China Logistics Dos and Don’ts

In China, the Year of the Tiger is traditionally associated with unpredictability and change. But unpredictability is prevalent in China regardless of the year and the stakes can be even higher when handling out-of-gauge project cargo in the country.

Companies doing business in China often face numerous hurdles, including late delivery of plant materials and equipment, substandard packaging and handling, inaccurate or incomplete shipping documents and cargo damage.

That’s why it’s important for anyone with a stake in the logistics to be prepared and involved from day one.

You can take specific steps to reduce or eliminate potential problems by planning, taking a proactive approach to events, effectively communicating across the supply chain and most important of all, ensuring you have a reliable logistics resource that can help you navigate throughout the process.

Companies based outside China should look for a logistics provider/freight forwarder with both a global presence and local expertise. Such a company has deep domain knowledge in the local processes, government regulations and Chinese Customs.

Comprehensive logistics controls should be implemented and monitored from the start. Budgets should include independent surveyors, repackaging where necessary, temporary storage facilities prior to shipment and other precautionary measures that normally would not have to be considered if similar plant and equipment were being sourced from other countries. For buyers, this should not be a major hardship since China-made products often provide significant savings in the first place.

Failure to properly control the logistics process can have dire consequences, such as project delays and massive losses from damage.

An experienced logistics provider knows what can go wrong, especially with shipping documentation. Some Chinese suppliers reduce costs by skimping in areas they believe are less important, such as documentation and packaging. Language variances, cultural differences and Chinese engineering specifications often contribute to inaccurate and incomprehensible documentation that can prove disastrous with Customs at the final destination. In many destination countries, such inconsistencies cause delays, extra costs and even affect the tax or duty holidays that should apply to such cargoes.