Used Excavator Shipping: FOB vs CIF vs DDP Explained (with Real Numbers)

You are reading this because you are buying a used excavator from China and the seller just threw three letters at you: FOB, CIF, DDP. Here is the honest answer up front: For most buyers in Africa, SE Asia, the Middle East, and Latin America, CIF (Cost, Insurance, Freight) is the safest and most practical option. FOB (Free On Board) saves you a few hundred dollars but dumps all the shipping risk on you. DDP (Delivered Duty Paid) sounds great but is almost never offered on used machinery because the seller cannot know your local import duties and taxes without a crystal ball. ExcaYard does not offer DDP. We explain why below.

What FOB Actually Means (and What It Costs You)

FOB Shanghai means the seller’s responsibility ends the moment the excavator is loaded onto the vessel at the port of origin. From that point forward, the machine is your problem.

What the seller pays:

• Local trucking to the port in China
• Export customs clearance
• Port handling charges at origin (loading, terminal fees)
• Loading onto the vessel

What you pay (the buyer):

• Ocean freight (container or RoRo)
• Marine insurance (if you buy it — many FOB buyers skip this, which is a mistake)
• Port charges at destination (unloading, storage if delayed)
• Import customs clearance, duties, and taxes
• Inland transport from the destination port to your yard

Real freight numbers (as of Q1 2025, per 40-ft container from Shanghai):

Destination Port	Ocean Freight (USD)
Lagos, Nigeria	$2,300
Mombasa, Kenya	$2,100
Manila, Philippines	$1,650
Jeddah, Saudi Arabia	$2,300
Callao, Peru	$2,900

These are container rates. RoRo (roll-on/roll-off) is often $200–$400 cheaper but only works for tracked excavators that can drive on/off. Wheeled excavators or machines with damaged tracks usually need a container.

The hidden risk with FOB: If the ship sinks, the container falls overboard, or the machine gets damaged during transit, you have no recourse unless you bought your own insurance. Many first-time buyers skip insurance to save $150–$300. That is a terrible bet on a $20,000–$50,000 machine.

CIF: The Sweet Spot for Most Buyers

CIF (Cost, Insurance, and Freight) means the seller arranges and pays for ocean freight and marine insurance up to the destination port. The seller also covers all origin-side costs (same as FOB). You still handle everything at the destination.

What the seller pays:

• Everything in FOB above
• Ocean freight
• Marine insurance (typically 110% of the invoice value)

What you pay:

• Port charges at destination
• Import customs clearance, duties, taxes
• Inland transport

Why CIF wins for most buyers:

• One less thing to arrange. You do not need to find a freight forwarder, negotiate a container rate, or buy insurance.
• Insurance is included. If something happens during the voyage, the seller’s insurance covers it. You file the claim together.
• Price transparency. The total CIF price is a single number. You know exactly what you owe before the machine leaves China.

The catch: The seller’s freight rate might be $100–$200 higher than what you could negotiate yourself if you are a high-volume shipper. For a one-off purchase, that difference is negligible compared to the headache of arranging your own shipping.

DDP: Why We Do Not Offer It (and You Should Be Suspicious of Anyone Who Does)

DDP (Delivered Duty Paid) means the seller delivers the excavator to your specified location — your yard, your job site — with all costs paid. That includes ocean freight, insurance, destination port charges, import customs clearance, duties, taxes, and inland transport.

Sounds perfect, right? Here is why it almost never works for used excavators:

• Import duties vary wildly. Nigeria charges 35% duty on used machinery. Kenya charges 25% plus 16% VAT. Peru charges 0% if the machine is over 10 years old (but 12% if newer). The seller cannot know your exact classification until the machine lands.
• Customs clearance delays. Your local customs broker knows the paperwork quirks of your port. A seller in China does not. If the machine gets held up for two weeks, who pays the demurrage? Under DDP, the seller does. That is a loss they will try to recover from you later.
• Inland transport risk. The seller has no control over road conditions, police checkpoints, or truck availability in your country.

The reality: Any seller offering DDP on a used excavator is either:

1. Padding the price by 20–30% to cover unknown costs, or
2. Planning to renegotiate once the machine lands and the real costs become clear.

