Why China Suppliers Ask: Do you have shipping agent in China?
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Why Chinese Suppliers Ask: “Do you have a shipping agent in China?”
Chinese suppliers often ask “Do you have a shipping agent in China?” (or freight forwarder) during negotiations for a few key practical and business reasons, especially when discussing Incoterms like FOB (Free on Board) or EXW (Ex Works).
1. To Determine Shipping Responsibilities (Incoterms Preference)
Suppliers prefer selling on FOB terms, where their responsibility ends once goods are loaded onto the ship at the Chinese port (e.g., Shanghai or Shenzhen). Buyers then handle international freight, insurance, and import customs.
- If you have your own shipping agent (freight forwarder), the supplier delivers goods to your agent’s warehouse or arranges export clearance easily → They can provide a competitive product price without bundling (often inflated) shipping costs.
- If you don’t have one, suppliers may push for CIF (Cost, Insurance, and Freight), where they arrange shipping to your destination port → This lets them choose the forwarder (often a partner for kickbacks) and mark up freight costs, but it gives you less control and can lead to higher overall expenses or hidden fees.
Many experienced importers recommend FOB over CIF when buying from China for better cost control and transparency.
2. Logistics and Export Requirements in China
Exporting from China requires a local entity for booking ocean freight, handling export customs declaration, and issuing bills of lading. Foreign buyers can’t do this directly.
- Your own agent (or one in your home country partnering with a Chinese co-loader) manages this smoothly.
- Without one, the supplier handles everything themselves or via their forwarder, complicating things and potentially raising costs.
This question gauges if you’re an experienced importer (with your own logistics setup) or a beginner (likely accepting their shipping terms).
3. Convenience for the Supplier
Many Chinese factories focus solely on manufacturing and lack expertise in international logistics. Coordinating with your agent is simpler for them than managing full shipping (especially for smaller orders).
4. Risk for shipping
Because many products involve risks during international transportation, suppliers are generally unwilling to bear those risks. They prefer to deliver the goods to you within China, leaving the subsequent shipping arrangements to you.
Additionally, certain products are classified as sensitive or difficult to transport, often requiring special channels or specialized logistics providers.
Therefore, when dealing with sensitive goods, suppliers will typically inquire upfront—depending on the destination country and product type—whether you have a reliable freight forwarder to handle the clearance and transportation in the destination country.
If you do not have a suitable forwarder, they may consider it a waste of time to provide a quotation.
It is recommended that buyers proactively mention during inquiries whether they have an established freight forwarder, as this significantly increases the likelihood and speed of receiving a quote.
What Should You Do?
- Yes, I have one — Provide your freight forwarder’s contact/details. This often leads to better pricing under FOB.
- No — Find a reliable freight forwarder yourself (cheaper and more controlled than the supplier’s). You can use one in your country (they subcontract in China) or a Chinese-based one for lower rates. Search platforms like Alibaba for “freight forwarder China” or get recommendations from import communities.
Having your own agent generally saves money, reduces risks, and gives you more control over the shipping process when importing from China.
