A step-by-step method to turn an FOB Jakarta quote for Indonesian IQF vegetables into a true landed cost per kilogram at a US cold warehouse in 2026—explicitly factoring reefer ocean surcharges, port/handling, customs/brokerage, inland refrigerated drayage, cold storage fees, insurance, duty by HS 0710, and glaze/yield adjustments.
If you’ve ever thought you were making money on IQF imports, then found out the US landed cost was 8–10% higher than expected, you’re not alone. We’ve seen smart teams undercount reefer surcharges, misread duty lines, or divide by the wrong weight basis. The good news is there’s a clean way to model it and avoid the surprises.
We’ll show you, step by step, how to convert an FOB Jakarta (Tanjung Priok) quote into a delivered-per‑kg cost at a US cold warehouse in 2026. It’s the same framework we use when costing Indonesian IQF lines like Frozen Mixed Vegetables, Premium Frozen Sweet Corn, and Frozen Paprika (Bell Peppers) - Red, Yellow, Green & Mixed.
What costs belong in a true “landed cost per kg” in 2026?
Here’s the checklist we use. Start with FOB and build down the chain to your cold warehouse receiving dock.
- Product cost: Supplier’s FOB Jakarta price per kg. Confirm pack size, carton count, pallets, and net edible weight.
- Origin port charges: Export THC, documentation, VGM, seals, and port admin. On FOB, these are usually on the seller, but double-check what’s actually included.
- Ocean freight and reefer surcharges: Base rate for a 40’ reefer plus BAF, LSS, GRI/Peak Season, Reefer/EIS (equipment imbalance), and any carrier-specific accessorials. Get these itemized.
- Marine cargo insurance: Typically a small percent of the CIF value. Ask your broker or insurer for a current rate.
- Destination port/terminal fees: D/O (delivery order), terminal/wharfage, port security, and carrier destination charges.
- Customs and regulatory: ISF filing, customs broker entry fees, FDA Prior Notice, and any exams if selected.
- CBP fees and duty: Merchandise Processing Fee (MPF) and Harbor Maintenance Fee (HMF) usually apply. Duty depends on the exact HS code.
- Inland refrigerated drayage: Port to cold store with genset/chassis, PierPass/TMF if LA/LB, fuel surcharge, and wait time.
- Cold storage receiving: Appointment, pallet in, temp check, QA count, potential pallet exchange or purchase, and first week’s storage if applicable.
- Contingency: A small buffer for unexpected exams, overtime, or reschedules.
You’ll divide the all‑in total by the correct kilogram base. That last part is where many models go wrong. More on that next.
Should I divide by gross, net, or drained weight for glazed IQF?
We always cost on the edible net weight. If there’s protective glaze, make sure you know the declared glaze percentage and whether “net weight” excludes it. Then do the math.
- If the shipment carries 5% glaze, the shipping gross is 1.05 times the edible net. Don’t divide your landed dollars by the glazed gross. You’ll understate per‑kg cost by the glaze percent.
- Ask the supplier to show glaze on specs and invoices, and have the COA list net product weight. For lines like Premium Frozen Okra or paprika strips, a light glaze isn’t unusual.
- For customs, your broker will advise on valuation and quantity presentation. In practice, we align invoices and packing lists to the edible net weight so there’s no ambiguity.
Takeaway: Use edible net kilos for your denominator. If your ops will repack or thaw, add a realistic drip/yield assumption so you don’t blow your margin later.
Which HS code applies, and how do I find the 2026 US duty?
Most IQF vegetables fall under HTS Chapter 07. You’ll classify at the 10‑digit level based on the product.
- Common examples include 0710.40 (sweet corn), 0710.80 (other vegetables), and 0710.90 (mixtures of vegetables). Exact coding depends on the item and cut.
- To check the US rate for 2026, use the USITC’s HTS Search. Select the 10‑digit code and read the “General” duty rate. Also scan for any notes on quotas, special programs, or AD/CVD cases.
- Many IQF vegetables from Indonesia enter at Free duty under the General rate, but don’t assume. Confirm per item. Your broker should stamp the classification in writing.
If you’re building a sheet, set duty as a variable linked to the HTS line so you can reuse the template across SKUs like Premium Frozen Edamame and Frozen Mixed Vegetables.
40’ reefer costs and surcharges from Indonesia to LA in 2026
What are we seeing lately? In the last six months, carriers have kept reefer capacity tight on Transpacific lanes and adjusted free time downward in peak weeks. Bunker and low‑sulfur surcharges continue to move with fuel, and GRI or Peak Season adders show up with little notice.
- Base ocean rate: Mid‑to‑high four figures per 40’ reefer is common on Priok to LA in 2026, with peaks higher in tight weeks.
- Surcharges: Expect BAF and LSS as separate lines, plus a reefer or equipment imbalance charge. GRI/PSS can appear month‑to‑month.
- Detention/demurrage: Free time is shorter than it used to be, so plan drayage and cold storage slots early to avoid daily charges.
Here’s the thing. Whoever owns the ocean booking must share a full all‑in breakdown. We ask forwarders to freeze the accessorials in writing for the sailing window, not just the base rate.
