Landed Cost Calculation

Landed cost is the sum of expenses associated with shipping a product. Typically, the term refers to costs connected with international shipping like taxes and fees. If your business ships to international customers regularly or imports or exports goods, then you’ll need to know the landed cost for each different type of product to achieve optimal pricing on your merchandise. There are several fees that are included in landed cost: Insurance: Insuring your merchandise is essential. It protects you against lost, stolen, or damaged goods.

• Customs: Each country has specific fees and regulations associated with importing and exporting goods.
• Exchange rates: It pays in the long run to keep the fluidity of exchange rates in mind when establishing product prices.
• Demurrage fees: Shipping lines frequently charge demurrage fees for containers sitting beyond the free time allotted inside a port or terminal. These fees increase the longer the containers remain onsite.
• Port charges: There are various port charges, so associated fees vary depending on the package’s destination. Shippers can experience early or late port charges, demurrage fees, or even cancellation costs.