The Port of San Juan was the 11th busiest port in the U.S. in 2020 as ranked by TEUs (twenty-equivalent units). In fact, the port received 702,056 inbound TEUs that year, and a significant number of those carried cargo from Asia.

If you’re planning on shipping freight to Puerto Rico from China, Vietnam, Korea, Taiwan, or another country in Asia, there are a few things you need to know to make sure your goods arrive safely and easily.

 

Below, you’ll find our ultimate guide to moving freight from Asia to Puerto Rico. We’ll show you exactly what you need to know to get up to speed on this shipping lane—fast. To start, let’s define several key terms so we’re all on the same page.

 

Must-Know Logistics & Freight Terms

If you’re new to shipping freight, the technical terms can get overwhelming quickly. Below, we’ve listed the four key terms you need to understand to move your shipments like a pro:

This term tends to cause some confusion. In simple terms, the consignee is the person or entity receiving the freight. If you’re sending freight from Asia that you or your company will receive in Puerto Rico, you are considered the consignee.

The company that moves your freight from origin to destination. Your freight will likely pass through a couple of carriers between Asia and Puerto Rico: an ocean freight carrier (also called a steamship line), an air freight carrier and/or a motor carrier (the trucking company that moves the containers on land).

The person or entity who sends the freight—your vendor in Asia. On certain types of paperwork, you’ll also see the shipper listed as the consignor.

A company that manages freight transportation on behalf of their clients. As we noted above, freight often has to move through multiple carriers to get to its final destination in Puerto Rico. You could manage those logistics yourself, or you could hire a freight forwarder to handle it all for you.

 

Want to expand your logistics vocabulary? Check out our Approved Transportation Glossary for an even deeper dive.

Now that we’re clear on who’s who, let’s dive into the actual logistics of moving freight from Asia to Puerto Rico.

 

Air Freight vs. Ocean Freight: Your Options for Moving Puerto Rico Cargo

When you’re shipping freight from Asia to Puerto Rico, you’ll have two main options:

  1. Ocean freight
  2. Air freight

Which one is better? It depends on a few factors, including your timeline, your budget, and the commodity you’re shipping. To sum it up in broad terms:

  • Ocean freight is cheaper, but it’s also slower. It’s the most common mode for international freight transportation. However, because ocean freight takes longer, you’ll need to plan ahead to keep your inventory at ideal levels.
  • Air freight is much faster, but it’s also more expensive. If you’re shipping light, high-value items with good margins, air freight might make sense. Or, if your shipment is time sensitive, air freight will be your best bet.
Read more

Ocean Freight vs. Air Freight

Learn more about the differences between these two modes—and discover which one is right for your business.

Read more

Let’s take a closer look at your options, starting with ocean freight.

 

Ocean Freight: Full Container Load (FCL)

In an FCL shipment, you get an entire container to yourself to load as you please. If you’re shipping enough goods to fill a container, choosing FCL is a no-brainer. However, if your goods don’t fill a container, you’ll have another option: LCL.

Ocean Freight: Less-Than-Container Load (LCL)

LCL shipping can be a cost-effective method for many businesses. When you choose LCL service, your goods share a container with other goods headed to the same destination. (Puerto Rico, in this case.) Rather than paying for an entire container, you simply pay for the space you need.

 

LCL shipments are also called consolidations. Freight forwarders handle consolidations for their clients by amassing a number of different shipments in their warehouse. Once there’s enough cargo for a container load, all the different shipments are loaded together in the container and sent to the destination port. The forwarder retrieves the container, unpacks the shipments, and makes them available for pick-up and delivery.

Air Freight

If you decide to go with air freight, you’ll also have some choices to make. Air freight service levels run all the way from dedicated charter flights ($$$$$) to air freight consolidations ($) that work much the way ocean freight LCL shipments do.

 

Learn more about air freight service to Puerto Rico.

