Against the backdrop of increasingly tight global supply chains, Latin America has gradually become an important export market for Chinese manufacturing. Panama, as an important trade and shipping hub in Latin America, is attracting more and more attention from Chinese exporters. This article will provide a detailed introduction to the logistics of shipping from China to Panama.
Introduction to Panama
Panama has a unique geographical location and is the hub of North and South America. It is adjacent to Colombia in the east and Costa Rica in the west. It is an important channel connecting Central America to South America. Its port infrastructure is well developed, with international hub ports such as Balboa Port and Colon Port, which facilitates the rapid transfer of Chinese goods to the entire Latin American market.
About 6% of the world’s international trade goods are transported through the Panama Canal, making it a key channel connecting the Atlantic and Pacific Oceans
- Import dependence: Panama’s local manufacturing industry is relatively weak, and more than 90% of its industrial products rely on imports.
- High degree of trade freedom: It has a free trade zone and bonded warehouse policy, which has attracted a large number of re-export trade.
- Diverse consumption structure: There is a market for everything from high-end building materials, home appliances to ordinary consumer goods.
- Open policy: Low tariffs on most Chinese goods, and zero tariffs on some goods.
How to Ship from China to Panama
Since the establishment of diplomatic relations, China-Panama relations have developed steadily, and the two sides have cooperated more closely under the “Belt and Road” initiative. The sea and air routes between China and Panama are becoming increasingly mature, and trade complementarity is strong. Choose the appropriate mode of transportation based on factors such as cargo characteristics, budget level, and timeliness requirements.
Sea Freight
Sea Freight is the most popular and cost-effective way to transport large quantities of goods. It can transport large and heavy items that cannot be transported by air. It provides a variety of options for different types of goods, mature routes, and abundant space resources to ensure efficient meeting of specific transportation needs. There are two main types of services: LCL and FCL
- Full container load (FCL): suitable for customers with large cargo volumes and more cost-effective full container transportation.
- Less than container load (LCL): suitable for small and medium-sized cargo volumes, sharing a container with others and sharing costs.
Air Freight
Air transport is the fastest mode of transport. It is strictly regulated and monitored throughout the entire transport process, which improves safety. The procedures are relatively simple and there are fewer customs inspections. However, the size, weight, and category are more restricted and are easily affected by flight restrictions and weather. It is mainly divided into the following two types
- Air transport: It is the most common and affordable air transport method. The service usually uses scheduled flights to strike a balance between cost and speed.
- Express delivery: For companies with urgent transportation needs, priority processing and faster routes are adopted to ensure that critical goods are delivered to their destinations as soon as possible.
Main Ports and Airports in Panama
As an important trade and logistics hub in Central America, Panama has very developed port resources due to its unique geographical location and developed shipping infrastructure as a “logistics crossroads” connecting the Pacific and Atlantic Oceans.
Main airports
- Tocumen International Airport: Panama City’s main airport, Latin America’s air transport hub, can receive global transit flights
- Cologne Airport: Close to the Port of Colon, used for small-scale cargo transit or charter business
Major ports
- Port of Balboa: Close to the southern entrance of the Panama Canal, one of the largest container ports, the main port of choice for sea transportation
- Port of Colon: The northern entrance of the Panama Canal, serving Latin America and the Caribbean
Shipping Cost from China to Panama
The cost of shipping from China to Panama is mainly determined by the mode of transportation, but it is also affected by many factors:
- Cargo volume and weight: Air freight is charged by actual weight or volume weight, whichever is greater; sea freight is charged by volume (cubic meters).
- Fuel price fluctuations: will affect sea/air freight surcharges (BAF, FAF).
- Seasonal factors: Export peak season, freight rates rise, and cabins are tight.
