The FOB quote is the easiest number to get and the worst number to plan around. FOB is the price at the Chinese port; everything that makes the diaper land on your shelf — ocean freight, insurance, duty, VAT, port and inland — is still yours. Here is the landed-cost formula buyers actually use, with a worked example.
If the terms are new: FOB = free on board at the Chinese port; CIF = cost + insurance + freight to your port; EXW = ex-works, you collect from the factory. CBM = cubic meters; a 40HQ is about 68–76 CBM. HS 9619 is the diaper customs code. AQL is the inspection sampling plan.
The landed-cost formula
Write it once and reuse it:
Landed cost per piece = (FOB + Ocean freight + Insurance + Import duty + VAT/GST + Port charges + Inland trucking) ÷ Pieces in the container
The mistake is stopping at FOB + freight. Duty and VAT often exceed the freight on a low-value, high-volume product like diapers, so leaving them out is how a "profitable" container loses money.
The real number is the one after duty and VAT, not the FOB line.
CBM and why pack density decides freight
Ocean freight is sold by CBM or by weight, whichever is greater. A 40HQ holds roughly 68–76 CBM; a baby diaper pack is light but bulky, so you usually pay by volume. Tighter packs (more pieces per carton, smaller carton) raise pieces per CBM and drop the freight per piece. This is why the manufacturer guide ties MOQ to how full your 40HQ is — the container math is the price.
| Cost block | What it is | Typical where it sits |
|---|---|---|
| FOB | Factory to Chinese port | Quoted |
| Ocean freight | China port to your port (per CBM) | ~$40–120 / CBM (volatile) |
| Insurance | ~110% of cargo value | ~0.3–0.6% |
| Import duty | HS 9619 × customs value | 0–10% by country |
| VAT / GST | On (CIF + duty) | Varies by market |
| Port + inland | Handling, drayage, last-mile | Local quote |
Worked example: one 40HQ
Take a 40HQ of baby diapers: 50,000 packs, FOB $0.30/pack = $15,000. Ocean freight say $3,500. Insurance ~$100. Duty 0% (many markets zero diapers) but VAT 10% on (CIF $18,600) = $1,860. Port + inland $1,200. Total landed = $15,000 + $3,500 + $100 + $0 + $1,860 + $1,200 = $21,660. Per piece = $21,660 ÷ 50,000 = $0.433 vs the $0.30 FOB quote. That 44% gap is the number your margin lives or dies on.
Where importers quietly lose money
Three spots: (1) forgetting VAT, which on diapers is often the largest single add; (2) assuming freight stays put when it moves weekly; (3) ignoring pack density, so they pay volume freight on air. The step-by-step import guide puts this cost into the order sequence; the napkin guide shows how mixing products in one 40HQ spreads the freight thinner.
Frequently Asked Questions
What is the difference between FOB and landed cost?
FOB is the price at the Chinese port. Landed cost adds ocean freight, insurance, import duty, VAT/GST, port charges and inland trucking, divided by pieces in the container. For diapers, VAT alone can be the biggest single add after FOB.
How do I estimate ocean freight per piece?
Freight is per CBM (or weight, whichever is greater). Divide total freight by the CBM your 40HQ holds (~68–76), then by pieces per CBM. Tighter packs raise pieces per CBM and lower the freight per piece.
What is the HS code for baby diapers?
Diapers fall under HS 9619 (sanitary towels, diapers and similar articles). Duty varies by destination market — confirm the rate with your broker, since it drives the landed number more than freight does in some countries.
Why does pack density matter so much?
Diapers are light but bulky, so you usually pay ocean freight by volume. More pieces per carton and a smaller carton raise pieces per CBM and cut the freight cost per piece — often more than a small FOB discount does.
Key Takeaways for Calculating True Diaper Cost
- FOB is not the price. Landed = FOB + freight + insurance + duty + VAT + port + inland, per piece.
- VAT is the quiet giant. On diapers it is often the largest add after FOB — never leave it out.
- Pack density is freight. Tighter packs drop the per-piece ocean cost more than a small unit discount.
- Quote freight weekly. It moves; lock it before you promise a margin.
Conclusion
The true cost of baby diapers is the landed number, not the FOB line — typically 40%+ higher once VAT and freight land. Build the formula once, feed it your 40HQ math, and you will know your margin before you sign. The import checklist turns this into the steps to actually ship it.
Want a landed-cost worksheet on your own volumes? Our export desk will run your 40HQ numbers with current freight.
