Air Freight vs. Ocean Freight: Which is Right for Your Business?

Thinking about importing from China but feeling overwhelmed? You’re not alone. If you’re a startup, small business or first-time importer, the process can seem complex but it doesn’t have to be. At Pivot Freight Solutions, we specialise in making freight forwarding simple and stress free. We’ll guide you through every step so you can focus on growing your business with confidence. For answers to common questions, visit our FAQ page . Step 1: Choosing the Right Products and Suppliers The first step in importing is deciding what to bring in and who to buy from. Many first-time importers source their products through: • Alibaba • Global Sources • Trade shows (such as the Canton Fair) • Direct factory relationships Finding a reliable supplier is crucial. Make sure they can provide proper certifications, comply with Australian regulations and offer quality control options. Not sure where to start? We can help you vet suppliers to avoid costly mistakes. Step 2: Understanding INCOTERMS (Who Pays for What?) Before you finalise a deal with a supplier, you need to understand Incoterms, international shipping terms that define who is responsible for shipping costs, insurance and risks. The most common and recommended Incoterm is FOB (Free on Board), where the supplier handles costs up to the port in China and you control the freight from there. Avoid CIF (Cost, Insurance and Freight) and CFR (Cost and Freight), as they give the supplier control over shipping, often resulting in higher costs and less transparency. Not sure which term to use? We’ll guide you through the best option for your business. Step 3: Picking the Best Shipping Method Not all shipping options are created equal. Depending on your budget and timeframe, you’ll need to choose the right method: Sea Freight: Best for Large Shipments • The most cost-effective option for bulk goods • Transit time: 12 to 30 days (depending on the port) • Options: Full Container Load (FCL) or Less than Container Load (LCL) Air Freight: Fast and Reliable • Ideal for time-sensitive or high-value shipments • Transit time: 2 to 7 days • Higher cost than sea freight but much quicker Courier Services: Hassle Free but Costly • DHL, FedEx and UPS offer door to door delivery • Fastest option (3 to 5 days) • Ideal for small, urgent shipments Not sure which shipping method is right for your business? We’ll break down the pros and cons for you so you can make the best decision. Step 4: Understanding Import Duties and Taxes One of the biggest surprises for new importers is additional fees. Key costs to factor in: • Goods and Services Tax (GST): 10 percent on most imports * speak with your accountant, as you may be able to claim this back on your BAS • Customs Duties: Typically 5 percent but varies by product with most items being Duty free from China • Import Processing Charges: Applies to shipments over AUD $1,000 • Pivot can provide an estimate of your import taxes to ensure you know the true landed cost of your product Step 5: Working with a Freight Forwarder (That’s Us!) Navigating international shipping can be confusing but that’s where we come in. A freight forwarder manages all the logistics, including: • Booking space on cargo ships or planes • Handling customs paperwork and clearance • Organising local delivery to your warehouse or doorstep We take care of the headaches so you can focus on selling your products. Step 6: Getting the Paperwork Right One small documentation error can delay your shipment or even lead to additional costs. Essential documents include: • Commercial Invoice: Includes product details, value and supplier info • Packing List: Breakdown of quantity, weight and dimensions • Bill of Lading (BOL) or Air Waybill (AWB): Official shipping documents • Customs Import Declaration: Required for clearance Not sure if you have everything in order? We’ll double check it for you. Step 7: Meeting Australian Regulations Australia has strict import regulations, especially for food, plants and consumer goods. Here’s what you need to know: • Biosecurity & Quarantine Rules: The Department of Agriculture inspects certain goods for pests and contaminants. • Product Safety Standards: Electronics, toys and cosmetics must meet Australian safety and labelling requirements. • Restricted & Prohibited Items: Some products require special permits and some are banned altogether. Trying to figure out what’s allowed? We’ll help you check compliance before you order. Step 8: Organising Final Delivery in Australia Once your shipment arrives, it needs to reach you efficiently. We offer options such as: • Warehouse Storage: If you need to store goods before selling • Courier Services: Quick delivery for smaller shipments • Third Party Logistics (3PL): Full service storage and fulfilment No matter your setup, we’ll ensure your products get where they need to go. Why Work with Pivot Freight Solutions? • We make importing easy. No jargon, no stress. We break everything down step by step. • Personalised support. You’re not just a number. We’ll work closely with you to get it right. • Transparent pricing. No surprise fees. We’ll give you clear cost breakdowns upfront. Get Started Today! Ready to start importing from China to Australia? Let’s make it simple. Contact Pivot Freight Solutions today for a quote and let’s get your business moving!

