Ocean Freight from China to the US: A Complete Guide

Ocean freight is the most common and cost-effective way of transporting goods from China to the US. It accounts for about 90% of the global trade volume and offers many advantages for shippers and buyers. However, ocean freight also involves many challenges and considerations that need to be addressed in order to ensure a smooth and successful shipment. In this article, we will explain everything you need to know about ocean freight from China to the US, including the advantages, challenges, shipping methods, documentation, regulations, tracking, cost, and how to work with freight forwarders and logistics partners.

Understanding ocean freight and its role in the supply chain

Ocean freight is the process of transporting goods by sea using cargo ships. Ocean freight is also known as sea freight or maritime transport. Ocean freight is a vital part of the global supply chain, as it connects producers and consumers across continents and oceans. Ocean freight is especially important for trade between China and the US, as they are the two largest economies and trading partners in the world.

Ocean freight has several benefits for shippers and buyers, such as:

• Lower cost: Ocean freight is generally cheaper than air freight or other modes of transport, as it can carry large volumes of goods at a low cost per unit. According to Freightos, the average cost of shipping a 40-foot container from China to the US West Coast is about $4,000, while the same container by air freight would cost about $16,000.
• Environmental impact: Ocean freight is more environmentally friendly than air freight or road transport, as it emits less carbon dioxide and other greenhouse gases per ton of cargo. According to Statista, ocean freight accounted for only 2.6% of the global CO2 emissions from fuel combustion in 2019, while road transport accounted for 18.3% and air transport accounted for 12.8%.
• Flexibility: Ocean freight can accommodate different types of goods, such as dry goods, liquid goods, refrigerated goods, hazardous goods, and oversized goods. Ocean freight can also offer different shipping options, such as full container load (FCL), less than container load (LCL), or break bulk.

Advantages of using ocean freight from China to the US

Shipping from China to the US by ocean freight has many advantages, such as:

• Access to major ports: China and the US have some of the busiest and most developed ports in the world, which facilitate the movement of goods between the two countries. According to World Shipping Council, seven of the top 10 container ports in the world in 2020 were in China, while three of the top 10 container ports in North America in 2020 were in the US. Some of the major ports in China include Shanghai, Shenzhen, Ningbo-Zhoushan, Guangzhou, Qingdao, Tianjin, and Xiamen. Some of the major ports in the US include Los Angeles, Long Beach, New York/New Jersey, Savannah, Seattle/Tacoma, and Houston.
• Availability of shipping routes: There are many shipping routes available for ocean freight from China to the US, which offer different transit times and costs. The main shipping routes are the Trans-Pacific Eastbound (TPEB) and the Trans-Pacific Westbound (TPWB). The TPEB route connects China to the US West Coast, while the TPWB route connects China to the US East Coast via the Panama Canal or the Suez Canal. The TPEB route is faster and cheaper than the TPWB route, as it covers a shorter distance and avoids the canal fees. According to Guided Imports, the average transit time for the TPEB route is 15-20 days, while the average transit time for the TPWB route is 25-35 days.
• Stability of supply and demand: The trade volume between China and the US is relatively stable and predictable, as they are both large and mature markets with diversified and complementary products. According to World Bank, China was the largest exporter of goods to the US in 2020, accounting for 18.5% of the total US imports, while the US was the third largest exporter of goods to China in 2020, accounting for 8.7% of the total Chinese imports. The main products exported from China to the US include electrical machinery, machinery, furniture, toys, and footwear. The main products exported from the US to China include aircraft, soybeans, vehicles, semiconductors, and oil.

Challenges and considerations in ocean freight logistics

Despite the advantages, ocean freight from China to the US also faces many challenges and considerations that need to be addressed in order to ensure a smooth and successful shipment. Some of the main challenges and considerations are:

• Fluctuation of freight rates: The freight rates for ocean freight from China to the US are subject to frequent and sometimes drastic changes, depending on the market conditions, seasonality, current events, and capacity. The freight rates are determined by the supply and demand of shipping space, the fuel costs, the exchange rates, the port charges, and the surcharges. According to [Statista], the container freight rate index from China to the US West Coast fluctuated between 716 and 777 points from January 2019 to August 2023, with the highest peak in July 2020 and the lowest trough in February 2020. The freight rates can also vary significantly depending on the origin and destination ports, the shipping lines, and the booking agents.
• Delays and disruptions: The ocean freight from China to the US is prone to delays and disruptions due to various factors, such as weather conditions, natural disasters, port congestion, customs clearance, labor strikes, mechanical breakdowns, accidents, and piracy. These factors can affect the transit time, the delivery schedule, the cargo safety, and the customer satisfaction. According to [FreightWaves], some of the recent events that caused delays and disruptions in ocean freight from China to the US include the COVID-19 pandemic, the Suez Canal blockage, the Yantian port closure, the California wildfires, and the Hurricane Ida.
• Complexity of documentation and regulations: The ocean freight from China to the US requires a lot of documentation and compliance with various regulations, such as the customs, the security, the health, the environmental, and the trade policies. The documentation and regulations can differ depending on the type, value, and origin of the goods, the mode of transport, and the destination country. Some of the common documents required for ocean freight from China to the US include the commercial invoice, the packing list, the bill of lading, the certificate of origin, the insurance policy, and the import/export declaration. Some of the common regulations that apply to ocean freight from China to the US include the Harmonized Tariff Schedule (HTS), the Customs-Trade Partnership Against Terrorism (C-TPAT), the Importer Security Filing (ISF), the Automated Commercial Environment (ACE), and the Section 301 tariffs.

Choosing the right ocean freight method

When shipping from China to the US by ocean freight, there are two main shipping methods to choose from: full container load (FCL) and less than container load (LCL). The choice of the shipping method depends on the size, weight, volume, and nature of the goods, as well as the budget, time, and preference of the shipper and the buyer. The advantages and disadvantages of each shipping method are:

• FCL: FCL means that the goods fill an entire container, either 20-foot or 40-foot long. FCL is suitable for large, heavy, or bulky shipments that can occupy at least half of the container space. FCL has the following advantages and disadvantages:
  • Advantages:
    • Lower cost per unit: FCL is cheaper than LCL per unit of cargo, as the freight rate is based on a flat rate per container, regardless of whether the container is fully loaded or not. According to [BR Logistics], the average freight rate for a 20-foot container from China to the US West Coast is $2,500, while the average freight rate for a 40-foot container is $3,500. This means that the cost per cubic meter for a 20-foot container is $125, while the cost per cubic meter for a 40-foot container is $87.5.
    • Faster transit time: FCL is faster than LCL, as it does not require consolidation and deconsolidation at the origin and destination ports. This reduces the handling time, the waiting time, and the risk of delays. According to [Guided Imports], the average transit time for FCL from China to the US West Coast is 15-20 days, while the average transit time for FCL from China to the US East Coast is 25-35 days.
    • Higher security and safety: FCL is more secure and safe than LCL, as the goods are sealed in a single container and are not mixed with other shippers’ goods. This reduces the exposure to theft, damage, or contamination. The shipper and the buyer also have more control over the loading and unloading of the goods, as they can use their own locks, seals, and labels.
  • Disadvantages:
    • Higher minimum cost: FCL has a higher minimum cost than LCL, as the shipper has to pay for the entire container space
• LCL: LCL means that the goods share a container with other shippers’ goods. LCL is suitable for small, light, or urgent shipments that do not occupy more than 15 cubic meters of the container space. LCL has the following advantages and disadvantages:
  • Advantages:
    • Lower minimum cost: LCL has a lower minimum cost than FCL, as the shipper only pays for the space that the goods occupy in the container. According to [BR Logistics], the average freight rate for LCL from China to the US West Coast is $200 per cubic meter, while the average freight rate for LCL from China to the US East Coast is $300 per cubic meter.
    • Higher flexibility: LCL offers more flexibility than FCL, as the shipper can ship the goods at any time, without waiting for a full container load. LCL also allows the shipper to ship different types of goods in the same container, as long as they are compatible and compliant with the regulations.
    • Lower inventory cost: LCL can reduce the inventory cost for the shipper and the buyer, as they can ship and receive the goods in smaller and more frequent batches, rather than in large and infrequent shipments. This can improve the cash flow, the inventory turnover, and the customer service.
  • Disadvantages:
    • Higher cost per unit: LCL is more expensive than FCL per unit of cargo, as the freight rate is based on a per cubic meter or per ton basis, and there are additional charges for consolidation and deconsolidation at the origin and destination ports. According to [Guided Imports], the average cost of LCL from China to the US is 25-50% higher than FCL per unit of cargo.
    • Slower transit time: LCL is slower than FCL, as it requires consolidation and deconsolidation at the origin and destination ports. This increases the handling time, the waiting time, and the risk of delays. According to [Guided Imports], the average transit time for LCL from China to the US West Coast is 20-25 days, while the average transit time for LCL from China to the US East Coast is 30-40 days.
    • Lower security and safety: LCL is less secure and safe than FCL, as the goods are mixed with other shippers’ goods in the same container. This increases the exposure to theft, damage, or contamination. The shipper and the buyer also have less control over the loading and unloading of the goods, as they have to rely on the consolidator and the deconsolidator.