- Special cargo requirements: Dangerous goods and cold chain require special handling, and the cost increases significantly.
| Shipping Method | Shipping From China to Panama(Cost) |
|---|---|
| Sea Freight (20ft Container) | Approx. $2,200 – $3,300 for a 20ft container |
| Sea Freight (40ft Container) | Approx. $3,300 – $4,500 for a 40ft container |
| Sea Freight (LCL) | Approx. $150-$250 per cubic meters (m3) |
| Air Freight | Approx. $6 to $10 per kgs |
| Express Shipping | Approx. $10 to $20 per kgs |
Cost of Shipping 20ft and 40ft Container from China to Panama
The cost of transporting containers from China to Panama is mainly based on the size of the container (20ft and 40ft containers). Due to the different distances between different ports, the cost will also vary.
| POL (Port of China) | POL (Port of Panama) | 20ft Container Cost | 40ft Container Cost |
|---|---|---|---|
| Shanghai | Balboa | $2,100 – $3,100 | $3,350 – $4,550 |
| Shenzhen | Balboa | $2,000 – $3,000 | $3,400 – $4,600 |
| Ningbo | Balboa | $2,250 – $3,150 | $3,200 – $4,400 |
| Shanghai | Colon | $2,200 – $3,300 | $3,250 – $4,550 |
| Shenzhen | Colon | $2,100 – $3,300 | $3,300 – $4,450 |
| Ningbo | Colon | $2,200 – $3,300 | $3,400 – $4,500 |
Here are the costs for shipping to other countries:
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Shipping Time from China to Panama
Sea transportation mainly transits from China to Panama via the Pacific West Coast of the United States or Mexico or transits through Singapore/South Korea. Air transportation mainly transits from Miami/Dallas in the United States or Europe (Madrid/Frankfurt) to Panama. It is also affected by the following factors:
- Season and climate: The water restriction period of the Panama Canal may lead to increased waiting time or additional tolls
- Transit port and port of call arrangement: The more transit times, the slower the timeliness and the higher the cost.
- Trade policy and customs clearance requirements: Improper preparation of customs clearance documents will lead to delays in timeliness
| Port of Origin (China) | Port of Destination (Panama) | Air Freight Time | Sea Freight Time |
|---|---|---|---|
| Shanghai | Panama City | 4–7 days | 32–44天 |
| Guangzhou | Panama City | 5–7 days | 30–43天 |
| Ningbo | Panama City | 4–6 days | 35–45天 |
| Shanghai | Colón | 4–7 days | 34–42天 |
| Guangzhou | Colón | 5–7 days | 32–45天 |
| Ningbo | Colón | 4–6 days | 30–45天 |
The following are the shipping times from China to surrounding countries:
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DDP Shipping from China to Panama
DDP shipping is a convenient option for shipping goods from China to Panama. With DDP, all duties, taxes, and customs fees are handled in advance, ensuring a worry-free experience for buyers. This is an ideal solution for small businesses and individual shoppers who want to simplify the process of importing goods without having to worry about additional delivery fees.
Detailed process of DDP shipping
Order and pickup
The goods are purchased from e-commerce platforms such as Taobao , and the logistics company arranges to pick up the goods from the Chinese seller.
China export customs clearance
The supplier is responsible for handling all documents and customs clearance required for export and ensuring that the goods are ready for shipment.
Choose the right shipping method
The goods will be shipped by air or sea according to customer needs. The supplier is responsible for all shipping logistics.
Panama import customs clearance
The supplier is responsible for import customs clearance and pays all duties, taxes, and fees on behalf of the customer.
Final delivery
Once customs cleared, the goods will be delivered directly to the customer’s address in Panama, completing the DDP process.
Customs Clearance from China to Panama
Document submission
When shipping from China to Panama, the following documents are usually required for customs clearance:
- Commercial invoice
- Packing list
- Bill of lading (sea freight) or airway bill (air freight)
- Certificate of origin (if applicable)
- Import license (for specific goods)
Customs inspection
Panama customs may inspect the goods to ensure compliance, check documents and verify restricted or prohibited items.
Payment of duties and taxes
Import duties and taxes must be paid before the goods are released. Panama calculates tariffs based on the CIF (cost, insurance and freight) value of the goods. Duty rates usually range from 0% to 15%, depending on the type of product.
How to Choose the Right Freight Forwarder
Choosing the right freight forwarder from China to Panama is crucial for efficient and economical logistics. The following are the criteria for choosing the right freight forwarder:
- Experience in transportation to Central and South America
- Provide DDU/DDP services (customs clearance and delivery included)
- Smooth communication and transparent quotations
- Can handle LCL, FCL, air transport and multimodal transport
- Have local agents or cooperative customs clearance companies
Shipping from China to Panama is not only a simple logistics behavior, but also an important step to enter the Latin American market. Choosing the right transportation method and a reliable freight forwarding partner will help you reduce costs, control risks, and expand international business.