Importing from China to Australia can be a game-changer for businesses looking to source high-quality products at competitive prices. Whether you’re a small business owner or an established importer, understanding the freight forwarding process is crucial to ensuring smooth and cost-effective shipping. This guide will walk you through the key steps, costs, and logistics involved in international freight forwarding from China to Australia. For answers to common questions, visit our FAQ page. Step 1: Identify Your Products and Suppliers Before engaging in freight forwarding, it's essential to identify the products you want to import and find reliable suppliers. Many Australian businesses source goods through: • Alibaba • Global Sources • Trade shows (such as the Canton Fair) • Direct factory visits Ensure that your supplier complies with Australian regulations and can provide necessary certifications, such as product safety compliance and Australian standards approvals. Step 2: Choose the Right Shipping Method Freight forwarding offers multiple shipping options, each with different costs and transit times: Sea Freight from China to Australia • Ideal for bulk shipments and heavy goods • More cost-effective for large volumes • Shipping time: 12-30 days depending on the port • Options: Full Container Load (FCL) and Less than Container Load (LCL) Air Freight from China to Australia • Best for time-sensitive shipments • Higher cost but faster transit (2-7 days) • Suitable for lightweight or high-value items Courier and Express Freight • DHL, FedEx, and UPS provide door-to-door services • Fastest option (3-5 days), but highest cost • Ideal for small, urgent shipments Step 3: Understand Import Duties and Taxes When importing to Australia, businesses must be aware of applicable taxes and duties. Key costs include: • Goods and Services Tax (GST): 10% on most imported goods • Customs Duties: Varies by product category, generally 5% • Import Processing Charges: Required for shipments over AUD $1,000 Use the Australian Border Force’s Tariff Classification tool to determine the duty rates applicable to your products. Step 4: Work with a Freight Forwarder A freight forwarder simplifies the shipping process by managing logistics, documentation, and customs clearance. They coordinate with carriers, handle paperwork, and ensure compliance with Australian import regulations. Freight forwarders can provide: • Freight consolidation (combining multiple shipments for cost savings) • Customs brokerage services • Advice on shipping routes and cost optimisation • Assistance with quarantine and biosecurity requirements Step 5: Prepare Shipping and Customs Documents Proper documentation is crucial for a hassle-free import process. Key documents include: • Commercial Invoice (detailing product description, value, and supplier details) • Packing List (listing quantity, weight, and dimensions of goods) • Bill of Lading (BOL) or Air Waybill (AWB) (shipping contract between exporter and carrier) • Customs Import Declaration (submitted to Australian customs for clearance) Step 6: Ensure Compliance with Australian Regulations Australian import regulations vary based on the product category. Some key considerations: • Biosecurity & Quarantine Rules: The Australian Department of Agriculture inspects certain goods for pests and contaminants. • Product Safety Standards: Items like electronics, toys, and cosmetics must meet Australian safety and labelling requirements. • Restricted & Prohibited Items: Certain goods, such as chemicals and pharmaceuticals, require special permits. Step 7: Manage Last-Mile Delivery in Australia Once your shipment clears customs, you need to arrange local delivery. Options include: • Warehouse Storage: If you need to hold inventory before distribution • Courier Services: For fast delivery of small shipments • Third-Party Logistics (3PL) Providers: For efficient order fulfilment and distribution Your freight forwarder can arrange delivery to your prefered delivery point. Key Takeaways • Choosing the right freight forwarding method is essential to balance cost and speed. • Understanding customs duties and taxes can prevent unexpected costs. • Working with a trusted freight forwarder ensures smooth shipping and customs clearance. • Compliance with Australian regulations is critical to avoiding delays or fines. By following these steps, businesses can efficiently import from China to Australia while minimising risks and optimising logistics. Need expert help? Partner with an experienced freight forwarder to streamline your supply chain and ensure seamless international shipping! Contact Pivot Freight Solutions for a Quote Looking for a reliable freight forwarder to handle your imports from China to Australia? Contact Pivot Freight Solutions today for a quote and let us simplify your shipping process!

