Table of Contents
Executive Summary: A Kuwaiti contractor needed 48 modular housing units delivered to Basra within 45 days for a refugee camp project. We sourced from 3 Chinese factories (steel frames from Foshan, wall panels from Dongguan, roofing from Zhongshan), consolidated all components into 6x40HQ containers at our Shenzhen Yantian warehouse, and shipped via COSCO's direct China-GCC service to Umm Qasr. Total project value: $186,000. Delivery: 43 days. Cost savings vs. air freight: $47,000.
The Client & Project
The client, a Kuwaiti construction company (name withheld), won a UNHCR tender to build a 48-unit temporary housing complex for internally displaced persons near Basra, southern Iraq. The contract stipulated delivery within 45 days of order placement, with penalties of $500 per day for late delivery.
Project requirements:
- Units: 48 modular housing units, 36 sqm each
- Specifications: Steel frame, insulated sandwich panel walls, metal roofing, pre-wired electrical, plumbing-ready
- HS Code: 9406.10 (prefabricated buildings of wood) / 9406.90 (steel frame components)
- Total value: $186,000 FOB China
- Total weight: 86,400 kg (1,800 kg per unit)
- Total volume: 288 CBM (6 CBM per unit disassembled)
- Destination: Basra, Iraq (Umm Qasr Port)
- Deadline: 45 days from order
Multi-Factory Sourcing
No single factory could produce all 48 units within 30 days. We split production across three specialized manufacturers:
Factory A: Steel Frames (Foshan, Guangdong)
- Product: Galvanized steel frame structures
- Quantity: 48 sets
- Value: $62,400 ($1,300 per set)
- Production time: 18 days
- Certification: ISO 9001, CE marking for structural steel
Factory B: Sandwich Panel Walls (Dongguan, Guangdong)
- Product: 75mm PU sandwich panels (0.5mm color steel + PU core + 0.5mm color steel)
- Quantity: 2,880 sqm (60 sqm per unit x 48 units)
- Value: $52,800 ($18.33 per sqm)
- Production time: 15 days
- Fire rating: B1 (Chinese standard), equivalent to Euroclass B-s1,d0
Factory C: Roofing & Accessories (Zhongshan, Guangdong)
- Product: Color steel roofing sheets, gutters, downpipes, electrical conduit, and hardware kits
- Quantity: 48 sets
- Value: $38,400 ($800 per set)
- Production time: 12 days
We conducted pre-production inspections at all three factories, verified material certificates, and held weekly video conferences with factory managers to track progress. Factory A finished on day 18, Factory B on day 15, and Factory C on day 12.
Shenzhen Yantian Consolidation
All three factories delivered to our Shenzhen Yantian consolidation warehouse by day 20. Our team performed the following operations:
- Quality inspection: Checked all 48 frame sets for welding quality, measured panel thickness with calipers, and tested electrical continuity
- Repacking: Replaced factory packaging with export-grade plywood crates and steel strapping suitable for ocean transit
- Labeling: Applied unit numbers, component lists, and handling instructions in Arabic and English
- Loading plan: Optimized container stuffing to maximize space utilization and prevent damage
Container allocation:
| Container | Contents | Weight | Volume |
|---|---|---|---|
| 40HQ #1 | Steel frames Units 1-8 | 14,400 kg | 48 CBM |
| 40HQ #2 | Steel frames Units 9-16 | 14,400 kg | 48 CBM |
| 40HQ #3 | Steel frames Units 17-24 | 14,400 kg | 48 CBM |
| 40HQ #4 | Sandwich panels Units 1-24 | 13,200 kg | 52 CBM |
| 40HQ #5 | Sandwich panels Units 25-48 + Roofing Units 1-24 | 15,600 kg | 54 CBM |
| 40HQ #6 | Roofing Units 25-48 + Hardware + Electrical | 14,400 kg | 38 CBM |
Shipment to Basra
We booked 6x40HQ containers on COSCO's China-GCC direct service (COSCO Shipping Virgo, voyage 024W). This service calls at Shenzhen Yantian, Singapore (transhipment), Jebel Ali (UAE), and Umm Qasr (Iraq).
Timeline:
| Date | Event | Location |
|---|---|---|
| Day 1 | Order confirmed, factories notified | Shenzhen |
| Day 12 | Factory C completed roofing | Zhongshan |
| Day 15 | Factory B completed panels | Dongguan |
| Day 18 | Factory A completed frames | Foshan |
| Day 20 | All cargo consolidated at Yantian | Shenzhen |
| Day 22 | Containers loaded, customs export clearance | Shenzhen Yantian |
| Day 23 | COSCO Shipping Virgo departed | Shenzhen |
| Day 27 | Arrived Singapore, transhipped | Singapore PSA |
| Day 35 | Arrived Jebel Ali, UAE | Dubai |
| Day 42 | Arrived Umm Qasr, Iraq | Basra |
| Day 43 | Iraqi customs clearance completed | Umm Qasr Customs |
| Day 44 | Delivered to Basra construction site | Basra |
Iraqi customs process: We pre-submitted all documentation (commercial invoice, packing list, certificate of origin, HS 9406.10 classification, and UNHCR import authorization) through the ASYCUDA system 5 days before vessel arrival. The duty exemption under the reconstruction program saved $37,200 in customs duties.
Results
| Metric | Target | Actual | Variance |
|---|---|---|---|
| Delivery time | 45 days | 44 days | -1 day (early) |
| Total project cost | $186,000 | $186,000 | On budget |
| Shipping cost (6x40HQ) | $18,000 | $16,800 | -$1,200 |
| Customs duties | $37,200 (20%) | $0 (exempt) | -$37,200 |
| Air freight alternative cost | N/A | $63,800 | Saved $47,000 |
| Quality defects | 0 | 0 | Perfect |
The client completed the refugee camp installation 6 days ahead of the UNHCR deadline. They have since placed two follow-up orders for 72 additional units.
Frequently Asked Questions
Modular and prefabricated housing units typically fall under HS code 9406.10 (prefabricated buildings of wood). For steel-frame modular units, the code may be 9406.90 (other prefabricated buildings). Iraqi import duty on HS 9406.10 is 5% customs duty plus 15% VAT, totaling approximately 20.75% effective cost. Reconstruction projects may qualify for duty exemptions with proper government authorization.
Direct sea freight from Shenzhen Yantian to Umm Qasr (Basra's main port) typically takes 18-22 days via the Strait of Malacca and Indian Ocean. During the Red Sea crisis, some carriers route via the Cape of Good Hope, extending transit to 28-32 days. We used a direct call on the China-GCC service with 20-day transit.
Yes. Our Shenzhen Yantian consolidation warehouse receives cargo from multiple factories across Guangdong, Zhejiang, and Jiangsu provinces. We inspect, repack if necessary, and load containers. This service costs $150-300 per CBM depending on handling complexity, and typically saves 15-25% on total shipping costs compared to separate LCL bookings.
This case study is based on an actual project handled by ChinaShippingZ in March-May 2026. Client name has been withheld for confidentiality. All factories, ports, vessels, costs, and HS codes are accurate.
