Understanding KIT, SKD and CKD shipments in Truck Mounted Machines

There are many ways that equipment is delivered in the truck mounted equipment industry (think crane, aerial work platform, garbage compactor, vacuum truck). Equipment is delivered in many different ways due to logistical considerations, customs clearances, and ability to assemble items based on their local ability to do so. The four main ways to deliver equipment are via complete unit (CU), KIT unit, SKD (Semi Knocked Down) unit and CKD (Fully Knocked Down) unit.

A complete unit (CU) is referred to as a completed piece of equipment fully mounted on and installed on the truck chassis at the manufacturer’s factory and is delivered ready to operate. The equipment will be fully mounted, and all hydraulic and electrical connections will have been made to the truck. Additionally, the equipment will have undergone thorough testing before being shipped to the customer. As a result, customers receive a complete truck that will only require a vehicle registration and minimal inspection prior to being put into operation. This option provides the best level of convenience and quality control but will frequently be the most expensive option as it will incur the highest freight costs to ship and will very often also be subject to the highest duty rates for importation versus other delivery formats since it is considered a complete truck. The body builder will also add some margin to the truck price and installation as well.

A KIT unit is an example of equipment delivery that will include a completely assembled superstructure that has been delivered to the customer with the truck chassis. In this case, the equipment such as a crane or aerial work platform would be completely assembled, and all hydraulic and electrical connections would have been completed and field tested at the factory but would be delivered without the superstructure mounted to the truck for the user to mount on the truck for use.The package of a Complete Unit typically consists of a chassis/hydraulic sub-frame machine or frame, hydraulic components, mounting bolts, and installation directions that are delivered to the distributor or installation location where the distributor or installer installs the complete machine onto a proper truck chassis; connects up the power take-off (PTO) and hydraulic parts; makes electrical connections to the unit; and does any final checks to ensure everything is working properly. A KIT should be installed in less than one day from arrival onsite.

An SKD (Semi-Knocked Down) unit is sent with major components (such as booms, cylinders, and some structural component parts) disassembled before shipping to lower the volume of shipping or for compliance with local import regulations. Upon arrival to the distributor, there is some assembly required - installing hydraulic hoses, mounting cylinder, and assembling some structural components and performing a system test.

A CKD (Completely-Knocked Down) unit is shipped as one complete component package and will be completely assembled at the destination country. All structural parts, hydraulic components, electrical systems/hardware are shipped as separate pieces to be assembled locally. CKD shipments are frequently used when manufacturers desire to offer support for domestic manufacturers or to benefit from government-sponsored incentives to promote local assembly operations.

Ultimately, the choice of whether to use Complete Units, KIT, SKD, or CKD shipments from manufacturers will be determined by the costs of shipping; applicable import duties; the ability of distributors to perform required assembly; and the level of local industry involvement the customers desire.