Freight forwarding has long been an industry filled with hidden fees, complex regulations, and opaque processes. Leaving many business owners feeling overwhelmed. At Pivot Freight Solutions, we’ve made it our mission to change that. What started as a small, family-run business is now a trusted partner for SMEs across Australia, helping them navigate the logistics landscape with clarity, transparency, and a customer-first approach. We believe that freight forwarding shouldn’t be a mystery, and we work closely with our clients to ensure they understand every step of the process, from costs to customs requirements. Our founder, Christine Kankkunen, built Pivot Freight Solutions on a foundation of trust, personalised service, and adaptability. We’ve never seen being a smaller player in the $11 billion Australian freight forwarding industry as a disadvantage, on the contrary, it allows us to be agile, flexible, and fully focused on our customers’ needs. As we celebrate our 10th anniversary in October 2024, we’re looking ahead to the future, by developing innovative freight software to improve efficiency and working towards sustainability goals that will help our clients reduce their environmental footprint. Read the full article to learn more about our journey, our commitment to transparency, and how we’re helping SMEs take the guesswork out of global logistics: As Featured on AMEX BUSINESS CLASS CUSTOMER SPOTLIGHT

For businesses importing goods into Australia, compliance with biosecurity regulations is a top priority. The BICON (Biosecurity Import Conditions) system, managed by the Department of Agriculture, Fisheries and Forestry (DAFF), is the go-to online database for importers, customs brokers, and freight forwarders to determine import requirements. What is BICON? BICON (Biosecurity Import Conditions System) is the Australian government’s digital platform that outlines import regulations, quarantine requirements, and biosecurity risks for various goods entering Australia. This system ensures that imported products—ranging from food and plant materials to machinery and chemicals—meet strict biosecurity compliance standards to protect Australia’s agriculture and environment. Why is BICON Important for Importers and Freight Forwarders? Determines Import Conditions – Importers and freight forwarding companies can check whether a product is permitted, prohibited, or restricted before shipping. Assists with Import Permits – Some goods require an import permit. BICON provides step-by-step guidance on how to apply. Prevents Costly Delays – Failing to comply with Australian biosecurity regulations can result in quarantine holds, inspections, additional costs, or cargo rejections. Ensures Smooth Customs Clearance – Properly declared and compliant shipments clear Australian Border Force (ABF) inspections faster. How to Use BICON for Your Import Needs Search for Your Product – Visit BICON and enter the product name or category. Check Import Conditions – Review whether special handling, quarantine treatments, or documentation are needed. Determine Import Permit Requirements – If an import permit is required, BICON provides application instructions. Ensure Compliance Before Shipping – Work with an experienced freight forwarder to meet biosecurity requirements and avoid clearance delays. Common Goods That Require BICON Approval Food & Beverages – Dairy, seafood, processed meats, nuts, and honey. Plants & Seeds – Live plants, cut flowers, fresh produce, and herbal medicines. Wood & Timber Products – Pallets, wooden furniture, and construction materials. Machinery & Vehicles – Used machinery, agricultural equipment, and vehicles. Animal Products – Hides, skins, feathers, and wool. Freight Forwarders & Customs Brokers: Your Partners in Compliance Navigating BICON import regulations can be complex, especially for high-risk goods. A reliable freight forwarding partner can: Conduct pre-shipment compliance checks Assist with import permit applications Arrange biosecurity treatments (fumigation, heat treatment, etc.) Handle customs clearance & quarantine inspections At Pivot Freight Solutions, we specialise in ensuring your imports meet BICON compliance requirements while keeping your supply chain running smoothly. Need Help with BICON & Import Permits? If you’re an importer looking for seamless logistics support, contact Pivot Freight Solutions today. Our expert team will ensure your shipments meet Australia’s biosecurity regulations without unnecessary delays. 📩 Get in touch today! #FreightForwarder #ImportExport #Biosecurity #BICON #CustomsClearance #AustralianImports #PivotFreightSolutions

