DDP SHIPPING—DOOR TO DOOR
PICK UP
FREIGHT
CUSTOMS
DELIVERY
WHAT IS DDP SHIPPING?
DDP (Delivered Duty Paid) transportation service, also known as door-to-door service, refers to the full transportation service from picking up the goods at the supplier’s door to the customer’s door. The freight forwarding company will be responsible for the entire transportation, customs clearance and taxes. The DDP quotation is actually the all-inclusive price from door to door.
WHAT ARE THE DDP SHIPPING METHODS?
SEA DDP: reaches the most areas and has the cheapest price.
RAILWAY DDP: mainly in Asia and Europe, and transports goods via the Central European Railway.
ROAD DDP: mainly in Asia and Europe, the price is slightly higher than the railway, and the transportation time is shorter.
AIR DDP: quickly reaches the delivery address around the world in 5-12 days, and the price is expensive.
WHY MORE AND MORE CUSTOMERS CHOOSE DDP SHIPPING SERVICE？
Convenience:
Under the DDP mode, the seller is responsible for all costs and procedures such as transportation, tariff and taxes. This allows the buyer not to worry about complicated import and export procedures and additional costs, simplifying the entire procurement process.
Cost transparency：
For buyers, DDP provides a final price that includes all charges, making costs more transparent and predictable and avoiding additional unexpected expenses.
Reduce risk：
The seller will handle duties and customs clearance, reducing the buyer’s burden in this area. This is especially attractive to buyers who are unfamiliar with international trade processes or unwilling to deal with these issues.
Customer experience:
Through DDP, buyers can enjoy a better service experience, because they only need to wait for the goods to arrive, without having to deal with the cumbersome procedures such as tariffs and taxes.
These factors have driven more and more people to choose DDP as their preferred shipping method.
DETAILED COMPOSITION OF DDP SHIPPING
1.Domestic Transport Costs in Export Country
Shipping Fee：
The cost of shipping from the seller’s warehouse to the export port or airport,usually involving trucking or railroad transportation. This part of the cost is calculated based on the transportation distance and the volume/weight of the goods.
Loading and unloading charges：
Includes the cost of loading the goods from the warehouse onto the transport vehicle, as well as the handling costs at the port or airport.
2.International Transport Costs
Ocean freight/air freight：
This part of the fee is calculated by the shipping company or airline based on the volume, weight and destination of the goods. For sea transportation, it is usually charged by the volume (cubic meters) of the goods; for air transportation, it is charged by the volumetric weight of the goods.
Fuel Surcharge：
The fuel surcharges charged by airlines or shipping companies are usually adjusted according to fluctuations in international oil prices.
Security Surcharge：
Some airlines or shipping companies will charge additional security fees, especially for air transport.
War Risk Surcharge: If the goods pass through war or high-risk areas, this fee may be added.
3.Import Costs in Destination Country
Customs Duties：
The buyer needs to pay the customs duty according to the laws of the destination country. The calculation of customs duty is usually based on the declared value of the goods and the HS code.
VAT：
Many countries impose a value-added tax on imported goods, and this cost is usually borne by the buyer.
Customs Clearance Fee：
Includes the service fee of the agency handling import customs clearance.
Port or Airport Charges：
Including terminal handling fees, storage fees, port service fees, etc.
4.Domestic Transport Costs in Import Country
Shipping Fees：
The transportation cost from the destination port or airport to the buyer’s designated delivery location. This part of the cost is calculated based on the logistics conditions of the destination country and the distance the goods are transported.
Loading and unloading charges：
Unloading costs at the port or airport of destination, and at the final point of delivery.
5. Miscellaneous Costs
Freight Forwarder Fees：
A service fee charged by a freight forwarding company for arranging and managing the entire shipping process.
Documentation Fees：
Includes the cost of preparing various documents required for shipping and customs clearance, such as bills of lading, invoices, packing lists, etc.
Additional costs：
Such as refrigeration fees, expedited fees, dangerous goods surcharges, etc. that may be required for special goods.
DDP SHIPPING VOLUME RATIO CONVERSION（NO FCL）
Volume ratio is a key indicator used in the logistics and transportation industries to measure the volume and weight of goods.
Conversion formula：
Volume ratio：Usually 1 cubic meter of cargo is calculated as 167 kilograms, that’s mean the chargeable weight = cargo volume (cubic meter) × 167 kilograms.
Volume weight (kg) = length (cm) * width (cm) * height (cm) / 6000
The 6000 in this formula is a calculated based on the material volume ratio of 1 cubic meter = 167 kilograms.
Practical Application：
When you want to calculate the shipping cost, you usually first calculate the actual weight (Gross Weight) and volumetric weight (Volumetric Weight) of the goods. The transportation company will calculate the freight based on the higher of the two.
These two concepts and formulas are very important in international logistics, especially for choosing the appropriate mode of transportation and optimizing transportation costs.
CONTAINER DDP VOLUME RATIO CONVERSION（FCL）
DDP shipping cost = Domestic Transport Costs and Customs (exporting country) + International transportation cost + Import cost （customs,duty）+ inland transportation cost (importing country) + insurance cost + other costs
THE RISE OF GLOBAL E-COMMERCE DRIVES THE DEVELOPMENT OF DDP SHIPPING
E-commerce has developed
E-commerce has developed rapidly, connecting global buyers and suppliers. Buyers buy cheap goods on China’s e-commerce platforms, but traditional international express delivery requires buyers to do customs clearance and pay taxes by themselves, which is the DAP model, and cannot meet the needs of buyers.
purchasing the product
The DDP transportation model, which includes all customs and tax work from door to door, is becoming more and more popular among buyers.
Buyers can communicate with the freight forwarder before purchasing the product, because not all items can be transported. For example, liquids, batteries and magnetic goods are difficult to transport and have strict transportation requirements.
Some stores do not support unconditional refunds. Contacting the freight forwarder in advance to confirm the transportation of the goods can avoid unnecessary economic losses.
GB INTL FREIGHT
CHINA’S LEADING AND EXPERIENCED FREIGHT FORWARDING TEAM
