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How to ship from China to Australia: Guide for online sellers

Last updated: 08.10.2024

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Key takeaways

You can use air freight or ocean freight to ship products from China to Australia
Air freight is faster, but ocean freight is cheaper and has a lower carbon footprint
You can also partner with a freight forwarder who can manage the complete international shipping process on your behalf
Make sure your documentation is in place before your goods reach the port to avoid delays during customs clearance

Introduction

China is Australia’s biggest trade partner. The annual sales of manufactured goods from China to Australia increased by 39% to $106 billion in three years, from 2019-20 to 2022-23.

While importing goods from China has become the preferred solution for many Australian businesses, the process of shipping goods from one continent to another is complex. Add in peak shipping seasons and the Chinese New Year rush and you’re navigating a stormy sea of timelines and additional costs.

Let’s dive in and discuss how you can uncomplicate the process of shipping from China to Australia.

Types of international shipping methods to consider

As an importer or online seller, you’ll be looking at the following shipping methods to get goods from China to Australia.

Air freight

Air freight uses aeroplanes to ship products directly to the destination. These might be specific cargo aircrafts or chartered planes. Though faster and safer than sea freight, it’s the more expensive option.

Air freight is commonly used for shipping time-sensitive goods like perishables and medicines, as well as high-value products. If you have small shipments, shipping by air makes more sense because delivery times are reduced to days instead of weeks.

However, airlines have more stringent regulations when shipping hazardous goods and heavy items are much more expensive by air.

Sea freight/ ocean freight

Sea freight or ocean freight involves shipping goods by sea. It’s more cost-effective than air freight, but delivery times are longer.

When considering sea freight, you can choose between a full container load (FCL) and a less-than-container load (LCL).

Full container load: You get a full container for your shipment. Containers are generally 20 feet or 40 feet long (33 cubic metres or 66 cubic metres respectively). This reduces the risk of damage because the container gets sealed after your goods are loaded and is only reopened on arrival. Delivery times are shorter than LCL, usually by a few days.
Less-than-container load: The shipments from several customers are placed in a single container. LCL is usually the way to go when the volume of goods you’re sending isn’t enough to fill the whole container. DHL recommends using LCL for shipments up to 20 cubic metres; others suggest up to 15 cubic metres. Shipping costs are lower since you’re only paying for the space you use, but shipping times are slightly longer than FCL due to the process of opening containers and separating goods before they can be delivered to you.

Sea freight has a lower carbon footprint than air freight, making it a better option for companies focused on improving their sustainability efforts.

Partnering with freight forwarders

A freight forwarder is an intermediary who specialises in international shipping. They manage the international shipping process for you from start to finish, including document preparation, customs clearance, storage management and cargo insurance. Depending on your budget and delivery timelines, they can also recommend the best international shipping method.

How much time does it take to ship goods from China to Australia?

The exact delivery timelines depend on the mode of shipment and your shipping partner. In most cases, the more you pay, the faster you get your shipment.

Express shipping

Many freight forwarders and shipping companies offer express shipping for delivery in 3–4 business days. It usually comes with a premium price tag.

Air freight

Air freight between China and Australia takes anywhere from five to 10 days. While planes take less than a day to reach their destination, most of the time is spent handling air freight processes, managing custom clearance documents and preparing packaging.

For example, FedEx can deliver packages from Shanghai to Sydney in 3–5 working days.

Sea freight

Sea freight has the longest lead, with a minimum of 30 days for door-to-door shipping from China to Australia. Although it can take 40 days or longer. Packages need additional preparation and ships move a lot slower than planes. Other factors like customs delays, bad weather and port conditions can also affect sea freight timelines.

How much does it cost to ship from China to Australia?

The cost of shipping depends on several factors, including:

Weight of the total package
Size and shape of goods
Air or sea freight
Express or standard shipping
Port-to-port or door-to-door delivery
Insurance
Customs charges

If you’re comparing port-to-port estimates against door-to-door delivery, you should factor in the additional fees to get your goods to the port and for last-mile delivery at the destination.

Most shipping partners only offer quotes on requests. You’ll have to reach out to them with your shipping requirements to get a clear understanding of the shipping cost. Alternatively, you can also use the shipping cost calculators available. For instance, here’s the shipping cost calculator available on Fedex.

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Documents required for exporting products from China to Australia

You’ll need customs clearance documentation when exporting products from China to Australia. The list below is indicative only, as regulations and procedures change over time. Please seek professional advice before proceeding with your imports and exports.

Pre-shipping

This involves preparing your goods for export, getting the required permits and arranging pick up.