The international freight forwarding industry in 2025 is poised for significant transformation. As global trade recovers from years of disruption and adapts to emerging challenges, businesses must stay ahead of the curve to ensure their supply chains remain resilient and efficient. Below, we explore the key trends shaping the global freight landscape this year and the challenges that come with them. 1. The Rise of AI-Driven Logistics Artificial intelligence (AI) is no longer a buzzword in logistics; it’s a necessity. From predictive analytics to real-time route optimisation, AI is revolutionising the freight forwarding industry. Freight forwarders are leveraging AI tools to: Predict port congestion and avoid delays. Automate customs clearance processes for faster shipment handling. Optimise shipping routes to reduce fuel consumption and costs. Companies investing in AI-powered logistics solutions are gaining a competitive edge by enhancing operational efficiency and customer satisfaction. 2. Sustainability and Decarbonisation Efforts Sustainability continues to dominate the freight forwarding agenda in 2025. With stricter emissions regulations and growing demand for green logistics solutions, companies are prioritising carbon reduction strategies. Key initiatives include: Transitioning to alternative fuels, such as biofuels and LNG (liquefied natural gas). Implementing carbon offset programs for shipments. Adopting electric and hybrid vehicles for last-mile delivery. Businesses that embrace sustainable practices not only comply with environmental regulations but also attract eco-conscious clients. 3. Geopolitical Shifts and Trade Route Adjustments Geopolitical tensions and shifting trade alliances are reshaping global shipping routes. In 2025, freight forwarders must adapt to new dynamics caused by: The ongoing reconfiguration of supply chains to reduce reliance on single markets. Alternative trade routes emerging as geopolitical tensions disrupt traditional pathways. Tariff changes impacting the cost of goods and shipping routes. Freight forwarders play a crucial role in helping businesses navigate these complexities by offering flexible routing solutions and up-to-date regulatory guidance. 4. Port Congestion and Capacity Challenges While global trade volumes are steadily increasing, port infrastructure in many regions struggles to keep pace. Port congestion remains a significant challenge, leading to delays and higher costs. Key factors contributing to congestion include: Limited berth availability at major ports. Labour shortages affecting cargo handling. Increased container volumes driven by e-commerce growth. Freight forwarders must work closely with clients to plan shipments proactively and explore alternative ports or intermodal solutions. 5. Technological Integration and Digitalisation Digital transformation is no longer optional in freight forwarding. In 2025, successful companies are those that adopt comprehensive digital solutions for every stage of the logistics process. Key technologies include: Blockchain for secure and transparent shipment tracking. Cloud-based platforms for real-time freight management. Internet of Things (IoT) devices for monitoring cargo conditions. Digitalisation not only improves operational efficiency but also enhances customer experiences by providing transparency and speed. 6. The Push for Resilient Supply Chains After years of supply chain disruptions, resilience is now a top priority for businesses. Freight forwarders are helping clients build stronger supply chains by: Diversifying sourcing locations to mitigate risks. Offering multimodal transportation options for greater flexibility. Leveraging data analytics to anticipate and address disruptions. As unpredictability persists in global trade, resilience is key to maintaining a competitive edge. Adapting to 2025 Freight Challenges with Pivot Freight Solutions At Pivot Freight Solutions, we understand the evolving complexities of the global freight landscape. From leveraging cutting-edge technology to navigating sustainability regulations, we provide tailored solutions to meet your business needs. Our team of experts is committed to keeping your supply chain moving smoothly in 2025 and beyond. Ready to stay ahead in the freight forwarding game? Contact us today to learn how we can help your business thrive amidst the challenges of 2025.

