International shipping can be confusing—FOB, CIF, DDP, CBM... what do they all mean, and which is best for your order?

This guide demystifies shipping terms, explains your options, and helps you make cost-effective decisions when importing disposable products from China.

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Understanding Incoterms

Incoterms (International Commercial Terms) define who is responsible for shipping, insurance, and customs at each stage of delivery.

The most common terms you'll encounter:

EXW (Ex Works)

Meaning: Pick up from factory

Seller's responsibility:

• Make goods available at their premises

Buyer's responsibility:

• Everything else: pickup, export, shipping, import, delivery

Best for: Experienced importers with freight forwarders Risk level: High for buyer (most responsibilities) Cost clarity: Low (many variables to manage)

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FOB (Free On Board)

Meaning: Loaded onto ship at origin port

Seller's responsibility:

• Goods delivered to origin port
• Export customs clearance
• Loading onto vessel

Buyer's responsibility:

• Ocean freight
• Insurance
• Import customs
• Delivery to final destination

Best for: Regular importers who want shipping control Risk level: Moderate for buyer Cost clarity: Good (you control shipping quotes)

Most common term for China exports.

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CIF (Cost, Insurance, Freight)

Meaning: Delivered to destination port with insurance

Seller's responsibility:

• Everything to destination port
• Ocean freight
• Basic insurance

Buyer's responsibility:

• Import customs clearance
• Duties and taxes
• Delivery from port to final destination

Best for: Buyers who want simpler pricing Risk level: Lower for buyer Cost clarity: Better (most costs bundled)

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DDP (Delivered Duty Paid)

Meaning: Delivered to your door, all inclusive

Seller's responsibility:

• Everything: shipping, insurance, import customs, duties, delivery

Buyer's responsibility:

• Receive goods

Best for: First-time importers, small orders Risk level: Lowest for buyer Cost clarity: Best (one price covers everything)

Most expensive but simplest option.

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Incoterms Comparison Chart

Term	Export Customs	Freight	Insurance	Import Customs	Delivery	Buyer Ease
EXW	Buyer	Buyer	Buyer	Buyer	Buyer	★☆☆☆☆
FOB	Seller	Buyer	Buyer	Buyer	Buyer	★★★☆☆
CIF	Seller	Seller	Seller	Buyer	Buyer	★★★★☆
DDP	Seller	Seller	Seller	Seller	Seller	★★★★★

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Which Incoterm Should You Choose?

Choose FOB if:

• You import regularly
• You have a trusted freight forwarder
• You want to control shipping costs
• Your order is large enough for competitive freight rates
• You're comfortable managing logistics

Choose CIF if:

• You want simpler comparison between suppliers
• You prefer one quote covering most costs
• You don't have freight forwarder relationships
• Mid-size orders

Choose DDP if:

• This is your first import
• Order is relatively small
• You want zero logistics hassle
• You need guaranteed landed cost
• You're unfamiliar with customs procedures

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Shipping Methods Explained

Sea Freight (Ocean)

Two options:

FCL (Full Container Load)

• You rent entire container
• 20ft container: ~28 CBM
• 40ft container: ~58 CBM
• 40ft HC (high cube): ~68 CBM

Best for: Large orders, better per-CBM rate

LCL (Less than Container Load)

• Share container with other shippers
• Pay per CBM (cubic meter)
• Minimum usually 1 CBM

Best for: Smaller orders, don't fill a container

Method	Transit Time	Cost	Best For
FCL	20-35 days	$$	Orders filling 15+ CBM
LCL	25-40 days	$$$ per CBM	Orders under 15 CBM

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Air Freight

Characteristics:

• Fastest option (3-7 days)
• Most expensive
• Charged by weight or volume (whichever is higher)

Best for:

• Urgent orders
• Small quantities
• High-value items
• Sample shipments

Method	Transit Time	Cost	Best For
Standard Air	5-7 days	$$$$	Medium urgency
Express Air	3-5 days	$$$$$	Urgent, small orders

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Rail Freight (China-Europe)

Characteristics:

• Middle ground: faster than sea, cheaper than air
• 16-22 days to Europe
• Growing in popularity

Best for:

• Europe-bound shipments
• Time-sensitive but cost-conscious
• When sea is too slow, air too expensive

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Shipping Cost Factors

Volume vs. Weight

CBM (Cubic Meter): Length × Width × Height in meters

Sea freight: Charged by CBM (volume) Air freight: Charged by higher of actual weight or volumetric weight

Volumetric weight formula (air):

Volumetric weight (kg) = Length × Width × Height (cm) ÷ 6000

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Cost Estimates (China to Major Markets)

Approximate ranges, actual rates vary by time and carrier:

Destination	Sea (FCL 20ft)	Sea (LCL per CBM)	Air (per kg)
USA West Coast	$1,500-3,000	$60-100	$4-8
USA East Coast	$2,500-4,500	$80-120	$5-9
Europe	$1,500-3,500	$70-110	$4-7
Middle East	$1,000-2,500	$50-90	$3-6
Southeast Asia	$500-1,500	$40-70	$3-5
Australia	$1,200-2,500	$60-100	$4-7

Note: These are rough estimates. Get actual quotes for your specific shipment.

