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> freight was becoming 50-100% or more of total landed cost How can freight be more than 100% of total cost? Everything else was zero or negative?
by chrisseaton 4y ago
> freight was becoming 50-100% or more of total landed cost
How can freight be more than 100% of total cost? Everything else was zero or negative?
- ketzo 4y agoMaybe just sloppy language, but OP might have meant “50-100% or more of the cost of producing the good itself”.
- chrisseaton 4y ago‘Landed’ means total cost for producing and getting into country.
- mediaman 4y agoYes, you're right, I meant as a percent of the FOB price of the product. So 100% of the FOB price would be 50% of the landed cost. 100% of landed cost doesn't make sense and was the wrong term.
- akira2501 4y agoA $4 item costs $4 to ship, making it $8 to get it on shore.
- chrisseaton 4y agoThat’s $8 landed so that freight is 50%.
- arcticbull 4y agoI assume they meant percentage of the cost excluding shipping. Probably shouldn't have said 'landed' but I do know of some goods that cost over 100% of BOM to ship.