ArticLes : Shipping Australia Mid-Year 2024 Magazine is out now Governments inch toward global net-zero regulations AFP charges two WA men and seizes meth, cocaine, heroin and cash Gold Coast man jailed for possessing methamphetamine Australian Border Force - Array of updates, notices and statistics from their Goods Compliance Update 2024-1 Rejection of Vague Descriptions in air freight for US - from 12 Nov 2024 Fewer rise notifications as index slides US port strike ends, leaving cargo backlog Webinars : Australasian Promotional Products Association: Webinar: Maximising ESG Return on Investment Based on Customer Buying Trends Podcasts : Business Matters - BBC World Service World Business Report

Are you an importer looking to optimise your business operations and improve your bottom line? Understanding landed cost is essential for making informed decisions and achieving long-term success. What is Landed Cost? Landed cost is the total cost of a product, including the purchase price, transportation fees, customs duties, taxes, handling charges, and insurance premiums. It's crucial to accurately calculate landed cost to determine true product costs, set competitive prices, and manage your inventory effectively. Why is Landed Cost Important? Informed Pricing: Accurately calculating landed cost helps you set competitive prices that reflect the true cost of your products. Profit Margin Optimisation: Understanding landed cost allows you to identify areas where you can reduce costs and improve your profit margins. Risk Management: By anticipating potential costs and challenges, you can better manage risks associated with importing. Inventory Management: Knowing the landed cost of your products helps you make informed decisions about inventory levels and pricing strategies. Key Components of Landed Cost: Purchase Price: The cost of the product from the supplier Transportation Costs: Fees for shipping the product from the supplier to your location. Customs / Government Duties and Taxes: Taxes imposed by the importing country Handling Charges: Fees for handling and storing the product at the port or airport. Insurance Premiums: Costs for insuring the shipment against losses or damages. Tips for Managing Landed Cost: Research Suppliers: Compare prices and shipping options from different suppliers to find the best deals. Negotiate Terms: Discuss terms like payment methods, shipping arrangements, and minimum order quantities with suppliers to get the most favorable conditions. Optimise Shipping: Explore different shipping methods and carriers to find the most cost-effective option for your needs. Monitor Exchange Rates: Keep track of exchange rates to anticipate potential fluctuations that could impact your landed cost. Industry standard applies a 3% CAF - currency adjustment factor. Consider Incoterms: Use Incoterms (International Commercial Terms) to clearly define the responsibilities and costs between you and your supplier. Understanding landed cost is a crucial step in ensuring the success of your import business. By educating yourself and staying informed about the factors that influence landed cost, you can make more informed decisions, optimise your operations, and improve your overall profitability We encourage you to explore our resources and reach out to our team if you have any questions or require further assistance Would you like to learn more about specific strategies for managing landed cost? We can provide you with additional resources or personalised advice based on your unique business needs. Book in a free consultation HERE

Ben, a budding entrepreneur, was excited to launch his new online store selling eco-friendly home decor. He found a promising supplier in China offering competitive prices. However, when he calculated his potential profit margin, he realised something wasn't quite right. Ben had only considered the purchase price of the products. He hadn't factored in the additional costs associated with importing, such as shipping fees, customs duties, taxes, and handling charges. These hidden costs, often referred to as the "landed cost," can significantly impact the profitability of imported goods. Feeling overwhelmed, Ben reached out to Mika at Pivot Freight. Mika explained the various components of the landed cost in detail. Providing a comprehensive breakdown, including: Shipping Costs: The cost of transporting the goods from the supplier's location to the importer's destination (Ben's warehouse). Customs Duties: Taxes levied by the importing country on imported goods. Import Taxes: Additional taxes imposed by the government on imported products. Handling Charges: Fees associated with the handling and storage of goods at the port or airport. Insurance Premiums: Costs for insuring the shipment against losses or damages. Armed with this information, Ben was able to accurately calculate the landed cost of his products. He realised that the initial savings he thought he was getting were offset by the hidden costs. By adjusting his pricing strategy and negotiating with his supplier, Ben was able to ensure a profitable margin. A freight forwarder's expertise was invaluable in helping Ben understand the true cost of importing. Mika's detailed breakdown of the landed cost allowed Ben to make informed decisions and avoid costly mistakes. Ben's Advice for other Importers: "Never underestimate the hidden costs of importing. A freight forwarder can provide the clarity and expertise you need to make informed decisions and ensure a profitable business."

