There are 3 ways of shipping goods from Bali:

1. Air Freight – charged / kilo
2. LCL (Less Container Load) – charged / cubic meter
3. FCL (Full Container Load) – flat rate / container

In this section we will attempt to explain each mode of transportation and the pros & cons associated with each.

AIRFREIGHT

Although this is the most expensive option, Air Freight does have its advantages and can be appropriate for some products.

Main Advantages

1. it gets there fast (2 days for most major airports)
2. you don’t have your cashflow tied up for extended periods of time

This mode of transportation is appropriate for small items – particularly Beaded & Wooden Jewelry.

Minimum Weight for Air Freight shipments is 45kg. It is important to understand that Air Freight is calculated based on Weight and Volume – whichever turns out to be the most is what you pay for. The calculation is as follows (in centimeters).
            Length  X  Width  X  Height  /  6000

Example – A Standard Box is:
            52cm  X  56cm  X  35cm  =  101,920  /  6000  =  16.986

Therefore, even if you send a standard box full of nothing, you will be charged the equivalent of 17kg.

To show how this could be a viable option, I will give you an example of a Minimum Air Freight Shipment to Segal West Africa. In this example we are sending Beaded Necklaces with Shell Pendants.

1. Average cost per Necklace = $1.25
2. Amount of Necklaces we can get for 45kg = 1000 pieces
3. Therefore, total cost of Product = $1250.

The reason I chose West Africa for this example is that it is a more obscure destination, therefore the freight cost is a little higher @ $6.10/kg. Once you have added all the extra costs associated with an Air Freight Shipment (documentation, airport handling, fuel surcharge, security surcharge, admin. fee, Indonesian customs clearance, etc. etc.) the total cost of this 45kg shipment = $380.

The Necklace that you have purchased for $1.25 is now costing $1.63. Considering this necklace can Retail for a MINIMUM of $7 to $8 – this is still a workable solution for a small Retail Business.

LCL (Less than a Container Load)

This also is a very expensive option, but depending on the size of your business and the type of products you are interested in, shipping LCL could be the most economical solution for you.

LCL Shipments are packed in Wooden Slat Crates. They are then sent to the Seaport of Surabaya to await enough wooden crates with the same destination to fill a container – at this point they then start their journey across the ocean.

Main Advantages

1. cheaper than Air Freight
2. good for small business shipments where space & cashflow can’t warrant sending via FCL (Full Container Load)

Disadvantages

1. you pay per cubic meter, but once you calculate the extra wood for the crate,  1m3 now equals aprox. 0.78m3 of actual product – not counting the fact that if your sending LCL, the products needs more packaging than if it was sent FCL.
2. The crates are handled under the most harshest conditions imaginable. They are literally dropped, rolled & left on the docks regardless of the sweltering sun or pouring rain. For this reason, there are some items (eg. Ceramic pots) that will not be covered under our guarantee. We will discuss that with you personally if the need arises.
3. LCL takes longer than any other transportation option. Because the crates must wait for consolidation into containers, this could take up to 2 additional weeks (or more if during the very slow shipping months of Nov/Dec). Also, they will be the last to offload at the Port of Destination.

FCL (Full Container Load)

Congratulations – now your saving money! You have just reduced your shipping expenses by 38-58% depending on the size of your container.

There are 3 different sizes of containers:
            20 ft. = 30 m3 ($10,000 - $14,000 of product)
            40 ft. = 60 m3 ($18,000 - $24,000 of product)
            40 ft. High Cube = 72 m3 ($20,000 - $29,000 of product)
            (price range of product already accounts for appropriate discount)

Average transit time for FCL from Bali is:
            5 weeks – West Coast North America
            4 weeks – Europe
            3 weeks – Australia

Main Advantages

1. obvious cost savings
2. less risk of damage
3. less packaging required of individual goods
4. unpacking is much easier as there is no wooden crates with metal strapping to open & ultimately dispose of
5. able to utilize full cubic meter of space that you pay for

Disadvantages

• ???  Nothing I can think of

Company Profile · Doing Business in Bali · Final Notes