B2B Trade

Landed Cost: FOB, Phyto Fees & Air Freight

How DHL volumetric weight, phytosanitary fees and customs tariffs set landed cost for live plant consignments, and why fixed costs dominate small orders.

Foliaria Commercial Economics Team••7 min read
Landed Cost: FOB, Phyto Fees & Air Freight

For commercial plant shops and nursery importers, calculating the true **Total Landed Cost per Plant** is the difference between thriving profit margins and unexpected operational losses. In international botanical trade, shipping live cargo involves more than simply adding up the purchase price of the plants.

The Formula for Total Landed Cost

A transparent landed cost calculation encompasses four distinct financial components:

$$\text{Total Landed Cost} = \text{FOB Plant Cost} + \text{Phytosanitary Certification} + \text{DHL Express Airfreight} + \text{Destination Import Duties}$$

Understanding DHL Volumetric Freight (DIM Weight)

Air-cargo carriers charge based on whichever is greater: actual physical weight (kg) or volumetric weight. Volumetric weight is calculated using the International Air Transport Association (IATA) standard formula:

$$\text{Volumetric Weight (kg)} = \frac{\text{Length (cm)} \times \text{Width (cm)} \times \text{Height (cm)}}{5000}$$

Because bare-root plants are lightweight but require rigid protective boxes to prevent leaf crushing, botanical shipments are almost always billed on volumetric weight. A standard Foliaria export box measures 45cm x 35cm x 30cm = 9.45 kg volumetric weight, capable of holding 15 to 20 medium-sized aroids.

Diluting Fixed Costs Across a Consignment

Government phytosanitary inspection fees ($35.00) are charged per shipment, regardless of whether you order 2 plants or 50 plants. Our 20-plant minimum order quantity is what makes the per-specimen arithmetic work: fixed certification and base freight costs spread across more units as the consignment grows. Volume discounts are separate from that minimum and step up in three tiers — 3% from 30 plants, 5% from 100 plants, and 8% from 300 plants.

Topic Tags:#Landed Cost#Volumetric Freight#DHL Express#B2B Economics#Consignment
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