Air Shipping – DHL, FedEx, UPS, China Airlines, which Airline is cheaper for sourcing from China? Let’s review.
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Full Transcript:
Welcome to the GoodLife Warrior Podcast. I’m Yuping. We make sourcing easy, fun, and profitable for your business. This episode was originally aired as a video on my YouTube channel, youtube.com/goodlifewarrior. As always, high-quality professional sourcing content delivered to you with passion and my unique Chinese accent. Enjoy.
Okay, Sourcing Warrior friend, I hope you’re having a wonderful day. The last video, we talk about air courier versus air freight. I think that you know the differences by now. This video, we’re going to drill deeper, dig deeper, to get to know more insights into the world of air shipping. So, the million-dollar question on the table is UPS, DHL, FedEx, China Airline, which one is cheaper if you have to air a box of chocolate from China to the United States? If you get the answer correct, you should get yourself a box of chocolate. Let’s get the video started.
Okay. Just in case you don’t know me, I’m Yuping, I’ve been sourcing for 20 years. It’s lovely meeting you here. I hope I can teach you sourcing a little bit at a time through this public channel. If you really want to learn sourcing and take your sourcing game to a new level, you should check out Sourcing Warrior Mastermind course. So let’s get back to our million dollar question, which shipper is cheaper? What was your answer? DHL, UPS, FedEx or China Airline? I put the China Airline in the mix just to throw you off. You are airing a small box of chocolate, why do you need China Airline? You have to use a freight forwarder to book with China Airline. That is for your air freight. So, now we have three carriers left, DHL, FedEx and UPS, who is cheaper and faster? The answer is DHL.
I’ll give you three reasons to explain why DHL’s quote could be cheaper. Number one is volume. DHL is the strongest player in the international air shipping market. DHL’s volume is FedEx and UPS combined. The sheer volume DHL control and dominates give them so much power and leverage. And in turn, your quote with DHL could be so much better than with FedEx and UPS.
The second reason, ownership. Do you know DHL is owned by German post office? For this reason, DHL’s partners and alliances around the world are mostly the country’s government and their post offices, including China and China post offices. This comparing to privately owned businesses such as FedEx or UPS, as you can just imagine, DHL’s rate could be more competitive than FedEx or UPS.
The third reason, speed. Why DHL can be both cheaper and faster. DHL is the only company in this world that has U.S. Customs in-house, meaning DHL’s shipments don’t have to wait in a queue to clear with U.S. Customs. They have U.S. Customs in-house, and therefore they offer the service called CIA, clear in the air. Your box of chocolate before a touchdown and land on U.S. Customs, their in-house customs already cleared your box of chocolate, so the speed is much faster. It could have saved you at least a day or two.
So now, for a bonus question, if you wanted to get a quote for your box of chocolate from DHL U.S. office at the same time you ask your supplier in China to get a quote from DHL China office, which quote is going to be better? Well, to know which quote is going to be better you’ll have to know DHL, each office in each country operate independently. So because they operate independently, therefore their overhead is going to play a big part. Of course, the Chinese DHL office is going to give you a better quote for your box of chocolate.
With that being said, please don’t take what I said as 100% absolute DHL is going to be cheaper every single time. Our company has a very good discount with FedEx air shipping, so I have been comparing DHL versus FedEx to see who is more competitive. What I have found is DHL has been consistently more competitive than FedEx. That’s why I can stand here to give you some good feedback. But for your shipment, please do your own homework. Compare, compare and compare to make sure you get the best price, and that is pure profit for your business.
I hope you enjoyed this video. You know what to do, thumbs up, like and comment. I’ll see you in the next video. Have a wonderful, beautiful day. I’ll see you soon.
Check out the link, the Sourcing Warrior Mastermind link, undertake Sourcing Warrior’s quiz to find out your sourcing IQ. Make it fun, learn something, have a great day. I’ll see you in the next episode.
