First Leg Freight
First leg freight is the cost of moving goods from the China factory to the overseas warehouse or destination port — the first stage of landed cost.
The first leg is the entire movement of goods from China (factory/warehouse) to an overseas warehouse or the destination-country port; first leg freight is the cost of that stage. It typically covers domestic transport (factory to port/airport), the international leg (ocean/air/rail/truck), export and import clearance, and delivery from the destination port/airport to the warehouse. The local delivery from the warehouse to the final buyer is the 'last leg.'
Practical notes for Chinese exporters: the first leg can go by ocean (FCL or LCL), air, sea/air + trucking, or rail (e.g., China-Europe). Ocean is cheapest but slow; air is fast but costly — balance against transit time, cargo value, and stocking cycle. Quotes split into 'tax-excluded' (no destination import duty/VAT) versus 'delivered duty-paid to warehouse'; DDP generally means the seller bears all costs and taxes to destination, so confirm the quote's scope or you will underestimate landed cost. Watch for peak-season rate spikes and rollovers, port storage/demurrage from missing clearance documents (product certs, EORI, VAT), and penalties for under-declaration.
FAQ
- What does 'double clearance, tax-included' mean in a first-leg quote?
- 'Double clearance' means the forwarder handles both export declaration and import clearance; 'tax-included' means the quote already covers destination import duty and VAT. It is convenient but check whether the clearance entity and duty-payment records are compliant, who is liable if problems arise, and whether someone else's tax number is being used. The clean approach is to clear under your own importer identity with your own VAT/EORI.
- Should the first leg go by ocean or air?
- It depends on transit time, cargo value, and inventory strategy. Ocean is cheapest — good for bulky, moderate-value routine stocking with ample lead time. Air is fast but pricier per unit — good for first-order tests, urgent replenishment, light/high-value goods, or hitting launch/peak windows. Many sellers stock by ocean and top up by air when out of stock. Use the site's tools to compare both by actual weight and volume.
Related terms
Sources: https://www.ipaylinks.com/information_details.php?id=4888 · http://www.jiangmen.gov.cn/gzhd/zhzw/content/post_3129728.html