all costs and risks, including any and all customs fees, until the goods are placed by the side of the ship on the dock. From the moment that occurs until the buyer picks up the item from the dock, it’s in their possession.
- Free on Board (FOB): The sale of goods is generally governed by the laws of the country in which the sale takes place. The exception to this is if an international convention has been signed.
- Cost & Freight (CFR): The seller is responsible for all costs involved concerning the product, up until the moment the goods are placed on the ship. From that point on, the seller doesn’t have to worry about those products anymore – they’re the buyer’s problem now because the seller has transferred all risks that might occur with those goods from himself onto his customer once he loads them into a container.
- Cost, Insurance & Freight (CIF): The seller is liable for all costs up to the destination port, including for insurance to protect the cargo.
- Carriage Paid To (CPT): The seller selects the party to transport the goods and agrees to pay for the costs of shipping. Responsibility for the goods lies with the seller until they are delivered to a nominated third party. After that point, responsibility passes to the purchaser.
- Carriage and Insurance Paid To (CIP): Seller nominates a third party to deliver the goods to the end destination – by land or by sea. The seller bears all costs, including insurance. Responsibility for the goods lies with the seller until they are delivered to the nominated party. Thereafter, it transfers to the buyer.
- Delivered at Place (DAP): Seller is legally liable for any damages during transportation that occur after the goods have left our facility and passed through your jurisdiction. Duties and taxes are included in the price of shipping, but local transport including customs clearance, insurance, workman’s compensation, etc., are all legal obligations to be covered by you as a buyer.
- Delivered at Place Unloaded (DPU): The seller assumes all costs and responsibilities of transporting goods from the origin to a specified location at the destination. The seller is responsible for renting trucks or other vehicles, hiring movers and handlers, arranging insurance, and handling customs paperwork. However, duties and taxes are borne by the buyer upon crossing customs.
- Delivery Duty Paid (DDP): When receiving goods for transportation, it is the customer’s responsibility to make sure that pick up is made from their designated location and transport of goods to the destination happens without damage or loss. Seller will assume responsibility on both ends i.e. from origin to destination as well as unloading costs and responsibilities at the destination.
Alternatives to ocean freight
Shipping by sea is a great solution for businesses looking to save on costs because ships can hold so much cargo at any given time and the transportation via water covers a huge distance in the shortest time possible. However, shipping from China to India by sea takes up to a month. By comparison, delivery via air takes only between three and eight days. Refer to our guide on international shipping from India if you are already aware of how long it takes to deliver via air and how much cheaper it is in comparison with other ways of transporting goods.
Air freight is the quickest transport mode for international logistics and a great alternative to ocean freight if –
- Your goods are on a shorter delivery schedule
- You are transporting extremely valuable items
- You are transporting extremely fragile items
Understand how to select the most appropriate model for your shipment, between air freight and ocean freight, here.
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