Local Logistics in China: How Your Goods Move from the Factory to the Port
Import logistics from China has two halves: the international one, which starts when the ship sails, and the local one in China, which starts when the goods leave the factory. This second half, the factory-to-port leg, is the one that surprises new importers most. It is where it is decided whether your goods travel consolidated with other cargo or in their own container, where final quality control takes place and which export documents are processed. Understanding it helps you negotiate better and avoid hidden costs.
Table of Contents
- The factory-to-port leg: what it includes and who manages it
- Inland transport: from the workshop to the consolidator
- LCL vs FCL: when to use each
- China's most important export ports
- Export documents: who handles them and what they cost
- Warehouse consolidation: how it works and why it pays off
- Local-leg costs you should include in your budget
1. The factory-to-port leg: what it includes and who manages it
When you buy on EXW terms, you are responsible for everything from the factory gate. When you buy FOB, the supplier covers everything until the goods are on board the vessel. In practice, the local leg in China includes these steps:
- Road transport from the factory to the consolidation warehouse or directly to the port terminal
- Quality inspection (if carried out in China before shipment)
- Consolidation with other cargo if the shipment is LCL
- Export customs formalities: declaration and payment of export taxes if applicable
- Delivery of the container or loose cargo to the port terminal
- Issuance of the Bill of Lading by the shipping line
Who manages this leg
On FOB terms, the supplier handles inland transport and export formalities through its own freight agent in China. On EXW terms, the importer needs to hire a freight forwarder or sourcing agent in China to do this work. As a sourcing agent, Galium Cargo manages the entire local leg in China, including quality control, consolidation and export documentation.
2. Inland transport: from the workshop to the consolidator
Most factories are not at the ports: they are in inland industrial cities, sometimes 200 to 500 km from the export port. The cost of moving the goods from the factory to the port or consolidation warehouse varies according to:
- The distance between the factory and the port
- The volume and weight of the cargo (charged per CBM or per ton, whichever is greater)
- The type of cargo: standard, oversized, hazardous or temperature-controlled
- The season: inland freight rates rise around Chinese New Year and in peak season (September-November)
Reference rates for inland transport in China
| Route | Approx. distance | Approx. rate per CBM |
|---|---|---|
| Guangzhou / Shenzhen to Yantian port | 0 to 80 km | USD 10 to 25 |
| Dongguan to Guangzhou | 80 km | USD 15 to 30 |
| Yiwu to Shanghai | 300 km | USD 30 to 60 |
| Chengdu to Shanghai | 1,900 km | USD 80 to 150 |
| Qingdao to Beijing (area) | 700 km | USD 40 to 80 |
These rates are indicative and vary with the total cargo volume, the agent's relationships with local carriers and the time of year.
3. LCL vs FCL: when to use each
The most important decision in export logistics from China is whether your cargo goes in a shared container (LCL) or in its own (FCL).
LCL (Less than Container Load): consolidated cargo
With LCL, your goods share a container with other importers' cargo. You pay only for the space you use, measured in CBM (cubic meters). It is the standard option for orders below roughly 15 CBM.
- Cost: charged per CBM, usually with a 1 CBM minimum
- Transit time: can be 5 to 10 days longer than FCL because of consolidation and deconsolidation
- Risk: cargo can be damaged by handling when consolidated with other shipments
- Ideal for trial orders, first orders or importers with low volumes
FCL (Full Container Load): a full container
With FCL, you rent the whole container, which gives you more security (nobody else touches your cargo) and shorter transit times because there is no consolidation or deconsolidation at origin and destination.
- 20-foot container (20'): approximate capacity of 25 to 28 CBM, 28,000 kg maximum
- 40-foot container (40'): approximate capacity of 55 to 60 CBM, 28,000 kg maximum
- FCL is cheaper per CBM than LCL from about 10 to 12 CBM, depending on the route
- Your cargo alone in the container: lower risk of handling damage
4. China's most important export ports
China has dozens of export ports, but most of the import volume bound for Latin America and Europe leaves from six major hubs:
| Port | Area | Best for |
|---|---|---|
| Shanghai (Yangshan) | Yangtze River Delta, central China | The largest in the world. Access to Jiangsu, Zhejiang and Shanghai |
| Shenzhen / Yantian | Pearl River Delta, Guangdong | Guangdong, Shenzhen, Hong Kong. Frequently used for Latin America |
| Guangzhou / Nansha | Inland Guangdong | Inland Guangdong, factories in Dongguan and Foshan |
| Ningbo | Zhejiang, near Shanghai | Alternative to Shanghai, frequently used for Latin America and Europe |
| Qingdao | Shandong, northern China | Northern China, Shandong's heavy and textile industries |
| Tianjin | Beijing area | Northern China, electronics and manufacturing in the Beijing area |
5. Export documents: who handles them and what they cost
To export from China, Chinese customs requires an export declaration. These are the key documents:
- Commercial Invoice: declaration of the value, quantity and description of the goods, issued by the supplier
- Packing List: details of each carton: contents, gross and net weight, dimensions
- Chinese export customs declaration: handled by the export agent of the supplier or the importer
- Bill of Lading (B/L): issued by the shipping line when the container is loaded. It is the document of title to the cargo
- Certificate of Origin (Form E or CO): required to access preferential duty rates in some countries. Issued by the Chinese Chamber of Commerce
Export costs in China
| Item | Approximate cost |
|---|---|
| THC (Terminal Handling Charge) | USD 80 to 150 per container |
| Bill of Lading issuance | USD 50 to 80 |
| Export customs clearance | USD 80 to 150 |
| Fumigation (if the packaging contains wood) | USD 30 to 60 |
| Certificate of Origin | USD 30 to 80 |
6. Warehouse consolidation: how it works and why it pays off
If you import from several suppliers in China, consolidating all the goods in one warehouse before export can significantly reduce freight costs. Instead of paying LCL separately for each supplier, you combine everything into a single LCL or FCL shipment, depending on the total volume.
How consolidation works
- The sourcing agent or freight forwarder in China receives the goods from each supplier at its consolidation warehouse
- Each delivery is checked against the order (basic inspection of quantity and condition)
- All the goods are packed and labeled for the final shipment
- Everything is exported in a single shipment with one set of documents
Warehouse consolidation is one of the services Galium Cargo offers: coordinating multiple suppliers, receiving and checking the goods at our warehouse in China, and exporting everything in a single shipment with the corresponding documentation.
7. Local-leg costs you should include in your budget
The most common mistake when calculating import costs is forgetting the costs of the local leg in China, especially when the supplier's price is EXW. These are the items you should budget for:
- Inland transport from the factory to the port or consolidation warehouse
- Consolidation storage (if applicable): usually free for the first 7 days, then charged per CBM per day
- Export THC: port terminal charge
- Bill of Lading issuance
- Export customs clearance in China
- Certificate of Origin, if needed for preferential duty rates
- Quality inspection (pre-shipment), if you hire a third party
A miscalculation on these items can change the total import cost by 5% to 15%. For products with tight margins, that difference can decide whether the business is profitable or not.
