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How Does Flexport Calculate Landed Cost Per Unit?

A breakdown of how Flexport determines "landed cost per unit" in analytics.


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Landed cost per unit is calculated by adding up the following:

  • Purchase price per unit
  • Freight cost per unit
  • Duties per unit

Purchase price per unit is listed on the commercial invoice.

Freight cost per unit is determined by multiplying the total freight cost by the percentage of the “primary cost driver" that a given unit represents. If we do not have, for example, the volume of a unit when the primary cost driver is volume, we simply divide the total volume by the total number of units.

Primary cost drivers are as follows:

  • Air: Chargeable weight
  • Rail: Total volume
  • Truck: Chargeable volume
  • Ocean FCL: Total volume
  • Ocean LCL: Chargeable volume

Duties per unit are determined based on the commercial invoice value of each unit type, as a portion of the total duties paid for products with that unit’s HTS code.

In other words: total duties per HTS code are apportioned by commercial invoice value per product, which is then further divided by the number of products of that type.

How can I see the landed cost per unit for my products?

Landed cost per unit is one of the many metrics you may access from the Reports tab.

From the Reports tab, click Analytics.

  1. At the top of the Analytics page, choose Products.
  2. Select Landed Cost/Unit from the Metric drop-down menu.
  3. You may also wish to adjust the Time Series and Segregated By drop-down menus to adjust your view of this data.

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