Understanding the International Shipping Stack

One of the biggest mistakes new importers make is looking up an "Ocean Freight Rate" from Shanghai to Los Angeles ($4,200), and assuming that is the total cost of logistics. In reality, moving a 40-foot steel container from a factory in China to a warehouse in Ohio involves three distinct phases, each with its own massive costs.

Phase 1: Origin Logistics

Before the cargo can ever see a ship, it must get to the port. You have to pay a local trucker to drive the empty container to the factory, wait for it to be loaded, and drive it to the port terminal. You also have to pay export customs clearance and terminal handling charges (THC) to the port authorities to lift the box via crane.

Phase 2: The Main Freight Leg

This is the core fee paid to the ocean carrier (e.g., Maersk or MSC) to physically sail the box across the ocean. It often includes a Bunker Adjustment Factor (BAF) which fluctuates with global fuel prices.

Phase 3: Destination Logistics & Duties

This is where "sticker shock" happens. Once the ship arrives, you must pay the destination port THC to unload it. You must pay a customs broker to clear it, and you must pay your government import duties and tariffs. Finally, you have to hire a domestic trucker to haul it out of the chaotic port (Drayage) and bring it to your final warehouse.

Why Use This Calculator?

This tool models a true Door-to-Door (D2D) scenario. If you are importing goods using EXW or FOB terms, you are responsible for multiple layers of this stack. Failing to account for destination drayage or import duties can completely wipe out your product's profit margin before it ever reaches your shelves.