A practical, line‑by‑line breakdown to calculate landed cost per kg for Indonesian frozen vegetables. We cover FOB Surabaya vs CIF, reefer charges, HS 0710 duty, LCL vs FCL break‑even, a 40’ HC reefer load plan, and the hidden fees that catch most buyers.
We’ve helped first-time importers and seasoned procurement teams shave 8–18% off landed cost on Indonesian IQF vegetables. The biggest wins don’t come from haggling a few cents on FOB. They come from getting the math, the load plan, and the reefer logistics right.
The hook: how we cut landed cost from $1.85/kg to $1.52/kg in 90 days
We applied a simple system on a Europe lane for IQF veg blends. We optimized the 40’ reefer load, switched from CIF to FOB Surabaya with our own freight, tightened free-time management, and clarified net weight terms for glaze/drip. The result: $0.33/kg saved without touching raw material quality.
The 3 pillars of landed-cost control
- Control the Incoterms and net weight basis. Buy on FOB Surabaya price if you can manage freight. Make sure price is per true net weight, not glazed or “drained weight” unless explicitly agreed.
- Make the reefer work for you. Fill the cube and weight safely. Protect free time. Avoid plug-in surprises.
- Get the HS/duty and paperwork clean from day one. HS 0710 classification drives duty and clearance speed. Bad codes and missing docs add days and dollars.
Week 1–2: Validate the lane, HS code, and packaging
How do I calculate landed cost per kg for Indonesian IQF vegetables?
Use this structure. Then plug your actuals.
- Landed cost per kg = (FOB goods + ocean freight + insurance + destination port/terminal + customs clearance + import duty + inland to cold store + extras) / net kg
Example. 40’ HC reefer to Rotterdam with 24,000 kg net of Frozen Mixed Vegetables:
- FOB Surabaya price: $1.20/kg → $28,800
- Ocean freight, reefer all-in (Indonesia to Rotterdam): $5,200
- Cargo insurance: 0.5% of CIF → 0.005 × ($28,800 + $5,200) = $170
- Destination charges: THC + D/O + customs broker + 1 day plug-in + drayage to cold store = $1,020
- Import duty (scenario A 0%): $0
- Landed cost = ($28,800 + $5,200 + $170 + $1,020) / 24,000 = $1.46/kg
- If duty is 10% of CIF: 10% × ($28,800 + $5,200 + $170) = $3,417 → landed = $1.60/kg
Takeaway: duty rate and destination fees move the needle as much as a $0.05/kg FOB discount.
Which HS code should I use to estimate duty?
For frozen vegetables, HS Chapter 07.10 (HS 0710) is the starting point. Subheadings depend on the vegetable and cut.
- Edamame often falls under other beans. Corn, okra, bell peppers, mixed veg each have specific subheadings.
- Duty varies by destination. In the EU, many HS 0710 lines are 0–14% depending on product and season. In the US, several are MFN duty-free, some carry low ad valorem rates. Verify in your destination’s tariff database before you quote.
- Request your supplier’s HS code and a draft commercial invoice early. A quick call with your customs broker now can prevent a painful reclassification later.
Do glaze and drip loss affect the price I pay per net weight?
They can. Vegetables are generally sold on net weight. If there’s any protective ice glaze, confirm the contract states “price per kg NET, glaze excluded.” For blanched IQF items like Premium Frozen Edamame or Premium Frozen Sweet Corn, drip loss can vary by processing. We recommend buyer QC tests for drip and specifying QC tolerances in the PO. It prevents disputes and keeps your margin predictable.
Week 3–6: Trial shipments and the FCL vs LCL decision
When does a full 40’ reefer become cheaper than LCL?
Work with actual LCL rates on your lane, but a useful model is:
- LCL reefer cost = (rate/kg × weight) + origin/destination minimums
- FCL reefer cost ≈ fixed ocean rate + similar destination charges
If LCL rate is $0.42/kg and fixed O/D charges total $780, break-even vs a $5,200 FCL ocean rate is: 0.42x + 780 = 5,200 → x ≈ 10,523 kg. Below 10.5 tons, LCL often wins. Above that, FCL usually becomes cheaper and gives you schedule control.
LCL vs FCL reefer: where importers get tripped up
- LCL reefer availability is limited on some routes. Weeks without consolidation sailings can blow your plan.
- Cold-chain integrity. Multiple handlings raise temperature excursion risk. If your brand depends on color and crunch, an early FCL may pay for itself.
- Destination fees are per shipment. Two LCL lots can cost more in THC, D/O, and plug-ins than one FCL.
Need help modeling your lane with current rates and free-time terms? Quickly Contact us on whatsapp.
