How It Works
How to Calculate Freight Shipping Costs
5 min read
A shipping quote is more than a single freight rate. Understanding the components helps you compare quotes fairly and budget for the true landed cost of your goods.
The main cost components
- Base freight: the core charge for moving the container or cargo.
- Surcharges: fuel (BAF), currency (CAF), peak-season and similar add-ons.
- Origin charges: pickup, handling, customs and terminal handling at origin.
- Destination charges: terminal handling, clearance and delivery.
- Duty and taxes: customs duty and IGST on imports.
Landed cost
Landed cost is the total cost to get goods to your door: product price plus freight, insurance, surcharges, local charges, duty and taxes. Comparing quotes on landed cost, not just base freight, avoids unpleasant surprises.