What are the 11 Incoterms in 2023?

A simple comparison of cost, speed, and reliability for businesses new to global shipping — by Pivot Freight When you’re new to international shipping, one of the most common questions we hear is: “Should I send my goods by sea or by air?” At Pivot Freight, we’ve worked with a wide range of businesses — from small eCommerce stores to large manufacturers — and we’ve seen that the best choice depends on your goals, timelines, and the nature of your products. Both sea freight and air freight have their advantages, and understanding these can help you make an informed decision that supports your business objectives. 1. Cost Considerations Sea freight and air freight differ in cost structure, and the right choice often depends on the value of your goods, shipment size, and budget priorities. For example, one of our clients in the home décor industry needed to move a large order of bulk furniture. Given the size and weight of the shipment, sea freight proved to be the most practical choice, allowing them to manage expenses while still meeting their delivery commitments. On the other hand, another client in the fashion accessories sector opted for air freight for a smaller but high-value shipment. The cost difference was acceptable for their budget, and it helped them have stock ready for a major retail launch. 2. Speed and Delivery Timelines Air freight is generally faster than sea freight, but speed alone doesn’t always determine the best option. It comes down to how time-sensitive the shipment is. One of our clients in the manufacturing sector had a sudden requirement for replacement machine parts to keep their operations running. They chose air freight so production could resume without significant downtime. In contrast, a wholesale client importing seasonal outdoor products planned their shipments months in advance and used sea freight to align with their sales cycle. Because they had factored in the transit time during ordering, they could ship more economically without impacting availability. 3. Reliability in Transit Both methods are dependable when managed well, but the potential for delays exists with either — whether due to weather, operational schedules, or customs procedures. We worked with a client in the technology industry who needed equipment delivered to multiple countries for an international rollout. They selected air freight for a portion of the order to meet specific launch dates, while the rest was sent by sea to arrive in stages. This split approach balanced reliability with cost efficiency. 4. Matching Freight Type to Product Type Certain goods are better suited to one method over the other. Sea freight often works well for: Larger, heavier shipments Non-perishable goods Orders with flexible delivery dates Air freight is often used for: Smaller, high-value shipments Perishable or time-sensitive goods Urgent restocking needs For instance, one of our clients in the specialty food industry chose air freight to ensure product freshness for a promotional event, while another client moving industrial equipment selected sea freight for its practicality with heavy loads. 5. Environmental Considerations Sustainability is increasingly part of the decision-making process for businesses. While each method has an environmental impact, some clients choose sea freight as part of their broader carbon reduction goals, while others use carbon offset programs when air freight is necessary. We recently supported a client in the organic skincare industry who included sustainability as part of their brand story. For their non-urgent shipments, sea freight aligned with their environmental commitment and marketing values. 6. Customs and Handling Both air and sea freight require proper documentation and customs clearance, but the process can vary in complexity depending on shipment type and destination. A client importing consumer electronics once faced unexpected customs inspections. Because Pivot Freight handled the documentation and coordination, the shipment cleared without unnecessary delays. Having the right paperwork and an experienced freight forwarder is key to avoiding hold-ups, regardless of the method chosen. 7. Insurance and Risk Management Insurance is essential for both sea and air freight. The nature of the cargo and transit route will influence the type of coverage needed. We helped a client in the luxury goods sector secure comprehensive insurance for an air freight shipment to multiple destinations. In another case, an industrial supplier moving machinery overseas via sea freight needed coverage tailored to high-value, heavy equipment. Ensuring appropriate insurance not only protects against loss but also provides peace of mind. 8. Flexibility for Growing Businesses As businesses grow, shipping needs can change. Some of our clients start with air freight for smaller, urgent shipments and later transition to sea freight when order volumes increase. Others use a combination of both — air for new product launches, sea for ongoing stock replenishment.  A client in the homeware sector uses this hybrid approach. They send initial product batches by air to meet launch dates, then follow up with sea freight to maintain stock levels. This strategy gives them flexibility without overextending budgets. 9. Tools to Help with Decision-Making At Pivot Freight, we use industry tools and data to help clients compare options. Platforms that provide route analysis, cost modelling, and estimated transit times are part of our process when advising clients. The goal is always to align the shipping method with business priorities — whether that’s cost, speed, or a balance of both. In our experience, the decision between sea and air freight is rarely a simple one. Many businesses use a mix of both at different times, depending on their needs and market demands. By understanding the advantages of each method and considering your priorities, you can choose a freight strategy that supports both your operational and financial goals. Sometimes, the right solution is not about favouring one over the other, but about knowing when each is the best fit.

