Shipping from China to the US: FOB vs CIF vs DDP Explained (2026)

The short answer: For most first-time and small importers, ship FOB (Free on Board) from China to the US. The supplier handles everything up to the port including export clearance — the hardest part for foreigners. You control the ocean freight and US delivery. LCL sea freight costs $100-300/CBM (20-30 days). FCL 20ft container costs $1,500-2,500 (15-20 days). Budget an additional $300-500 for customs broker, duties (7.5-25% under Section 301), port handling, and insurance.

My first import shipment was a mess. I paid $300 for "port handling fees" I'd never heard of, the freight forwarder lost my documents, and customs held the container for 5 days because something was wrong with the packing list. (Speaking of customs — here's the 2026 tariff strategies guide for managing duties and avoiding overpaying.)

That's the norm for new importers — not because shipping is expensive, but because you don't know what you don't know.

Here's the breakdown of how to get your products from a Chinese factory to your US doorstep without the expensive surprises.

The 4 Incoterms You Need to Know

Incoterms define who pays for what and who takes responsibility at each stage of shipping. There are 11 total, but these 4 cover 95% of import situations.

Incoterm	Supplier Pays	You Pay	Risk Transfer
EXW (Ex Works)	Nothing — just makes the product available at their factory	Everything from pickup to delivery	At factory gate — you're responsible from the moment you pick it up
FOB (Free on Board)	Domestic transport + export customs clearance	Ocean freight, import duties, domestic delivery	When goods pass the ship's rail at the departure port
CIF (Cost, Insurance, Freight)	Everything to the destination port	Unloading, import customs, domestic delivery	When goods arrive at destination port
DDP (Delivered Duty Paid)	Everything including delivery to your door	Nothing — it's all baked in	At your door

Which incoterm should you use?

For most importers: FOB

FOB is the standard for first-time and intermediate importers. The supplier handles everything up to the port (including export customs clearance, which is the hardest part for foreigners). You control the international shipping and domestic logistics.

When to use DDP: If this is your first order and you don't want to think about logistics. You'll pay a premium (15-25% more than FOB), but everything is handled.

Avoid EXW unless you have a Chinese agent who can handle factory pickup and export customs clearance. Most suppliers quote EXW, thinking they're being helpful — but it puts the most work on you.

The Step-by-Step Shipping Process (FOB)

Step 1: Factory delivers to the port

The supplier arranges domestic transport from their factory to the departure port (usually Shenzhen, Shanghai, Ningbo, or Guangzhou). They also handle export customs clearance.

Cost: Usually included in the FOB price, or ~$100-300 if charged separately.

Step 2: Goods are loaded onto the vessel

A freight forwarder arranges container space on a vessel. Your goods are loaded at the port and a Bill of Lading (B/L) is issued — this is your ownership document.

Options:

FCL (Full Container Load) — You fill a 20ft or 40ft container. Best for 8+ CBM of goods.
LCL (Less than Container Load) — Your goods share a container with others. Best for smaller shipments.

Step 3: Ocean transit

The vessel sails from China to the US West Coast (typically 12-16 days) or East Coast (20-28 days via Panama Canal).

Step 4: US customs clearance

Your customs broker files the entry documents and pays duties on your behalf. This usually takes 1-3 days if your paperwork is correct.

Step 5: Domestic delivery

After clearance, a trucking company picks up the container from the port and delivers it to your warehouse, Amazon FBA center, or 3PL.

Real Shipping Costs (2026)

Current rates from China to US West Coast (estimates — actual rates depend on volume, season, and your freight forwarder's negotiated rates):

Method	Cost	Transit Time	Best For
Express (FedEx/DHL/UPS)	$6-12/kg	3-7 days	Samples, small orders under 50kg
Air freight	$4-8/kg	7-12 days	50-500kg orders, time-sensitive
LCL sea freight	$100-300/CBM	20-30 days	1-8 CBM, standard orders
FCL 20ft container	$1,500-2,500	15-20 days	8-15 CBM, bulk orders
FCL 40ft container	$2,500-4,000	15-20 days	15+ CBM, large bulk orders

2026 rate note: Ocean freight rates have stabilized after the pandemic-era volatility. Current LCL rates are roughly 2x pre-pandemic levels but down 60% from the 2022 peak.

Additional costs to factor in

Cost	Amount	Notes
Customs broker fee	$100-200	Per shipment
Duty (Section 301)	7.5-25%	Varies by HS code
Harbor Maintenance Fee	0.125% of value	Small but required
Merchandise Processing Fee	0.346% of value	Capped at $538
Port handling/drayage	$150-300	Truck from port to warehouse
Cargo insurance	0.3-0.5% of value	Highly recommended

How to Choose a Freight Forwarder

Your freight forwarder is the single most important logistics partner. A good one saves you money. A bad one costs you time, money, and sanity.

What to look for

Experience with your product category — I've had a freight forwarder reject an electronics shipment mid-transit because they "don't handle battery products." Ask upfront.
Office in both China and the US — Someone who can handle both ends. If they only have a China office, you'll be chasing time zones when something goes wrong at the US port.
Responsive communication — They reply within 4 hours during business hours. Test this before you commit — send a query on a Saturday and see how fast they respond.
Transparent pricing — A good freight forwarder gives you an itemized quote: ocean freight, terminal handling, documentation fees, AMS/ISF filing, and trucking. If they quote a single "all-in" number, you'll be surprised by add-ons later.
US customs broker in-house — When customs flags your shipment, you want one person to call, not two people pointing at each other.

Questions to ask before hiring

"Can you handle LCL shipments from [port] to [my city]?"
"What's your per-CBM rate and what's included?"
"Do you provide cargo insurance? What's the rate?"
"How do you handle customs clearance if there's a problem?"
"Can you do DDP for my first shipment?"

Customs Clearance: What You Actually Need

I've seen importers panic about customs clearance, but it's straightforward if your paperwork is right. The key is knowing what's required before the shipment lands.

Required documents

Commercial invoice — From the supplier, showing product value, HS code, and quantity
Packing list — Weight, dimensions, and packaging details per carton
Bill of Lading — From the shipping line, issued by the freight forwarder
Customs bond — Required for imports over $2,500 (costs $200-500/year)
Power of Attorney — Authorizes your customs broker to act on your behalf

Common customs delays

Issue	Solution
Missing or incorrect HS code	Check with your broker before shipping
Valuation discrepancy	Declared value must match payment records
Missing certifications	FCC/UL/FDA certs must be on file
Intellectual property	No counterfeit or IP-infringing goods

Shipping Strategy by Order Type

Sample orders (1-50 units)

Use express shipping (FedEx/DHL/UPS). Most 1688 suppliers can arrange this. Cost is $20-80 for small samples, delivered in 3-7 days.

Test orders (1-5 CBM)

Use LCL sea freight with FOB pricing. Find a freight forwarder who specializes in LCL and can consolidate your shipment with others for lower rates.

Bulk orders (10+ CBM)

Use FCL containers for the best per-unit cost. A single 20ft container can hold 8-15 CBM (roughly 3,000-8,000 phone cases, depending on packaging).

Time-critical orders

Air freight is the middle ground between express and sea. At $4-8/kg, it's roughly 2-3x the cost of sea freight but 3-5x faster. Use it for restocking bestsellers or launching new products on a deadline.

Go Deeper

Logistics is one of 13 modules in the China Sourcing Suite, which includes shipping cost calculators, customs clearance flowcharts, FCL vs LCL comparison tools, and freight forwarder evaluation checklists across 205 pages.