Introduction to Chinese FOB
When importing goods from China, FOB (Free on Board) is one of the most common trade terms you will encounter. It defines the responsibilities of both the seller and the buyer during the shipment process. For importers, understanding Chinese FOB is critical for avoiding extra costs, ensuring smooth logistics, and managing risks effectively.
In a Chinese FOB agreement, the supplier is responsible for delivering goods to the port of shipment and loading them onto the vessel. After that, responsibility shifts to you, the buyer, who covers ocean freight, insurance, customs clearance, and inland transportation in the destination country.
Because China has hundreds of export ports and a wide range of shipping options, knowing how FOB works here can help you save time and money. At Taijet International Logistics, we help importers navigate FOB contracts, ensuring your goods arrive on time and without hidden fees.
How Chinese FOB Works
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01
Production Completion
The supplier finishes manufacturing and prepares your goods for shipment.
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02
Inland Transportation in China
The supplier arranges delivery from the factory to the designated port.
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03
Export Customs Clearance
The supplier handles Chinese export documentation and customs formalities.
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04
Loading Onto Vessel
Once loaded, risk and responsibility transfer to you.
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05
Ocean Freight & Insurance
You arrange and pay for these
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06
Destination Customs Clearance & Delivery
Managed by your freight forwarder or logistics partner.
This structure gives buyers flexibility but also requires careful planning, especially for international shipping arrangements.
Chinese FOB vs CIF
While FOB is popular, you may also hear about CIF (Cost, Insurance, and Freight). The difference lies in responsibility:
| Term | Supplier Covers | Buyer Covers |
|---|---|---|
| FOB | Factory to loading port, export clearance | Ocean freight, insurance, import clearance, inland delivery |
| CIF | Factory to destination port, export clearance, ocean freight, insurance | Import clearance, inland delivery |
Most experienced importers choose FOB for better control over shipping costs and carriers. At Taijet International Logistics, we help clients compare FOB and CIF to choose the best fit.
Shipping Options Under Chinese FOB
Once goods are on board, you decide how they travel. Under FOB from China, you can use sea freight or air freight.
1.Sea Freight (FCL & LCL)
Sea freight is the most cost-effective option for large shipments.
| Service Type | Transit Time to Major Ports (Days) | Typical Cost (USD/CBM) | Best For |
|---|---|---|---|
| FCL (Full Container Load) | 20–35 days | $30–$50 | Large shipments over 15 CBM |
| LCL (Less than Container Load) | 25–40 days | $40–$70 | Smaller shipments under 15 CBM |
Sea freight under FOB gives you control over carrier choice, shipping schedule, and cost negotiation.
2.Air Freight
Air freight is faster but more expensive. Ideal for high-value, urgent shipments.
| Service Type | Transit Time to Major Airports | Typical Cost (USD/kg) | Best For |
|---|---|---|---|
| Standard Air Freight | 5–8 days | $5–$8 | Urgent goods that can handle moderate transit |
| Express Air Freight | 2–5 days | $7–$12 | Extremely time-sensitive cargo |
Our air freight solutions from China under FOB terms cover customs paperwork, ensuring your goods move without delay.
Costs in Chinese FOB
FOB costs vary based on product type, volume, and shipping method.
| Cost Component | Sea Freight (per CBM) | Air Freight (per kg) |
|---|---|---|
| Freight | $30–$70 | $5–$12 |
| Insurance | 0.3%–0.5% of goods value | 0.5%–0.8% of goods value |
| Destination Charges | $100–$300 | $50–$150 |
Timelines for Chinese FOB Shipments
| Mode | China to US West Coast | China to Europe | China to Australia |
|---|---|---|---|
| Sea Freight | 20–30 days | 30–40 days | 15–25 days |
| Air Freight | 5–8 days | 7–10 days | 3–7 days |
Suitable Cargo Types for Chinese FOB
FOB is suitable for:
- Electronics and machinery
- Furniture and home goods
- Clothing and textiles
- Industrial equipment
- Non-perishable food products
Tips for Successful Chinese FOB Shipments
- Work with a reliable freight forwarder for smooth coordination.
- Confirm Incoterms in your purchase order to avoid disputes.
- Plan shipments according to seasonal demand to avoid delays.
- Compare carriers for the best combination of cost and speed.
Conclusion
Chinese FOB offers flexibility and cost control for global importers. By taking responsibility for international freight, you gain the freedom to choose carriers, routes, and schedules. However, this also means you need a strong logistics partner to handle customs, shipping, and final delivery.
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Frequently Asked Questions (FAQ)
Can I change from FOB to CIF after placing an order?
Yes, but both parties must agree and adjust costs accordingly.
Is insurance mandatory under FOB terms?
No, but it is strongly recommended to protect against loss or damage.
Which ports in China are best for FOB shipments?
Shanghai, Ningbo, Shenzhen, and Guangzhou are top choices due to frequency and connectivity.
How can I track my FOB shipment?
Your freight forwarder should provide tracking updates and vessel/flight details.
Can FOB be used for small parcels?
It’s uncommon; small shipments usually work better with EXW or DAP terms.