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LandedCost

How to split container costs across products

A $2,400 freight bill and four different products — divide it wrong and you'll kill a profitable SKU and keep a losing one. Here's the method forwarders use.

check_circleSea freight: split by volume (CBM) — that's how the carrier charged you
check_circleAir freight: split by chargeable weight (higher of actual vs volumetric)
check_circleDuty: never split — it's calculated per product from its own HS code
$2,400 ocean freight, split by volume28.4 CBM TOTAL
Bamboo boards · 9.6 CBM$811
Utensil sets · 8.1 CBM$684
Mixing bowls · 6.5 CBM$549
Small boards · 4.2 CBM$356
vs. equal split: mixing bowls were undercosted by$51

Six methods, one click each: the platform re-allocates instantly when you switch — no formula surgery.

Save it as a real shipment →

The five methods — and when each is right

$2,400 of ocean freight across four products, 28.4 m³ total

1
By volume — the sea default$811 → boards

Costs follow container space, exactly how the carrier priced it. Right for almost every sea shipment with mixed product sizes.

2
By chargeable weight — the air defaultkg-based

Airlines bill the higher of actual and volumetric weight, so your allocation should too. Using actual weight alone under-costs bulky-light products.

3
By units or by valuesituational

Units works when products are near-identical in size; value suits insurance-like costs where exposure follows price. Both mislead for freight on mixed cargo.

4
Never split dutyper HS code

Duty isn't a shared cost — each product generates its own duty from its own HS rate. Splitting a duty total across SKUs double-distorts everything.

5
The equal-split trap−$51 on bowls

The spreadsheet default. On this shipment it under-costs the bulkiest SKU by $51 — enough to make a loss-making product look marginally profitable.

Common questions

Which method do forwarders actually bill by?expand_more

Sea: per cubic metre (or flat per container, which volume allocation mirrors). Air: chargeable weight. Your allocation should copy your invoice's logic.

Do I have to redo it when costs change?expand_more

No — allocation re-runs automatically whenever a cost is added or edited, and switching methods is one click with every per-unit figure re-flowing instantly.

What about a mixed shipment (air + sea)?expand_more

Allocate each cost by its own method — the sea freight by volume, the air top-up by chargeable weight. Costs carry their own basis; they don't share one.

Cost engine

Allocate like a forwarder, not a spreadsheet.

A freight bill split the wrong way makes your best product subsidise your worst — and you'll never see it happen in a flat-percentage spreadsheet.