ISPM 15 is a global standard that sets the rules for wood packaging used in international trade. Think of it as a stamp on your passport for your wooden pallets, crates, and other packaging materials. It's designed to prevent pests from hitching a ride on your products and causing problems in other countries. Why is ISPM 15 Important for AustraLian Businesses? Australia has adopted ISPM 15 as part of its biosecurity regulations. This means that all wood packaging materials imported into or exported from Australia must comply with the standard. Australia is committed to protecting our unique flora and fauna. ISPM 15 ensures that wood packaging coming into and out of Australia is treated to prevent the spread of pests. Imagine your shipping container full of goods arrives into port only to find that the wooden pallets are infested with pests. Not only can this delay your shipment, but it can also lead to serious biosecurity risks. ISPM 15 ensures that wood packaging is treated to eliminate these pests, protecting both the environment and your cargo.This process helps us maintain our biosecurity and protects our agricultural industries. How Does ISPM 15 AppLy to Your Business? If you're importing or exporting goods that require wood packaging, it's essential to ensure that it complies with ISPM 15. This can involve working with a certified treatment provider or manufacturer and providing the necessary documentation to customs authorities. To be ISPM 15 compliant, wood packaging must: Meet bark toLerance requirements: The bark must be removed to prevent pests from hiding. Undergo approved treatment: The wood must be treated with a method approved by the International Plant Protection Convention (IPPC). This can include heat treatment, fumigation, or other methods. Be marked appropriateLy: The packaging must bear a specific mark indicating that it has undergone the required treatment. Common Wood Packaging Covered by ISPM 15 Pallets Crates Dunnage (packing materials) Packing blocks Drums Cases Spools/reels Exceptions to ISPM 15 Certain types of wood packaging are exempt from ISPM 15 requirements, including: Thin wood packaging (6 mm or less) Processed wood materials like plywood or particle board Veneer peeler cores Wine and spirit barrels Gift boxes made from processed wood Sawdust, wood shavings, and wood wool Wood components permanently attached to freight vehicles Key Points to Remember: CompLiance is EssentiaL: All wood packaging used in international trade must comply with ISPM 15 unless it's considered low-risk (like thin plywood or sawdust). Treatment is Required: Your wood packaging must be treated by an approved provider to kill any potential pests. Marking is Mandatory: Your packaging should have a clear ISPM 15 mark, which includes a unique certification number and treatment code. Ongoing CompLiance: Even after treatment, your packaging can still be inspected. If it shows signs of pests, it may need further treatment or be destroyed. Stay Safe and CompLiant By understanding and complying with ISPM 15, you can help prevent the spread of wood pests and ensure the smooth movement of your goods across borders. So, next time you're shipping a wooden crate, remember ISPM 15 and keep your cargo safe and compliant. Need More Information? Check out the official ISPM 15 webpage for detailed guidelines and resources. And if you have any questions, don't hesitate to reach out to a trusted freight forwarder or customs broker. They can help you navigate the complexities of ISPM 15 and ensure your shipments comply with all regulations. Book a free consultation call with one of our team members here