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How to Ship from India to USA

How to Ship from India to USA

Expanding your Amazon business by sourcing products from India offers a unique opportunity to access high-quality goods at competitive prices. However, the logistics of shipping from India to the USA can feel overwhelming without the right information. Understanding the shipping process, available freight options, and key shipping terms is critical to ship cost-effectively. In this guide, we’ll break down the fundamentals of international shipping, explain the process step-by-step, and provide insights on how to choose the most cost-effective shipping method while minimizing costs.

Key International Commercial Terms You Need to Know

Delivery terms, or Incoterms, are internationally recognized rules that define the responsibilities, costs, and risks between buyers and sellers during the shipping process. These terms are vital when shipping from India to the USA, as they clarify which party is responsible for transportation, insurance, and customs duties at various stages of the journey. Selecting the appropriate Incoterm ensures both parties understand who covers the costs and bears the risks, from the point of origin to the final destination.

Table of Contents

Shipping from India to USA

There are several International commercial terms but most commonly used  terms include:

EXW (Ex-Works): Ex Works (EXW) means that the seller’s responsibility for the goods ends when they make the goods available at their premises or another named place (factory, warehouse, etc.). The buyer assumes all risks and costs associated with transportation from the seller’s location to the final destination. The seller is not responsible for loading the goods onto the transport vehicle or handling customs; the buyer takes full responsibility for those processes from the point of pickup.

FOB (Free on Board):FOB means that the ownership, risk, responsibility and cost of goods being exported lies with the exporter only until the goods are custom cleared and loaded on the ship for shipment and transfers to buyer after this point. FOB is typically the best term to use when working with Indian suppliers.

DDP (Delivered Duty Paid): DDP means that the ownership, risk, responsibility and cost of goods being exported lies with the exporter until the goods are delivered to the required final location in the country of import. Costs include all freight/shipping charges, duties, tariffs, insurance, and all other charges involved in clearance of goods in country of export and import country and delivery to the final location. Buyer is only responsible for unloading of goods at warehouse.

CIF (Cost Insurance Freight): CIF means that the ownership, risk, responsibility and cost of goods being exported lies with the exporter until the goods reach the port of final destination with all transport, freight, insurance and all associated costs paid off and transfers to buyer at this point who will only bear the custom clearance, duties and local import costs.While CIF (Cost, Insurance, and Freight) may seem like a cost-effective option at first glance, it’s important to remember that it doesn’t cover several key destination charges. Therefore, careful evaluation of associated fees is essential to avoid unexpected expenses and ensure the best deal for your shipment.

Stakeholders Involved in Shipping

Shipping goods internationally involves coordination between several key players. Understanding their roles helps ensure smooth operations:

Exporter:
The manufacturer or seller of the goods.

Importer:
The buyer, typically the Amazon seller, who is responsible for receiving the goods.

Banks:
Banks from both sides facilitate payments and manage shipping documents, such as Letters of Credit.

Insurance Company:
Provides coverage against risks like theft, damage, or loss during transit.

Freight Forwarder:
A third-party logistics expert who manages the entire shipping process, negotiates rates, handles documentation, and coordinates between all stakeholders.

Shipping Company:
Owns the carriers (aircraft, ships) that transport goods across international borders.

Customs House Agent (CHA):
Assists with customs clearance and ensures goods comply with local laws and regulations at the export and import ports.

Customs Authorities:
Inspect and clear goods at both export and import ports.

Port Authorities:
Manage the loading and unloading of goods at the ports and oversee their storage and transfer.

Transport Providers:
Handle the inland movement of goods from the factory to the port, and from the destination port to the warehouse or fulfillment center.

Major Shipping Ports in India

When shipping from India to the USA, understanding the location of shipping ports is crucial for smooth logistics. Ports are vital for international trade, and proximity to your suppliers impacts both cost and efficiency in your supply chain. Knowing how far your supplier is from the port allows you to estimate transit times and transportation costs, especially if they’re located in Northern India, where transit can take longer. This foresight helps in better shipment planning, preventing unexpected delays or expenses. Moreover, you can consolidate shipments from suppliers in the same region, optimizing your container space and reducing shipping costs.

Shipping from India to USA

Jawaharlal Nehru Port Trust (JNPT) in Navi Mumbai is India’s largest container port, handling over half of the country’s container volume. Its strategic location on the west coast, with strong highway and rail links, makes it ideal for orders produced in northern, central, and western India. 

Mundra Port in Gujarat is the largest private port, serving as a key hub for containers and bulk cargo, with access to major global trade routes. 

On the east coast, Haldia Port in West Bengal supports shipments from the eastern region, particularly Kolkata. 

For orders manufactured in South India, shipments are usually sent through Chennai, Tuticorin or Kochi ports. These ports are most commonly used for clothing and homeware exports from India.

