Industry Insight
7 Things to Consider When Shipping Auto Parts from China to the U.S.
The COVID-19 pandemic has accelerated technological advancement in the automotive industry due to adapting to the changing environment. New methods of auto-mobility are being explored to include smaller vehicles with reduced CO2 emissions.
- Newsroom
- Article
- Sep 23, 2020
- By Crane Worldwide Logistics
The COVID-19 pandemic has accelerated technological advancement in the automotive industry due to adapting to the changing environment. New methods of auto-mobility are being explored to include smaller vehicles with reduced CO2 emissions.
Electric vehicles (EVs) manufacturing is expected to increase exponentially due to sustainability awareness and increased focus by automakers on diverse mobility solutions. Autonomous driving, connectivity, electrification, and shared mobility are all on the automotive industry's agenda.
The political environment has resulted ininternational tradebarriers between China and the U.S. and elsewhere in the global marketplace. The future ofBrexitnegotiations and relations with the United Kingdom are undecided, and the increase in protection of national borders is evident; however, globalization is still unfolding. The supply eco-system in the automotive industry is still interdependent on global trade.
China remains a crucial source of supply for auto-parts into the United States for the automotive aftermarket as well as for original equipment manufacturers (OEM) and let's not forget, the USA is also considered the world's largest finished vehicle market. There is an abundance of auto parts stores and manufacturers in China supplying the U.S. market with critical components and parts.
If your organization is shipping auto-parts from China to the U.S. and are part of the automotive market evolution, you may wish to consider the following checklist to consider when sending your auto parts from China to the U.S.
What is the most cost-efficient mode of transportation for auto parts from China?
Multiple transportation modes are available to ship auto parts from China to the United States, includingOcean Freight,Air Freight, or even a combination ofRail Freight/Road Freightinto Europe and then onward freight forwarding from a key distribution hub in Europe such as Amsterdam or Frankfurt. Your auto parts' transportation method depends on multiple factors, mainly if you are shipping to the East Coast or West Coast of the United States.
How long does shipping auto parts from China to the U.S. take?
With so many options for your freight transportation requirements, another critical factor to consider is transit times. Dependent on your auto parts shipments' urgency, there are multiple options to ensure your cargo arrives when you need it. The balance between cost and transit time from China to the U.S. would be a key consideration when deciding upon your shipping service. Freight rates can range from premium to deferred and transit times from 5 days to 42 days. Also, to be considered is the currentCOVID-19environment that has placed pressure on international transportation.
Is Cargo Insurance required for auto parts from China to the U.S.?
It is a legal requirement for all carriers to supply cargo insurance. However, carrier liability provides limitedcargo insurancecoverage. Therefore, should there be an unforeseen event, for example, a natural disaster or even an in-transit accident, this level of insurance may not cover the full value of your auto parts. You may wish to consider full cargo insurance for increased protection against loss, shipment damage, or theft of goods.
What paperwork is needed for auto parts shipments from China to the U.S.?
The typical export exchange requires documentation when shipping internationally. Items to consider are the following: commercial invoice (that would include your Incoterms® – see below) as well as cargo insurance information, a packing list which would enable US customs to locate any item of the cargo for inspection, certificate of origin as well as your shipping letter of instruction, often referred to as an SLI, that gives guidance to your freight forwarder with full details of your shipment needs.
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