Purchasing Equipment Using Alibaba, Sea Freight Only to Port, How to Arrange Domestic Onforwarding?

Daniel Plainview on 08/09/2023 - 09:57

Hi All,

I won't bore you but cut a long story I can't cost effectively get specific equipment supplied domestically - despite never having used it have spoken with a few suppliers on Alibaba and found their costs for the item and freight to Australia significantly cheaper.

The issue is they all seem to state they can only freight as far as either Brisbane or Sydney from their end.

I live slap in the middle, Coffs Harbour area - so how does one go about organising options to either pickup or get the domestic delivery of the equipment? It's not massive but will likely be about 110kg on a pallet.

Thank you in advance.

PS. Feel free to drop any other advise on AB purchases if you like as I'm learning as I go.

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Comments

  • GG57 on 08/09/2023 - 10:12
    +1

    https://www.wwcf.com.au/
    As an example.

  • Ocker on 08/09/2023 - 10:39
    +2

    Use a local freight forwarder and as a guide you can expect to pay around $1,400 plus gst on the goods. That will include the myriad of customs fees etc and an allowance of $350 delivery to you

    • Daniel Plainview on 08/09/2023 - 10:53

      Really that much? Just on a single 120kg or so item (dimensions I think will be about 1.4m x 0.8 x 1.2)

      If its that much I think it tips things back towards a domestic solution - as thats cost on a scale I was not expecting.

      • Flying Ace on 08/09/2023 - 11:17
        +1

        Hire a truck and go on a road trip!

        • Daniel Plainview on 08/09/2023 - 11:18
          +1

          I'd consider that - as its small enough I can likely put in trailer - but the customs etc fees will still apply and that seems to be the bulk of it - rookie error by me - just wasn't aware of the scale of them.

  • Ocker on 08/09/2023 - 11:08
    +9

    Our last invoice:

    Arrival Charges $356.43
    Destination Port License Fee $35.00
    Customs Clearance (up to 5 lines) $165.00
    CMREDI / Handling Fee $105.00
    Delivery
    incl fuel via Taillft Truck $165.00
    Customs Disbursement Charges Zero Rated $296.05
    GST Amount $197.05
    Quarantine Processing Charge $49.00
    Declaration Processing Charge $50.00

    • Daniel Plainview on 08/09/2023 - 11:17

      Ah…..one can see that the ports are a union gig. ;-) How large was the item that was for? Not sure how much size/weight comes into it vs it being just a flat rate charge.

      • Dslrfirst on 09/09/2023 - 09:47
        -1

        look carefully at which entities are imposing the fees -little to do with unions.

    • omguleh on 08/09/2023 - 14:41
      +2

      Sometimes it feels cheaper to just import the whole container yourself.

      My last 20ft container delivered via side loader:
      Electronic Entry Charge 201.00 F
      Agency 95.00 S
      Australian Port Charges 660.00 F
      Delivery Order Fee 45.00 S
      Cartage 780.00 S
      Cartage fuel levy 93.60 S
      Administration/CMR Fee 25.00 S
      Quarantine Attendance 25.00

  • Ocker on 08/09/2023 - 11:48
    +6

    The shipment detailed was about 250kg on a standard pallet. The charges are pretty well flat rates until you talk multiple pallets or extremely heavy.
    For your order you may be able to save around $40 by using a standard truck as opposed to a tailgate lift truck.
    I did ask our forwarders about clearing the shipment ourselves but they advised that given the complexity of the import procedure it is not practical

    • Daniel Plainview on 08/09/2023 - 12:34
      +4

      Firstly , THANK YOU for taking such personal time to detail such a terrific response. I really appreciate it and I'd no idea this level of costs applied.

      Pretty much makes it a no-go I'd say as brings the cost to a point where the extra risks (warranty, being messed around with specs etc) aren't worth it.

      But again sincere thanks in taking the time to detail all this - most folks would just say don't do but your explanation of why is much more powerful and informative - thank you.

      • sumyungguy on 08/09/2023 - 13:58

        Further to the advice from @Ocker, you can get quotes from freight forwarders (LCL shipment) by providing the incoterms for the shipment (likely FOB), shipment dead weight and packed dimensions, tariff classification of the goods, destination address, date the goods are available (sea freight charges vary seasonally). You would then add your preferred freight forwarder to the bill of lading as the notify party. I used to work in international suppply chain. A freight forwarder will charge at least $700 in fees just to handle your shipment. Other fees are on top: freight charges, import duty (if applicable), local cartage.

        110kg ex-China would probably be cheaper shipped by logistics air freight.

    • Daniel Plainview on 08/09/2023 - 14:01

      @Ocker
      Well here I was thinking the whole thing was put to bed but then one of the sellers I was dealing with sends me a quote for a DDP (delivered duty paid) to my very home address in rural Australia (Coffs harbour).

      I had to read up on DDP - but essentially it seems that it places all the costs involved in getting it from factory to the end buyer's address on the seller: https://guidedimports.com/blog/what-does-ddp-mean-incoterms/

      FWIW he's given me a DDP quote of $USD788 (~$AUD1285) - which seems incredibly good given the Australian end fees we discussed - not to mention the item itself sells for around $USD400-500.

