Sea Freight Landed Cost per Unit Calculator (FCL/LCL)

Understanding the sea freight landed cost calculator — concept and principle

Landed cost is the full cost of getting imported goods to your door: the purchase price plus ocean freight, port and terminal charges, customs brokerage, inland delivery and import duty. Dividing it by the number of units gives the true cost per unit, which is the figure you need for pricing and margin decisions, for both FCL and LCL shipments. It works with any currency.

How it is calculated

• Duty = (goods value + ocean freight) × duty rate ÷ 100
• Total landed = goods value + ocean freight + terminal & port charges + customs broker & inland + duty
• Landed cost per unit = total landed ÷ units
• Logistics + duty per unit = (total landed − goods value) ÷ units

Here duty is charged on a CIF-style value (goods plus freight). Insurance is not a separate input, so add it to freight if your customs value includes it.

The principle

The supplier's unit price is only the starting point. Every shipment carries fixed costs (a container, a broker's fee, terminal handling) that are spread over all the units on board, plus a duty that scales with the declared value. Countries differ in the base they apply duty to: many, including the EU and Korea, use a CIF value that includes freight and insurance to the port of import, while the United States generally uses a value that excludes international freight. That choice slightly changes the duty amount.

Worked example

1. Goods = 30,000 USD, freight = 2,800, port charges = 600, broker & inland = 700, duty = 5%, units = 6,000.
2. Duty = (30,000 + 2,800) × 0.05 = 1,640 USD.
3. Total landed = 30,000 + 2,800 + 600 + 700 + 1,640 = 35,740.00 USD.
4. Per unit = 35,740 ÷ 6,000 = 5.957 → 5.96 USD.
5. Logistics + duty per unit = 5,740 ÷ 6,000 = 0.957 → 0.96 USD.

How to read the result

In the example, logistics and duty add about 19% on top of the 5.00 USD factory price. If that share is large, consider shipping more units per container, switching from LCL to FCL, or checking whether a preferential tariff under a trade agreement applies. Use the landed cost, not the factory price, as the base for markup and margin.

Common mistakes

• Forgetting import VAT or GST, which is usually collected on top of duty (it is often recoverable for registered businesses, which is why it is not included here).
• Using the wrong duty base (CIF vs FOB) for your country.
• Ignoring currency conversion costs and demurrage or storage fees.

Frequently asked questions

What is the difference between FCL and LCL?

FCL means you book a whole container; LCL means your cargo shares a container and is priced by volume or weight. LCL often costs more per cubic metre but less in total for small shipments.

Does landed cost include inland transport?

Yes, it should include everything up to your warehouse. Here it sits in the broker & inland field.

How do I find my duty rate?

Find the product's HS code and look up the rate in the importing country's official tariff schedule.

Sources: International Chamber of Commerce, Incoterms 2020 · WTO Agreement on Implementation of Article VII of GATT 1994 (Customs Valuation Agreement)