Worked examples
LCL ocean shipment
| Total shipment cost | $1,800.00 |
| Units in shipment | 500 |
| Shipping cost per unit | $3.60 |
| Cost per 100 units | $360.00 |
$3.60 per unit — the number that belongs in landed cost, not the $1,800.
Small air-freight restock
| Total shipment cost | $240.00 |
| Units in shipment | 48 |
| Shipping cost per unit | $5.00 |
| Cost per 100 units | $500.00 |
Rush restocks cost $5.00 per unit — often more than the ocean rate per unit ×3.
Frequently asked questions
What should the total shipment cost include?
Every charge tied to moving that shipment: the freight itself, origin and destination handling, documentation fees, customs brokerage, and final delivery to your warehouse. Leave out duty — it scales with product value, not shipment size, so it is cleaner to track as its own line in landed cost.
My shipment mixes several products — how do I split the cost?
Allocate by the resource the freight actually consumed: volume for ocean (each SKU’s share of CBM) or chargeable weight for air. Splitting evenly per unit overcharges small items and subsidizes bulky ones — a pallet of pillows should carry far more of the bill than a carton of phone cases.
How much does order size change my shipping cost per unit?
Dramatically, because a large share of any freight bill is fixed. If $650 of an $1,800 bill is fixed charges, doubling the order from 500 to 1,000 units drops the per-unit cost from $3.60 to roughly $2.45. That curve is the quantitative case for larger, less frequent replenishment orders.
Should I use air or ocean numbers when pricing a product?
Price against your steady-state mode — usually ocean — but know your air number, because stockouts happen. A healthy pattern is pricing on the ocean per-unit cost while keeping enough margin that an occasional air restock at 3–5× the freight cost dents profit instead of erasing it.
Related calculators
- Landed Cost Calculator
- Import Duty Calculator
- Customs VAT Calculator
- Break-even ROAS Calculator
- All calculators
Part of the Shipping & Landed Cost collection.