 

Not all goods are suitable for air freight. Most often, we’re shipping high-value or time-sensitive goods via air freight, including electronics and precision instruments; textiles and leather; pharmaceuticals; high-end accessories like handbags and jewelry; fresh meat and seafood; and medical/surgical equipment.

What’s the best way to decide? For some shipments, the choice is obvious. For others, there’s a break-even point where one method makes more fiscal sense than the other.

 

That’s where a strong relationship with a freight forwarder becomes crucial. A good forwarder can price out both options to help you make the right long-term decision for your business. (Reach out to our experts if you want to start a conversation!)

 

Now that you know the main modes of transportation for moving goods from Asia to Puerto Rico, let’s talk timing.

Transit Times from Asia to Puerto Rico

How fast you receive your shipment all depends on how you send it.

  • Air freight can arrive in a few days, depending on which air freight service level you choose.
  • Ocean freight takes a bit longer. To get an idea of common transit times from Asia to Puerto Rico, check out the sample transit times below.
China ports

45 days

Vietnam ports
65 days
Malaysia ports
50 days
Indonesia ports
65 days
Cambodia ports
60 days
India ports
45 days

Keep in mind that ocean freight transit time is just one piece of the puzzle, since it only represents the length of time the container ship takes to go from port to port. Once the ship arrives, it will need to be unloaded, and your goods will get moved to a terminal for pickup.

 

In other words, there’s some lag time between when the ship arrives and when you can pick up your cargo. We’ll explore why in the following sections.

Will My Shipment Go Through Customs and Hacienda?

U.S. Customs

Because Puerto Rico is located within the customs territory of the U.S., shipments from Asia are subject to U.S. Customs & Border Patrol regulations. This includes some paperwork requirements, namely what’s called an Importer Security Filing. Your freight forwarder should be able to handle these items for you to expedite speedy clearance.

If you need more assistance with clearing your goods into the U.S., your forwarder can also connect you with a customs broker that specializes in this area.

Hacienda

Additionally, goods arriving in Puerto Rico are subject to an excise tax. For many goods, the tax is 11.5%, although it differs depending on your goods. (For more on figuring out the excise tax for your specific shipment, reach out to us.)

 

This tax is directly paid to the Puerto Rico Department of Treasury or el Departamento de Hacienda de Puerto Rico. Shipments must be paid for and cleared by Hacienda before they can be released and delivered.

 

It’s pretty simple to establish an account with SURI (Sistema Unificado de Rentas Internas) to pay your excise taxes on arriving goods. (If you don’t speak Spanish, you can choose “English” at the top right to display the page in English.) Once you’ve set up your account, you can make direct payments for your shipments to ensure timely release of your goods.

What Happens After My Cargo Reaches the Port in Puerto Rico?

Once the ship carrying your cargo from Asia arrives at the Port of San Juan, it goes through the following process:

First, the ship gets unloaded. Dockworkers at the Port of San Juan will remove all the containers from the vessel, including the one with your goods.

  • Next, your container may need to be screened by Customs and Border Patrol. (Note: As long as you’ve paid your excise tax, your shipment shouldn’t get held by Hacienda. However, if it does, there’s a network of couriers and runners who can help get corrected paperwork over to the local Hacienda office to remedy any potential errors.)
  • Then, your container will be made available for pickup at the port.
  • If you’ve arranged the shipping through a freight forwarder, they’ll pick up your container at the port and bring it back to their terminal.

From there, you’ll have a few different options:

  • You can pick up the goods from your forwarder’s terminal.
  • Or, you can arrange to have your goods delivered to your warehouse or place of business.

Tip: If you plan to have your freight delivered in Puerto Rico, look for a forwarder with a significant footprint in Puerto Rico. For example, our trucking partners make deliveries daily to every zone, which means you can get your shipment fast.

Now that you understand the process for shipping freight from Asia to Puerto Rico, let’s look at a few final tips from our experts to add ease to your shipment.

