2. Freight/quantity optimization

Needless to say, the more your order, the lower the prices we offer.  But, you may not realize that the larger saving can be derived from the freight cost.  Please keep in mind that the binoculars are shipped from one continent to another where there are Pacific Ocean or Atlantic Ocean in between, so making good judgment on the transportation means and planning carefully will save you substantial money.

Firstly, you should know that the shipping rate is quoted based on the weight (or volume in the case of ocean freight) and the destination air/sea port to which the binoculars are shipped. 

Take the binoculars 25/40x100, shipped to the destination air/sea port as New York, for example:

The air freight rate from Kunming to New York  

N Grade means for the commodity weighing not more than 45 kgs.

The ocean freight rate from Kunming to New York

Transportation combination: from Kunming to the sea port of  Guangzhou by train, from the sea port of Guangzhou  to New York by ship.

The commodity is charged either as loose bulk or container for ocean freight.

     Ocean freight for break bulk

The higher of the 2 values, weight or volume, is multiplied by the weight rate.  To calculate the Volume/Measure in cubic meter (m³), multiply length by width by height (in meters).

Ocean freight rate to New York is quoted by Weight or Measure, $120.00 W/M. This means the rate is applied per 220 kgs (Weight) or  1 cubic meter (Measure), which ever is greater.  The inland Kunming to sea port of Guangzhou  train transportation cost is already included in the quotation.

      Ocean freight for container

The ocean freight rate for a 20 feet container from sea port of Guangzhou via Hong Kong is USD 1,400-1,600$.  A 20 feet container is 5.9m(length)x2.2m(width)x2.4m(height)=31.15 m³ in dimension.  Actually, it can hold the cargo with the volume of roughly 28 m³. 

A 25/40x100 is packed in two cartons: one for the binoculars body, another for the wood tripod.  9 units of 25/40x100 are bundled together on one pallet of which the total measurement  is 1.30CBM. The average measurement of per unit is 0.15 CBM. A 20 feet container can hold  28/0.15 = 180 units of 25/40x100.

The freight cost for the different order quantity of 25/40x100 from Kunming to New York is:

A 25/40x100 weighs 35 kg (including the tripod and outside packing).  To protect the binoculars, every 4-9 units will be bundled into one pallet of which the weight is 8 kg.  So , the average gross weight (including pallets) for one unit of 25/40x100 is roughly 37 kgs.

A 25/40x100 measures roughly 0.12m³.

The minimum order for 25/40x100 is 4 units.  

Please note:

1)  The above freight rates are subjected to changes.

2)  The above freight rate is a basic guide only and made to give you a rough idea about the freight cost on one binoculars model (25/40x100) for the different order quantity in different transportation means.  In actuality, you¨ll order more than one model each in different quantity.  So, the packages may be irregular and large and odd-shaped packages may be subjected to higher "oversized" rates.

3)  But, you see the BIG difference, right?

Of course, you must have strong sales capability and enough disposable capital to order large quantity like 100 units.  But, as an ＾average￣ or ＾emerging￣ dealer, you can still save substantial freight cost if you plan carefully.  Below are two important tips:

1)       Know the average sales volume per month.  For example, you sell 35 units in six months, then you sell average 6 units per month.  If you order the last 35 units in three shipments, then now you can plan to order 35-40 units for the next six months in one shipment by sea or

2)       By the sea and air shipping combination.  For example, if you need 6-8 units urgently for the next month, then you could have 8 units shipped by air, other 27-32 units shipped by sea for the next five months. 

The point is for the larger quantity order, the price and freight rate is lower; And in one shipment rather than several shipments, you avoid the repeated charges like export customs clearance fee and the pallets fumigation treating cost.

And you may be interested in knowing the transportation time both by air and sea:

By air: 3-5 days from Kunming->Bangkok (or Beijing, Singapore, Hong Kong)->major destination airports in North America and European Community countries;

By sea: 35-40 days from Kunming->Guangzhou (or Hong Kong)->major destination seaports in North America; 45-50 days from Kunming->Guangzhou (or Hong Kong)->major destination seaports in European Community countries.

Some of our customers need the goods ASAP and at the same time they want the goods to be transported by sea, which is a request beyond our capability.  Some of them just order a small quantity of binoculars and then either are scared off by the "too high" air freight cost or want us to transport the shipment by sea.  Take into account the factors like order quantity, price discount, delivery time, air/sea shipping, freight cost, payment terms, your sales strength, money turn-over and the market demands trend (increase/decrease).  These factors are related to each other and you need to consider the different combination plans and find the most optimized one that makes sense  and saves your money.