US inland refrigerated drayage and cold storage receiving
Budget these realistically for LA/LB arrivals.
- Reefer drayage with genset and chassis: $650–$950 for 25–40 miles. Longer hauls or heavy congestion push this to $900–$1,400. Wait time is often $115–$150/hour after free time.
- Cold storage receiving: $18–$35 per pallet to receive and check temp, plus appointment and admin. Extra services like QA sampling, relabel, or pallet exchange are adders. First‑week storage may be bundled or charged per pallet per day.
In our experience, drayage plus receiving swings landed cost by 2–4 cents per kg on a full reefer. Book the warehouse slot before vessel arrival to protect your timeline.
Broker, ISF, CBP fees, and insurance
Don’t forget the small but certain charges.
- ISF (10+2) filing: Typically $35–$60 if your broker files it. Late filings risk penalties, so submit supplier data early.
- Broker entry and FDA PN: $150–$300 for a straightforward food entry, plus minor per‑line fees.
- CBP MPF and HMF: MPF is often about 0.3464% of the customs value with published minimums/maximums. HMF is commonly about 0.125% of the entered value for ocean entries. Confirm current rates with your broker.
- Marine cargo insurance: For frozen food, we often see 0.25%–0.45% of the CIF value plus a minimum premium. Get a written quote.
We recommend carrying insurance, even if the carrier offers limited liability. Reefer product risk justifies the small premium.
A simple landed cost calculator you can reuse
Here’s the repeatable structure we drop into a spreadsheet. Inputs in bold are variables.
- CFR value = FOB product total + Ocean and reefer surcharges
- Insurance = Insurance rate × (CFR value)
- Duty = Duty rate × (Customs value, usually FOB)
- CBP fees = MPF + HMF (percentage of customs/entered value)
- Destination ops = Destination terminal fees + Broker/ISF + Drayage + Cold storage receiving + Contingency
- Landed total = FOB + Ocean + Insurance + Duty + CBP fees + Destination ops
- Landed cost per kg = Landed total ÷ Edible net kg
Pro tip: Add an optional “Effective cost per kg after yield” cell that divides by net kg × (1 − drip%). For repack jobs, 1–3% drip is realistic for many IQF vegetables. Higher surface‑area cuts like okra slices or paprika strips may run 3–5% depending on process.
Worked example: Indonesian IQF mixed vegetables to a LA cold store
Assumptions:
- Product: IQF mixed vegetables, 1 × 40’ reefer, 24,000 kg edible net. Light 5% protective glaze declared on spec.
- Price: FOB Jakarta $1.10/kg. FOB total $26,400.
- Origin port/FOB inclusions: Supplier covers export THC and docs per FOB.
- Ocean + reefer surcharges: $6,800 all‑in.
- Insurance: 0.35% of CFR value.
- Destination terminal/port fees: $1,050.
- Broker + ISF + FDA PN: $225 combined.
- CBP fees (MPF + HMF): $125 (estimate).
- Duty: 0% for this HTS example. Verify for your exact item.
- Drayage with genset/chassis: $920 total for a short LA/LB lane.
- Cold storage receiving: 22 pallets × $28 = $616.
- Contingency: $150.
Math:
- CFR value = $26,400 + $6,800 = $33,200
- Insurance = 0.35% × $33,200 = $116
- Duty = $0 (assumed)
- Destination ops = $1,050 + $225 + $125 + $920 + $616 + $150 = $3,086
- Landed total = $26,400 + $6,800 + $116 + $0 + $3,086 = $36,402
- Landed cost per kg = $36,402 ÷ 24,000 kg = $1.517/kg
If your operations expect 2% drip in repack, the effective cost becomes $36,402 ÷ 23,520 kg = $1.548/kg. If you mistakenly divided by glazed gross, you’d understate cost by about 5% and likely price too low.
Need us to sanity‑check your lane or plug your real quotes into this model? We’re happy to run the numbers together. Contact us on whatsapp.
Common mistakes that add 3–7 cents/kg without you noticing
- Dividing by the wrong kilos. Always use edible net. If glaze is present, confirm how net is declared.
- Treating “all‑in ocean” as truly all‑in. Many forwarder quotes exclude BAF/LSS or destination port charges. Get a line‑item list.
- Forgetting MPF/HMF and insurance. They’re small individually, but together they move the needle.
- Under‑budgeting drayage. Genset, chassis, TMF/PierPass, and wait time add up fast in LA/LB.
- Not booking the cold store early. Missed appointments trigger wait charges or even port demurrage.
Fix these and your model gets boringly accurate. That’s what you want.
When this advice applies (and when to tweak it)
Use this framework for Indonesian IQF vegetables shipping FOB Tanjung Priok to a US West Coast cold store. For East Coast arrivals, adjust ocean and inland legs, expect different terminal fees, and sometimes a slightly different drayage profile. For CIF quotes, strip out the seller’s included insurance/freight and replace with your actuals so you can compare apples to apples.
If you’re still validating SKUs or specs for buyers, grab the core data and run sample math. Our product pages include features and typical applications that help with forecasting. Start here: View our products.
