First Leg cost is not a single number. It is eight or nine stages added together. Only when you know where the money goes can you know where to save.
What the First Leg includes
The First Leg covers the whole process from the seller's factory to warehouse check-in in the US.
It can be split into three parts: the origin port part, the main carriage part, and the part from destination port to warehouse check-in.
Each part has its own cost items and billing units.
Quoting only one part is not a complete quotation.
Full cost structure
| Stage | Common cost items | Billing unit |
|---|---|---|
| Domestic pickup | Door pickup, warehouse entry fee | per truck / per CBM |
| Export declaration | Customs declaration fee, document fee | per shipment |
| Origin port | Port charges, handling, seal | per container / per shipment |
| Main carriage | Ocean freight O/F, fuel surcharge | per container / per CBM / per kg |
| Destination port | Destination port charges, terminal handling | per container / per CBM |
| Import clearance | Customs broker, ISF, duty | per shipment / per cargo value |
| Container pickup and delivery | Container pickup, truck delivery, liftgate | per container / per pallet / per CBM |
| Warehouse check-in | Check-in appointment, waiting fee | per shipment / per hour |
Apart from the freight rate itself, everything else counts as local charges and surcharges, and these are the main source of quotation differences.
Step-by-step estimate
Example: one shipment of 200 cartons, each 60×40×30cm and 18kg, totalling 14.4 CBM and 3600kg, shipped via US West Coast Ocean + Parcel to an FBA warehouse.
Step one, calculate the chargeable volume: 14.4 CBM, 3.6 tonnes, billed per CBM.
Step two, list origin port items: pickup, customs declaration, port charges.
Step three, list main carriage items: ocean freight and current surcharges.
Step four, list destination port items: destination port charges, customs clearance, ISF.
Step five, list Last Mile items: container pickup, delivery, check-in appointment.
Only the sum of these five gives the total First Leg cost for this shipment. Each amount fluctuates with lane, season and port conditions, subject to live quotations.
Which costs change with the season
Ocean freight: rises when space is tight in peak season.
Destination port charges: may be added when ports are congested or on strike.
Space guarantee fee: may arise in peak season to secure space.
Demurrage and detention: arises when clearance or container pickup is slow.
Which costs you create yourself
Amendment fee: changing the commodity name, carton count or delivery address requires an amendment.
Second customs declaration: inaccurate declaration leads to a Customs Exam.
Storage fee: cargo arrives but is not picked up, piling up at the port area or overseas warehouse.
Giving all the data at once can save more than half of these costs.
How to compare quotes fairly
First check whether the quote includes destination port charges and customs clearance. A low price that only covers ocean freight is meaningless.
Then check whether it includes Last Mile delivery and check-in appointment.
Finally check the billing basis: per CBM, per kg or per container.
If the basis is inconsistent, the price difference you calculate is fake.