Export licence: The Chinese government issues export licences to exporters, allowing them to ship goods out of the country. Smaller companies without an export licence can partner with freight forwarders for international shipping.

Permit: The Australian government requires permits for certain goods. You should review the categories and prepare the permits in advance.

Proforma invoice: After you negotiate the prices, the supplier prepares the proforma invoice for your approval. It isn’t a legally binding document and only includes the estimates for the order.

Export letter of credit: This is a conditional payment guarantee, where wholesale exporters ship goods before payment is made in full.

Australian Business Number (ABN): If you have an ABN, you’ll need to provide it when your goods enter the port. The ABN will also be mentioned on invoices, bills and other documents.

Preparing for the shipment

This involves getting the goods onto the aircraft or vessels and into the arrival port in Australia.

Certificate of inspection: This document proves that your products have been inspected and meet all the required contractual obligations, including the terms mentioned in the export letter of credit. (Note: Only some product categories, such as industrial equipment and perishable goods, require the certificate of inspection.)

Commercial invoice: The commercial invoice is generated after the terms of sale have been finalised and products have been manufactured. You’ll need it to get an export line of credit.

Bill of exchange: This document formally requests payment. Suppliers usually share it at the same time as the commercial invoice.Export packing list: An itemised list of all the goods included in your order. The document is also the main reference for customs agents when they review your order. If there are any extra items found in the shipment that aren’t included in the list, it can lead to delays and complications.

Arrival

It’s not over when your goods reach the destination port. All goods that enter Australia from China are subject to the customs clearance process. Incorrect paperwork can lead to your shipment getting stuck at the port for weeks. Here are some of the main documents you’ll need:

Cargo insurance certificate: While insurance isn’t mandatory, it can help you claim compensation if products get damaged during transit. If your supplier doesn’t provide cargo insurance, you can get it through a third-party firm.

Bill of lading: This is the receipt for the received goods provided by the shipping company. It also provides proof of ownership.

Certificate of origin: It shows where the goods were manufactured or where they were obtained from. It’s issued by the China Council for the Promotion of International Trade.

How do Chinese holidays impact international shipping timelines?

Many factories shut down and logistics hubs and ports operate at reduced capacity during major Chinese holidays, affecting supply chains and causing delays in deliveries.

Here are the top two Chinese holidays to keep in mind if you regularly import products from China:

Chinese New Year

Things come to a virtual standstill during the country’s biggest holiday. Chinese New Year is an annual 15-day festival that begins with the new moon, which usually occurs between 21 January and 20 February on the Gregorian calendar. Celebrations continue until the next full moon. In 2025, the Chinese New Year will start on 29 January.

Golden Week

Golden Week is a 7–8 day national holiday in China that celebrates the establishment of the People’s Republic of China. From 1–7 October, many factories and businesses shut down and there’s a surge in domestic travel.

The good news is that since these festival dates are known in advance, you can plan your shipments around them to avoid delays.

It can be a good idea to at least ship your goods 3–4 weeks ahead of Black Friday in the case of ocean freight. With air freight, use economy airmail until late October, then switch to express airmail from November to January, during the Black Friday, Christmas and Chinese New Year period.

November to January is considered the peak shipping season, which often leads to delivery delays. Even economy airmail can be delayed for a long time, depending on the number of economy parcels received by the delivery service.

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Build trust with suppliers: You can pay suppliers in their preferred currency, whether it’s CNH, USD, or HKD.

Reach a wide range of Chinese suppliers: WorldFirst is also the only payment provider that supports direct and instant payments to suppliers on 1688.com

Get your goods dispatched faster: You can make same-/next-day payments. All you have to do is authorise transfers before the cut-off times and WorldFirst handles the rest

Boost your profit margins: WorldFirst offers competitive exchange rates and lets you lock in exchange rates through forward contracts. So you can budget with more certainty and protect your profit margins against any sudden currency fluctuations.

Disclaimer: The information contained is general only and largely our views. Before acting on the information you should consider whether it is appropriate for you, in light of your objectives, financial situation or needs. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions, estimates, mentioned products/services and referenced material constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. WorldFirst shall not be responsible for any losses or damages arising from your reliance of such information.

Written by Jim Vrondas, Country Manager ANZ at WorldFirst

Based in Sydney, Jim is responsible for the WorldFirst business across Australia and New Zealand. He brings with him over 25 years of experience helping Business Owners, CFO’s and Treasury Managers overcome the challenges with cross border payments and navigating volatile foreign exchange markets.