Friday, September 17, 2010

Shipping strategies from Taiwan to the US

Shipping strategies from Taiwan to the US

There are various shipping strategies proposed for bringing goods back to the US from Taiwan. We are exploring these in order to make our own decisions and wanted to also get input from others, as well as make our research available to others.

Taiwan post office

The Taiwan PO offers a service called international express shipping. We found rates posted at http://www.post.gov.tw/post/internet/u_english/postal_f_6.jsp

The International EMS ("express mailing service"?) ships packages up to a certain size and a certain weight. The size is roughly 54x54x54 cm or slightly more, but one dimension can be up to 1.52m as long as the other dimensions are lowered correspondingly according to a formula. The weight can be up to 30 kg, but the charge is based on the greater of the weight or the volumetric weight (where the hypothetical weight is computed based on a volume formula. The minimum weight charged for our 54cm cube, for instance, would be about 26 kg, or higher if it actually weighed more than that.)

The cost drops slightly as weight (or volumetric weight) of package increases, but is 308twd per kilo for 10kg, 264twd per kilo for 20kg, and 236twd per kilo for 30kg. A figure to work with then is about 264twd/kg or $3.78/lb.

For $1800, we could ship 477 lbs or about 11 large boxes averaging about 20kg each.

For $1000, we could ship 265 lbs or about 6 boxes close to 50 lbs each.

Baggage and excess baggage

Airlines will generally accept extra checked bags for a fee within their regulations. United Airlines currently charges $200 each for up to 50 lbs or $400 for 50-70 lbs. Linear dimensions are l+w+h=62 inches. (Excess baggage is by the piece, this is the volumetric charge.) This is roughly a 52x52x52cm cube. This is at least $4/lb or 280twd/kg.

For $1800, we could ship 450 lbs or 9 large boxes (in addition to baggage allowances.)

For $1000, we could ship 250 lbs in 5 boxes or bags of 50 lbs each.

Air freight

I got a quote for air freight from http://www.crownans.com/ for shipment to IAH airport in Houston. (I chose this route because the Taiwan airlines fly there. It may not include handling charges in Houston?) While there are limits on volume such as listed for the Taiwan Post Office, air freight is rated by the weight. The rates are 150twd/kg plus about 15twd/kg in fees. This is 165twd/kg or $2.36/lb.

For $1800, we could ship perhaps 720 lbs or 15 boxes.

For $1000, we could ship perhaps 411 lbs or 9 boxes.

Ocean freight

Ocean freight in "less than container loads" lcl's is generally picked up, palletized (stacked on standard sized pallets for loading ease, then wrapped in shrink wrap plastic to protect it and keep it intact in shipping), and shipped to the US in the next container with space available. Once at a US depot, it must be processed through customs and either warehoused for pickup or delivered to the door. The charges after it arrives in the US are often separate from the charges for pickup, palletizing, and shipping.

The minimum sized load, by volume, is typically 3 or 4 cbm: cubic meters. A cubic meter is about 8 50x50x50cm cubes, so 3 cbm is the equivalent of 24 large boxes. The measurement of volume may be larger by a percentage due to the palletizing process. I think typically the boxes would be stacked on a 1000cm x 1200cm pallet, about 6" or 15cm high so that they do not extend past the edge in any direction. How efficiently and how even in height the stack will determine the volumetric percentage, but lets guess it's 25%. Since the charge to deliver from the US depot to the door can be quite pricey, say an additional $400, let's assume it is picked up at the door in Taiwan and delivered to the depot/warehouse in Denver for pick up. I got a quote along these lines from http://www.nacintgp.com/

$1800 for 3 cbm total cost, with a 75% useful yield, would be the equivalent of 18 large boxes. Weight allowances are very substantial. Let's assume 50 lbs/22kg per box for comparison purposes. $2/lb or 144twd/kg.

For $1800, we could ship (more than) 900 lbs or 18 large boxes.

For $1000, we would not be able to ship by ocean freight.

Request for comments

This research was done around September 17, 2010. Your comments are appreciated.

 

1 comment:

idler said...

thank you for this info. Im sure the prices have gone way up as im doing this in 2014, but your post is still very informative.