Shipping costs represent 15-30% of your total landed cost. Choosing the wrong method can destroy your margins or delay your business, while the right choice saves thousands and ensures on-time delivery. This comprehensive guide helps you choose the optimal shipping method and manage the entire process from Korea to your door.
Quick Decision Tree
Start: What's your cargo volume & urgency? Volume < 1 CBM + Need samples → EXPRESS (DHL/FedEx) Volume < 15 CBM + Normal timeline → OCEAN LCL Volume > 15 CBM + Normal timeline → OCEAN FCL High value + Urgent → AIR FREIGHT Documents only → EXPRESS
Shipping Methods Comparison
| Method | Transit Time | Cost | Best For | Min Volume |
|---|---|---|---|---|
| Express | 2-4 days | $$$$ ($8-15/kg) | Samples, urgent, <100 kg | None |
| Air Freight | 3-7 days | $$$ ($4-8/kg) | Urgent, high-value, <1000 kg | 50 kg |
| Ocean LCL | 20-40 days | $$ ($50-150/CBM) | Small-medium orders | 1 CBM |
| Ocean FCL | 14-35 days | $ ($2000-6000/container) | Large orders | 15 CBM |
Express Shipping
Transit: 2-4 days
Cost: $8-15/kg
Best for: Samples, urgent small orders (<100 kg)
Cons: Most expensive, weight/size limits
Air Freight
Transit: 3-7 days
Cost: $4-8/kg
Best for: Urgent orders, high-value products
Cons: Expensive vs ocean, fuel surcharges
Ocean LCL
Transit: 20-40 days
Cost: $50-150/CBM
Best for: Small-medium orders (1-15 CBM)
Cons: Slower, higher damage risk
Ocean FCL
Transit: 14-35 days
Cost: $2,000-6,000/container
Best for: Large orders (>15 CBM)
Cons: High minimum volume required
Express Shipping (DHL, FedEx, UPS)
When to Use
- Samples (5-50 kg)
- Urgent small orders (<100 kg)
- Documents
- High-value, low-weight items
Major Carriers
DHL Express
- Strongest in Asia-Europe
- Door-to-door service
- Online tracking excellent
- Customs clearance included
FedEx
- Best for Asia-USA
- Reliable tracking
- Good for tech products
- Customs clearance included
UPS
- Strong USA network
- Good for B2B shipments
- Customs brokerage available
Pricing
Rate: $8-15 per kg (varies by route, volume)
Chargeable weight = Greater of:
1. Actual weight
2. Volumetric weight = (L × W × H cm) ÷ 5,000
Example:
Box: 50 × 40 × 30 cm, 5 kg actual
Volumetric: 50 × 40 × 30 ÷ 5,000 = 12 kg
Chargeable: 12 kg
Cost: 12 kg × $10 = $120
Process
- Supplier contacts courier
- Pickup at factory/warehouse (same day or next day)
- Export clearance (handled by courier)
- Flight to destination
- Import clearance (handled by courier)
- Delivery to your door (1-2 days after arrival)
Total timeline: 2-4 days door-to-door
Tips
- Get account with courier (better rates than retail)
- Ship multiple samples together (economies of scale)
- Compare all 3 carriers (prices vary by route)
- Use supplier's courier account if they have volume discounts
Air Freight
When to Use
- Urgent orders (can't wait 3-4 weeks for ocean)
- High-value products (electronics, jewelry)
- Seasonal products (need fast replenishment)
- Weight: 50-1,000 kg typically
Major Routes from Korea
| Route | Transit Time | Approx Rate |
|---|---|---|
| ICN → LAX (USA) | 12-14 hours flight | $5-7/kg |
| ICN → JFK (USA) | 14-16 hours flight | $6-8/kg |
| ICN → Frankfurt (EU) | 11-12 hours flight | $5-7/kg |
| ICN → Sydney (AU) | 10-11 hours flight | $4-6/kg |
Additional Costs
- Export clearance: $50-$150