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How to Calculate Your Shipping Needs

Step 1: Get Product Dimensions

Ask your supplier for:

• Carton dimensions (L × W × H)
• Cartons per order
• Gross weight per carton

Step 2: Calculate Total CBM

CBM per carton = (L × W × H) ÷ 1,000,000 (if in cm)

Total CBM = CBM per carton × Number of cartons

Example:

• Carton size: 60 × 40 × 50 cm
• Order: 100 cartons

CBM per carton = (60 × 40 × 50) ÷ 1,000,000 = 0.12 CBM
Total CBM = 0.12 × 100 = 12 CBM

Step 3: Choose Shipping Method

Total CBM	Recommended Method
Under 1	Air freight or express
1-5	LCL sea or air (compare)
5-15	LCL sea freight
15-28	20ft FCL
28-58	40ft FCL
58+	40ft HC or multiple containers

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Understanding Customs & Duties

Import Duties

Duties vary by:

• HS Code: Product classification
• Destination country: Each has different rates
• Origin country: Trade agreements may apply

Common HS codes for disposable products:

Product	HS Code	US Duty	EU Duty
Cotton pads	5601.21	4.6%	0%
Cotton swabs	5601.21	4.6%	0%
Disposable towels (nonwoven)	5603.11-94	0-8%	0-8%
Disposable underwear	6108.29	8-16%	12%

Important: Verify HS codes with your customs broker—classification affects duty rates.

VAT/GST

Additional taxes at import:

• US: No federal VAT
• EU: 19-25% depending on country
• UK: 20% VAT
• Australia: 10% GST
• Middle East: 0-5%

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Documents You'll Need

From Supplier (Seller)

Document	Purpose
Commercial Invoice	Value declaration
Packing List	Contents detail
Bill of Lading (B/L)	Shipping receipt
Certificate of Origin (COO)	For trade agreement rates
Test Reports	Quality/safety verification

You May Need

Document	Purpose
Import License	Some countries require
Product Registration	For regulated products
FDA Notification	US cosmetic products

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Reducing Shipping Costs

1. Consolidate Orders

Order multiple products together to fill containers more efficiently.

Example: Instead of 3 separate LCL shipments at $80/CBM each:

• Order 1: 3 CBM = $240
• Order 2: 2 CBM = $160
• Order 3: 4 CBM = $320
• Total: $720

Combine into one 9 CBM shipment at $70/CBM = $630 (12% savings)

2. Optimize Packaging

Work with supplier to:

• Reduce carton size where possible
• Use space efficiently
• Consider compressed products (compressed towels save 90% volume)

3. Choose the Right Incoterm

• FOB lets you negotiate your own freight rates
• DDP may include markup on shipping

4. Plan Ahead

• Sea freight is 60-80% cheaper than air
• Rush shipments always cost more
• Order 6-8 weeks before you need goods

5. Build Volume

• Larger orders get better freight rates
• Annual contracts may include freight discounts

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Common Shipping Mistakes

Mistake 1: Not verifying CBM before ordering

Problem: Shipping costs surprise you after order placed Solution: Always get CBM calculation before confirming order

Mistake 2: Choosing cheapest shipping option without considering time

Problem: Goods arrive too late, miss selling season Solution: Factor in transit time + buffer for delays

Mistake 3: Not understanding duties/taxes

Problem: Unexpected costs at customs Solution: Research duty rates for your products before ordering

Mistake 4: Using DDP without comparing FOB + own freight

Problem: Overpaying for convenience Solution: Get quotes both ways for large orders

Mistake 5: Ignoring insurance

Problem: Damaged or lost goods with no recourse Solution: Always insure shipments (0.3-0.5% of value)

Frequently Asked Questions about Shipping & Logistics

Q1: What is the difference between FOB and DDP?

A: FOB (Free On Board) means the seller is responsible only until the goods are loaded onto the ship in China; you (the buyer) pay for the ocean freight and insurance. DDP (Delivered Duty Paid) is a "door-to-door" service where the seller handles everything, including shipping, customs clearance, and taxes, delivering the goods straight to your warehouse.

Q2: How do I calculate the shipping volume (CBM) for my order?

A: To calculate CBM (Cubic Meters), multiply the length, width, and height of one carton in meters (e.g., 0.6m x 0.4m x 0.5m = 0.12 CBM). Then multiply by the total number of cartons. For disposable cotton products, volume is usually the main cost factor rather than weight.

Q3: How many cartons fit in a container?

A: A standard 20ft Container holds approximately 28 CBM. A 40ft HQ (High Cube) container holds approximately 68 CBM. We recommend ordering enough quantity to fill a container (FCL) as it is much cheaper per unit than shipping loose cargo (LCL).

Q4: What is the HS Code for cotton pads and towels?

A: The general HS Code for cotton pads and swabs is 5601.21. For disposable nonwoven towels, it is typically 5603.92 or 5603.93. Always confirm with your local customs broker as duties vary by country (e.g., US vs. EU).

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Working with Little Cotton

We offer flexible shipping terms to suit your needs:

Available Incoterms:

• FOB Guangzhou/Shenzhen
• CIF to your port
• DDP to your door (selected destinations)

What we provide:

• Accurate CBM calculations before order
• Professional packing lists and documentation
• Certificate of Origin
• Quality test reports
• Shipping coordination with your forwarder

We can recommend:

• Reliable freight forwarders
• Optimal shipping methods for your order
• Cost-saving consolidation options

Contact us for a quote including shipping:

📧 Email: Susancheung@pconcept.cn

💬 WhatsApp: +86 159 1541 3844

🌐 Website: www.littlecotton.net

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Little Cotton Industry Co., Ltd. exports to 50+ countries worldwide. Our experienced team handles international shipping daily and can guide you through the logistics process from first order to delivery.