Importing goods shouldn’t feel like learning a second language. Whether you’re bringing in containers from China or air freighting samples from Europe, the right freight forwarder can make or break your business. In this blog, we break down what to look for in a forwarder, how to avoid delays and hidden costs, and why thousands of Aussie businesses trust freight experts who get it. What Is a Freight Forwarder and Why You Need One A freight forwarder acts as your logistics partner. They arrange the movement of your goods from overseas suppliers to your doorstep, handling bookings, customs clearance, warehousing, and more. A great one also helps you stay compliant, avoid nasty surprises, and save time and money. 7 Signs You’ve Found the Best Freight Forwarder in Australia They speak your language (not just shipping jargon) They work with businesses your size - not just giant corporations Transparent pricing with no sneaky fees They offer both sea freight (FCL/LCL) and air freight They explain your landed costs clearly upfront They help with customs clearance and compliance You have a dedicated contact who actually answers emails Common Mistakes to Avoid When Choosing a Forwarder Going with the cheapest quote (it often costs more later) Using a supplier’s nominated forwarder without comparison Ignoring communication delays that cost you customers Not understanding Incoterms and shipping terms How Pivot Freight Solutions Is Different At Pivot Freight, we specialise in supporting SMEs, ecommerce brands, and first-time importers. We simplify freight forwarding so you can focus on growing your business, not chasing containers. Whether you’re importing a pallet or a full container, we’ll break it down, give you a real landed cost, and stay by your side every step of the way. Ready to Ship Smarter? Book a free 15-minute discovery call and let’s map out your freight plan, no pressure, just clarity. 📞 Lock it in now 📥 Or grab our free Importer’s Checklist Download Here

Here’s a whisper in the import world and if you’ve heard it, you’ve probably been tempted. A supplier promises door-to-door delivery from China to your Aussie warehouse. “No customs stress, no duties to pay, no paperwork to worry about. All-inclusive. Cheap as chips.” Sounds dreamy, right? Well, here’s the truth: if it sounds too good to be true in freight, it almost always is. Let’s unpack the shady side of DDP (Delivered Duty Paid) shipping and why it could cost your business more than you think. What is DDP Shipping? DDP means the seller, usually your Chinese supplier, handles everything: Freight Customs clearance Import duties Final delivery to your door Sounds great in theory. But in reality? It’s often a murky grey zone designed to hide costs, dodge taxes, and leave you legally exposed in Australia while the supplier pockets a tidy margin. The Shady DDP Playbook – What Really Happens Behind the Scenes Here’s how dodgy DDP services often work: Misdeclared Cargo To lower duties and GST, goods are undervalued or mislabelled on the invoice. That’s a red flag for the ATO and Australian Border Force. And guess who’s liable? It’s not your supplier. Ghost Importers Some suppliers use third-party agents to clear customs under an unrelated ABN. This means the goods technically don’t belong to you. No ownership means no import GST credit. No Tax Invoice, No Claim Want to claim back the 10 percent GST? You’ll need proper import documentation. With shady DDP, you usually get nothing that holds up in an audit. Delays and Disappearances Shipments can sit at port for days or weeks with no updates. If something goes wrong, you’re not even listed as the importer of record, so you can’t chase it up with customs or the freight company. Zero Tracking, Vague Timelines Most DDP quotes won’t include real tracking. You’re left in the dark with no updates on transit or delays. Transit times are often 35 to 60 days or longer, especially if the cargo is consolidated or routed through multiple ports. That’s a long time to sit and wonder where your investment is. Real Talk – What Could Go Wrong? Let’s say your $50K shipment was delivered DDP It gets flagged and held at the port because of a dodgy declaration. You get fined or hit with backdated duties You can’t prove ownership of the goods when it’s time to resell or claim GST The ATO audits your books and wants receipts you don’t have When you try to reach the supplier for answers you get silence Why Aussie SMEs Deserve Better At Pivot Freight Solutions, we know Aussie importers aren’t trying to cut corners. You’re trying to keep things simple, affordable, and compliant. You deserve clarity, not confusion. That’s why we never recommend DDP from China to Australia unless you have an ironclad paper trail, a trusted partner managing the process, and full visibility over who’s lodging what. Better yet, we give you the tools and support to own your supply chain confidently, legally, and with full import rights intact. What to Do Instead – Be the Importer of Record Here’s what a clean and compliant process looks like: Use FOB or EXW terms with your supplier to keep freight separate from the goods Appoint your own freight forwarder (that’s us) to handle customs clearance and delivery in Australia Get proper documentation in your name – commercial invoice, import declaration, tax invoice Stay in control from origin to door Pivot Freight – A Better Way to Freight We’re not here to scare you. We’re here to arm you with the facts. If you’ve used DDP before and it went smoothly, you got lucky. But luck isn’t a strategy. Let’s stop shady shipping in its tracks and build something smarter, safer, and scalable. Not sure if your current supplier is doing things by the book? Send us their quote. We’ll review it for free and tell you what’s really included (or not) Ready to Ditch the DDP Drama? Let Pivot Freight be your freight wingman, reach out today!

