Freight can be a large share of the cost of an imported product, particularly if the goods are bulky. Much of the cost depends on decisions you make before the container is closed: how much you send at once, how the goods are packed and how the space is used. Importers who plan the load carefully pay less per unit and see fewer damaged goods.
Know how freight is charged
Sea freight is charged per container for a full load, or by the cubic metre or tonne, whichever is greater, for shared loads. Air freight is charged on the greater of actual and volumetric weight. Either way, you are paying for space and weight, and empty space costs as much as full space. Air freight vs sea freight for Kenyan importers compares the two.
Full container or shared load?
A full container load, FCL, gives you a whole container for your goods alone. It is usually better value once you have enough cargo to fill a good part of the container, and it is less exposed to handling and delays. A less-than-container load, LCL, shares a container with other importers' goods. It suits smaller volumes but costs more per cubic metre, adds handling and may take longer because of consolidation. Compare the quotes for both at your volume.
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Pick the right container size
Standard containers come in 20-foot and 40-foot sizes, plus high-cube versions. Check the internal volume and the weight limit for each. A 20-foot container often hits its weight limit before its volume limit with heavy goods, while light bulky goods fill the volume first. Ask your forwarder for the maximum payload and match your goods to it.
Pack for space and protection
Plan the packaging so the goods use space efficiently without being damaged. Use cartons of consistent size that stack well, avoid oversized boxes with air inside and use pallets where the cargo needs them. Over-packaging wastes space; under-packaging costs more in breakage. Ask the supplier for the carton dimensions and the quantity per carton, and calculate how many cartons fit.
Do the loading plan
Before ordering, estimate the total volume and weight: the number of cartons multiplied by the volume and weight of each. Compare with the container's limits. If you are slightly over, adjust the order or the packing. If you are well under, consider adding another product or ordering more of the current one. A simple spreadsheet is enough, and the figures feed directly into the import duty and landed cost workbook.
Consolidate orders
If you buy from several suppliers in the same country, ask a freight forwarder to consolidate them into one container. This lowers the cost per unit compared with several small shipments, though it needs coordination and cargo ready at the same time. Weigh the saving against the delay of waiting for the slowest supplier.
Choose delivery terms carefully
The terms you agree with the supplier decide who arranges and pays for freight. Under some terms, the supplier books freight and may choose the carrier and the route; under others, you do. If you have a good forwarder, controlling the freight yourself often saves money. Incoterms explained for importers shows the options.
Mind the documents and the declared weight
The weights and volumes on your documents must be accurate; how to read a bill of lading and a packing list explains the fields. Errors can lead to extra charges or customs queries, and overweight containers risk fines and safety problems. Ask for a verified gross mass where the rules require it.
Insure the cargo
Freight rates are not the only cost. Damage, theft or loss in transit can wipe out a shipment's profit. Marine cargo insurance for importers explained shows what cover is available and what to check.
Count the whole cost
Freight is one part of the landed cost. Add duty, VAT, clearing, port charges and local transport using the landed cost calculator, and compare the cost per unit between options. A larger, cheaper shipment is not better if it ties up cash in stock you cannot sell. How to lower your landed cost legally lists more ways to save.
Compare quotes and review the results
Get quotes from at least two forwarders for the same route, container and terms, and check what is included: port charges, documentation, inland haulage. After each shipment, compare the actual cost with the quote and note what differed. Over time you will learn which routes and partners give the best value, and which loads fit your products best. Careful planning of the load is one of the simplest ways to protect your margin.
Related reading
See also how to calculate import duty on goods, IDF and RDL explained, clearing agent or clear it yourself and customs valuation explained, with the import duty and landed cost workbook to compare quotes.
Related tools and reading
- Free calculator: Import Duty Calculator for Goods
- Free calculator: Landed Cost Calculator
- Free calculator: Car Import Duty Calculator
- Excel template: Import duty and landed cost workbook
- Excel template: Individual tax return workpaper
- Excel template: Capital allowances schedule by class
- Guide: Air freight vs sea freight for Kenyan importers: costs, speed and risks
- Guide: How to read a bill of lading and a packing list
- Guide: How to lower your landed cost legally