Week 7–12: Scale with a clean 40’ reefer load plan
How many cartons fit in a 40’ high-cube reefer for 1 kg bags?
Two practical baselines:
- Palletized loading
- 30 Euro pallets (120×80 cm) or 20 Industrial pallets (120×100 cm) typically fit in a 40’ HC reefer.
- At 70 cartons per Euro pallet with 10 kg master cartons → 2,100 cartons → ~21,000 kg net.
- Floor-loaded cartons
- With a 0.024 m³ carton (40×30×20 cm), using 85–90% stow, you can fit ~2,300–2,500 cartons.
- At 10 kg per carton → ~23–25 tons net. Check road weight limits at destination.
Tip: Don’t block T-floor airflow. Keep 7–10 cm headspace and obey max stacking height for IQF texture. For cut items with more fragility, like Premium Frozen Okra or Frozen Paprika (Bell Peppers), we prioritize crush-resistance over squeezing a final row.
CIF vs FOB Indonesia: which saves more?
- If your forwarder has sharp reefer rates and priority space, FOB Surabaya price usually wins. You control routing, carriers, free time, and you see every surcharge.
- CIF can be fine for smaller buyers. But clarify what’s excluded. Destination THC, D/O fee, port storage, plug-in, and customs brokerage are almost always for buyer’s account under CIF.
- Hidden surcharges to watch on CIF: reefer surcharge (RRF), pre-trip inspection (PTI), low-sulfur or environmental fuel charges (LSS), peak season surcharge (PSS), congestion or war risk. In the last six months, re-routing around the Red Sea has triggered periodic surcharges and longer transit times on some EU lanes.
Indonesian origin charges and the “invisible” costs
On FOB Surabaya:
- Port of Surabaya (Tanjung Perak) export THC for reefers, documentation, EDI/VGM filing, and PTI are typically for shipper’s account.
- If you switch to EXW/FCA, budget for domestic reefer trucking with genset, pre-cool, and any origin plug-in if the box gates in early. A day of plug-in at origin can be $25–60, monitoring $15–30.
- Exchange rate matters. Many Indonesian costs are IDR-based. A strengthening rupiah can nudge FOB USD offers up by 1–3% month to month. If your program is price-sensitive, consider quarterly price reviews tied to IDR/USD.
The 5 biggest mistakes that kill margins
- Misclassifying HS 0710. You guessed “mixed veg is always duty-free.” It isn’t. Confirm by line item and destination.
- Overpaying for air in the reefer. Poor carton size, excessive pallet overhang, or empty headspace can add $0.04–0.08/kg in freight allocation.
- Ignoring free time. Reefers often get 2–5 days terminal free time. After that, demurrage can hit $150–250/day and plug-ins $35–60/day. Detention outside the port runs $85–120/day plus genset rental.
- Buying CIF and double-paying. You accepted CIF but still paid destination THC and plug-ins. Clarify inclusions early with the forwarder listed on the bill of lading.
- Net weight misunderstandings. Price was based on net but your warehouse counted gross. Codify net/gross in the PO and on the carton markings.
Quick answers to the questions we hear most
What port and terminal charges in Indonesia add to my cost?
For FOB, they’re typically included by the exporter. If you arrange origin yourself, expect: THC export reefer, PTI, documentation, VGM, and any origin plug-in/monitoring if the unit waits on terminal. Trucking with genset from factory to Tanjung Perak is lane-dependent.
What hidden reefer surcharges should I factor into CIF from Indonesia?
Pre-trip inspection, reefer surcharges, low-sulfur fuel adjustments, peak season, congestion, and occasionally war risk. Recently, capacity tightness on Europe lanes has pushed seasonal PSS for reefers.
Destination port reefer handling charges breakdown
Common line items: terminal handling charge (THC), delivery order fee (D/O), customs broker fee, per-day plug-in and monitoring, and drayage to cold store. Some ports add security or port service fees.
Resources and next steps
- Use the landed-cost formula here with your numbers. Then test LCL vs FCL at your expected volumes. If you’re between 8–12 tons, get quotes for both and model free-time risk.
- Want a live template pre-filled for HS 0710 and your lane? Contact us on whatsapp. We’ll share a calculator with typical Port of Surabaya charges and current reefer assumptions.
- If you’re building a SKU lineup, start with efficient staples like Frozen Mixed Vegetables and Premium Frozen Sweet Corn. They fill the reefer well, carry stable demand, and simplify duty classification. Explore options here: View our products.
In our experience, importers who own their math make better buying decisions, even if they stay on CIF for a while. The reality is that landed cost isn’t one number. It’s a handful of small levers. Pull the right three, and you can be the lowest-cost, quality-consistent supplier in your market without compromising the product.