AnalysisChina trade · What the lane quote leaves out
Why is shipping from China so expensive, when the ocean rate is only half the bill?
The ocean rate is the visible half. Drewry assessed a 40-foot container on its composite index at $4,374 in the reading of 07/23/2026, down 4% on the week — and for a full container that rate is typically around 70% of the delivered total, falling to 35-45% on consolidated cargo. The rest is carrier surcharges, federal fees, duty under whatever measures are in force, and the destination lines that arrive after the quote was accepted.
Spot rates move weekly, and that is the answer to half the question
Container spot rates reprice every week and swing on capacity, not on cost. A rate that looks high against last year and low against last month is both, and neither figure is your quote: index composites average many shippers, many volumes and many contract positions.
Read a published index as context and never as a price. A small shipper's quote sits above the composite more often than below it, and the gap widens when capacity tightens.
The surcharges that ride on top
| Surcharge | What it covers | Charged on |
|---|---|---|
| THC | Terminal handling, each end | Per container |
| BAF | Bunker adjustment, fuel | Per container |
| PSS | Peak season | Per container or per CBM |
| GRI | General rate increase | Per container |
| ISPS | Port security | Per container |
| CAF | Currency adjustment | Percentage of freight |
A general rate increase is announced with an effective date and is sometimes withdrawn before it lands. The date is the part worth tracking: an increase announced for the 15th changes what a booking on the 14th is worth.
The federal lines, which are fixed and calculable
Two US fees are not negotiable and are computable in advance. The merchandise processing fee is 0.3464% of entered value with a floor of $33.58 and a ceiling of $651.50 per formal entry. The harbor maintenance fee is 0.125% of cargo value, applies to vessel arrivals only, and carries no floor or ceiling.
Duty is the variable that dwarfs both, and no average exists for it. The rate turns on the HTSUS classification of the specific goods, the country of origin and any measures in force under Sections 232 and 301. A calculator supplying an average duty rate is guessing on your behalf.
DDP is where the surprise usually lives
Most China-to-USA quotes to small importers are sold as DDP — delivered duty paid — and the phrase does a lot of quiet work. Under DDP the seller or its forwarder handles export, freight, entry and duty, and the buyer sees one number.
The question DDP does not answer is who is the importer of record. If entry is filed under an arrangement the buyer never saw, the buyer may still carry the compliance exposure while having no visibility of the classification used. Of the 31 pages SeaRates measured ranking for this lane, almost none explains what DDP means for the buyer rather than for the seller.
Where this goes next
Three pages carry the rest of this question: the number behind it, the comparison of whoever would do it, and the check that runs before you pay.
- the landed-cost model and what it deliberately does not price — the figure behind it
- what the China to USA lists are built on — who does it
- how to read a company out of the federal register — check the licence
Two neighbouring pieces sit closer to this one than any of them: and why the same box can bill two different amounts, and How much does a 50 lb package cost to ship.
Frequently asked questions
Why is shipping from China so expensive?
The ocean rate is roughly 70% of a full-container delivered total and 35-45% of a consolidated one. The rest is surcharges, the federal fees, duty under the measures in force, and destination charges that arrive after the quote.
How expensive is shipping from China to the US?
Drewry assessed a 40-foot container on its composite at $4,374 in the reading of 07/23/2026, down 4% on the week. That is an index composite across many shippers, not a quote for one shipment.
What is a GRI and when does it take effect?
A general rate increase is a carrier-announced uplift with a stated effective date. The date matters more than the amount, because increases announced and then withdrawn are common.
What does DDP actually include?
Whatever the seller says it does. The gap to check is who is the importer of record and which classification was used for entry, because the compliance exposure can sit with the buyer while the visibility does not.
Can I predict the duty?
Not from an average, because none exists. Duty depends on the HTSUS line for the specific goods, the country of origin and any Section 232 or 301 measures in force on the entry date.
Sources
- Drewry World Container Index, $4,374 per 40-foot container, assessed 07/23/2026, down 4%.
- Customs and Border Protection — merchandise processing fee 0.3464% of entered value, floor $33.58, ceiling $651.50; harbor maintenance fee 0.125%, vessel arrivals only. Checked 07/26/2026.
- SeaRates measurement of 31 pages ranking for China to USA freight forwarder queries, 07/26/2026.
- SeaRates measurement of 299 pages ranking for landed cost queries, 07/26/2026 — share of the delivered total taken by ocean freight.