ExcaYard does not offer DDP. We will quote you CIF to your nearest port. You handle the rest with a local customs broker. That is the honest, low-risk path.

Container vs RoRo: Which One for Your Excavator?

This decision affects cost, risk, and delivery time.

Factor	Container	RoRo
Cost	Higher (container rental + chassis)	Lower (no container, just vessel space)
Protection	Full enclosure, less damage risk	Exposed to weather, salt spray, theft
Machine size limit	Up to 26-ton excavator in a 40-ft HC container	Any size that fits the vessel ramp
Loading	Requires disassembly (boom, arm, counterweight)	Drive on/off, no disassembly
Transit time	Same as RoRo	Same as container
Port availability	Almost all ports	Some ports lack RoRo ramps

Our recommendation:

• Container for excavators under 26 tons, especially if the machine has delicate electronics, a cab with glass, or you want maximum protection.
• RoRo for larger machines (30+ tons) or if you are on a tight budget and the destination port has a RoRo ramp. RoRo is common to Mombasa, Lagos, Manila, and Jeddah.

One more thing: RoRo vessels sometimes charge by cubic meters, not weight. A long-reach excavator with an extended boom can cost more than a standard machine of the same weight. Always get a RoRo quote based on the machine’s actual dimensions.

Hidden Costs That Buyers Miss

Every Incoterm has costs that are not in the headline price. Here is what to budget for beyond the machine and freight:

• Port storage (demurrage): Most ports give 3–7 free days. After that, $50–$150 per day. Customs delays are the #1 cause.
• Customs broker fee: $200–$800 depending on the country and complexity.
• Import duties and taxes: 0% (Peru, older machines) to 35% (Nigeria) plus VAT (5–20%).
• Inland transport: $200–$1,500 depending on distance from port to your yard.
• Container return fee (if container): You must return the empty container to the shipping line’s depot. If your yard is far from the depot, this can cost $100–$300.
• Inspection fee: Some countries require a pre-clearance inspection (e.g., Kenya’s PVoC). Budget $200–$500.

Total hidden costs (typical range): $1,500–$4,500 depending on destination and machine size. Do not buy a machine if you only have the CIF price in your budget.

How to Choose: FOB vs CIF Decision Matrix

Your Situation	Best Option	Why
First-time buyer, no freight contacts	CIF	Let the seller handle shipping and insurance
High-volume buyer (3+ machines/year)	FOB	You can negotiate better freight rates yourself
Urgent delivery needed	CIF	Seller controls the schedule, fewer handoffs
Very tight budget (under $1,000 margin)	FOB	You can save $100–$200 by booking your own container
Machine over 30 tons	CIF	RoRo booking is simpler for the seller to arrange
Destination with complex customs (e.g., Nigeria)	CIF	Seller’s insurance protects you during transit; customs is still your job

Bottom Line: What We Recommend

For 90% of used excavator buyers, choose CIF. It balances cost, risk, and convenience. You get a single price, insurance is included, and the seller handles the logistics that are hardest for a foreign buyer to manage.

Use FOB only if:

• You have a trusted freight forwarder in China.
• You are buying multiple machines and can negotiate container rates.
• You are comfortable arranging your own marine insurance.

Avoid DDP unless you have a long-term relationship with the seller and they have proven they can clear machinery in your country. Even then, expect a 15–25% premium.

At ExcaYard, we quote CIF to your nearest port. We use standard 40-ft high-cube containers for machines under 26 tons and RoRo for larger ones. We do not hide the freight cost — it is itemized in your invoice. We also provide the bill of lading, packing list, and commercial invoice so your customs broker has everything they need.

Final Word

Shipping a used excavator from China is not complicated once you understand the three Incoterms. FOB is cheapest but riskiest. CIF is the middle ground that works for most buyers. DDP is a trap for the unwary. Stick with CIF, budget for hidden costs, and use a local customs broker you trust.

If you want a CIF quote for a specific machine or destination, talk to us. We will give you the numbers — no fluff, no hidden fees.