China freight: spot rates or a term agreement?

Choose around cargo readiness

A spot offer prices an individual booking; a term offer sets arrangements for shipments over an agreed period. Neither label tells you everything about flexibility, capacity or the final bill. This guide focuses on that purchasing decision. The supplied reference file was empty, so existing guide content could not be checked for overlap.

Use confirmed production plans, inspection release and packing readiness to judge what you can commit. Consider spot bookings for uncertain shipments, or a term agreement for a repeat flow you can support. A mixed approach can reserve dependable volume under an agreement and leave uncertain additional cargo for separate bookings.

Define shipment commitments before negotiating

Ask whether the proposed volume is a forecast or a commitment that attracts charges if missed. Specify the routes, equipment, cargo types and shipment periods it covers. Ask how commitments are measured, whether unused allocation carries forward, and whether cargo from different factories can count towards the same commitment.

Request written treatment of production delays, failed inspections and reduced demand. Ask for the calculation of any unused-space charge and whether extra shipments receive the agreed rate or a fresh quote. Do not increase factory orders simply to meet a freight commitment without checking the resulting stock and cash exposure.

Test what the capacity assurance actually covers

Ask both spot and term providers what their capacity promise covers: booking acceptance, empty equipment, loading on the booked sailing, or another defined service. Request the exclusions, cargo cut-offs and remedy if the promise is missed. A rate agreement alone is insufficient evidence of the capacity you need.

If a forwarder offers space, ask whether it is backed by a carrier allocation and whether the written offer passes a defined assurance to you. Clarify treatment of missed sailings, substitute ports and alternative routes. For a live disruption, use the rolled-booking guide.

Compare matching written offers

Send each provider the same cargo description, packing dimensions, weight, equipment requirement, origin, destination and ready-date window. Request matching service boundaries, routing, currency, payment terms and rate validity. Use the freight quote comparison guide for the wider quotation checklist.

Separate the base freight from origin handling, destination charges, clearance services and delivery. Ask which fuel, peak-season, congestion or emergency surcharges are included, variable or excluded. For each variable charge, request its trigger, calculation, notice and expiry. Ask whether the applicable rate is determined by booking, cargo receipt or departure.

Compare the offers against your expected shipments and against delayed or reduced-volume shipments. Include unused-space charges, booking changes and cancellation exposure. Clarify free storage and equipment-use allowances separately; use the container charges guide for the operational checks.

Agree cancellation and exit terms before acceptance

Ask when a quotation becomes a confirmed booking and when cancellation charges start. Request separate treatment of cancellation, reduced cargo, equipment changes, postponed shipments and failure to deliver cargo. For a term agreement, also ask about early termination, renewal, outstanding commitments and unresolved bookings.

Get the quotation, rate schedule, surcharge schedule and trading conditions together before accepting. GOV.UK guidance says the client should be made aware of the forwarder’s trading conditions before contract details are agreed, ideally at quotation stage. Ask the provider to resolve conflicting wording in writing.

Keep the accepted offer and booking confirmations with each shipment record. Compare invoices against those documents using the freight invoice guide. Cambridge China Bridge can help coordinate factory readiness information through its own staff in China so your freight brief reflects the cargo actually expected.