Reference

First-mile freight

The first leg is where a supplier quote turns into a real landed cost — or into a surprise invoice at the destination port. These pages cover the decisions that change who pays, what can fly, and which line items a forwarder quote must show.

The first mile sets the cash cycle

Sea freight lowers the unit cost but ties up cash for weeks; air and express shorten the cycle at a higher rate per kilogram. The right mode depends on margin density, demand certainty and how much inventory the business can finance. A single headline rate does not answer that question.

DDP and DAP change more than the invoice. Under DDP the seller arranges and pays import clearance, duty and VAT; under DAP the importer does. That decides who needs a VAT registration, who carries the compliance risk and who appears as importer of record.

Model the whole quote, not the freight line

Origin handling, export documents, fuel, dangerous-goods surcharges, destination handling, customs, duty, VAT, insurance, demurrage and last-mile delivery all sit in the same shipment. Two quotes with the same per-kg rate can differ by more than the freight itself once the fixed charges are counted.

The first-mile calculator compares sea LCL, air and express on the same cartons, then splits DDP and DAP. Use it before you accept a supplier's delivered price or a forwarder's all-in quote.

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DDP versus DAPDDP puts duty and import VAT on the seller; DAP leaves clearance and import taxes to the buyer. The difference decides the importer of record and the cash at the border. LCL minimums and destination chargesLCL is priced per cubic metre with a minimum, plus origin and destination handling. On small shipments the fixed charges often exceed the freight itself. Shipping batteries by air and seaLithium batteries are dangerous goods. Air carriage needs UN38.3 evidence, an MSDS, compliant packaging and a carrier that accepts the UN number; surcharges and restrictions follow. FBA first-mile requirementsAmazon FBA first-mile shipments need a shipping plan, compliant carton and pallet labels, an appointment and a delivery window. Small label errors become receiving delays. Freight quote comparison checklistTwo freight quotes are only comparable when the same scope is included. Check origin, freight, surcharges, destination, customs, duty, VAT, insurance and demurrage line by line. China to US, EU and UK planning lanesUse lane-level transit ranges to plan cash and stock, then confirm with a forwarder. Sea, rail, air and express trade cost against time differently on each destination. LCL versus FCL break-evenLCL scales with cubic metres, FCL is a flat container price. The crossover is where the LCL variable cost overtakes the container plus its fixed charges. FCL container utilisation and loading limitsA container is limited by cubic capacity, payload and door dimensions. Planning against nominal capacity leaves cargo behind or overweight. Pallet loading and pallet limitsA pallet is limited by deck footprint, cargo height and gross weight. The footprint sets the layer count; height and weight set how many layers survive.

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The first mile sets the cash cycle

Model the whole quote, not the freight line

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Use these with

First-Mile Freight Calculator

Landed Cost Calculator

CBM calculator

Shipping cost calculator

Tell me when the rules change

Ask a compliance question