      I know they obviously have access to much better shipping rates on the Chinese end but is this a 'WARNING' too good to be true price? From what I read the risks to the buyer from DDP are that the seller is paid 100% on the goods getting on the boat. They will also want to find the cheapest freight options.

      If they stuff up the customs clearance charges etc once they get it to the port they can just abandon the freight - not sure where that leaves the buyer?

      Just to give some perspective on the exercise the hire costs for this piece of equipment is $200 more for 1 week than the quoted purchase price on this is (as it currently stands).

      I've asked the seller if they & their freight agent have experience in DDP quotes to Australia - but sheez they will just say yes, how will I know better on this?
      Might have to read up on any buyer protections on AB.

      • sumyungguy on 08/09/2023 - 14:09
        +1

        https://export.business.gov.au/contracts-and-shipping/know-y…
        The thing with DDP is the seller will be assuming you have your own transit insurance (as all import/export businesses do). You may need to make further enquiries about using their insurance or making your own arrangements,

        • Daniel Plainview on 08/09/2023 - 14:19

          Yes, I've noted this - apparently it's the only additional aspect the buyer needs to cover or atleast negotiate on. But sheez they've quoted a price (literally just sending me confirmation that this includes to my door delivery and all costs) for less than the likely landing fees/charges at an Australian port.

          I did not expect that. As mentioned it's so well priced it makes me think how can they manage to do it?

          PS. One of the tricks I've noticed sellers pull is to change the type of quotes they give you - one time giving a FOB quote then a DDP quote then an EXW quote - where you're responsible for everything…..I think they want you to slip up and not notice.
          https://www.supplyia.com/trade-terms-alibaba-incoterms/

          • sumyungguy on 08/09/2023 - 14:21
            +1

            @Daniel Plainview: There's mind-boggling scale in freight, and with that comes discounts. Ask whom their notify party is in Australia and you can make further enquiries there.

            • Daniel Plainview on 08/09/2023 - 14:48

              @sumyungguy: Thank you for your reply - ok so I ask who their Australian notify party is - they say ABC Pty Ltd - I then do what with this info?

              haha I'm sorry for such rookie questions in this area.

      • Ocker on 08/09/2023 - 16:28
        +1

        Think you will find the DDP does not include the cost of the goods. As such, the US$788 (AUD1,285) broadly aligns with the freight price I gave earlier

        • Daniel Plainview on 08/09/2023 - 17:55

          Hmmmm thats an odd way to quote then as I thought the whole idea of the incoterms with B2B quotes was that this would be indicative of what costs are being borne by which party etc.

          Honestly the sellers are pissing me off at present - I'm finding multiple aspects that are important to the item to NOT be actually as they are stated in the sales listing e.g item is stated as having easy to adjust flowrate. but when I asked how they adjust the flow rate - the seller said, oh it's a fixed rate flow on or off.

          In the listing they say 220v/380v - so I asked it's definitely 220v capable, (which I know is fine on 240v) and he's said oh know it needs 3-phase power (~400v).

          Massive differences….makes me think for a one off transaction there's a strong temptation for the seller to completely screw the seller. Not giving up on it but they're not covering themselves in glory.

          • Ocker on 08/09/2023 - 18:56

            @Daniel Plainview: The only way to settle your concerns is to ask the seller (a) their ex-factory price (meaning you pay all costs from the factory gate) (b) their price, cost of goods plus all costs up to the port of Sydney. Knowing (a) you can then inquire of a local freight agent.
            Realistically the seller could not advise accurate costs (customs clearance, gst, documentation, delivery, etc) from the port of Sydney to your home address.

  • omguleh on 08/09/2023 - 14:37

    Find a company within China to take delivery of your package and send it door to door to you. For small items I regularly take this route.

    • Daniel Plainview on 08/09/2023 - 14:49

      Small items? I'm guessing our definition of this differs. Do you have any co's you can recommend? That said the DDP quote seems pretty competitive but hard to know if it'd be just bodged and end up stuck in customs clearance as they didn't pay proper fees etc - and unsure if thats an insurance or seller issue.

  • [Deactivated] on 08/09/2023 - 18:02
    -1

    Is our Rusty, your neighbour?

  • Capo93 on 13/09/2023 - 22:31
    +1

    I purchase many things off Alibaba however everything has always been door to door. I have purchased custom branded baseball bats, safety gloves, medals and drill shields off Alibaba before.

    The biggest things I ever purchased was game machines; boxing, cut the rope and a lolly machine.

    Yes, you do run the risk if something is faulty. I’ve had issues with items missing or incorrect printing but all my sellers have been good and either rectified or have a discount on next order. Most have WhatsApp so you can communicate with them. I have had issues with my game machines but I troubleshooted with the sellers via WhatsApp and in the end they air freighted out parts free of charge.

    I do currently have some wooden tables coming LCL from Bali and I’m planning on collecting them from port myself due to their size, weight and fragileness. I’ll be responsible for port fees when the items arrive so when it all arrives I can touch back with my experience and costs, they’ll be coming into Sydney.

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