IMPORT COSTING
One container does not mean one freight cost per unit
Split shared charges using a basis that reflects what drove each cost.
A shipment from China can contain compact hardware and bulky home goods in the same container. Dividing the full freight bill by the number of units makes the spreadsheet easy to maintain, but it can make the bulky item look more profitable than it is. A better landed-cost allocation separates costs that belong to one SKU from those shared across the shipment, then gives each shared charge a documented basis.
1. Decide where the calculation stops
Define the endpoint first: port, distribution center, or another agreed delivery point. Record which transport and handling steps are included and where the figures came from. If the supplier’s price already includes a transport leg, do not add it again from a budget line. Keep the finance team’s treatment of taxes and exceptional charges separate from your logistics estimate. This is a management-cost example, not a rule for customs valuation or tax reporting.
Start with the same shipment scope you used to request rates. Our freight quote request checklist can help document what the forwarder priced. For actual charges, use the invoice-to-quote review before importing totals into your costing sheet.
2. Assign direct costs before splitting shared costs
Charge one SKU when the evidence supports it
If only one product needed repacking and the warehouse invoice identifies that product, assign the fee to it. Do not spread it to the other lines just because they share a purchase order. Record the document reference and avoid allocating the same fee a second time in a pooled total.
Choose a basis for each pool of shared charges
- Volume: useful when space drives the shared cost. Use consistently measured packed cubic meters.
- Weight: useful for a weight-driven charge. Check whether the provider used actual or another documented billable weight basis.
- Value: useful when an expense is linked to the declared or insured value, using the applicable basis confirmed by the provider.
- Quantity: useful for comparable units or a fee charged per carton; use cartons rather than saleable units when cartons drive the fee.
Formula: SKU’s share of a pool = shared charge × SKU’s basis ÷ total basis for the SKUs that benefited. Use the same unit of measure in both parts of the fraction.
3. Worked example: two SKUs, two charge pools
Assume a mixed shipment with $1,200 of shared ocean freight allocated by packed volume and $180 of shared handling allocated by carton count. SKU B also has a $90 repacking fee assigned directly. These are illustrative USD figures, not freight rates or a carrier billing method.
| Input or result | SKU A: hardware | SKU B: home goods |
|---|---|---|
| Units and cartons | 200 units / 20 cartons | 100 units / 10 cartons |
| Packed volume | 2 m³ | 6 m³ |
| Shared freight | $300 (2 of 8 m³) | $900 (6 of 8 m³) |
| Shared handling | $120 (20 of 30 cartons) | $60 (10 of 30 cartons) |
| Direct repacking | $0 | $90 |
| Total logistics add-on | $420 | $1,050 |
| Logistics add-on per unit | $2.10 | $10.50 |
The allocations add back to $1,470. If A cost $6.00 per unit and B cost $14.00 per unit, the example produces $8.10 and $24.50 per unit respectively before any other in-scope charges. By contrast, dividing all $1,470 by the combined 300 units assigns $4.90 to every unit and obscures the space used by B.
4. Reconcile estimates without losing the original decision
- Use one line per charge, with invoice reference, currency, basis, included SKUs and the person responsible for approving exceptions.
- Keep the original estimate and invoice amount in separate columns. Record the exchange rate and date used under your policy.
- Reconcile each pool to the amount allocated. Flag blank dimensions, zero denominators or missing carton counts; do not silently switch methods.
- Round at the end and handle any residual using a consistent documented rule. Reconcile credit notes to the original line.
- Track one-off exceptions separately so a repacking or delay charge does not distort the next purchasing estimate.
FAQ
Should an LCL shipment use the carrier’s rating formula as the allocation rule?
Not automatically. Reconcile the actual bill first. If it was rated at shipment level or includes a minimum, agree how to assign the total internally. If you are comparing shipment modes, see our LCL versus FCL decision guide.
What if units arrive damaged or short?
Keep shipped and received quantities separate. Do not quietly change your denominator. Ask finance how losses or claims should be handled, and retain the warehouse discrepancy record alongside the costing file.
Sources checked November 6, 2026: Oracle Landed Cost Management and Microsoft Dynamics 365 Landed Cost document apportionment by bases such as quantity, weight, volume and value. The example above is original and illustrative.
Featured stock photograph: Maor Attias / Pexels original, cropped under the Pexels License. It does not depict a Vastlog facility.
