Freight basis
Enter the chargeable quantity and the rate per unit exactly as they appear on your quotation.
Cost breakdown
| Line | Amount | % of total |
|---|
If freight is under half the total, you are on a lane where destination charges deserve more scrutiny than the ocean rate.
Charges that belong in every comparison
A quotation showing only "ocean freight USD 1,200" is not a price, it is an opening position. These are the lines that make up the rest of the bill.
| Charge | Where it applies | What it covers |
|---|---|---|
| Terminal Handling (THC) | Origin and destination | Moving the container between quay and yard. Charged at both ends, often by different parties. |
| Documentation / BL fee | Origin | Issuing the bill of lading or air waybill. |
| Delivery Order fee | Destination | Releasing the cargo to the consignee. Frequently omitted from origin-side quotes. |
| BAF / FAF | Main carriage | Bunker or fuel adjustment factor, tracking fuel price movement. |
| CAF | Main carriage | Currency adjustment factor where the tariff currency differs from the cost currency. |
| ISPS / security | Both ends | Port and terminal security compliance under the ISPS code. |
| Customs clearance | Both ends | Broker's fee for preparing and lodging the declaration. Separate from duty itself. |
| Duty and sales tax | Destination | Assessed on customs value by HS code. Must be calculated per commodity, not estimated. |
| Detention and demurrage | Destination | Penalties for keeping the container or occupying yard space beyond free time. Avoidable, and expensive when not avoided. |
| Inland haulage | Both ends | Road or rail movement to and from the terminal. |
| Cargo insurance | Whole journey | Typically quoted as a percentage of CIF value. See cargo insurance. |
Comparing quotes properly
- Normalise the Incoterm. An FOB quote and a DAP quote are not comparable until you have added the missing legs to the FOB one. The Incoterms guide sets out exactly which charges each term includes.
- Normalise the chargeable basis. Confirm both quotes use the same divisor for air, or the same W/M convention for sea. A 5000 divisor against a 6000 divisor is a 20% difference hidden in a footnote.
- Ask for destination charges in writing. The most common way a cheap quote becomes an expensive shipment is uncapped destination handling, payable when the cargo has already arrived.
- Check the free time. Fourteen days of free detention on a lane where clearance routinely takes twelve is worth more than a small saving on freight.
- Confirm validity and rollover terms. A rate valid for two weeks on a six-week production lead time is not a rate you can plan on.
Frequently asked questions
Why does this tool not show freight rates?
Because rates move weekly and depend on lane, carrier, volume and season. A guessed rate would be confidently wrong. Enter your quoted rate and the tool models the total around it.
What is the difference between freight cost and landed cost?
Freight cost is transport alone. Landed cost adds handling, clearance, duty, tax, insurance and delivery — everything required to get goods into your warehouse.
Which charges are most often forgotten?
Destination terminal handling, delivery order fees, and detention. These are billed at the far end where the shipper has the least leverage.
Does the estimate include duty?
Only if you add it as a line. Duty depends on HS classification, customs value and any applicable trade agreement, so it has to be assessed per commodity.
How do I get the chargeable quantity to enter?
Use the chargeable weight calculator for air, or the CBM calculator for sea LCL revenue tons.