Importing goods into Australia for your business? You’ve probably come across something called Import GST and if you’re wondering whether you can claim it back, the answer is a confident yes (if you’re doing it right). Let’s break it down in plain English. What is Import GST? When your goods arrive in Australia, the government applies a 10% tax on the landed value of your shipment. This includes the value of the goods plus international shipping and insurance costs. This tax is called Import GST and it’s collected by Australian Border Force during customs clearance. It’s not the same as the GST on your supplier invoice. One happens overseas; the other happens at the Australian border. Can You Claim It Back? Yes - if you're registered for GST and the goods are for business use , you can claim the full Import GST amount on your next BAS (Business Activity Statement). You can also claim any GST you’ve paid on local services like customs clearance, delivery, and port charges. Let’s look at an example Say you’ve just brought in a shipping container full of outdoor furniture from Vietnam. Commercial invoice value: AUD $35,000 International freight and insurance : AUD $4,500 Landed Value (for GST purposes): $39,500 Customs will charge 10% GST on the landed value , which is: 🧾 Import GST: $3,950.00 🧾 GST on your freight forwarding invoice (local clearance/delivery) : $215.00 Total claimable GST: $4,165.00 That’s a solid chunk of change you can claim back, money that should be back in your business, not stuck at the border. What You Need to Claim GST on Imports Make sure you’ve got the paperwork sorted: A copy of the Import Declaration (N10) – this shows the GST you paid at the border A valid tax invoice from your local freight provider (showing GST) You’re registered for GST You include the amounts correctly in your BAS Still Confused? We’ve Got You. At Pivot Freight, we don’t just move your goods, we help you understand the dollars behind them. If you need help figuring out your Import GST, or you’ve lost your import documents (we’ve all been there), just ask. We’ll resend what you need and walk you through it. Because making freight simple isn’t just our job, it’s our promise. Ship Smarter, not harder. Need help with your next import? Book a call with us and let’s take the freight stress off your plate.

According to the Australian Customs Act 1901 , importers are legally required to retain all relevant records for a minimum of five (5) years from: The date of the entry of goods for home consumption (i.e. when the goods are cleared through customs into Australia). This requirement falls under Section 240 of the Customs Act 1901, which specifies the obligations to keep records relevant to customs transactions. These records must be: Readable and accessible throughout the entire retention period Available to Customs (Australian Border Force) upon request for audit or compliance reviews What counts as “relevant records”? These typically include: Commercial invoices Bills of lading or airway bills Import declarations Packing lists Contracts of sale Certificates of origin Payment records Any other documents used in determining the classification, valuation, or origin of imported goods Risk of Non-Compliance Failure to maintain records for the required period may result in: Administrative penalties Re-assessment of duties and GST Delays in future customs clearances Increased audit scrutiny Best Practice Even though the minimum is five years, many importers opt to retain records for up to 7 years to align with ATO requirements for taxation documentation. We're here to help you freight smarter, not harder.

Step-by-step 2025 guide for importing from China to Australia. Learn freight options, costs, and paperwork. Get a quote today.

I was surprised and excited when American Express invited me to share my story of how Pivot Freight Solutions came into existence. I was merely 25 years old and found myself with an opportunity to make things better, to do things differently, with nurture, care and with the tenacity of a 25 year old. That's exactly what I set out to do. You can read the full interview here Customer spotlight: how Pivot Freight Solutions is demystifying freight forwarding We encourage you to explore our Blogs and Yo utube Channel , Follow us on Instagram , Connect with us on LinkedIn or Like our Facebook Page . You can also talk to a human by booking in a free discovery call HERE

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!