- Import customs broker: $150-$300
- Fuel surcharge: 10-30% of base rate (varies monthly)
- Security surcharge: $0.20-$0.50 per kg
- Terminal handling: $50-$150
- Delivery from airport: $100-$500
Ocean Freight - LCL (Less than Container Load)
When to Use
- Small to medium orders
- Volume: 1-15 CBM
- Not urgent (can wait 3-5 weeks)
- Budget-conscious
Pricing
Rate: $50-$150 per CBM
Cargo: 8 CBM
Rate: $100/CBM
Base cost: 8 × $100 = $800
Additional LCL fees:
- Origin handling: $50-$100
- Destination handling: $100-$200
- Documentation: $50-$100
- Customs clearance: $150-$300
Total typical cost for 8 CBM: $1,300
CBM Calculation
CBM = (Length × Width × Height in meters) Or: CBM = (L × W × H in cm) ÷ 1,000,000 Example: 10 cartons, each 60 × 50 × 40 cm Per carton: 60 × 50 × 40 ÷ 1,000,000 = 0.12 CBM Total: 10 × 0.12 = 1.2 CBM
Major Routes from Korea
| Route | Transit Time | Frequency | Approx Rate/CBM |
|---|---|---|---|
| Busan → LA/Long Beach | 14-18 days | Daily | $80-120 |
| Busan → NY/NJ | 21-28 days | Weekly | $120-180 |
| Busan → Rotterdam | 25-30 days | Weekly | $100-150 |
| Busan → Sydney | 18-22 days | Weekly | $90-130 |
Tips
- Compare LCL vs FCL cost at 12-15 CBM (often FCL is better)
- Package goods very well (more handling = more risk)
- Consider LCL for first 2-3 orders, then switch to FCL
- Book 2-3 weeks in advance
- Avoid peak season if possible (rates +30-50%)
Ocean Freight - FCL (Full Container Load)
Container Types
20ft Standard (TEU)
- Capacity: 33 CBM
- Max weight: 20-22 tons
- Internal: 5.9m × 2.35m × 2.39m
- Cost: $2,000-$4,000
40ft Standard
- Capacity: 67 CBM
- Max weight: 26-28 tons
- Internal: 12.03m × 2.35m × 2.39m
- Cost: $3,500-$6,000
40ft High Cube (HC)
- Capacity: 76 CBM
- Max weight: 26-28 tons
- Internal: 12.03m × 2.35m × 2.69m
- Cost: $3,800-$6,500
Pricing (Busan Port)
| Route | 20ft | 40ft | 40ft HC | Transit |
|---|---|---|---|---|
| Busan → LA/Long Beach | $2,200 | $3,800 | $4,000 | 14-18 days |
| Busan → NY/NJ | $3,200 | $5,500 | $5,800 | 21-28 days |
| Busan → Rotterdam | $3,000 | $5,200 | $5,500 | 25-30 days |
| Busan → Sydney | $2,500 | $4,300 | $4,500 | 18-22 days |
- Origin handling (THC): $150-$300
- Documentation fee: $50-$100
- Seal fee: $20-$50
- VGM (weight verification): $30-$50
- Destination handling: $300-$600
- Customs clearance: $200-$400
- Delivery/drayage: $200-$800
Total typical cost (40ft to LA): $5,300
Free Time & Demurrage
Free time: Days you can hold container without charges
- Typical: 3-7 days at port
- 5-7 days at destination (varies by port/contract)
Demurrage: Penalty for exceeding free time
- Port storage: $100-$200 per day
- Container detention: $50-$150 per day
- Have customs documents ready in advance
- Arrange customs broker before arrival
- Plan pickup immediately after clearance
- Use CFS (Container Freight Station) if you need more time to unload
Major Korean Ports
Busan Port (부산항)
Overview: #1 port in Korea (7th globally by volume). Handles 60% of Korea's exports.
Advantages:
- Most shipping lines call here
- Daily departures to major global ports
- Best rates (highest volume = competition)
- Excellent infrastructure
Contact: busanpa.com/eng | Port code: KRPUS
Incheon Port (인천항)
Overview: #2 port in Korea. Location: 30 min from Seoul/Incheon Airport.
