Landed Cost for Flooring Imports: What to Add Beyond the FOB Price

The FOB price is the start of the calculation, not the answer. Two suppliers with a 5% price difference can reverse places once freight, duty and handling are added. A landed cost model makes the comparison honest.

The components

Freight is not linear

Freight rates move with the route and the season. A quote that is valid for 30 days is not a cost for the year. Build the model with a range, not a single number, and update it when you book.

Duty depends on the product and the market

The duty rate depends on the classification and the destination. Confirm the HS code with your customs broker before you compare suppliers; a different classification can change the landed cost by several percent.

The hidden costs

• Repacking or relabelling at the warehouse;
• Storage while slower decors sell;
• Claims for damage or colour drift;
• Working capital tied up in stock that does not move.

These are not on the invoice, but they decide whether the order made money.

A simple model

Landed cost per square meter = (FOB + freight + insurance + duty + port charges + inland transport + handling) ÷ sellable square meters. Use sellable area, not ordered area, because damage and samples reduce it.

Comparing suppliers with the model

Run the model for each supplier with the same Incoterm and the same route. A supplier who is cheaper at FOB but packs fewer square meters per container may be more expensive at landed cost. The Incoterms guide explains how the term changes the components.

What to ask the supplier

• Cartons per pallet and pallets per container;
• Net and gross weight per container;
• Packing list with the exact coverage per carton;
• Loading plan for the decors you ordered.

With those four items, the model is accurate enough to compare quotes. Send your route and destination and we will quote FOB, CFR, CIF or DDP against your port.