Modes of International Transport

There are primarily two modes of International Transport- Air and Sea, that have further options within these modes. The objective is to identify the most efficient and economical method that meets your needs, and help you minimize shipping costs from India to USA.

Shipping from India to USA

Types of Sea Transport

LCL(Less Than Container Load):

LCL (Less than Container Load) is ideal for small shipments that do not fill an entire container. In LCL shipping, your goods are consolidated with other shipments, which are then transported together. Delivery time can range from 40 to 50 days, depending on the import country and whether the ship is direct or involves transshipment. 

LCL allows businesses to ship smaller orders without waiting for a full container and provides a cost-effective alternative to air freight for smaller volumes. But, It generally costs more than Full Container Load (FCL) shipping. Additionally, it may take longer due to the handling of multiple shipments. There’s also a higher risk of damage, as goods might be unloaded and sorted at ports along the way.

FCL (Full Container Load):

FCL (Full Container Load) shipping refers to a shipment where the entire container is filled by goods owned by a single party. FCL is available in three standard container sizes: 20 feet with a capacity of 28 CBM, 40 feet with 58 CBM, and 40 feet high-cube (HC) with 65 CBM. Delivery times can range between 30 and 45 days depending on the import country and whether the ship is direct or involves transshipment. Sea shipping from JNPT to the US can take anywhere between 22-30 days depending on the port location.

FCL shipping generally costs less than LCL, as you are paying for the entire container. It is also usually faster since the container belongs to one party, meaning it is not opened or sorted at various ports. Additionally, the entire container can be transported directly to your warehouse, minimizing handling.

Container Sizes and Their Capacity

Selecting the appropriate container size is essential for efficient shipping. Here are the commonly used container sizes for homeware shipping:

  • 20ft Container:
    • Capacity: 28 CBM (Cubic Meters) maximum.
  • 40ft GP (General Purpose) Container:
    • Capacity: 58 CBM maximum.
  • 40ft HC (High Cube) Container:
    • Capacity: 65 CBM maximum.

To determine which container size is suitable for your shipment, calculate the total cubic meter (CBM) of your goods.

How to Calculate CBM:
The cubic meter of one box can be calculated using the formula:

CBM=Height (m)×Width (m)×Length (m)

If your box size is in centimeters or inches, convert these measurements to meters before calculating. Once you know the total CBM, you can select the appropriate container size needed for your shipment.

Types of Air Transport

When deciding to ship goods by air, you have two primary options: Air Express/Air Courier and Air Freight.

Air Express / Air Courier services are designed for urgent shipments that require quick delivery. These services offer door-to-door delivery, encompassing all associated costs, which simplifies the process for the sender. Providers such as DHL, FedEx, and UPS are well-known for offering these services, with delivery times typically ranging from 3 to 7 days. This option is best suited for lightweight, small-volume items, especially those of high value that need to reach their destination quickly.

On the other hand, Air Freight offers a different approach, operating on an airport-to-airport basis. This method usually requires the engagement of a freight forwarder to manage the logistics and ensure door-to-door delivery. While the delivery time for air freight is longer, ranging from 7 to 15 days, it remains faster than sea freight. Air freight is ideal for larger shipments that are non-urgent but still require quicker transit compared to ocean shipping.

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Shipping Costs from India to USA

Several factors affect the shipping cost from India to the USA, including the mode of transportation, shipment size, weight, distance to the destination, and required delivery speed. The shipping cost per kilogram varies significantly based on whether you choose air or sea freight, with air transport being faster but generally more expensive than sea. Air Shipments from North India are sent from Delhi Airport.

The size of the shipment also plays a role; for example, while a 20-foot container may have a lower overall price compared to a 40-foot container, the cost per kilogram often decreases with larger containers, making a 40-foot container more cost-effective for bulk shipments.

 Additionally, shipping to destinations closer to major ports may reduce costs, while inland deliveries can increase expenses. Delivery speed is another consideration, with express shipping costing more than slower, economy options.

Choosing the right mode of Transport

Selecting the right mode of transport for your goods depends on several factors:

  • Type of Product:
    Fragile or high-value products often require faster and more secure shipping options.

  • Order Quantity and Volume of Shipment:
    Large shipments benefit from sea freight, while smaller, urgent orders may be more suitable for air freight.

  • Urgency of Delivery:
    The more urgent the delivery, the more you may want to lean toward air express or air freight options. Sea freight is better for less urgent bulk shipments.

Here’s a breakdown of options based on shipment size and urgency:

Air Express:

Best for: Small-volume, lightweight, and expensive products.

Volume: Up to 60 kg.

Tip: Urgent delivery within 3-7 days.

Air Freight:

Best for: Lightweight, small-volume products.

Volume: 60-150 kg.

Need: Urgent but not immediate delivery (7-15 days).

Tip: For shipments above 150 kg, compare the costs with LCL shipping.

