There are a number of hidden costs of shipping from China to the UK that you should be aware of. Being aware of the costs of shipping will allow your business to accurately budget and prepare for this endeavour. Read this blog to make sure you and your business are prepared to ship worldwide!
Hidden Costs Of Shipping From China To The UK Explained
When shipping from China to the UK there are several factors controlling the eventual cost. The biggest, and most obvious, factor is of course the size of your shipment. Larger shipments require more handling and space, which is reflected in a higher price.
To generate a quote for shipping from China to the UK, a freight company (like Shippo) will need to know:
- Weight and Dimensions/Volume of your goods
- Shipping terms that your supplier is offering
- The outbound port (where the goods are coming from)
- Where the goods are being delivered to
Already, at this stage of the blog, it is important to note that accurate dimensions of your shipment are necessary for calculating an accurate quote. Misinformation will only lead to cost increases down the line.
Other factors affecting the cost of shipping may include fuel costs, the season, supply chain demand and unforeseen global events (such as COVID-19 or natural disasters).
What Are Hidden Costs Of Shipping From China To The UK?
Prior to sending off your shipping, a freight company will send over a quote, summarising the price of shipping.
A quote isn’t final; there are many things that could enhance or alter the price. That’s why getting a transparent quote that considers factors is valuable to budget planning.
Hidden costs are a nemesis to shippers, especially small businesses who can be blindsided. Unfortunately, some companies will avoid disclosing full details. The cost of handling a parcel in transit isn’t the only cost relevant to freight shipping.
When shipping from China to the UK, importers should be aware of hidden costs that you need to pay but may not have been listed in the initial quote and costs they may have to pay if the process doesn’t go as planned.
Hidden costs we think you should consider include:
Charges if your supplier sends your goods to the UK
When shipping under CFR or CIF terms, then the supplier holds responsibility for your shipment and the costs associated until it reaches the UK port. Well, that should be the case. However, what can happen is that charges you think your supplier has covered are pushed onto your bill, in the form of unusual extra fees.
Rotten as it is, it is a potential risk and is a crippling hidden cost for small businesses.
Deferment
Some shipping companies will pay UK Duty & VAT to HMRC on your behalf. This seems to be an easier option for importers, as they don’t need to worry about it themselves. That’s exactly why deferment is one of the most frequent hidden costs.
Shipping companies will bill you in post for this service and charge you a percentage, which can massively inflate this cost.
Extra Delivery Costs
A misunderstanding of what a ‘standard’ delivery is can cause hefty hidden costs. If we asked you now to picture a standard delivery, we’re sure you’re picturing a delivery arriving at your door and handed to you. But, in some instances, this is not the case.
Some shipping companies anticipate that it is your responsibility to unload your goods once they arrive at your premises. For larger businesses, this may not be an issue. For small businesses that don’t have the facilities to handle large loads, this causes an issue.
Should you require further assistance, like using a tail-lift to lower your pallets off the truck, then this will come at an extra cost. If you don’t wish to pay that cost and can’t unload the shipment, then you could be charged for a missed delivery (despite it arriving and you initially accepting it).
UK Duties and Import VAT
This is a non-negotiable cost and yet some shipping companies don’t disclose this in their quote. If you’re unsure about how much duty and VAT you must pay for your shipment you can ask HMRC directly, but if you’re still in doubt we are more than happy to help!
Customs Clearance Delays
UK customs clearance is required for every shipment. Delays caused by not having the correct information can lead to charges from warehouses, ports and shipping lines.
Not every shipping company will get this in place for you. While you may be under the impression everything is covered, you may be blindsided by this hidden cost. You must ensure your goods are cleared for UK customs, or work with a company that will manage this for you (like Shippo).
Avoid Hidden Costs Of Shipping From China To The UK With Shippo
Working with a shipping company that is on your side will help you avoid the hidden costs of shipping from China to the UK.
At Shippo, we ensure our prices reflect every foreseeable cost to get your goods from your desired origin to your destination. While shipping globally can be daunting and you may be unsure who to trust, we are here to help.
If you’re looking for some guidance or would like to enquire about shipping with us, please feel free to get in touch. We are happy to assist with whatever your query may be! We also regularly update our FAQ page and blog, so it is full of information to guide you.