Reshoring & Tariff Strategy worked example

Ocean vs Truck Cost at 46% share routed by costlier mode: a worked example

This scenario runs the ocean vs truck cost calculation on the strong side: 46% share routed by costlier mode, with every other input held at its documented default. A logistics planner compares slow-cheap ocean against fast-costlier truck for a nearshore lane to size the freight premium.

The inputs for this scenario

  • Annual containers shipped: 1,200 containers/yr (unchanged)
  • Cost gap per container: 1,800 $/container (unchanged)
  • Share routed by costlier mode: 46 % (raised for this scenario; the documented default is 40)
  • Mode-change fixed cost: 15,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Annual mode cost delta ($) = containers shipped x cost gap per container x costlier-mode share% + mode-change fixed cost) to the inputs above produces each figure below.
  • At this operating point the engine returns 1,008,600 $ for total ocean vs truck cost, the number this scenario is built around.
  • At this operating point the engine returns 841 $ / piece for ocean vs truck cost per unit.
  • At this operating point the engine returns 993,600 $ for variable ocean vs truck cost.
  • At this operating point the engine returns 15,000 $ for fixed ocean vs truck cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where share routed by costlier mode sits at 40% and the headline result is 879,000 $, this scenario comes in 14.74% above the baseline at 1,008,600 $.
  • Use it when evaluating a mode shift in a reshoring or nearshoring move, or when modeling how moving volume between ocean and truck changes annual freight spend. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Total ocean vs truck cost: 1,008,600 $ (headline result)
  • Ocean vs truck cost per unit: 841 $ / piece
  • Variable ocean vs truck cost: 993,600 $
  • Fixed ocean vs truck cost adder: 15,000 $

Run it with your numbers

  • Every input above is editable in the live Ocean vs Truck Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.