LCL (Less Than Container Load):

Best for: Bulky products that aren’t urgently needed.

Volume: Up to 12 cubic meters (CBM).

Tip: For shipments between 12-14 CBM, compare the cost of LCL and FCL shipping.

FCL (Full Container Load):

Best for: Large, bulky shipments where timing is less critical.

Volume: Above 14-15 CBM.

Tip: More cost-effective for larger shipments that don’t require quick delivery.

Best Practices for Cost-Effective Shipping

To minimize shipping charges from India to USA and ensure efficient delivery, consider the following strategies:

  • Consolidate Shipments:
    Combining smaller shipments into a larger one can reduce repetitive fees like customs charges and port fees. When you’re shipping products from India to the USA and have the choice between sending multiple smaller shipments or one larger shipment. Each time you send a shipment, there are fixed costs associated with documentation, handling, and port fees. If you opt for several smaller shipments, these fixed costs will apply to each one, resulting in higher overall shipping expenses. In contrast, consolidating everything into one larger shipment allows you to incur those fixed costs only once. This strategy not only reduces your overall expenses but also simplifies the logistics of the shipping process

  • Use Air Freight for Small, Light Items:
    Air freight is best for lightweight goods that require urgent delivery. It may avoid extra charges like port fees, making it more cost-effective for small volumes.

  • Compare LCL and FCL Costs:
    For shipments above 12 CBM, weigh the costs of LCL and FCL. LCL may seem cheaper, but FCL could offer better value per unit at higher volumes.

  • FOB Shipping Terms:
    FOB (Free on Board) is typically the best term to use when working with Indian suppliers. It ensures that the seller is responsible for goods until they are loaded onto the vessel, providing clarity on costs and responsibilities. 

Related: How to choose between Air Express and Air freight.

Watch the video to Learn How to Cut Down shipping Cost

Hiring a Freight Forwarder

Hiring a freight forwarder is essential for smooth international shipping, and choosing the right one depends on factors like cost, communication, a strong network of global shipping agents, and their ability to provide additional services if needed. 

When requesting a quote from a freight forwarder via email, it’s important to include specific details to get an accurate estimate. Provide the origin and destination countries, city, shipping point, and delivery address, along with the incoterms of your shipment (FOB, CIF, etc.) and preferred currency. Specify the mode of transport (air or sea), the shipping timeline (fast or slow), and details about your products, including whether they are hazardous or subject to regulations, along with the dimensions, weight, and whether the cargo is palletized. Also, mention the cargo-ready date and if you require any extra services such as customs brokerage or insurance.

Customs and Documentation

Documentation:
Importers should ensure all necessary documentation, including invoices, bills of lading, and certificates of origin, are complete and accurate. Any discrepancies can lead to delays in customs clearance and additional charges.

For a standard shipment, ocean freight documents that an exporter will typically need to provide are-

  • Commercial Invoice
  • Packing List
  • Bill of Lading
  • Certificate of Origin
  • Manufacturer’s declaration

There could be some additional requirements like (they vary country to country)-

  • Packing Declaration that is a requirement in Australia
  • Fumigation certificate for clearance when importing wooden products.

For clearance purpose as an importer you will also need to provide-

  • Copy of Purchase order- Copy of official order that you sent to the exporter/manufacturer
  • Shipping bill or bill of entry- this is filed by the CHA or the importer undergoes necessary customs formalities to get clearance.
  • Insurance certificate- received from the insurance agency.

To prevent shipping delays and disruptions, it’s important to provide all the required documentation in accordance with the regulations of the importing country. Failure to submit a complete and accurate set of documents can result in delays and the goods being detained until the correct paperwork is provided.

Import Duties

Import duties are an important part of the shipping process. When importing goods to the U.S., duties are calculated based on the HS Code of the product and generally range from 0% to 12%.

To obtain the HS Code for your product-

  • You can ask the supplier to include it in the quotation. 
  • Customs brokers can offer valuable assistance in determining the correct product classification, tariff obligations, and government compliance requirements for your import.
  • Using the search tool-  https://hts.usitc.gov/

After the goods clear customs, any duties applicable need to be paid before delivery to the final destination, such as an Amazon warehouse or third-party logistics (3PL) center.

For Amazon sellers intending to import products from India to US, it is essential to have a good grasp of international shipping logistics. Familiarizing themselves with key shipping terminology, evaluating various shipping methods, and choosing a reliable freight forwarder will enable sellers to streamline their supply chain effectively.

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Kirti Sehrawat

I help E-commerce Entrepreneurs Source Products from India effectively and efficiently, so they can bring their brilliant Product ideas to life and Build an Online Business of their dreams.

hi! I'm Kirti!

I help E-commerce Entrepreneurs Source Products from India effectively and efficiently, so they can bring their brilliant Product ideas to life and Build an Online Business of their dreams.

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