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Guide
How to work out the landed cost of a generator or transformer from China
A supplier's FOB price is only the starting point. To compare offers and set your budget, work out the cost delivered to your site.
The building blocks
- FOB price: equipment loaded on the ship in China (Shanghai, Qingdao or Ningbo).
- Ocean freight: depends on container type and route. A 1,000 kW open-frame set usually takes one 40 ft high-cube container; small silent sets can share a container.
- Insurance: typically about 0.3% of the cargo and freight value.
- CIF = FOB + freight + insurance. This is what our instant estimate shows for generator sets.
- Destination port charges and customs clearance: terminal handling, documentation and the broker's fee.
- Import duty and VAT: set by your country's tariff for the HS code. Generator sets usually fall under HS 8502 and transformers under HS 8504; rates vary widely, and some projects are exempt.
- Inland transport and offloading: often underestimated for heavy units; a crane may be needed on site.
A quick way to budget
- Get the CIF figure from your supplier or our estimate.
- Ask your clearing agent for the duty and VAT rate for the HS code and the usual port charges.
- Add inland transport and offloading.
- Keep 5–10% contingency for exchange rates and demurrage.
Watch for
- Free time at the destination port: delays in clearance quickly cost money.
- Pre-shipment inspection or conformity certificates some countries require before the goods leave China.
- Fuel: generator sets ship with little or no fuel; budget the first fill.
