FOB, CIF and EXW: Which Incoterm Actually Saves You Money?
Incoterms decide who pays, who carries the risk, and when responsibility transfers. A practical comparison of the three most common terms, and when each is the right choice.
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Shipping Cost from China to Saudi Arabia: How to Calculate It Accurately Before You Order
Freight is not one number — it is five numbers added together. Learn volumetric weight, FCL vs LCL, the hidden port charges, and how to calculate your true landed cost per unit.
The question we get most often is: "how much does shipping from China cost?" The honest answer is that there is no single number — cost changes with weight, volume, mode, port and season. But you can calculate it accurately once you understand its components.
First: volumetric weight vs actual weight
Carriers charge you on whichever is higher. For air freight, volumetric weight is:
Length × Width × Height (cm) ÷ 6000 = volumetric weight in kg
So a 60×40×50 cm carton weighing 8 kg has a volumetric weight of 20 kg. You pay for 20. This is the main reason light, bulky products are expensive by air.
For sea freight the unit is the cubic metre (CBM): length × width × height in metres.
Second: LCL or FCL?
| Type | Suits | Notes |
|---|---|---|
| LCL — partial load | Under 15 CBM | Charged per CBM, but port charges are proportionally higher and consolidation adds days |
| 20ft container | Up to ~28 CBM | Usually cheaper than LCL beyond roughly 15 CBM |
| 40ft container | Up to ~58 CBM | Best price per cubic metre |
Practical rule: if your volume exceeds 13–15 CBM, price a full container — it will usually come out cheaper.
Third: the five cost components
- Inland transport in China: factory to port or warehouse.
- Export port charges: handling, documentation, Chinese clearance.
- The freight itself: the number most people think of as "shipping".
- Destination port charges: handling, demurrage if delayed, release fees.
- Duties and VAT: customs duty per HS code plus value added tax.
New importers compare only the third number between two quotes, then discover the "cheaper" offer loaded its charges at destination.
Fourth: calculate your landed cost per unit
This is the only number that actually matters:
(Goods value + all freight costs + duty + VAT) ÷ number of units = landed cost per unit
A simplified example: 1,000 units at SAR 12 = SAR 12,000. Total freight SAR 4,500. Duty and VAT SAR 2,600. Total SAR 19,100 ÷ 1,000 = SAR 19.1 per unit. If you priced your sale assuming a cost of SAR 12, you are losing money.
Fifth: what makes prices spike
- Peak season: before Chinese New Year and major holidays, rates rise and space tightens.
- Chinese New Year: factories close for two to three weeks. Order at least two months ahead.
- Shipping-lane disruption: any crisis on major sea routes lifts container rates quickly.
- Fuel prices and exchange rates.
How to save intelligently
- Consolidate orders from several factories into one shipment via a consolidation warehouse in China.
- Improve packaging: reducing empty space inside cartons directly reduces CBM.
- Ship FOB rather than CIF so you control the carrier choice.
- Plan early — urgent air freight costs several times sea freight.