Advantages:
- Closest to Seoul (capital region)
- Good for air+sea multimodal
- Growing container volume
- Less congested than Busan
Contact: icpa.or.kr/eng | Port code: KRINC
Shipping Process Step-by-Step
Step 1: Get Freight Quote (2-3 weeks before ready date)
- Cargo ready date
- Product description & HS code
- Total weight (kg) & volume (CBM)
- Packaging (cartons, pallets)
- Pick-up location & destination
- Incoterm (FOB/CIF/EXW)
Step 2: Book Shipment (1-2 weeks before ready)
Provide to forwarder:
- Final cargo details
- Commercial invoice
- Packing list
- Supplier contact information
Step 3: Export Customs Clearance (Korea)
Documents required:
- Commercial invoice
- Packing list
- Export declaration (through UNI-PASS system)
- Certificate of Origin (if FTA)
Step 4: Import Customs Clearance (Your Country)
EU: EORI number required, customs declaration + VAT payment
Costs: Customs duty (or $0 if FTA), VAT/GST, broker fee, port fees
Import Documents Explained
Bill of Lading (B/L)
What: Proof of shipment, title document, contract of carriage
Types:
- Original B/L: Paper document (sent by courier), required to claim goods
- Telex Release: Electronic release, faster/cheaper, no original needed
- Sea Waybill: Non-negotiable, no original needed
For importers: Telex release preferred (faster, cheaper, less hassle)
Commercial Invoice
Must include: Seller/buyer names & addresses, invoice date & number, product description, HS code, quantity, unit price, total value, Incoterm, payment terms
Why important: Customs uses this to calculate duties
Certificate of Origin (CO)
Types:
- Regular CO: For non-FTA
- FTA CO: For claiming FTA benefits (duty-free/reduced)
- Form A (KORUS - USA)
- EUR.1 (Korea-EU)
- Others (RCEP, etc.)
How to get: Supplier applies online at FTA Portal
Shipping Cost Optimization Tips
1. Choose Right Container Size
LCL: 15 CBM × $100 = $1,500
FCL 20ft: Flat $2,200
If your volume is 12-15 CBM → Consider ordering more to reach 20-25 CBM
FCL becomes cheaper per CBM
2. Consolidate Shipments
Instead of shipping Product A (8 CBM) and Product B (7 CBM) separately, consolidate to 15 CBM total for better rates.
3. Negotiate Annual Contracts
If shipping regularly (10-20 containers/year), commit to annual contracts for 15-25% discount and locked-in rates.
4. Avoid Peak Season
Strategy: Order in Aug-Sep (arrive before peak) or Jan-Mar (off-season)
5. Compare Forwarders Aggressively
Get quotes from 5+ forwarders. Same route can vary by $700+ per shipment. Annual savings on 10 shipments: $7,000
Common Shipping Mistakes
Mistake 1: Choosing by Price Alone
Wrong: "LCL is $1,500, Air is $2,500. Let's save $1,000."
Right: Consider total cost of delay. LCL 35 days → out of stock → lost sales $5,000. Air 5 days → restock fast → lost sales $0. Net: Air saves $4,000.
Mistake 2: Underdeclaring Value
Temptation: Declare $5,000 instead of $10,000 to save duties
Risks: Fines $1,000-$10,000+, shipment held, criminal charges, insurance denied. Always declare accurate value.
Mistake 3: Missing Free Time
Scenario: Container arrives Monday, free time until Friday, you schedule pickup next Monday
Result: Demurrage $150/day × 3 days = $450 penalty. Track closely and pick up within free time.
Mistake 4: No Insurance
Scenario: Container value $50,000, skip $500 insurance to save money
Result: Container damaged at sea, loss $50,000. Always get cargo insurance (1% of value).
Seasonal Considerations
Peak Season (Oct-Dec)
- Pre-holiday rush (Christmas, New Year inventory)
- Rate increases: +30-50%
- Space shortage, port congestion
- Strategy: Order 2 months earlier (Aug-Sep), book 4-6 weeks in advance
Low Season (Feb-Apr)
- Post-Lunar New Year
- Lowest rates of year
- Ample space availability
- Strategy: Best time to order, negotiate lower rates, build inventory
Korean Holidays Impact
- Lunar New Year (late Jan/early Feb): Factories closed 1 week, book 6-8 weeks before
- Chuseok (mid-Sep/early Oct): Factories closed 1 week, right before peak season
Essential Tools & Resources
Freight Rate Comparison
- Freightos - Instant quotes, 50+ forwarders
- Flexport - Digital forwarder
- iContainers - Compare ocean freight
Shipment Tracking
- Searates.com - Track any shipping line
- Shipping line websites (Maersk, MSC, CMA CGM, etc.)
Key Takeaways
- Match shipping method to your needs - Not always cheapest = best
- FCL cheaper per CBM if >15 CBM - Consider ordering more
- Get 3-5 quotes - Rates vary 20-30% for same service
- Use FTA - Certificate of Origin saves 5-30% on duties
- Book early in peak season - 4-6 weeks ahead
- Always get insurance - 1% cost protects 100% value
- Track free time - Avoid demurrage ($100-200/day)
- Understand Incoterms - FOB is safest for beginners
Smart shipping strategy can save 20-30% on logistics costs. Plan ahead. Choose wisely. Ship efficiently.
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