A buyer we advised quoted a $12,000 lighting order. After freight, duty, and port charges, the real cost was $17,300. That's a 44% gap between "what the supplier quoted" and "what the warehouse received."
This gap has a name: landed cost. Every seasoned importer calculates it. First-timers skip it. The difference is usually one rejected budget request or one angry CFO conversation.
Here's the formula. Every line item. No hand-waving.
Your FOB price is not your real cost. The gap between invoice and warehouse averages 25-48%. This guide gives you the exact formula — freight, duty, port charges, exam fees, trucking — with real 2026 rate benchmarks. One spreadsheet template replaces six months of painful surprises.
Your FOB price is not your real cost. The gap between invoice and warehouse averages 25-48%. This guide gives you the exact formula — freight, duty, port charges, exam fees, trucking — with real 2026 rate benchmarks. One spreadsheet template replaces six months of painful surprises.
Forget what your supplier's invoice says. Here's what actually leaves your bank account:
Landed Cost = FOB + Ocean/Air Freight + Insurance + Customs Duty + Customs Bond + Port Charges + ISF Filing + Exam Fees (if flagged) + Trucking + Warehousing
This is what "per-unit cost" actually means. Everything else is fantasy accounting.
Free On Board. What you pay the supplier to get goods onto the vessel at the origin port. This is the number on your invoice. It is also the smallest number in this equation.
A $10,000 FOB order of 1,000 LED downlights from Zhongshan to Los Angeles. Let's trace it.
Depends on volume (CBM) and container type. A 20-foot container from Shenzhen/Shanghai to LA/Long Beach runs $1,800-3,500 as of mid-2026. LCL (less than container load) for 2-5 CBM runs $200-400 per CBM.
Our 1,000 downlights at roughly 2.5 CBM: budget $600-1,000 for LCL ocean freight to US West Coast. East Coast? Add 40-60%. Europe (Rotterdam/Hamburg)? Similar to West Coast rates plus $200-400 for the Suez surcharge.
| Route | LCL (per CBM) | 20' FCL | 40' FCL |
|---|---|---|---|
| China → US West Coast | $200-380 | $1,800-3,500 | $2,800-5,200 |
| China → US East Coast | $280-520 | $3,200-5,800 | $4,500-7,800 |
| China → North Europe | $220-400 | $2,200-4,200 | $3,200-6,000 |
| China → Middle East (Jebel Ali) | $180-320 | $1,600-2,800 | $2,400-4,200 |
| China → Southeast Asia | $120-250 | $800-1,800 | $1,200-2,600 |
0.3-0.5% of CIF value. On $10,800 CIF: $32-54. Most forwarders quote a minimum of $50-75. Don't skip this. One container of water-damaged LED drivers is a $12,000 lesson in why $50 matters.
Calculated on CIF value (Cost + Insurance + Freight), NOT FOB. This is where buyers routinely under-budget.
LED luminaires (HS 9405.40): 3.9% from most countries. LED drivers (HS 8504.40): 0-2.5%. On $10,800 CIF at 3.9%: $421. But here's the trap: misclassification. If Customs reclassifies your "LED luminaire" as "electrical apparatus" (HS 8543.70, 5.3%), your duty jumps to $572. And if Section 301 tariffs apply, add 25%.
Required for any US import over $2,500. Continuous bond: $500-600/year (good if you import 3+ times annually). Single-entry bond: $50-150 per entry. Budget the annual bond if this isn't your first rodeo.
Importer Security Filing. Mandatory for US ocean freight. Must be filed 24 hours before vessel departure. Miss the deadline, and CBP hits you with $5,000 per violation. Your forwarder typically handles this — confirm it's in their quote.
Terminal handling, documentation fee, chassis usage, pier pass, clean truck fee. These are fixed charges that don't scale with order size — which means they hurt more on small orders.
| Charge | Typical Range | Who Bills It |
|---|---|---|
| Terminal Handling (THC) | $150-350 | Forwarder / shipping line |
| Documentation Fee | $45-85 | Forwarder |
| Chassis Usage (per day) | $25-45 | Trucker / chassis pool |
| Pier Pass / Clean Truck | $40-80 | Port authority |
| Customs Entry Fee | $75-150 | Customs broker |
| Delivery Order | $45-65 | Shipping line |
Roughly 3-5% of containers get flagged for exam. X-ray exam: $300-500. Physical/tailgate exam: $600-1,200. Plus 3-7 days of delay. Plus chassis detention at $25-45/day while the container sits. Budget $500 as a contingency line item — if you don't get flagged, that's margin. If you do, you're covered.
Port-to-warehouse within 200 miles: $350-600 for LTL. Beyond 200 miles: $500-1,200. FTL (full truckload) for full containers within 200 miles: $600-900. Get quotes from 3+ drayage carriers — pricing varies wildly by lane and driver availability.
If your goods clear customs but your warehouse isn't ready: storage at a CFS (Container Freight Station) runs $20-40/pallet/month. Plus in/out fees of $15-25 per pallet. Two weeks of storage for 4 pallets: $160-320.
| Line Item | Amount |
|---|---|
| FOB (1,000 LED downlights, $10/unit) | $10,000.00 |
| Ocean Freight (LCL, 2.5 CBM to LA) | $800.00 |
| Marine Insurance (0.4%) | $43.20 |
| Customs Duty (3.9% on $10,843 CIF) | $422.88 |
| Customs Bond (single entry) | $100.00 |
| ISF Filing | $45.00 |
| Port Charges (THC + doc + pier pass) | $420.00 |
| Customs Entry Fee | $100.00 |
| Exam Contingency (budgeted, may not trigger) | $500.00 |
| Trucking (180 miles, LTL) | $550.00 |
| Warehousing (in/out, 1 week) | $180.00 |
| Total Landed Cost | $13,161.08 |
| Per-unit Landed Cost | $13.16 |
That's a 31.6% premium over the $10,000 FOB invoice. And if customs flags the container for exam, add $500-700. If Section 301 tariffs apply, add another $2,500. Suddenly your "$10/unit lights" cost $16.41 each.
Ocean freight's per-kg rate is 5-8× cheaper than air. But that's not the whole story. Air eliminates port charges, chassis fees, exam delays, and the 30-45 day cash-flow float while your money sits in a container somewhere in the Pacific.
| Factor | Ocean (LCL) | Air Freight |
|---|---|---|
| Freight cost (2.5 CBM / 420 kg) | $800 | $2,100 (@ $5/kg) |
| Port/doc/bond/ISF | $665 | $45 (doc only) |
| Transit time | 30-40 days | 5-7 days |
| Cash-flow cost (30 days @ 8% annual) | ~$72 | ~$12 |
| Subtotal (freight + fees) | $1,537 | $2,157 |
Air is $620 more. But if getting products to market 25 days faster generates $800 in revenue or avoids a stockout penalty, air wins. Run both numbers every time.
Comparing landed costs across multiple suppliers?
Compare2Best lets you evaluate verified manufacturers with structured product data, certifications, and pricing transparency — so your landed cost calculation starts with accurate numbers, not sales brochures.
This guide is produced by the Compare2Best knowledge team and reviewed by cross-border logistics specialists. Freight rates and duty percentages are based on Q2-Q3 2026 market data. Always verify current rates with your forwarder and customs broker before placing an order. Last updated: July 24, 2026.