Importing Generators into Africa: Demurrage, Bonded Storage and Where Costs Hide
The generator price is the small number. Demurrage, terminal handling, bonded storage and clearing agency fees are where African imports run over budget. Plan the landed cost, not the ex-works price.
The generator price is the small number on the invoice. The real budget is the landed cost: freight, terminal handling, demurrage, bonded storage, clearing agency and duty. African imports commonly run over budget on these line items, so plan the landed cost, not the ex-works price, and the conformity steps in the SONCAP and PVoC note sit inside that total.
The landed cost is more than the unit
Every leg from the works gate to your site carries a charge. Some are fixed and some accrue with time, and the time based ones are where budgets break. List them before you commit, and ask the supplier for the dimensions and weight so the freight and handling estimates are real.
| Cost line | When it is charged |
|---|---|
| Ex-works price | At the supplier's works |
| Freight to port and ocean freight | By the container and the route |
| Terminal handling | At load and discharge ports |
| Demurrage and detention | Per day the box overstays |
| Bonded storage | Per day while clearing |
| Clearing agency and duty | On import, by value and HS code |
Demurrage and detention
Demurrage is the charge for the container sitting in the terminal past its free days; detention is the charge for the box being out past its return window. Both accrue daily and quietly, so the fastest way to control them is to have the documents and the clearing agent ready before the vessel arrives, not after.
Bonded storage
If the set cannot clear immediately, it moves to bonded storage and the clock keeps running. A missing conformity certificate, an invoice that does not match the packing list, or an uncleared duty all push the cargo into storage. The conformity certificates covered for Nigeria, the EAC and Saudi are the usual trigger, so close them early.
Clearing agent and local transport
A good clearing agent earns their fee by preventing these charges, not by being the cheapest line item. Budget for the agency, the inland transport from port to site, and a contingency, because the last kilometres often cost more than the ocean freight on a heavy, awkward crate.
How to keep the number honest
- Get the crate dimensions and weight up front for real freight estimates
- Close SONCAP, PVoC or SABER before the vessel sails
- Match invoice, packing list and certificate to avoid storage
- Pre-book the clearing agent and the inland haul
Frequently asked questions
Why did my import cost more than the quote?
Because the quote was usually the ex-works or FOB price. Demurrage, terminal handling, bonded storage, clearing and duty sit on top, and the time based ones accrue daily. Plan landed cost, not unit price.
What is the difference between demurrage and detention?
Demurrage is the container sitting in the terminal past its free days; detention is the box being out past its return window. Both are daily charges that build fast if documents are late.
How do I avoid bonded storage charges?
Have the conformity certificate, the matched invoice and packing list, and the duty ready before arrival. The SONCAP, PVoC and SABER notes cover closing those certificates early.
Does the supplier control these costs?
Only partly. The supplier controls the crate weight, dimensions and the technical file; the importer controls the agent, the duty and the timing. The two have to coordinate, which is why early document handover matters.
Should I insure to ex-works or landed value?
To landed value, because that is what you lose if the cargo is lost or damaged in transit. The shipping note covers the insurance point.