Import to Poland from China | CIF

The client consistently carried out their shipments with the Chinese manufacturer. Unfortunately, opting for Incoterms CIF allowed the Chinese transport organizer to include hidden ‘local costs’, which the customer discovered upon the goods awaiting pickup at the destination port. These costs had to be settled before the goods could be received.

About the client

  • Type of goods: electronics without batteries, household goods
  • Transportation needs: 3 pallets (4 m3 = 4 cbm) every month
  • Type of transportation: by sea

Before consulting with us

  • Initial Situation: (March 2024)
  • Goods were transported by sea
  • The chosen Incoterms CIF incurred local charges at the destination port, which had to be settled to retrieve the goods.

Main problem

  • Transportation costs exceeded the initial estimates (by as much as 800 EUR!)

Additional obstacles

  • Lack of knowledge and ability to compare transportation offers
  • Lack of control over: cargo, costs, lead time
  • Involvement of multiple intermediaries in the transportation process
  • Time zone differences and language barriers when dealing with intermediaries
  • Inability to choose and verify participating companies in the transport
  • Inability to negotiate payment terms

What the client gain

Reducing transportation costs by:
625 EUR monthly
2500 EUR annually

How did we solve client’s problem?

We changed the Incoterms terms from CIF to EXW, enabling us to have complete control over the cargo and the transportation process (including time and cost):

  • we pick up the goods from the manufacturer in China and deliver them to the port
  • we insure the cargo and supervise its route
  • we negotiate payment terms, handle documentation, and manage customs clearance
CIF EXW peko spedycja

We already achieved the result with the first transport (April 2024)

What else did the client gain?

Stress-free experience

They pay exactly what was quoted for the transport

Knowledge

The client underwent a brief training session with us on Incoterms and bid comparison

Sense of security

With constant contact with a dedicated Freight Forwarder, they are fully informed about the status of their cargo