 

Concept of shipping and logistics management. Use smart phone for parcel tracking in the mobile application.

Tips for Streamlining Your Freight

#1: Be Thoughtful About Your Incoterms

If you’re not familiar with Incoterms, they’re a set of rules published by the International Chamber of Commerce (ICC). Think of them as a shorthand to define what costs the buyer pays for and what costs the seller pays for when it comes to moving goods to their final destination. We’re talking about things like ocean freight/air freight charges, export costs, insurance, etc.

 

Incoterms will play a significant role in your pricing negotiations with your vendor. The Incoterms you agree on will impact 1) the price your vendor offers and 2) the expenses you’ll pay on top of what you give your vendor—all of which will impact your profits.

If you’re not already familiar with the Incoterms rules, we’ll help you get up to speed—fast.

#2: Keep an Eye on the Calendar

When you’re working with vendors in Asia, there are two big “seasons” you need to plan for to keep your inventory at optimal levels:

  1. Lunar New Year – In January/February, factories in Asia—China especially—shut down to celebrate the arrival of a new year in the lunisolar calendar. Many U.S. businesses order extra inventory in advance to get them through the shutdown period. Ocean freight rates can fluctuate accordingly with the rise in demand. Work closely with your vendor and forwarder to anticipate the rush and stay stocked.
  2. US. Holiday Season – The holidays are a critical time for many businesses. To prepare, some place their holiday orders as early as late summer. A freight forwarder can help you put together a timeline that keeps your best-sellers in stock during the holiday shopping period.
#3: Get a Grasp on All the Fees Involved

If you’re new to shipping ocean freight, you might be surprised by how many small charges you’ll see on a traditional ocean freight invoice. You’ll see line items for things like drayage, fuel surcharges, terminal handling charges, wharfage, etc.—and they can really start to add up. (Learn more about ocean freight fees and charges.)

 

In contrast, when you use air freight, you’re charged a flat, $20 handling fee—one of the advantages of choosing air freight.

 

Working with a freight forwarder can help you make sense of all of these little fees so you know the bottom-line cost for moving your goods. In fact, many forwarders will bundle all your charges to create an all-in number that you can count on. This will allow you to get a more accurate picture of your landed cost.

 

Landed cost: The total cost of moving your goods from your supplier to your buyer.

With an accurate landed cost, you can make more informed decisions when it comes to pricing your goods and establishing strong margins.

 

The bottom line: When you quote out your Asia–Puerto Rico freight shipment, make sure all the expenses, fees, and charges are included so you know exactly what you’re paying.

#4: Establish a Relationship with a Forwarder

If you’re new to shipping freight from Asia, working with a freight forwarder offers a number of benefits, including:

  • Quickly quoting out all your options—air freight, ocean freight, etc.—so you can establish the right balance between cost and speed.
  • Uncovering money-saving efficiencies by optimizing routing and shipping methods.
  • Coordinating several modes of transportation (ocean/air, rail, truck) to get your cargo from its origin in Asia to your warehouse in Puerto Rico.
  • Estimating timelines to maintain optimal inventory levels.
  • Connecting you with a customs broker—or getting help with Hacienda—if your shipment hits a snag.
  • Tracking your shipment every step of the way through one portal/point of contact.
  • Answering any questions you have along the way.

The right freight forwarder can be a critical partner for streamlining your Asia–Puerto Rico shipments. It’s a partnership worth exploring if importing cargo from Asia is a critical part of your business.

Your Asia–Puerto Rico Cargo Made Easy

Now that you understand the ins and outs of moving freight from Asia to Puerto Rico, you’re positioned to start building out your business in Puerto Rico—more easily and more profitably.

 

If you’re looking for a partner to help you move freight from Asia, we’d be happy to assist. Get started with a complimentary consultation. Our experts will take a holistic look at your business and help you put together the right logistics flow to maximize your efficiency and minimize your costs.

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