Buyers compare FOB prices and are surprised by the invoice at the port. Here is a real order, with every number.

## The order

2,000 pieces of a 30W LED flood light, FOB Ningbo, USD 13.00 per unit. FOB value: **USD 26,000**. Cartons: 200, total 18.6 CBM, 3,400 kg. Destination: Los Angeles, USA. HS code 9405.42.

## Line by line

| Item | Basis | Amount (USD) |
|---|---|---|
| FOB goods value | 2,000 × 13.00 | 26,000 |
| Origin THC and doc fee | per container | 260 |
| Ocean freight (LCL, 18.6 CBM) | USD 78/CBM + 120 BAF | 1,571 |
| Cargo insurance | 0.35% of CIF | 97 |
| US import duty | 3.9% of customs value | 1,014 |
| MPF (merchandise processing fee) | 0.3464%, min 32.71 / max 634.62 | 94 |
| HMF (harbor maintenance fee) | 0.125% | 34 |
| Customs broker | per entry | 145 |
| Port fees and delivery order | per shipment | 185 |
| Inland delivery to warehouse | LA local | 320 |
| Pre-shipment inspection | 1 man-day | 299 |
| **Landed total** | | **30,019** |

## What that means per unit

USD 30,019 ÷ 2,000 = **USD 15.01 landed**, versus a USD 13.00 FOB price. That is a 15.5% uplift before you have sold anything, before Amazon fees, before marketing.

If the same order shipped as a full container the maths improves: a 40HQ holds roughly 68 CBM, so freight per unit drops by around 40%. At 5,100 units in one container, the ocean freight element per unit falls from USD 0.79 to USD 0.47.

## The costs buyers forget

**Origin charges.** FOB does not always include THC and documentation. Ask explicitly.

**MPF cap.** In the US, the merchandise processing fee caps at USD 634.62 per entry. Splitting a large order into multiple entries costs more, not less.

**Inspection.** Skipping it saves USD 299 and risks the whole USD 26,000. The maths is not close.

**Rework.** If 4% of units fail on arrival and must be replaced, you pay freight twice. A pre-shipment inspection at AQL 2.5 is the cheapest insurance in the chain.

**Cash-flow cost.** A 30/70 payment schedule means your money is committed for roughly 60 days before goods are sellable. At 8% annual cost of capital, that is about USD 340 on this order.

## A quick rule of thumb

For a sea shipment from China to the US or EU, budget **1.14–1.22 × FOB** to reach your door, excluding VAT/GST. For air freight on higher-value goods, budget 1.25–1.45 × FOB.

Use that to sanity-check any quotation that looks unusually cheap. If a supplier's FOB is 30% below everyone else and everything else looks identical, the difference is usually in the specification, not in their efficiency.